Waters Corporation (NYSE: WAT) Reports Third Quarter 2026 Financial Results
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 Third Quarter 2026 Financial Results Company to Provide Starting 2027 Growth Framework on Earnings Conference Call Third Quarter 2026 Highl
How this was made
The 30-second read
Why it matters
The raised guidance suggests stronger demand for the company's analytical and biosciences platforms, potentially boosting investor sentiment.
Market read
First‑report earnings with raised guidance for a mid‑cap life‑science equipment maker; likely to move the stock and influence sector peers.
What to watch
Integration risks of recent acquisitions and potential macro‑economic headwinds could temper the upside.
Waters Corporation Reports Third Quarter 2026 Financial Results
Organic revenue grew 9% as reported and 10% in constant currency, adjusted EPS grew 21% to $4.10, and the Company raised every component of its full-year 2026 guidance. GAAP profitability declined because of acquisition-related purchase accounting charges, acquisition-related costs, and restructuring costs.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net revenueGAAP | $1.77B | – | 121% |
| Q3 2026 organic reported revenuenon-GAAP | $871M | – | 9% |
| Q3 2026 organic constant currency revenue growthnon-GAAP | 10% | – | 10% |
| Q3 2026 acquired business contributionnon-GAAP | $896M | – | 1% |
| Q3 2026 cost of revenueGAAP | $879M | – | – |
| Q3 2026 selling and administrative expensesGAAP | $398M | – | – |
| Q3 2026 research and development expensesGAAP | $106M | – | – |
| Q3 2026 purchased intangibles amortizationGAAP | $244M | – | – |
| Q3 2026 restructuring chargesGAAP | $12M | – | – |
| Q3 2026 operating incomeGAAP | $128M | – | – |
| Q3 2026 operating income percentageGAAP | 7.2% | – | – |
| Q3 2026 adjusted operating incomenon-GAAP | $532M | – | – |
| Q3 2026 adjusted operating income percentagenon-GAAP | 30.1% | – | – |
| Q3 2026 interest expense, netGAAP | −$53M | – | – |
| Q3 2026 income before income taxesGAAP | $74M | – | – |
| Q3 2026 benefit (provision) for income taxesGAAP | $7M | – | – |
| Q3 2026 net incomeGAAP | $81M | – | – |
| Q3 2026 diluted earnings per shareGAAP | $0.82 | – | – |
| Q3 2026 adjusted net incomenon-GAAP | $404M | – | – |
| Q3 2026 adjusted diluted earnings per sharenon-GAAP | $4.10 | – | 21% |
| Nine months ended October 3, 2026 net revenueGAAP | $4.68B | – | 110% |
| Nine months ended October 3, 2026 organic reported revenuenon-GAAP | $2.44B | – | 10% |
| Nine months ended October 3, 2026 organic constant currency revenue growthnon-GAAP | 10% | – | 10% |
| Nine months ended October 3, 2026 operating lossGAAP | −$6M | – | – |
| Nine months ended October 3, 2026 adjusted operating incomenon-GAAP | $1.24B | – | – |
| Nine months ended October 3, 2026 net lossGAAP | −$127M | – | – |
| Nine months ended October 3, 2026 diluted loss per shareGAAP | $(1.37) | – | – |
| Nine months ended October 3, 2026 adjusted net incomenon-GAAP | $927M | – | – |
| Nine months ended October 3, 2026 adjusted diluted earnings per sharenon-GAAP | $9.96 | – | – |
| Q3 2026 product revenueGAAP | $1.33B | – | 167% |
| Q3 2026 service revenueGAAP | $433M | – | 44% |
| Q3 2026 Asia revenueGAAP | $495M | – | 83% |
| Q3 2026 Americas revenueGAAP | $749M | – | 156% |
| Q3 2026 Europe revenueGAAP | $523M | – | 120% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Analytical Sciences Division (ASD)Double-digit instrument and chemistry growth from strong execution, new product innovation, and rising customer testing volume. | $703M | – | 8% |
| Biosciences Division (WBD)Reagents grew high single-digits on a prior year comparable basis, reflecting a 400bps acceleration in year-over-year growth; research and clinical reagents both grew high single-digits. | $396M | – | – |
| Advanced Diagnostics Division (ADx)Microbiology grew mid-single-digits on a prior year comparable basis. | $575M | – | 797% |
| Diagnostic Solutions businessReported revenue compared to $498 million for the prior year comparable period. | $500M | – | – |
| Clinical Business UnitReported revenue compared to $64 million for the third quarter of 2025. | $75M | – | – |
| Materials Sciences Division (MSD)Reported revenue compared to $87 million for the third quarter of 2025. | $93M | – | 7% |
Full-Year 2026 and Fourth Quarter 2026 outlook
- RevenueFull-year 2026 total Company reported revenue: $6.479 billion to $6.497 billion; fourth quarter 2026 total Company reported revenue: $1.801 billion to $1.819 billion.
