Veralto Corp

Previous wording

You should read this discussion along with the Company’s MD&A and audited financial statements and Notes thereto as of and for the year ended December 31, 2025, included within the 2025 Annual Report on Form 10-K, and the unaudited financial statements and related Notes as of and for the three and six-month periods ended July 3, 2026 included in this Quarterly Report on Form 10-Q (this “Report”).

Current wording

You should read this discussion along with the Company’s MD&A and audited financial statements and Notes thereto as of and for the year ended December 31, 2025, included within the 2025 Annual Report on Form 10-K, and the unaudited financial statements and related Notes as of and for the three and nine-month periods ended October 2, 2026 included in this Quarterly Report on Form 10-Q (this “Report”).

Previous wording

•Any inability to consummate acquisitions at our historical rate and appropriate prices, and to make appropriate investments that support our long-term strategy, could negatively impact our business. Our acquisition of businesses, investments, or other strategic relationships could also negatively impact our business and financial statements and our indemnification or insurance rights may not fully protect us from liabilities related thereto.

Current wording

•Any inability to consummate acquisitions at our historical rate and appropriate prices, and to make appropriate investments that support our long-term strategy, could negatively impact our business.

Previous wording

Veralto operates through two segments – Water Quality (“WQ”) and Product Quality & Innovation (“PQI”). Our businesses within these segments have strong globally recognized brands as a result of our leadership in served markets over several decades. Our WQ segment provides innovative products and services that improve the quality and reliability of water with leading brands including Hach, Trojan Technologies and ChemTreat. Our PQI segment enables our customers to promote consumer trust in their products and help enable product innovation with leading brands including Videojet, Linx, Esko, X-Rite and Pantone. We believe our leading positions result from the strength of our commercial organizations, our legacy of innovation, and our close and long-term connectivity to our customers and knowledge of their workflows, underpinned by our culture of continuous improvement. This has resulted in a large installed base of instruments that drive ongoing consumables and software sales to support our customers. As a result, our business generates recurring sales which represented approximately 62% of total sales during thesix-month period ended July 3, 2026. Our business model also supports a strong margin profile with limited capital expenditure requirements and has generated attractive cash flows. We believe these attributes allow us to deliver financial performance that is resilient across economic cycles.

Current wording

Veralto operates through two segments – Water Quality (“WQ”) and Product Quality & Innovation (“PQI”). Our businesses within these segments have strong globally recognized brands as a result of our leadership in served markets over several decades. Our WQ segment provides innovative products and services that improve the quality and reliability of water with leading brands including Hach, Trojan Technologies and ChemTreat. Our PQI segment enables our customers to promote consumer trust in their products and help enable product innovation with leading brands including Videojet, Linx, Esko, X-Rite and Pantone. We believe our leading positions result from the strength of our commercial organizations, our legacy of innovation, and our close and long-term connectivity to our customers and knowledge of their workflows, underpinned by our culture of continuous improvement. This has resulted in a large installed base of instruments that drive ongoing consumables and software sales to support our customers. As a result, our business generates recurring sales which represented approximately 62% of total sales during thenine-month period ended October 2, 2026. Our business model also supports a strong margin profile with limited capital expenditure requirements and has generated attractive cash flows. We believe these attributes allow us to deliver financial performance that is resilient across economic cycles.

Previous wording

During the three-month period ended July 3, 2026, overall revenues increased 7.6% and core sales increased 4.2% compared to the comparable period in 2025 primarily driven by core sales growth in the Water Quality segment. Currency exchange rates and acquisitions, net of divestitures increased reported sales by 1.0% and 2.4%, respectively, during the three-month period ended July 3, 2026 compared to the comparable period in 2025. For the six-month period ended July 3, 2026, overall revenues increased 7.1% and core sales increased 3.1%, compared to the comparable period in 2025. Currency exchange rates and acquisitions, net of divestitures increased reported sales by 2.2% and 1.8%, respectively, during the six-month period ended July 3, 2026 compared to the comparable period in 2025. For the definition of “core sales” refer to “—Results of Operations” below.

Current wording

During the three-month period ended October 2, 2026, overall revenues increased 7.5% and core sales increased 5.1% compared to the comparable period in 2025, primarily driven by core sales growth in the Water Quality segment. Currency exchange rates and acquisitions, net of divestitures increased reported sales by 0.1% and 2.3%, respectively, during the three-month period ended October 2, 2026 compared to the comparable period in 2025. For the nine-month period ended October 2, 2026, overall revenues increased 7.3% and core sales increased 3.8%, compared to the comparable period in 2025. Currency exchange rates and acquisitions, net of divestitures increased reported sales by 1.5% and 2.0%, respectively, during the nine-month period ended October 2, 2026 compared to the comparable period in 2025. For the definition of “core sales” refer to “—Results of Operations” below.

