Waters (NYSE:WAT) Posts Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Waters (NYSE:WAT) released its earnings results on Tuesday. The medical instruments supplier reported $3.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.01 by $0.04, Zacks reports. Waters had a net margin of 11.91% and a return on equity of 15.60%. The business had revenue of $1.65 billion for the quarter, compared to analyst estimates of $1.62 billion. During the same quarter in the previous year, the business earned $2.95 earnings per share. Waters’s revenue for the quarter was up 113.3% on a year-over-year basis. Waters updated its Q3 2026 guidance to 3.950-4.050 EPS and its FY 2026 guidance to 14.450-14.650 EPS.

Here are the key takeaways from Waters’ conference call:

• Organic growth exceeded expectations, with second-quarter organic revenue up 9% in constant currency and orders outpacing sales. Waters raised its full-year organic growth outlook to 7%-9% and guided to 8%-10% organic constant-currency growth in the third quarter.
• The acquired Biosciences and Diagnostic Solutions businesses accelerated to 4% reported growth in the quarter, up 400 basis points from the prior quarter. Management expects these businesses to exit 2026 at a growth rate of 6% or better, supported by pricing, China localization, new products and commercial execution.
• Waters completed planned restructuring actions and now expects approximately $75 million of 2026 savings and $200 million in annualized run-rate savings. The company said these actions should support second-half margin improvement and longer-term mid-teens adjusted EPS growth.
• New products and replacement opportunities are creating potential multiyear growth drivers, including the BACTEC FXI blood-culture system, FACSDiscover A7 flow cytometer and pharma reshoring. Management cited more than 12,000 aged BACTEC systems eligible for replacement and approximately $100 billion of announced U.S. pharma construction spending tied to tracked sites.
• Despite operational momentum, foreign-exchange translation remains a headwind, and the company reported a GAAP diluted loss of $1.39 per share due to acquisition-related amortization and inventory step-up charges. China also continues to pressure Biosciences and Diagnostics, particularly through diagnostic reimbursement reforms, although management expects some of those headwinds to normalize later in 2026.

Waters Stock Down 1.0%

NYSE:WAT opened at $392.11 on Wednesday. Waters has a 1-year low of $275.05 and a 1-year high of $414.15. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.79 and a quick ratio of 1.13. The firm has a market cap of $38.50 billion, a PE ratio of 49.82, a price-to-earnings-growth ratio of 2.27 and a beta of 1.19. The company has a 50-day moving average of $371.03 and a 200 day moving average of $345.01.

Key Waters News

Here are the key news stories impacting Waters this week:

• Positive Sentiment: Waters reported second-quarter adjusted earnings of $3.05 per share, above the $3.01 consensus estimate, while revenue of $1.645 billion exceeded expectations of $1.62 billion. Revenue benefited from 7% reported organic growth, or 9% in constant currency, as demand improved across pharmaceutical and industrial end markets. Waters Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: The company raised its full-year 2026 outlook, now expecting reported revenue of approximately $6.415 billion to $6.476 billion and adjusted EPS of $14.45 to $14.65. Management raised all components of its guidance, reflecting stronger lab-equipment demand, the ongoing market recovery and contributions from recently acquired businesses. Waters Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Waters said its Analytical Sciences Division produced 8% instrument growth and double-digit chemistry-consumables growth, with pharmaceutical and applied/industrial markets both showing low-double-digit expansion in constant currency. The earnings call highlighted broader end-market recovery and potential operating synergies. Waters Corp Earnings Call Highlights Growth and Upside
• Neutral Sentiment: Third-quarter guidance calls for adjusted EPS of $3.95 to $4.05 and revenue of $1.7 billion to $1.8 billion. The EPS range brackets consensus, while the revenue range is slightly below the $1.8 billion estimate at its midpoint.
• Negative Sentiment: Despite the strong adjusted results, Waters reported a GAAP net loss of $136 million, or $1.39 per diluted share, compared with a profit a year earlier. The acquisition-related results and elevated valuation remain risks if growth or expected synergies fall short. Waters Reports $1.645 Billion Revenue in Second Quarter 2026

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of WAT. Brighton Jones LLC increased its holdings in shares of Waters by 112.9% in the fourth quarter. Brighton Jones LLC now owns 1,269 shares of the medical instruments supplier’s stock valued at $471,000 after purchasing an additional 673 shares during the period. Integrated Wealth Concepts LLC lifted its position in Waters by 2.9% during the first quarter. Integrated Wealth Concepts LLC now owns 1,048 shares of the medical instruments supplier’s stock valued at $386,000 after purchasing an additional 30 shares during the period. Goldman Sachs Group Inc. raised its stake in shares of Waters by 3.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 200,051 shares of the medical instruments supplier’s stock valued at $73,733,000 after buying an additional 6,976 shares during the last quarter. Empowered Funds LLC lifted its holdings in shares of Waters by 16.6% in the 1st quarter. Empowered Funds LLC now owns 1,126 shares of the medical instruments supplier’s stock valued at $415,000 after buying an additional 160 shares during the period. Finally, Sivia Capital Partners LLC acquired a new position in shares of Waters in the 2nd quarter valued at about $232,000. Hedge funds and other institutional investors own 94.01% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on WAT. Wells Fargo & Company boosted their price objective on Waters from $355.00 to $370.00 and gave the company an “equal weight” rating in a research note on Thursday, May 14th. Barclays restated an “overweight” rating and set a $460.00 target price (up from $425.00) on shares of Waters in a report on Wednesday. Evercore reissued an “outperform” rating and issued a $410.00 target price on shares of Waters in a research note on Monday, July 6th. Wall Street Zen lowered Waters from a “buy” rating to a “hold” rating in a research report on Monday, July 20th. Finally, Piper Sandler initiated coverage on shares of Waters in a research note on Thursday, June 11th. They issued a “neutral” rating and a $400.00 target price on the stock. Three equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat, Waters currently has a consensus rating of “Moderate Buy” and a consensus target price of $409.05.

Waters Company Profile

Waters Corporation is a global provider of analytical instruments, software and services for laboratory and research applications. The company designs, manufactures and sells technologies centered on liquid chromatography, mass spectrometry, separation science, and related sample preparation and detection systems. Its product portfolio includes chromatographs, mass spectrometers, columns and consumables, laboratory informatics and workflow software, as well as technical support and training services that help customers run and interpret complex analyses.

Waters serves a wide range of end markets that include pharmaceutical and biotechnology companies, contract research and testing laboratories, academic and government research institutions, clinical diagnostics, food and environmental testing, and industrial and chemical manufacturers.