- NoteFull-year 2026 organic constant currency revenue growth: 9.1% to 9.7%.
- NoteFull-year 2026 organic reported revenue: $3.429 billion to $3.447 billion.
- NoteFull-year 2026 acquired business reported revenue: approximately $3.050 billion on an owned-period basis.
- NoteFull-year 2026 adjusted EPS: $14.60 to $14.70.
- NoteFull-year 2026 adjusted EPS growth: 11% to 12% year-over-year and 13% to 14% on a constant currency basis.
- NoteFourth quarter 2026 organic constant currency revenue growth: 7.0% to 9.0%.
- NoteFourth quarter 2026 organic reported revenue: $984 million to $1.002 billion.
- NoteFourth quarter 2026 acquired business reported revenue: approximately $817 million.
- NoteFourth quarter 2026 adjusted EPS: $4.58 to $4.68.
- NoteFourth quarter 2026 adjusted EPS growth: 1% to 3% year-over-year.
Capital returns
- Purchases of treasury shares were $(1) million for the three months ended October 3, 2026.
- Purchases of treasury shares were $(15) million for the nine months ended October 3, 2026.
What drove it
- Organic revenue grew 9% as reported and 10% in constant currency.
- ASD constant currency instrument revenue growth was 10%, while ASD constant currency chemistry consumables revenue growth was 12%.
- LC-MS instrument growth was double-digits in constant currency, driven by instrument replacement trends, GLP-1s, PFAS, and India generics.
- Management cited strong consumables growth across Analytical Sciences and Biosciences, new product innovation, and rising customer testing volume.
- The Company said it is ahead of schedule on synergy and integration commitments for its acquired businesses.
- Waters acquired MOBILion Systems, Inc. to complement its mass spectrometry portfolio and broaden its entry into the proteomics market.
Concerns
- Q3 2026 GAAP diluted EPS was $0.82, compared to $2.50 for the third quarter of 2025, reflecting acquisition-related purchase accounting charges, acquisition-related costs, and restructuring costs.
- Q3 2026 GAAP operating income was $128 million and GAAP operating income percentage was 7.2%, compared to $192 million and 24.0% in the prior-year period.
- Nine-month GAAP operating loss was $(6) million and net loss was $(127) million.
- Q3 2026 cost of revenue included $80 million of purchase accounting adjustments related to the fair value inventory and fixed asset step-up related to the BDS acquisition, while purchased intangibles amortization included $232 million of BDS acquisition purchase accounting adjustments.
- The Company stated that historical BDS Businesses results do not necessarily reflect what results would have been had those businesses operated as part of Waters and may not represent future costs.
What to watch
- Fourth quarter 2026 organic constant currency revenue growth guidance of 7.0% to 9.0%.
- Fourth quarter 2026 acquired business reported revenue expectation of approximately $817 million.
- Fourth quarter 2026 adjusted EPS guidance of $4.58 to $4.68.
- Delivery of synergies and integration commitments for the acquired Biosciences and Diagnostic Solutions businesses.
- Management's 2027 starting growth framework, including reshoring, synergies, and AI-related demand drivers.
- The integration and anticipated benefits of the MOBILion Systems, Inc. acquisition.
Balance sheet and cash flow
- Cash and cash equivalents were $593 million at October 3, 2026, compared to $588 million at December 31, 2025.