Previous wording

Geographically, the Company’s sales during the three-month period ended July 3, 2026 in developed markets increased year-over-year by 9.3%, driven by increased sales of 9.2% in North America, 9.0% in Western Europe, and 13.8% in other developed markets. Sales in high-growth markets increased 2.9% year-over-year. For the same period, core sales in developed markets increased 6.3% driven by increased core sales of 7.0% in North America and increased core sales of 4.9% in Western Europe. Core sales in high-growth markets decreased 0.1%, driven by a low-single digit decreases in Latin America and in China.

Current wording

Geographically, the Company’s sales during the three-month period ended October 2, 2026 in developed markets increased year-over-year by 8.3%, driven by increased sales of 9.9% in North America, 4.9% in Western Europe, and 6.9% in other developed markets. Sales in high-growth markets increased 5.3% year-over-year. For the same period, core sales in developed markets increased 6.2% driven by increased core sales of 7.6% in North America and 3.9% in Western Europe. Core sales in high-growth markets increased 1.6%, driven by a low-single digit increase in Latin America and double-digit increases in India, partially offset by a low-single digit decrease in China.

Previous wording

Geographically, the Company’s sales during the six-month period ended July 3, 2026 in developed markets increased year-over-year by 8.5%, driven by increased sales of 7.5% in North America, 10.6% in Western Europe, and 8.6% in other developed markets. Sales in high-growth markets increased 3.5% year-over-year. For the same period, core sales in developed markets increased 4.7% driven by increased core sales of 5.8% in North America and increased core sales of 2.7% in Western Europe. Core sales in high-growth markets decreased 0.3%, driven by low-single digit decreases in Latin America.

Current wording

Geographically, the Company’s sales during the nine-month period ended October 2, 2026 in developed markets increased year-over-year by 8.4%, driven by increased sales of 8.3% in North America, 8.7% in Western Europe, and 8.0% in other developed markets. Sales in high-growth markets increased 4.1% year-over-year. For the same period, core sales in developed markets increased 5.2% driven by increased core sales of 6.4% in North America and 3.1% in Western Europe. Core sales in high-growth markets increased 0.4%, driven by mid-single digit increases in India and other Asian markets, partially offset by low-single digit decreases in Latin America and China.

Previous wording

The Company’s net earnings for the three and six-month periods ended July 3, 2026 totaled $241 million and $495 million, respectively, compared to $222 million and $447 million, respectively, for the three and six-month periods ended July 4, 2025. The increase in net earnings was primarily driven by increased sales resulting from positive pricing actions, the impact of acquisitions, and the positive impact of recoveries of tariffs previously collected under the International Emergency Economic Powers Act (“IEEPA”), partially offset by higher cost of sales and restructuring costs related to the 2026 Cost Optimization Program. Refer to “—Results of Operations” for further discussion of the year-over-year changes in net earnings for the three and six-month periods ended July 3, 2026.

Current wording

The Company’s net earnings for the three and nine-month periods ended October 2, 2026 totaled $253 million and $748 million, respectively, compared to $239 million and $686 million, respectively, for the three and nine-month periods ended October 3, 2025. The increase in net earnings was primarily driven by increased sales resulting from positive pricing actions and higher volume along with the impact of acquisitions, partially offset by higher cost of sales and restructuring costs related to the 2026 Cost Optimization Program. Refer to “—Results of Operations” for further discussion of the year-over-year changes in net earnings for the three and nine-month periods ended October 2, 2026.

Previous wording

Water Quality: we continue to expect global growth led by positive secular growth drivers across municipal and industrial markets globally, and disciplined commercial execution. Segment performance is expected to benefit from steady municipal demand driven by recurring revenue from a large installed base, while industrial demand is driven by regional end-market dynamics.

Current wording

Water Quality: we continue to expect sales growth led by positive secular growth drivers across municipal and industrial markets globally, disciplined commercial execution, and product innovation. Segment performance is expected to benefit from steady municipal demand driven by recurring revenue from a large installed base, while industrial demand is driven by regional end-market dynamics.

