How Investors Are Reacting To Veralto (VLTO) Authorizing a US$750 Million Open-Ended Buyback

• In November 2025, Veralto Corporation (NYSE: VLTO) announced that its Board of Directors had authorized a share repurchase program of up to US$750 million with no set expiration date.
• This open-ended buyback authorization highlights management’s willingness to deploy balance sheet capacity directly into equity, potentially reshaping capital allocation alongside its growth and M&A agenda.
• We’ll now consider how this sizeable, open-ended buyback authorization could influence Veralto’s investment narrative and analysts’ longer-term assumptions.

The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 24 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.

Veralto Investment Narrative Recap

To own Veralto, you need to believe in its ability to compound earnings from water quality and product identification, supported by recurring software and service revenue. The new US$750,000,000 open-ended buyback does not change the near term focus on execution in weaker China water markets or the key risk around cost inflation pressuring margins if pricing and efficiency actions lag.

The recent decision to raise full year 2025 core sales guidance to mid single digit growth is the most relevant backdrop to this buyback. It frames the repurchase authorization alongside a business that is already growing, yet still managing integration costs and investments in software initiatives that could weigh on margins if scaling takes longer than expected.

Yet behind the headline of a large buyback, investors should be aware that persistent weakness in China’s Water Quality business and ongoing cost inflation could...

Read the full narrative on Veralto (it's free!)

Veralto's narrative projects $6.4 billion revenue and $1.1 billion earnings by 2028. This requires 6.0% yearly revenue growth and an earnings increase of about $200 million from $893.0 million today.

Uncover how Veralto's forecasts yield a $115.59 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community fair value estimates for Veralto span roughly US$115 to US$138 per share, underscoring how far private opinions can diverge. Set against this, persistent weakness in China’s Water Quality segment and ongoing cost headwinds remind you that differing growth assumptions can materially sway how you think about the company’s future performance.

Explore 3 other fair value estimates on Veralto - why the stock might be worth as much as 35% more than the current price!

Build Your Own Veralto Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Veralto research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Veralto research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Veralto's overall financial health at a glance.

No Opportunity In Veralto?

Our top stock finds are flying under the radar-for now. Get in early:

• Explore 27 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research.
• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• Uncover the next big thing with financially sound penny stocks that balance risk and reward.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com