VLTO · 10-Q · 2026Q2 · Full report

Input Cost and Pricing Actions

Veralto Corp · 2026-04-29 · Importance 44 · Surprise 32

Management reports that price increases contributed 1.9% to consolidated sales growth for the quarter and were incorporated into core sales growth metrics. Price increases also contributed to segment results, with Water Quality pricing adding ~1.8% and PQI pricing adding ~2.0% to segment sales in the period. The company uses pricing and product mix to mitigate incremental cost pressures, such as higher labor costs, but continues to see some margin compression. Pricing is presented as a material lever supporting near‑term revenue growth and margin recovery.

Key facts

• Cost of sales increased by $41 million, or 7.8%, year-over-year during the three-month period ended April 3, 2026, driven primarily by higher year-over-year labor costs.
• The Company recorded that price increases contributed 1.9% to sales growth on a year-over-year basis during the three-month period ended April 3, 2026 (company-wide).
• Price increases in the Water Quality segment contributed 1.8% to sales growth year-over-year during the three-month period ended April 3, 2026.
• Price increases in the Product Quality & Innovation segment contributed 2.0% to sales growth year-over-year during the three-month period ended April 3, 2026.
• Higher incremental labor costs partially offset by higher first quarter 2026 sales unfavorably impacted operating profit margins by 10 basis points (company-wide).
• Positive pricing actions, product mix, and net positive impact from the gross profit margin of recent acquisitions partially offset the gross profit margin decrease in the three-month period ended April 3, 2026.