Previous wording

Product Quality & Innovation: we expect growth to accelerate as the year progresses, driven by steady demand from consumer packaged goods market globally and increasing adoption of digital workflow solutions. Performance is expected to benefit from steady recurring revenue from a large installed base, new product offerings that help our customers convey the quality and safety of their products and build trust with consumers, and recovery in certain industrial end-markets in second half of the year.

Current wording

Product Quality & Innovation: we expect steady sequential sales, driven by steady demand from consumer packaged goods market globally and increasing adoption of digital workflow solutions. Performance is expected to be driven by steady recurring revenue from a large installed base, and new product offerings that help our customers convey the quality and safety of their products and build trust with consumers.

Previous wording

On April 7, 2026, the Company completed the acquisition of GlobalVision, for a cash purchase price of approximately CAD $270 million ($195 million), net of cash acquired. GlobalVision leverages its core proprietary deterministic technology with AI-augmented functionality to help pharmaceutical and consumer-packaged goods customers accelerate their speed to market and meet critical quality and packaging compliance regulations, verifying that packaging content remains accurate and compliant at every critical hand-off. GlobalVision will be integrated into the Product Quality & Innovation segment.

Current wording

On April 7, 2026, the Company completed the acquisition of GlobalVision for a cash purchase price of approximately CAD $270 million ($195 million), net of cash acquired. GlobalVision leverages its core proprietary deterministic technology with AI-augmented functionality to help pharmaceutical and consumer-packaged goods customers accelerate their speed to market and meet critical quality and packaging compliance regulations, verifying that packaging content remains accurate and compliant at every critical hand-off. GlobalVision has been integrated into the Product Quality & Innovation segment.

Previous wording

Total sales increased 7.6% and 7.1% during the three and six-month periods ended July 3, 2026, respectively, compared to the comparable periods in 2025, primarily as a result of core sales growth driven by the factors discussed below by segment.

Current wording

Total sales increased 7.5% and 7.3% during the three and nine-month periods ended October 2, 2026, respectively, compared to the comparable periods in 2025, primarily as a result of core sales growth driven by the factors discussed below by segment.

Previous wording

Currency exchange rates and acquisitions, net of divestitures, increased reported sales by 1.0% and 2.4%, respectively, during the three-month period ended July 3, 2026, compared to the comparable period in 2025. Currency exchange rates and acquisitions, net of divestitures, increased reported sales by 2.2% and 1.8%, respectively, during the six-month period ended July 3, 2026, compared to the comparable period in 2025. Price increases contributed 3.0% and 2.4% to sales growth on a year-over-year basis during the three and six-month periods ended July 3, 2026, respectively, and are reflected as a component of core sales growth above.

Current wording

Currency exchange rates and acquisitions, net of divestitures, increased reported sales by 0.1% and 2.3%, respectively, during the three-month period ended October 2, 2026, compared to the comparable period in 2025. Currency exchange rates and acquisitions, net of divestitures, increased reported sales by 1.5% and 2.0%, respectively, during the nine-month period ended October 2, 2026, compared to the comparable period in 2025. Price increases contributed 2.3% and 2.4% to sales growth on a year-over-year basis during the three and nine-month periods ended October 2, 2026, respectively, and are reflected as a component of core sales growth above.

Previous wording

Cost of sales increased by $23 million or 4.2% and by $64 million or 5.9% on a year-over-year basis during the three and six-month periods ended July 3, 2026, respectively, as compared to the comparable periods in 2025, driven primarily by higher year-over-year sales volumes, increased labor costs and price increases due to inflation.

Current wording

Cost of sales increased by $41 million, or 7.3%, and by $105 million, or 6.4%, on a year-over-year basis during the three and nine-month periods ended October 2, 2026, respectively, as compared to the comparable periods in 2025, driven primarily by higher year-over-year sales volumes and increased labor and material costs, partially offset by improved labor and overhead productivity, and recoveries of tariffs previously collected under the International Emergency Economic Powers Act (“IEEPA”). The Company recorded recoveries of IEEPA tariffs of $5 million and $21 million during the three and nine-month periods ended October 2, 2026, respectively.

Previous wording

Gross profit margins increased 120 basis points on a year-over-year basis during the three-month period ended July 3, 2026, as compared to the comparable period in 2025, driven by positive pricing actions, the impact of improved labor overhead and productivity, recoveries of tariffs previously collected under IEEPA, and the net positive impact from the gross profit margin of recent acquisitions, partially offset by increased labor costs and price increases due to inflation. Gross profit margins increased 40 basis points on a year-over-year basis during the six-month period ended July 3, 2026, as compared to the comparable period in 2025, driven by positive pricing actions, the impact of foreign currency exchange rates, recoveries of tariffs previously collected under IEEPA, and the net positive impact from the gross profit margin of recent acquisitions.

