Should You Hold Vontier Corporation (VNT)?

Artisan Partners, an investment management company, released its fourth-quarter 2025 investor letter for “Artisan Mid Cap Value Fund”.  A copy of the letter can be downloaded here. The Fund seeks to invest in undervalued companies with solid financial health and compelling business economics. US equities continued to advance in the fourth quarter of 2025, despite volatility. At the start of the quarter, a government shutdown unsettled investors and delayed key economic data, raising questions about the Federal Reserve’s easing timeline. However, as the quarter progressed, risk appetite increased, and clarity around monetary policy improved, leading the Fed to implement rate cuts and end quantitative tightening. This suggests a continued easing of financial conditions into 2026. While AI remained a key focus, markets diversified in November, with value and non-AI stocks leading. This could indicate a shift in market leadership moving forward. Mid-cap stocks lagged large caps in Q4, particularly on the growth side, as the Russell Midcap® Growth Index declined 3.7% while mid-cap value posted a modest gain and outperformed the growth index for the quarter and full year. In the quarter, the fund’s Investor Class fund ARTQX returned 1.53%, Advisor Class fund APDQX posted a return of 1.54%, and Institutional Class fund APHQX returned 1.63%, compared to a 1.42% return for the Russell Midcap Value Index. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Artisan Mid Cap Value Fund highlighted Vontier Corporation (NYSE:VNT). Vontier Corporation (NYSE:VNT) is a leading industrial technology and mobility solutions company globally that operates through mobility technologies, repair solutions, and environmental and fueling solutions segments. On March 31, 2026, Vontier Corporation (NYSE:VNT) closed at $35.47 per share. One-month return of Vontier Corporation (NYSE:VNT) was -12.48%, and its shares gained 5.41% over the past 52 weeks. Vontier Corporation (NYSE:VNT) has a market capitalization of $5.147 billion.

Artisan Mid Cap Value Fund stated the following regarding Vontier Corporation (NYSE:VNT) in its fourth quarter 2025 investor letter:

“Portfolio returns in the technology and communication services sectors were hurt by Vontier Corporation (NYSE:VNT), CDW and Pinterest. Vontier is a provider of fuel dispensing and related software and services to retail and commercial gas stations. Shares reacted negatively after its late October earnings release despite beating modestly on earnings and revenue. The company reported a slight sales increase and better than-expected earnings in its Q3, but core sales were essentially flat year over year as strength in mobility technologies was offset by weakness in repair solutions. Investors may have also been disappointed with its muted outlook for 2026 sales growth. Though the stock has been flat over the past year, Vontier has been one of our top contributors since we purchased it in 2022 when it was under pressure due to a mix of headwinds, including a payment technology upgrade cycle that had pulled forward sales, supply chain disruptions, higher gas prices in the early months of the Ukraine war and longer term fears regarding electric vehicle market share growth. While growth has slowed, the business has continued to generate strong free cash flow generation and deliver high returns on capital.”