VLTO · 10-Q · 2026Q4 · Full report
Income Tax Rate Changes
Veralto Corp · 2026-10-30 · Importance 65 · Surprise 82 · Matches filing data
The effective tax rate was 7.3% for the three months ended October 2, 2026, compared with 21.9% a year earlier, and 15.3% for the nine months, compared with 22.0%. A $47 million net discrete tax benefit, primarily related to restructuring costs and the reduction of the tax indemnification related to the Danaher separation, lowered the quarterly rate by 17.1%. A $57 million net discrete benefit from similar items lowered the nine-month rate by 6.5%. The Company also cited favorable tax-law changes under the One Big Beautiful Bill Act and the geographic mix of earnings as factors in the rate comparison.
Key facts
- Veralto’s three-month 2026 effective tax rate differed from the 21% U.S. federal statutory rate partly because of the geographic earnings mix, favorable OBBBA tax-law changes and a $47 million net discrete benefit; the benefit reduced the rate by 17.1%. source
- Veralto’s nine-month 2026 effective tax rate differed from the 21% U.S. federal statutory rate partly because of the geographic earnings mix, favorable OBBBA tax-law changes and a $57 million net discrete benefit; the benefit reduced the rate by 6.5%. source
- For the three months ended October 3, 2025, a $1 million net discrete tax provision increased Veralto's effective tax rate by 0.3%; the provision related primarily to uncertain tax positions, partially offset by a German tax rate change on deferred taxes. source
- For the nine months ended October 3, 2025, a $2 million non-deductible loss on the sale of a product line unfavorably affected Veralto's effective tax rate; a $1 million net discrete tax benefit decreased the rate by 0.1%. source
- Veralto’s effective tax rate was 7.3% in the three-month period ended October 2, 2026, compared with 21.9% in the comparable 2025 period. source
- Veralto’s effective tax rate was 15.3% in the nine-month period ended October 2, 2026, compared with 22.0% in the comparable 2025 period. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | realized | +3.8% | Veralto’s nine-month 2026 effective tax rate differed from the 21% U.S. federal statutory rate partly because of the geographic earnings… |