Current wording

Gross profit margins increased 10 basis points on a year-over-year basis during the three-month period ended October 2, 2026, as compared to the comparable period in 2025, driven by positive pricing actions, partially offset by incremental year-over-year labor and material costs. Gross profit margins increased 30 basis points on a year-over-year basis during the nine-month period ended October 2, 2026, as compared to the comparable period in

Previous wording

SG&A expenses as a percentage of sales increased 270 bps and 130 bps during the three and six-month periods ended July 3, 2026, respectively, as compared to the comparable periods in 2025, driven primarily by restructuring costs related to the 2026 Cost Optimization Program, incremental labor costs, and sales and marketing growth initiatives.

Current wording

SG&A expenses as a percentage of sales increased 380 basis points and 220 basis points during the three and nine-month periods ended October 2, 2026, respectively, as compared to the comparable periods in 2025, driven primarily by restructuring costs related to the 2026 Cost Optimization Program, reduction of the tax indemnification related to the Separation from Danaher, incremental labor costs, and sales and marketing growth initiatives.

Previous wording

R&D expenses as a percentage of sales were essentially flat during the three and six-month periods ended July 3, 2026 as compared to the comparable periods in 2025.

Current wording

R&D expenses as a percentage of sales were essentially flat during the three and nine-month periods ended October 2, 2026 as compared to the comparable periods in 2025.

Previous wording

•Restructuring charges incurred related to the 2026 Cost Optimization Program - 200 bps

Current wording

•Restructuring charges incurred related to the 2026 Cost Optimization Program - 150 basis points

Previous wording

•Transaction costs incurred during the second quarter of 2025 related to certain strategic initiatives - 10 basis points

Current wording

•Transaction costs incurred during the third quarter of 2025 related to certain strategic initiatives - 10 basis points

Previous wording

•Transaction costs incurred during the first two quarters of 2025 related to certain strategic initiatives - 10 basis points

Current wording

•Transaction costs incurred during the first three quarters of 2025 related to certain strategic initiatives - 10 basis points

Previous wording

Total Water Quality segment sales increased 10.1% year-over-year during the three and six-month periods ended July 3, 2026 as compared to the comparable period in 2025, primarily as a result of core sales growth driven by the factors discussed below. Geographically, sales growth was driven by North America, which saw increases of 10.8% and 9.4%, and Western Europe, which saw increases of 14.8% and 17.6% for the three and six-month periods ended July 3, 2026, respectively, compared to the comparable periods in 2025. Sales in high-growth markets increased 3.7% and 5.6% during the three and six-month periods ended July 3, 2026, respectively, compared to the comparable periods in 2025.

Current wording

Total Water Quality segment sales increased 9.8% and 10.0% year-over-year during the three and nine-month periods ended October 2, 2026, respectively, as compared to the comparable periods in 2025, primarily as a result of core sales growth driven by the factors discussed below. Geographically, sales growth was driven by North America, which saw increases of 11.3% and 10.0%, and Western Europe, which saw increases of 10.1% and 15.1% for the three and nine-month periods ended October 2, 2026, respectively, compared to the comparable periods in 2025. Sales in high-growth markets increased 5.2% and 5.4% during the three and nine-month periods ended October 2, 2026, respectively, compared to the comparable periods in 2025.

Previous wording

Price increases in the segment contributed 2.9% and 2.4% to sales growth on a year-over-year basis during the three and six-month periods ended July 3, 2026, respectively, and are reflected as a component of the change in core sales growth.

Current wording

Price increases in the segment contributed 2.0% and 2.2% to sales growth on a year-over-year basis during the three and nine-month periods ended October 2, 2026, respectively, and are reflected as a component of the change in core sales growth.

Previous wording

Core sales in the Water Quality segment increased 5.7% and 4.8% year-over-year during the three and six-month periods ended July 3, 2026, respectively. Geographically, core sales growth was driven by increases of 8.3% in North America and 9.3% in Western Europe during the three-month period ended July 3, 2026 compared to the comparable period in 2025. For the same period, core sales in high-growth markets decreased 1.5%, driven by mid-single digit decreases in Latin America and low-single digit decreases in China. Geographically, core sales growth was driven by increased core sales of 7.0% in North America and 6.9% in Western Europe during the six-month period ended July 3, 2026 compared to the comparable period in 2025. For the same period, core sales in high-growth markets decreased 0.6%, driven by mid-single digit decreases in Latin America and low-single digit decreases in China.

