WATERS CORP /DE/ (WAT): Results of Operations and Financial Condition
WATERS CORP /DE/ (WAT) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 For Immediate Release Contact: Caspar Tudor, Head of Investor Relations – (508) 482-3448 Waters Corporation (NYSE: WAT) Reports Second Quarter 2026 Financial Results Second Quarter 2026 Highlights • Total reported revenue of $1.645 billion surpassed the high end of t
How this was made
The 30-second read
Why it matters
The key tradable update is the broad guidance raise for 2026 (organic revenue growth and adjusted EPS) plus Q3 2026 outlook, which can reprice expectations for revenue growth and earnings power.
Market read
A same-day guidance raise with quantified revenue and adjusted EPS ranges is a direct catalyst for valuation and positioning in WAT.
What to watch
The guidance includes both organic and acquired business components; traders may separate organic constant-currency growth from acquired revenue contribution and FX effects.
Waters Corporation (NYSE: WAT) Reports Second Quarter 2026 Financial Results
Organic revenue grew 7% as reported and 9% in constant currency, total reported revenue surpassed the high end of guidance, adjusted EPS reached the high end of guidance, and the Company raised all components of full-year 2026 guidance. GAAP diluted EPS was a loss because of acquisition-related purchase accounting charges.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total reported revenueGAAP | $1.645 billion | – | – |
| Organic revenueother | $828 million | – | 7% as reported and 9% in constant currency |
| Biosciences and Diagnostic Solutions revenueother | $817 million | – | 4% on a prior year comparable basis |
| GAAP diluted EPSGAAP | ($1.39) | – | – |
| Adjusted EPSnon-GAAP | $3.05 | – | 3% |
| ASD instrument growthnon-GAAP | 8% | – | – |
| ASD chemistry consumables growthnon-GAAP | double-digit growth | – | – |
| Pharma end-market growthnon-GAAP | low-double-digit growth | – | – |
| A&G end-market growthnon-GAAP | low-double-digit growth | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Analytical Sciences Division (ASD)Reported revenue compared to $627 million for the second quarter of 2025. The division delivered 8% instrument growth and double-digit chemistry consumables growth, led by low-double-digit growth in Pharma and A&G end markets, in constant currency. | $669 million | – | – |
| Biosciences Division (WBD)Reported revenue compared to $358 million for the prior year comparable period. | $368 million | – | – |
| Advanced Diagnostics Division (ADx) - Diagnostic Solutions businessReported revenue compared to $425 million for the prior year comparable period. | $449 million | – | – |
| Advanced Diagnostics Division (ADx) - Clinical Business UnitReported revenue compared to $62 million for the second quarter of 2025. | $72 million | – | – |
| Materials Sciences Division (MSD)Reported revenue compared to $82 million for the second quarter of 2025. | $87 million | – | – |
Full-Year and Third Quarter 2026 outlook
- RevenueFull-year 2026 total Company reported revenue: $6.415 billion to $6.476 billion; third quarter 2026 total Company reported revenue: $1.745 billion to $1.762 billion
- NoteFull-year 2026 organic constant currency revenue growth: 7.0% to 9.0%.
- NoteFull-year 2026 organic reported revenue: $3.370 billion to $3.431 billion.
- NoteFull-year 2026 acquired business reported revenue: approximately $3.045 billion on an owned-period basis.
- NoteFull-year 2026 adjusted EPS: $14.45 to $14.65.
- NoteFull-year 2026 year-over-year adjusted EPS growth: 10% to 12%.
- NoteFull-year 2026 adjusted EPS growth on a constant currency basis: 12% to 14%.
- NoteThird quarter 2026 organic constant currency revenue growth: 8% to 10%.
- NoteThird quarter 2026 organic reported revenue: $850 million to $867 million.
- NoteThird quarter 2026 acquired business reported revenue: approximately $895 million.
- NoteThird quarter 2026 adjusted EPS: $3.95 to $4.05.
- NoteThird quarter 2026 year-over-year adjusted EPS growth: 16% to 19%.
What drove it
- Total reported revenue surpassed the high end of the guidance range, driven by broad-based outperformance across both organic revenue and the acquired businesses.
- The market recovery entered a broader phase and expanded across additional customer segments.
- Biosciences and Diagnostic Solutions revenue reflected commercial execution and operational improvements under the Company’s 180-day growth revitalization plan.
- Early cost actions offset unfavorable foreign exchange translation.
- Management cited momentum across the portfolio, end markets, and synergies as it raised full-year guidance.
Concerns
- GAAP diluted EPS was a loss, reflecting acquisition-related purchase accounting charges, including amortization of acquired intangibles and inventory step-up.
- Unfavorable foreign exchange translation affected results, although early cost actions offset it.
- Prior-year comparable results for the Biosciences and Diagnostic Solutions businesses do not necessarily reflect what those businesses' results would have been as part of Waters and do not reflect changes since the acquisition.
