VLTO · 10-Q · 2026Q2 · Full report

Product Quality & Innovation Segment

Veralto Corp · 2026-04-29 · Importance 34 · Surprise 32

Product Quality & Innovation (PQI) segment total sales increased 1.7% year-over-year for the quarter ended April 3, 2026, while core sales declined 1.0% versus the comparable period. Price increases contributed ~2.0% to the segment’s reported sales growth; geographic strength was in North America (+0.5%) and Western Europe (+5.0%), while high‑growth markets rose 0.6%. By product line, marking and coding core sales increased 2.0% whereas packaging and color solutions core sales declined 7.5% year-over-year. Segment operating margin compressed to 26.3% from 27.1%, impacted by transaction costs for the GlobalVision acquisition and lower core sales combined with incremental labor and sales/marketing investments.

Key facts

• Research and development expenses were $68 million for the three-month period ended April 3, 2026 and $64 million for the three-month period ended April 4, 2025.
• Product Quality & Innovation core sales changes by geography for the three-month period ended April 3, 2026 were Western Europe -3.2% and North America +1.2%.
• Product Quality & Innovation total sales increased 1.7% year-over-year for the three-month period ended April 3, 2026.
• Product Quality & Innovation acquisitions/divestitures impact was +1.3% and currency exchange rates impact was -4.0% on segment sales growth for the three-month period ended April 3, 2026.
• Product Quality & Innovation core sales declined 1.0% year-over-year for the three-month period ended April 3, 2026.
• Core sales in the Product Quality & Innovation packaging and color solutions business decreased 7.5% year-over-year during the three-month period ended April 3, 2026.
• Product Quality & Innovation operating profit margin was 26.3% for the three-month period ended April 3, 2026 and 27.1% for the three-month period ended April 4, 2025.
• R&D as a percentage of sales was 4.8% for both the three-month periods ended April 3, 2026 and April 4, 2025.