Current wording

Core sales in the Water Quality segment increased 6.4% and 5.3% year-over-year during the three and nine-month periods ended October 2, 2026, respectively. Geographically, core sales growth was driven by increases of 8.8% in North America and 7.3% in Western Europe during the three-month period ended October 2, 2026 compared to the comparable period in 2025. For the same period, core sales in high-growth markets decreased 1.1%, driven by low-single digit decreases in Latin America and high-single digit decreases in China. Geographically, core sales growth was driven by increases of 7.6% in North America and 7.0% in Western Europe during the nine-month period ended October 2, 2026, compared to the comparable period in 2025. For the same period, core sales in high-growth markets decreased 0.8%, driven by low-single digit decreases in Latin America and mid-single digit decreases in China, partially offset by low-single digit increases in India and other Asian markets.

Previous wording

The increase in core sales during the three and six-month periods ended July 3, 2026 was driven by the chemical treatment solutions business and, to a lesser extent, the analytical instrumentation business. Core sales in the chemical treatment solutions business increased 10.7% and 7.4% year-over-year in the three and six-month periods ended July 3, 2026, respectively, as a result of increased core sales across North America. Core sales in the analytical instrumentation business increased 2.8% and 2.7% year-over-year for the three and six-month periods ended July 3, 2026, as a result of increased core sales across Western Europe and North America.

Current wording

The increase in core sales during the three and nine-month periods ended October 2, 2026 was driven by the chemical treatment solutions business and, to a lesser extent, the analytical instrumentation business and the ultraviolet water disinfection and filtration business. Core sales in the chemical treatment solutions business increased 11.6% and 8.9% year-over-year in the three and nine-month periods ended October 2, 2026, respectively, as a result of increased core sales across North America. Core sales in the analytical instrumentation business increased 4.0% and 3.2% year-over-year for the three and nine-month periods ended October 2, 2026, as a result of increased core sales across Europe and North America. Core sales in the ultraviolet water disinfection and filtration business increased 9.9% and 8.0% during the three and nine-month periods ended October 2, 2026, respectively, driven primarily by the municipal end-market.

Previous wording

Total Product Quality & Innovation segment sales increased 3.8% and 2.8% year-over-year during the three and six-month periods ended July 3, 2026, respectively, primarily as a result of changes in core sales driven by the factors discussed below. Geographically, sales growth was driven by North America, which saw increases of 4.9% and 2.7%, and Western Europe, which saw increases of 3.7% and 4.3% during the three and six-month periods ended July 3, 2026, respectively, compared to the comparable periods in 2025. Sales in high-growth markets increased 2.1% and 1.4% during the three and six-month periods ended July 3, 2026, respectively, compared to the comparable periods in 2025.

Current wording

Total Product Quality & Innovation segment sales increased 3.9% and 3.2% year-over-year during the three and nine-month periods ended October 2, 2026, respectively, primarily as a result of changes in core sales driven by the factors discussed below. Geographically, sales growth was driven by North America, which saw increases of 6.3% and 3.9%, and Western Europe, which was essentially flat during the three-month period ended October 2, 2026 and increased 2.9% during the nine-month period ended October 2, 2026, compared to the comparable periods in 2025. Sales in high-growth markets increased 5.4% and 2.7% during the three and nine-month periods ended October 2, 2026, respectively, compared to the comparable periods in 2025.

Previous wording

Price increases in the segment contributed 3.0% and 2.5% to sales growth on a year-over-year basis during the three and six-month periods ended July 3, 2026, respectively, and are reflected as a component of the change in core sales described below.

Current wording

Price increases in the segment contributed 2.6% to sales growth on a year-over-year basis during both of the three and nine-month periods ended October 2, 2026, and are reflected as a component of the change in core sales described below.

Previous wording

Core sales in the Product Quality & Innovation segment increased 2.0% and 0.5% year-over-year during the three and six-month periods ended July 3, 2026, respectively. Geographically, the change in core sales was driven by increases of 3.7% in North America and increases of 0.8% in Western Europe during the three-month period ended July 3, 2026 compared to the comparable period in 2025. For the same period, core sales in high-growth markets increased 1.4%, driven by increases in certain Asian markets, partially offset by low-single digit decreases in China and Latin America. Geographically, the change in core sales was driven by increases of 2.4% in North America partially offset by decreases of 1.2% in Western Europe during the six-month period ended July 3, 2026 compared to the comparable period in 2025. For the same period, core sales in high-growth markets were flat, driven by low-single digit decreases in Latin America offset by mid-single digit increases in China.

