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Side-by-side financial comparison of Veralto (VLTO) and WATSCO INC (WSO). Click either name above to swap in a different company.
WATSCO INC is the larger business by last-quarter revenue ($1.6B vs $1.4B, roughly 1.1× Veralto). Veralto runs the higher net margin — 17.9% vs 4.5%, a 13.3% gap on every dollar of revenue. On growth, Veralto posted the faster year-over-year revenue change (6.8% vs -10.0%). WATSCO INC produced more free cash flow last quarter ($388.5M vs $170.0M). Over the past eight quarters, Veralto's revenue compounded faster (6.8% CAGR vs 0.4%).
Veralto Corporation is an American technology company headquartered in Waltham, Massachusetts. It produces products related to water analytics, water treatment, marking and coding, and packaging and color.
Watsco, Inc. is a distributor of air conditioning, heating and refrigeration equipment, and related parts and supplies (HVAC/R) in the United States. Watsco was founded more than 60 years ago as a manufacturer of parts, components, and tools used in the HVAC/R industry. In 1989, the company shifted from manufacturing to distribution, by acquiring Gemaire Distributors Inc., a South Florida-based Rheem distributor.
VLTO vs WSO — Head-to-Head
Income Statement — Q1 FY2026 vs Q4 FY2025
| Metric | | |
|---|---|---|
| Revenue | $1.4B | $1.6B |
| Net Profit | $254.0M | $71.7M |
| Gross Margin | 60.1% | 27.1% |
| Operating Margin | 23.8% | 6.4% |
| Net Margin | 17.9% | 4.5% |
| Revenue YoY | 6.8% | -10.0% |
| Net Profit YoY | 12.9% | -25.9% |
| EPS (diluted) | $1.02 | $1.82 |
Green = leading value per metric. Periods may differ when fiscal calendars don't align.
8-Quarter Revenue & Profit Trend
Side-by-side quarterly history. Quarters aligned by calendar period so offset fiscal years line up.
| Q1 26 | $1.4B | — | ||
| Q4 25 | $1.4B | $1.6B | ||
| Q3 25 | $1.4B | $2.1B | ||
| Q2 25 | $1.3B | $2.1B | ||
| Q1 25 | — | $1.5B | ||
| Q4 24 | $1.3B | $1.8B | ||
| Q3 24 | $1.3B | $2.2B | ||
| Q2 24 | $1.3B | $2.1B |
| Q1 26 | $254.0M | — | ||
| Q4 25 | $239.0M | $71.7M | ||
| Q3 25 | $222.0M | $161.6M | ||
| Q2 25 | $225.0M | $183.6M | ||
| Q1 25 | — | $80.1M | ||
| Q4 24 | $227.0M | $96.8M | ||
| Q3 24 | $219.0M | $171.0M | ||
| Q2 24 | $203.0M | $181.4M |
| Q1 26 | 60.1% | — | ||
| Q4 25 | 60.1% | 27.1% | ||
| Q3 25 | 60.0% | 27.5% | ||
| Q2 25 | 60.4% | 29.3% | ||
| Q1 25 | — | 28.1% | ||
| Q4 24 | 59.6% | 26.7% | ||
| Q3 24 | 59.6% | 26.2% | ||
| Q2 24 | 60.1% | 27.1% |
| Q1 26 | 23.8% | — | ||
| Q4 25 | 23.2% | 6.4% | ||
| Q3 25 | 22.8% | 11.4% | ||
| Q2 25 | 24.2% | 13.2% | ||
| Q1 25 | — | 7.3% | ||
| Q4 24 | 22.9% | 7.8% | ||
| Q3 24 | 23.4% | 11.6% | ||
| Q2 24 | 23.2% | 12.6% |
| Q1 26 | 17.9% | — | ||
| Q4 25 | 17.0% | 4.5% | ||
| Q3 25 | 16.2% | 7.8% | ||
| Q2 25 | 16.9% | 8.9% | ||
| Q1 25 | — | 5.2% | ||
| Q4 24 | 16.9% | 5.5% | ||
| Q3 24 | 16.7% | 7.9% | ||
| Q2 24 | 15.8% | 8.5% |
| Q1 26 | $1.02 | — | ||
| Q4 25 | $0.95 | $1.82 | ||
| Q3 25 | $0.89 | $3.98 | ||
| Q2 25 | $0.90 | $4.52 | ||
| Q1 25 | — | $1.93 | ||
| Q4 24 | $0.91 | $2.42 | ||
| Q3 24 | $0.88 | $4.22 | ||
| Q2 24 | $0.81 | $4.49 |
Balance Sheet & Financial Strength
Snapshot of each company's liquidity, leverage and book value from the latest quarter.
| Metric | | |
|---|---|---|
| Cash + ST InvestmentsLiquidity on hand | — | $733.3M |
| Total DebtLower is stronger | — | $361.6M |
| Stockholders' EquityBook value | — | $2.8B |
| Total Assets | — | $4.4B |
| Debt / EquityLower = less leverage | — | 0.13× |
8-quarter trend — quarters aligned by calendar period.
