VLTO · 10-Q · 2026Q4 · Full report

Gross Margin Drivers

Veralto Corp · 2026-10-30 · Importance 25 · Surprise 32

Gross margin was 60.2% in the three months ended October 2, 2026, up 10 basis points year over year, and 60.5% for the nine months, up 30 basis points. Positive pricing actions supported both periods, while incremental labor and material costs partly offset the quarterly improvement. Year-to-date margin also benefited from the net positive gross-margin impact of recent acquisitions. Cost of sales rose 7.3% to $601 million for the quarter and 6.4% to $1.741 billion year to date, primarily from higher sales volumes and labor and material costs, partly offset by productivity improvements and IEEPA tariff recoveries of $5 million and $21 million, respectively.

Key facts

• Veralto’s gross profit margin increased 30 basis points year over year in the nine-month period ended October 2, 2026, driven by pricing and acquisition margin contribution, partly offset by higher labor and material costs. source
• Veralto’s gross profit margin increased 10 basis points year over year in the three-month period ended October 2, 2026, driven by positive pricing actions, partly offset by higher labor and material costs. source