Current wording

Core sales in the Product Quality & Innovation segment increased 3.2% and 1.4% year-over-year during the three and nine-month periods ended October 2, 2026, respectively. Geographically, the change in core sales was driven by increases of 4.4% in North America and 0.6% in Western Europe during the three-month period ended October 2, 2026 compared to the comparable period in 2025. For the same period, core sales in high-growth markets increased 4.7%, driven by mid-single digit increases in China and Latin America. Geographically, the change in core sales was driven by an increase of 3.1% in North America, partially offset by a decrease of 0.6% in Western Europe during the nine-month period ended October 2, 2026 compared to the comparable period in 2025. For the same period, core sales in high-growth markets increased 1.6%, driven by mid-single digit increases in China.

Previous wording

From a product line perspective, core sales in the marking and coding business increased 3.5% and 2.8% year-over-year during the three and six-month periods ended July 3, 2026, respectively, driven by demand across most major end-markets and geographies. Core sales in the packaging and color solutions business decreased 1.4% and 4.4% year-over-year during the three and six-month periods ended July 3, 2026, respectively, due to the impact of global macroeconomic conditions on certain product lines.

Current wording

From a product line perspective, core sales in the marking and coding business increased 3.0% and 2.9% year-over-year during the three and nine-month periods ended October 2, 2026, respectively. Core sales in the packaging and color solutions business increased 3.5% year-over-year during the three-month period ended October 2, 2026, due to positive pricing actions and higher year-over-year volume. Core sales in the packaging and color solutions business decreased 1.9% year-over-year during the nine-month period ended October 2, 2026, partly due to the impact of global macroeconomic conditions on certain product lines and original equipment manufacturing (“OEM”) customers.

Previous wording

Operating profit margins were 24.6% for the six-month period ended July 3, 2026 as compared to 25.3% for the six-month period ended July 4, 2025. The following factors impacted year-over-year operating profit margin comparisons:

Current wording

Operating profit margins were 23.7% for the nine-month period ended October 2, 2026 as compared to 25.3% for the nine-month period ended October 3, 2025. The following factors impacted year-over-year operating profit margin comparisons:

Previous wording

•Transaction costs incurred during 2026 related to the acquisition of GlobalVision - 50 basis points

Current wording

•Transaction costs incurred during 2026 related to the acquisition of GlobalVision - 30 basis points

Previous wording

Other income (expense), net included a pre-tax gain of $7 million from the step acquisition of our previously held minority ownership interest in In-Situ during the six-month period ended July 3, 2026, and a loss on the disposition of a product line of $6 million during the six-month period ended July 4, 2025.

Current wording

Other income (expense), net included a pre-tax gain of $7 million from the step acquisition of our previously held minority ownership interest in In-Situ during the nine-month period ended October 2, 2026, and a loss on the disposition of a product line of $6 million, net of $1 million net periodic benefit costs, during the nine-month period ended October 3, 2025.

Previous wording

Net interest expense of $27 million and $51 million was recorded for thethree and six-month periods ended July 3, 2026, respectively, compared to net interest expense of$28 million and $55 million for thethree and six-month periods ended July 4, 2025, respectively, primarily arising from our outstanding indebtedness.

Current wording

Net interest expense of $25 million and $76 million was recorded for thethree and nine-month periods ended October 2, 2026, respectively, compared to net interest expense of$21 million and $76 million for thethree and nine-month periods ended October 3, 2025, respectively, primarily arising from our outstanding indebtedness.

Previous wording

The effective tax rate for the three-month period ended July 3, 2026 differs from the U.S. federal statutory rate of 21% principally due to the geographic mix of earnings described above, the favorable impact of tax law changes under the One Big Beautiful Bill Act (“OBBBA”), a net discrete benefit of $12 million related primarily to the impact of restructuring costs and amended return filings. The net discrete benefit decreased the effective tax rate by 2.9% for the three-month period ended July 3, 2026.

