Veralto CorpVLTO

Veralto Corp Earnings Per Share Disclosure

10-KFiled Feb 20, 20261 min read
NET EARNINGS PER COMMON SHARE
Earnings per Common Share
Basic net earnings per share (“EPS”) is calculated by dividing net earnings by the weighted average number of shares of common stock outstanding for the applicable period. Diluted EPS is computed based on the weighted average number of common shares outstanding increased by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued and reduced by the number of shares the Company could have repurchased with the proceeds from the issuance of the potentially dilutive shares.
The Company was incorporated on October 26, 2022; accordingly, the Company had no shares or common equivalent shares outstanding prior to that date. The total number of shares outstanding at Separation was 246.3 million and is utilized for the calculation of both basic and diluted EPS for the period prior to the Separation.
Information related to the calculation of net earnings per common share for the years ended December 31 is summarized as follows:
($ and shares in millions, except per share amounts)
2025
2024
2023
Numerator:
Net earnings
$
940 
$
833 
$
839 
Denominator:
Weighted average common shares outstanding used in Basic EPS
248.3 
247.3 
246.4 
Incremental shares from assumed exercise of dilutive options and vesting of dilutive RSUs and PSUs
2.0 
2.3 
0.4 
Weighted average common shares outstanding used in Diluted EPS
250.3 
249.6 
246.8 
Basic EPS
$
3.79 
$
3.37 
$
3.41 
Diluted EPS
$
3.76 
$
3.34 
$
3.40 

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsNew StandardsPay vs Performance