- Notes payable and debt were $5,133 million at October 3, 2026, compared to $1,407 million at December 31, 2025.
- Total assets were $24,115 million at October 3, 2026, compared to $5,077 million at December 31, 2025.
- Total liabilities were $8,824 million at October 3, 2026, compared to $2,515 million at December 31, 2025.
- Total stockholders’ equity was $15,291 million at October 3, 2026, compared to $2,562 million at December 31, 2025.
- Net cash provided by operating activities was $98 million for the three months ended October 3, 2026, compared to $187 million for the three months ended September 27, 2025.
- Net cash provided by operating activities was $296 million for the nine months ended October 3, 2026, compared to $488 million for the nine months ended September 27, 2025.
- Additions to property, plant, equipment, and software capitalization were $(43) million for the three months ended October 3, 2026 and $(131) million for the nine months ended October 3, 2026.
- Free Cash Flow - Adjusted Non-GAAP was $68 million for the three months ended October 3, 2026, compared to $160 million for the three months ended September 27, 2025.
- Free Cash Flow - Adjusted Non-GAAP was $228 million for the nine months ended October 3, 2026, compared to $552 million for the nine months ended September 27, 2025.
- Proceeds from debt issuances were $320 million for the three months ended October 3, 2026 and $4,062 million for the nine months ended October 3, 2026.
- Payments on debt were $(275) million for the three months ended October 3, 2026 and $(4,315) million for the nine months ended October 3, 2026.
Analysis
Waters reported third-quarter 2026 GAAP revenue of $1,767 million, compared with $800 million in the prior-year period. Organic reported revenue was $871 million versus $800 million, representing 9% growth as reported and 10% growth in constant currency. Acquired business contribution was $896 million, compared with $885 million on a prior-year comparable basis. The Company stated that total reported revenue exceeded its guidance midpoint by $14 million, with acquired business revenue slightly ahead of guidance.
Management, verbatim
Our team delivered exceptional results led by best-in-class consumables growth across both our Analytical Sciences and Biosciences divisions, as strong execution, new product innovation, and rising customer testing volume accelerated growth.
Dr. Udit Batra, President & Chief Executive Officer, Waters Corporation
LC-MS instrument growth also strengthened, growing double-digits in constant currency, driven by robust instrument replacement trends, idiosyncratic growth drivers across GLP-1s, PFAS and India generics, and we continued to outperform the market with our leading solutions for complex biologics.
Dr. Udit Batra, President & Chief Executive Officer, Waters Corporation
Thanks to the hard work of our teams, we are delivering ahead of schedule on our synergy and integration commitments for our acquired businesses.
Dr. Udit Batra, President & Chief Executive Officer, Waters Corporation
Not in the filing
stated, not guessed- Q3 2026 GAAP gross margin and prior-year GAAP gross margin
- Q3 2026 non-GAAP gross margin and prior-year non-GAAP gross margin
- Q3 2026 GAAP and non-GAAP tax rates
- Q3 2026 prior-quarter comparisons
- Dividend declaration or payment information
- Forward guidance for gross margin, operating expenses, and tax rate
- Prior outlook figures required to compare actual results with prior guidance
AlphAI 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 Corp filed a Form 8‑K announcing its Q3 2026 earnings and an updated full‑year outlook.
Ticker impact
Waters Corp reported Q3 2026 results with revenue of $1.767B and raised full‑year guidance, including a $43M increase to revenue midpoint.
likely upward pressure as the market prices in the raised guidance
The earnings beat and raised revenue guidance signal stronger demand and integration synergies, which should support the stock price in the near term.
Market effects
The life‑science instrumentation sector may see broader optimism as Waters' strong results highlight demand for analytical and biosciences tools.
U.S. biotech and diagnostics stocks could experience modest gains following the guidance lift.
International suppliers to Waters may benefit from the announced acquisition and growth outlook.
Counterpoint
If the market has already priced in the guidance lift, the stock could face a short‑term pullback on profit‑taking.
Key entities
- companyWaters Corporation
Provider of analytical instruments and software for life sciences.
