Electronic equipment provider Vontier (NYSE: VNT) announced better-than-expected revenue in Q1 CY2026, with sales up 1.3% year on year to $750.6 million. On the other hand, next quarter’s revenue guidance of $735 million was less impressive, coming in 3.9% below analysts’ estimates. Its non-GAAP profit of $0.80 per share was in line with analysts’ consensus estimates.
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Vontier (VNT) Q1 CY2026 Highlights:
- Revenue: $750.6 million vs analyst estimates of $737.4 million (1.3% year-on-year growth, 1.8% beat)
- Adjusted EPS: $0.80 vs analyst estimates of $0.80 (in line)
- Adjusted EBITDA: $172.3 million vs analyst estimates of $173.8 million (23% margin, 0.9% miss)
- Revenue Guidance for Q2 CY2026 is $735 million at the midpoint, below analyst estimates of $764.6 million
- Management reiterated its full-year Adjusted EPS guidance of $3.43 at the midpoint
- Operating Margin: 18%, in line with the same quarter last year
- Free Cash Flow Margin: 3.3%, down from 12.5% in the same quarter last year
- Organic Revenue rose 1.7% year on year (beat)
- Market Capitalization: $4.94 billion
Company Overview
A spin-off of a spin-off, Vontier (NYSE: VNT) provides electronic products and systems to the transportation, automotive, and manufacturing sectors.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Regrettably, Vontier’s sales grew at a sluggish 1.9% compounded annual growth rate over the last five years. This fell short of our benchmarks and is a tough starting point for our analysis.
Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Vontier’s recent performance shows its demand has slowed as its revenue was flat over the last two years. 
Vontier also reports organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, Vontier’s organic revenue averaged 2.6% year-on-year growth. Because this number is better than its two-year revenue growth, we can see that some mixture of divestitures and foreign exchange rates dampened its headline results. 
This quarter, Vontier reported modest year-on-year revenue growth of 1.3% but beat Wall Street’s estimates by 1.8%. Company management is currently guiding for a 5% year-on-year decline in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 2.4% over the next 12 months. Although this projection implies its newer products and services will catalyze better top-line performance, it is still below the sector average.
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Operating Margin
Vontier’s operating margin has generally stayed the same over the last 12 months, averaging 18.2% over the last five years. This profitability was elite for an industrials business thanks to its efficient cost structure and economies of scale. This result isn’t surprising as its high gross margin gives it a favorable starting point.
Analyzing the trend in its profitability, Vontier’s operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.
This quarter, Vontier generated an operating margin profit margin of 18%, in line with the same quarter last year. This indicates the company’s cost structure has recently been stable.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Vontier’s weak 1.2% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded.
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
Although it wasn’t great, Vontier’s two-year annual EPS growth of 4.8% topped its flat revenue.
Diving into the nuances of Vontier’s earnings can give us a better understanding of its performance. A two-year view shows that Vontier has repurchased its stock, shrinking its share count by 8.3%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. 
In Q1, Vontier reported adjusted EPS of $0.80, up from $0.77 in the same quarter last year. This print was close to analysts’ estimates. Over the next 12 months, Wall Street expects Vontier’s full-year EPS of $3.23 to grow 9.1%.
Key Takeaways from Vontier’s Q1 Results
We enjoyed seeing Vontier beat analysts’ revenue expectations this quarter. We were also happy its organic revenue narrowly outperformed Wall Street’s estimates. On the other hand, its adjusted operating income missed and its revenue guidance for next quarter fell short of Wall Street’s estimates. Overall, this was a mixed quarter. The stock traded up 3.8% to $36.38 immediately following the results.
Big picture, is Vontier a buy here and now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