| Q1 26 | — | — | ||
| Q4 25 | $1.8B | $733.3M | ||
| Q3 25 | $1.6B | $524.3M | ||
| Q2 25 | $1.2B | $293.0M | ||
| Q1 25 | — | $431.8M | ||
| Q4 24 | $1.1B | $781.9M | ||
| Q3 24 | $1.3B | $550.0M | ||
| Q2 24 | $1.0B | $424.9M |
| Q1 26 | — | — | ||
| Q4 25 | $2.7B | $361.6M | ||
| Q3 25 | $2.7B | $340.8M | ||
| Q2 25 | $2.6B | $338.7M | ||
| Q1 25 | — | $346.4M | ||
| Q4 24 | $2.6B | $337.2M | ||
| Q3 24 | $2.6B | $321.0M | ||
| Q2 24 | $2.6B | $307.1M |
| Q1 26 | — | — | ||
| Q4 25 | $2.8B | $2.8B | ||
| Q3 25 | $2.7B | $2.8B | ||
| Q2 25 | $2.3B | $2.8B | ||
| Q1 25 | — | $2.7B | ||
| Q4 24 | $2.0B | $2.7B | ||
| Q3 24 | $2.0B | $2.7B | ||
| Q2 24 | $1.7B | $2.6B |
| Q1 26 | — | — | ||
| Q4 25 | $7.4B | $4.4B | ||
| Q3 25 | $7.2B | $4.6B | ||
| Q2 25 | $6.6B | $4.7B | ||
| Q1 25 | — | $4.5B | ||
| Q4 24 | $6.4B | $4.5B | ||
| Q3 24 | $6.3B | $4.5B | ||
| Q2 24 | $5.9B | $4.4B |
| Q1 26 | — | — | ||
| Q4 25 | 0.94× | 0.13× | ||
| Q3 25 | 1.01× | 0.12× | ||
| Q2 25 | 1.14× | 0.12× | ||
| Q1 25 | — | 0.13× | ||
| Q4 24 | 1.28× | 0.13× | ||
| Q3 24 | 1.35× | 0.12× | ||
| Q2 24 | 1.57× | 0.12× |
Cash Flow & Capital Efficiency
How much cash each business actually produces after reinvestment. Cash flow is harder to manipulate than net income.
| Metric | | |
|---|---|---|
| Operating Cash FlowLast quarter | $182.0M | $399.8M |
| Free Cash FlowOCF − Capex | $170.0M | $388.5M |
| FCF MarginFCF / Revenue | 12.0% | 24.6% |
| Capex IntensityCapex / Revenue | 0.8% | 0.7% |
| Cash ConversionOCF / Net Profit | 0.72× | 5.57× |
| TTM Free Cash FlowTrailing 4 quarters | $893.0M | $535.1M |
8-quarter trend — quarters aligned by calendar period.
| Q1 26 | $182.0M | — | ||
| Q4 25 | $270.0M | $399.8M | ||
| Q3 25 | $339.0M | $354.9M | ||
| Q2 25 | $157.0M | $-7.4M | ||
| Q1 25 | — | $-177.6M | ||
| Q4 24 | $285.0M | $378.9M | ||
| Q3 24 | $224.0M | $232.8M | ||
| Q2 24 | $251.0M | $57.7M |
| Q1 26 | $170.0M | — | ||
| Q4 25 | $258.0M | $388.5M | ||
| Q3 25 | $323.0M | $346.1M | ||
| Q2 25 | $142.0M | $-14.3M | ||
| Q1 25 | — | $-185.2M | ||
| Q4 24 | $263.0M | $370.9M | ||
| Q3 24 | $215.0M | $223.0M | ||
| Q2 24 | $240.0M | $51.3M |
| Q1 26 | 12.0% | — | ||
| Q4 25 | 18.4% | 24.6% | ||
| Q3 25 | 23.6% | 16.7% | ||
| Q2 25 | 10.7% | -0.7% | ||
| Q1 25 | — | -12.1% | ||
| Q4 24 | 19.6% | 21.1% | ||
| Q3 24 | 16.4% | 10.3% | ||
| Q2 24 | 18.6% | 2.4% |
| Q1 26 | 0.8% | — | ||
| Q4 25 | 0.9% | 0.7% | ||
| Q3 25 | 1.2% | 0.4% | ||
| Q2 25 | 1.1% | 0.3% | ||
| Q1 25 | — | 0.5% | ||
| Q4 24 | 1.6% | 0.5% | ||
| Q3 24 | 0.7% | 0.5% | ||
| Q2 24 | 0.9% | 0.3% |
| Q1 26 | 0.72× | — | ||
| Q4 25 | 1.13× | 5.57× | ||
| Q3 25 | 1.53× | 2.20× | ||
| Q2 25 | 0.70× | -0.04× | ||
| Q1 25 | — | -2.22× | ||
| Q4 24 | 1.26× | 3.91× | ||
| Q3 24 | 1.02× | 1.36× | ||
| Q2 24 | 1.24× | 0.32× |
Financial Flow Comparison
Revenue → gross profit → operating profit → net profit for each company.
