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What were the key takeaways from Veralto's earnings call?

Did Veralto beat or miss consensus estimates last quarter?

What is Veralto's latest dividend and current dividend yield?

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What is the market's earnings forecast for Veralto next quarter?

- **Revenue & Profit Growth**: Q3 core sales +5.1%, adjusted EPS +11% to $0.99, with full-year EPS guidance raised to $3.82-$3.85.
- **Segment Strength**: Water Quality up 5.3% YoY, PQI up 4.6% YoY, with North America leading at 6.9% growth.
- **AI & Data Center Expansion**: Double-digit revenue growth from hyperscalers, driven by water treatment solutions for AI infrastructure.
- **Free Cash Flow Excellence**: Q3 free cash flow of $258 million (108% of net income), with 100% conversion guidance for 2025.
- **Sustainability Impact**: Provided clean water access for 3.4 billion people and saved 85 billion gallons of water annually.
- **M&A Pipeline**: Active deals in Water Quality and PQI, with disciplined capital allocation framework.


**【CEO Summary Section】**
- Delivered 5.1% core sales growth and 11% adjusted EPS growth in Q3, driven by strong execution in both Water Quality and PQI segments.
- Water Quality segment grew 5.3% year-over-year, with North America leading at 6.9% due to AI-driven infrastructure demand and municipal water analytics.
- PQI segment grew 4.6% year-over-year, with Videojet marking and coding solutions outperforming expectations in North America.
- Raised full-year adjusted EPS guidance to $3.82-$3.85 and free cash flow conversion to 100% of GAAP net income.
- Emphasized sustainability efforts, including providing clean water access for 3.4 billion people and reducing 85 billion gallons of water waste annually.

**【CFO Financial Commentary】**
- Total revenue of $1.4 billion (+6.9% YoY), with Water Quality at $856 million (+7% YoY) and PQI at $548 million (+6.9% YoY).
- Adjusted EPS of $0.99 (+11% YoY), exceeding high end of guidance by $0.04.
- Free cash flow of $258 million (108% of net income), with $1.8 billion cash on hand and net leverage of 0.7x.
- Q4 guidance: total sales growth in mid-single digits, adjusted EPS of $0.95-$0.98, and 30bps margin expansion YoY.
- Full-year core sales growth expected at mid-single digits, with 23.9% operating margin and 100% free cash flow conversion.

**【Q&A Key Highlights】**
- **Tariffs & Pricing**: Teams offset tariff impacts through strategic pricing, supply chain shifts, and product line localization, with no material pull-forward effects.
- **Data Center Growth**: Double-digit revenue growth from hyperscalers, driven by water treatment solutions for AI infrastructure and chip manufacturing.
- **M&A Pipeline**: Active pipeline in Water Quality and PQI, with focus on market company valuations and long-term value creation.
- **China Performance**: Sequential stability in China sales, with team execution maintaining mid-single-digit growth despite macro challenges.
- **Recurring Revenue**: High single-digit growth in consumables and software, driven by Esko-TraceGains integration and digital workflow adoption.
- **Sustainability Momentum**: Expansion of UV laser marking systems for sustainable packaging and AI-driven water conservation solutions.


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