Current wording

The effective tax rate for the three-month period ended October 2, 2026 differs from the U.S. federal statutory rate of 21% principally due to the geographic mix of earnings described above, the favorable impact of tax law changes under the One Big Beautiful Bill Act (“OBBBA”), a net discrete benefit of $47 million related primarily to the impact of restructuring costs and a reduction of tax the indemnification related to the Separation from Danaher. The net discrete benefit decreased the effective tax rate by 17.1% for the three-month period ended October 2, 2026.

Previous wording

The effective tax rate for the six-month period ended July 3, 2026 differs from the U.S. federal statutory rate of 21% principally due to the geographic mix of earnings described above, the favorable impact of tax law changes under the One Big Beautiful Bill Act (“OBBBA”), a net discrete benefit of $10 million related primarily to the impact of restructuring costs and amended return filings. The net discrete benefit decreased the effective tax rate by 0.6% for the six-month period ended July 3, 2026.

Current wording

The effective tax rate for the nine-month period ended October 2, 2026 differs from the U.S. federal statutory rate of 21% principally due to the geographic mix of earnings described above, the favorable impact of tax law changes under the OBBBA, a net discrete benefit of $57 million related primarily to the impact of restructuring costs and a reduction of tax the indemnification related to the Separation from Danaher. The net discrete benefit decreased the effective tax rate by 6.5% for the nine-month period ended October 2, 2026.

Previous wording

The effective tax rate for the six-month period ended July 4, 2025 differs from the U.S. federal statutory rate of 21% principally due to the geographic mix of earnings described above, the unfavorable impact of a non-deductible loss on the sale of a product line of $2 million, and a net discrete benefit of $2 million related primarily to the impact of excess tax benefits from stock-based compensation, partially offset by the impact of uncertain tax positions. The net discrete benefit decreased the effective tax rate by 0.3% for the six-month period ended July 4, 2025.

Current wording

The effective tax rate for the nine-month period ended October 3, 2025 differs from the U.S. federal statutory rate of 21% principally due to the geographic mix of earnings described above, the unfavorable impact of a non-deductible loss on the sale of a product line of $2 million, and a net discrete benefit of $1 million related primarily to the impact of a German tax rate change on deferred taxes, partially offset by the impact of uncertain tax positions. The net discrete benefit decreased the effective tax rate by 0.1% for the nine-month period ended October 3, 2025.

Previous wording

In 2026, comprehensive income decreased $114 million for the three-month period ended July 3, 2026 as compared to the comparable period in 2025, primarily driven by losses from foreign currency translation adjustments, partially offset by higher net earnings during the three-month period ended July 3, 2026. Comprehensive income decreased $178 million for the six-month period ended July 3, 2026 as compared to the comparable period in 2025, primarily driven by losses from foreign currency translation adjustments, partially offset by higher net earnings and unrealized gain on net investment hedges during the six-month period ended July 3, 2026. The Company recorded foreign currency translation losses of $12 million for the three-month period ended July 3, 2026, compared to foreign currency translation gains of $153 million, and an unrealized loss on net investment hedge of $32 million for the three-month period ended July 4, 2025. The foreign currency translation losses during the three-month period ended July 3, 2026 were driven by the strengthening of the U.S. dollar against most major foreign currencies in the period. The foreign currency translation gains during the three-month period ended July 4, 2025 were primarily driven by the weakening of the U.S. dollar against most major foreign currencies in the period. The Company recorded foreign currency translation losses of $59 million and an unrealized gain on net investment hedges of $12 million for the six-month period ended July 3, 2026, compared to foreign currency translation gains of $234 million, and an unrealized loss on net investment hedge of $54 million for the six-month period ended July 4, 2025. The foreign currency translation losses during the six-month period ended July 3, 2026 were driven by the strengthening of the U.S. dollar against most major foreign currencies in the period. The foreign currency translation gains during the six-month period ended July 4, 2025 were primarily driven by the weakening of the U.S. dollar against most major foreign currencies in the period. Foreign currency translation adjustments reflect the gain or loss resulting from the impact of the change in currency exchange rates on the Company’s foreign operations as they are translated to the Company’s reporting currency, the U.S. dollar.

