Waters (NYSE:WAT) Announces Earnings Results

Waters (NYSE:WAT) announced its quarterly earnings results on Tuesday. The medical instruments supplier reported $4.10 EPS for the quarter, beating analysts’ consensus estimates of $4.00 by $0.10, Zacks reports. Waters had a return on equity of 11.27% and a net margin of 3.58%. The company had revenue of $1.77 billion during the quarter, compared to analyst estimates of $1.75 billion. During the same period in the prior year, the company earned $3.40 earnings per share. The firm’s revenue was up 120.9% on a year-over-year basis.

Here are the key takeaways from Waters’ conference call:

• Strong third-quarter performance included 10% organic constant-currency revenue growth, a 21% increase in adjusted EPS to $4.10, and operating margin of 30.1%. Orders exceeded sales by approximately $20 million.
• Waters raised its 2026 revenue guidance by $43 million at the midpoint and now expects adjusted EPS of $14.60–$14.70. Fourth-quarter guidance calls for double-digit growth on a days-adjusted basis across both legacy Waters and acquired businesses.
• The acquired Biosciences and Diagnostic Solutions businesses are showing improving execution, with pricing realization reaching 120 basis points, China Biosciences returning to growth, and new products such as the FACSDiscover A7, BACTEC FXi, and BD COR gaining traction.
• Management outlined a 2027 framework of high-single-digit growth for legacy Waters, mid-single-digit growth for legacy BD, 100 basis points of adjusted operating-margin expansion to 29.2%, and low-teens adjusted EPS growth. Potential upside drivers include revenue synergies, reshoring, China recovery, semiconductor demand, and AI-enabled workflows.
• Free cash flow remains pressured by integration costs, working-capital requirements, approximately $150 million in receivables tied to BD transition services, and elevated inventory levels. Management expects these factors to improve over the next several years rather than immediately.

Waters Trading Up 0.5%

NYSE:WAT traded up $2.43 on Wednesday, reaching $462.33. The company’s stock had a trading volume of 139,244 shares, compared to its average volume of 965,794. Waters has a 12-month low of $282.77 and a 12-month high of $482.28. The stock has a 50 day moving average price of $432.11 and a 200 day moving average price of $371.16. The firm has a market cap of $45.42 billion, a price-to-earnings ratio of 115.06, a price-to-earnings-growth ratio of 2.62 and a beta of 1.16. The company has a quick ratio of 1.29, a current ratio of 1.86 and a debt-to-equity ratio of 0.32.

Insider Buying and Selling

In other Waters news, Director Christopher Kuebler sold 3,626 shares of the company’s stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $397.94, for a total value of $1,442,930.44. Following the transaction, the director owned 17,808 shares of the company’s stock, valued at $7,086,515.52. This represents a 16.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. 0.31% of the stock is owned by insiders.

Key Stories Impacting Waters

Here are the key news stories impacting Waters this week:

• Positive Sentiment: Q3 results topped expectations and guidance rose. Adjusted EPS was $4.10 versus a roughly $4.00 consensus, while revenue of $1.767 billion exceeded expectations. Organic revenue grew 9% as reported (10% in constant currency), and adjusted EPS increased 21%. The company raised its full-year 2026 outlook, bolstering the earnings-growth case. Waters Q3 2026 results
• Positive Sentiment: Management outlined a constructive 2027 outlook. Waters expects a path to high-single-digit growth and a 29.2% adjusted operating margin, signaling confidence in continued expansion and profitability. Waters 2027 framework
• Positive Sentiment: MOBILion acquisition expands Waters’ proteomics capabilities. The deal adds high-resolution ion-mobility technology to its mass-spectrometry portfolio, aimed at supporting proteomics and AI-enabled research workflows—an opportunity to broaden its offering in a growth market. MOBILion acquisition announcement
• Positive Sentiment: KeyCorp raised its price target to $500 from $460 and maintained an “overweight” rating, reflecting a more favorable analyst view of WAT’s prospects. KeyCorp recommendations
• Negative Sentiment: Valuation may limit further upside. Recent commentary questions whether WAT is fully priced after its earnings reset, raising the risk that strong results and growth expectations are already reflected in the shares. Waters valuation commentary

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the stock. JPMorgan Chase & Co. increased their price objective on shares of Waters from $400.00 to $435.00 in a research report on Wednesday, October 14th. HSBC upped their price target on Waters from $450.00 to $455.00 and gave the company a “buy” rating in a research report on Tuesday, September 1st. Deutsche Bank Aktiengesellschaft lifted their price objective on Waters from $400.00 to $440.00 in a research report on Thursday, October 15th. Barclays upped their target price on Waters from $460.00 to $500.00 and gave the company an “overweight” rating in a report on Wednesday, October 7th. Finally, Evercore lifted their price target on Waters from $410.00 to $480.00 in a report on Wednesday, October 7th. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $463.26.

Waters Company Profile

Waters Corporation (NYSE:WAT) develops and manufactures analytical technologies used to measure, identify and characterize chemical and biological substances. Its customers include pharmaceutical and biotechnology companies, industrial manufacturers, academic and government laboratories, and organizations involved in food, environmental and clinical testing.

The company’s product portfolio includes high-performance liquid chromatography and ultra-performance liquid chromatography systems, mass spectrometers, chromatography columns and consumables, and laboratory software for data management and analysis.