- The Company cannot provide reconciliations of adjusted EPS guidance to the most directly comparable GAAP measures without unreasonable efforts because of difficulty forecasting acquisition-related amortization, acquisition and restructuring costs, and certain legal, advisory and tax costs.
What to watch
- Execution against third quarter organic constant currency revenue growth guidance of 8% to 10%.
- Delivery of third quarter adjusted EPS guidance of $3.95 to $4.05.
- Continued growth in ASD instruments, chemistry consumables, Pharma, and A&G end markets.
- Commercial execution and operational improvements in Biosciences and Diagnostic Solutions.
- Integration momentum, synergies, and the effect of foreign exchange translation.
Analysis
Waters reported total revenue of $1.645 billion for the second quarter of 2026, with $828 million of organic revenue and $817 million from the recently acquired Biosciences and Diagnostic Solutions businesses. Organic revenue increased 7% as reported and 9% in constant currency, and management said total reported revenue surpassed the high end of its guidance range. The release attributes the performance to broad-based outperformance in both the organic and acquired businesses.
The organic portfolio showed broadening demand. ASD reported revenue of $669 million, while management highlighted 8% instrument growth and double-digit chemistry consumables growth. Pharma and A&G each delivered low-double-digit growth in constant currency, according to the release. Management characterized the end-market recovery as broader, with previously lagging customer segments returning to growth.
The acquired businesses were a meaningful contributor to the quarter. Biosciences and Diagnostic Solutions revenue was $817 million, compared with $783 million on a prior-year comparable basis, and management cited commercial execution and operational improvements under its growth revitalization plan. However, Waters cautioned that the historical comparable information for these businesses may not reflect their results as part of Waters because of differences in financing, cash management, operations, cost structure, personnel needs, and accounting policies.
Profitability presented a material GAAP versus non-GAAP contrast. GAAP diluted EPS was a loss of ($1.39), compared with diluted EPS of $2.47 in the second quarter of 2025, reflecting acquisition-related purchase accounting charges, including amortization of acquired intangibles and inventory step-up. Adjusted EPS increased 3% to $3.05 from $2.95, reaching the high end of the guidance range. Management said early cost actions offset unfavorable foreign exchange translation.
The Company raised all components of its full-year 2026 guidance, including organic constant currency revenue growth, acquired business reported revenue, total Company reported revenue, and adjusted EPS. The third-quarter outlook calls for organic constant currency revenue growth of 8% to 10% and adjusted EPS of $3.95 to $4.05. The central issues for the next period are whether broad-based organic demand persists, acquired-business execution continues to improve, and integration and cost actions continue to offset acquisition-related and foreign exchange effects.
Management, verbatim
Thanks to the hard work of our teams, we delivered industry-leading growth again this quarter, executing ahead of guidance across all four divisions.
Udit Batra, Ph.D., President & Chief Executive Officer, Waters Corporation
With momentum building across our portfolio, end markets, and synergies, we are raising every component of our full-year 2026 guidance.
Udit Batra, Ph.D., President & Chief Executive Officer, Waters Corporation
Not in the filing
stated, not guessed- Gross profit and gross margin
- Operating income or loss and operating margin
- GAAP net income or loss
- Adjusted operating income
- Operating cash flow
- Free cash flow and adjusted free cash flow amounts
- Cash and cash equivalents
- Debt and net debt
- Share repurchases
- Dividend information
- Capital expenditures
- Third-quarter and full-year gross-margin guidance
- Third-quarter and full-year operating-expense guidance
- Third-quarter and full-year tax-rate guidance
- Prior-quarter comparisons for reported metrics
- Previous-release outlook for comparison with actual results
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Waters filed an SEC 8-K with Q2 2026 results and updated full-year and Q3 2026 guidance, including organic constant-currency growth and adjusted EPS targets.
Ticker impact
Waters reported Q2 2026 results and raised full-year 2026 guidance, including adjusted EPS to $14.45 to $14.65.
Moderately positive reaction expected, with follow-through tied to whether investors focus on adjusted EPS and organic growth versus GAAP dilution.
The filing discloses specific Q2 performance versus guidance and a full-year guidance increase across revenue and adjusted EPS, which are direct valuation inputs.
Market effects
Strengthening end-market conditions and raised organic growth guidance can improve sentiment for analytical instruments and consumables demand.
Limited direct regional spillover; primarily US-listed large-cap med-tech sentiment.
Global lab spending read-through via organic constant-currency growth and FX translation commentary.
Counterpoint
Investors may discount adjusted metrics and focus on GAAP EPS loss and acquisition-related purchase accounting, questioning sustainability of the guidance raise.
Key entities
- companyWaters Corporation
NYSE-listed lab instruments and diagnostics company reporting Q2 2026 results and raising full-year 2026 guidance.
- executiveUdit Batra, Ph.D.
President and CEO cited organic growth, integration momentum, and broader end-market recovery as drivers.
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