Current wording

In 2026, comprehensive income increased $28 million for the three-month period ended October 2, 2026 as compared to the comparable period in 2025, primarily driven by higher net earnings and unrealized gain on net investment hedges, partially offset by losses from foreign currency translation adjustments during the three-month period ended October 2, 2026. Comprehensive income decreased $150 million for the nine-month period ended October 2, 2026 as compared to the comparable period in 2025, primarily driven by losses from foreign currency translation adjustments, partially offset by higher net earnings and unrealized gain on net investment hedges during the nine-month period ended October 2, 2026. The Company recorded foreign currency translation losses of $35 million and an unrealized gain on net investment hedge of $9 million for the three-month period ended October 2, 2026, compared to foreign currency translation losses of $34 million and an unrealized loss on net investment hedge of $6 million for the three-month period ended October 3, 2025. The foreign currency translation losses during both of the three-month periods ended October 2, 2026 and October 3, 2025 were driven by the strengthening of the U.S. dollar against most major foreign currencies in the period. The Company recorded foreign currency translation losses of $94 million and an unrealized gain on net investment hedges of $21 million for the nine-month period ended October 2, 2026, compared to foreign currency translation gains of $200 million and an unrealized loss on net investment hedge of $60 million for the nine-month period ended October 3, 2025. The foreign currency translation losses during the nine-month period ended October 2, 2026 were driven by the strengthening of the U.S. dollar against most major foreign currencies in the period. The foreign currency translation gains during the nine-month period ended October 3, 2025 were primarily driven by the weakening of the U.S. dollar against most major foreign currencies in the period. Foreign currency translation adjustments reflect the gain or loss resulting from the impact of the change in currency exchange rates on the Company’s foreign operations as they are translated to the Company’s reporting currency, the U.S. dollar.

Previous wording

During the second quarter of 2026, the Company completed an underwritten offering of $725 million aggregate principal amount of senior unsecured notes with a maturity date on January 15, 2032. The net proceeds from the issuance have been and will be used for general corporate purposes, which may include, without limitation, refinancing of outstanding indebtedness, working capital, capital expenditures and satisfaction of other obligations. Refer to Note 9 for additional information related to the Company’s long-term indebtedness.

Current wording

During the second quarter of 2026, the Company completed an underwritten offering of $725 million aggregate principal amount of senior unsecured notes with a maturity date on January 15, 2032 (the “2032 Notes”). The net proceeds from the issuance have been and will be used for general corporate purposes, which may include, without limitation, refinancing of outstanding indebtedness, working capital, capital expenditures and satisfaction of other obligations. During the third quarter of 2026, the Company repaid the $700 million aggregate principal amount of senior unsecured notes due September 18, 2026 using available cash and proceeds from the 2032 Notes. During the third quarter of 2026, the Company issued $250 million of commercial paper in order to fund the acquisition of Cleanwater1 during the fourth quarter of 2026. Refer to Note 9 for additional information related to the Company’s long-term indebtedness and commercial paper program.

Previous wording

•Operating cash flows increased $26 million, or 5%, during the six-month period ended July 3, 2026 as compared to the comparable period in 2025, primarily driven by higher net income, partially offset by changes in net working capital.

Current wording

•Operating cash flows increased $79 million, or 10%, during the nine-month period ended October 2, 2026 as compared to the comparable period in 2025, primarily driven by higher net earnings, partially offset by changes in net working capital.

Previous wording

•Net cash used in investing activities increased $594 million for the six-month period ended July 3, 2026 as compared to the comparable period in 2025, primarily driven by cash paid for the acquisitions of In-Situ and GlobalVision during the six-month period ended July 3, 2026.

Current wording

•Net cash used in investing activities increased $666 million for the nine-month period ended October 2, 2026 as compared to the comparable period in 2025, primarily driven by cash paid for the acquisitions of In-Situ and GlobalVision during the nine-month period ended October 2, 2026.

Previous wording

•Net cash from financing activities increased $267 million for the six-month period ended July 3, 2026 as compared to the comparable period in 2025 primarily driven by net proceeds from the issuance of long-term debt offset by payments for share repurchases under the Company’s share repurchase program during the six-month period ended July 3, 2026.

Current wording

•Net cash used in financing activities increased $262 million for the nine-month period ended October 2, 2026 as compared to the comparable period in 2025, primarily driven by net repayments of long-term debt and payments for share repurchases under the Company’s share repurchase program, partially offset by the net proceeds from the 2032 Notes and the issuance of commercial paper under the commercial paper program during the nine-month period ended October 2, 2026.

Previous wording

In the second quarter of 2026, the Company declared a regular quarterly dividend of $0.13 per share of Company common stock payable on July 31, 2026 to holders of record as of June 30, 2026.

Current wording

In the third quarter of 2026, the Company declared a regular quarterly dividend of $0.13 per share of Company common stock payable on October 30, 2026 to holders of record as of September 30, 2026.