Waters (NYSE:WAT) Announces Earnings Results

Waters (NYSE:WAT) posted its quarterly earnings results on Monday. The medical instruments supplier reported $4.53 EPS for the quarter, topping the consensus estimate of $4.50 by $0.03, FiscalAI reports. The firm had revenue of $932.36 million for the quarter, compared to the consensus estimate of $928.17 million. Waters had a net margin of 20.30% and a return on equity of 36.45%. The business’s revenue was up 6.9% compared to the same quarter last year. During the same period last year, the firm posted $4.10 earnings per share. Waters updated its FY 2026 guidance to 14.300-14.500 EPS and its Q1 2026 guidance to 2.250-2.350 EPS.

Here are the key takeaways from Waters’ conference call:

• Waters announced the completion of the BD Biosciences & Diagnostic Solutions acquisition, expecting the business to contribute ~$3 billion of 2026 revenue and targeting ~$55 million of cost synergies and ~$50 million of revenue synergies in 2026 while reorganizing into four divisions.
• Strong 2025 finish: Q4 sales grew ~7% (6% constant currency), recurring revenue +9%, and full-year adjusted EPS rose ~11% to $13.13, powered by high single?digit+ LCMS growth and chemistry innovation.
• 2026 pro?forma guidance targets ~$6.405–$6.455 billion revenue (midpoint ~5.3% blended growth), an adjusted operating margin of ~28.1%, and adjusted EPS of $14.30–$14.50.
• Near?term headwinds in the acquired BD business — China DRG impacts, U.S. export delays from the government shutdown, and a milder flu season — prompted a prudent ~2.5% 2026 growth assumption for the assets and a low?single?digit Q1 decline, with Q1 EPS pressured by higher interest expense and share count.
• Strategic momentum: Waters is expanding idiosyncratic growth drivers to five (GLP?1s, PFAS, India generics, biologics, informatics) and is shifting Empower to a subscription model that creates a short?term instrument revenue headwind but should boost recurring revenue and accretion from 2027 onward, projected to add >200 bps of annual growth accretion toward 2030.

Waters Stock Down 0.4%

NYSE WAT opened at $326.82 on Wednesday. Waters has a 1 year low of $275.05 and a 1 year high of $414.15. The stock has a market capitalization of $19.46 billion, a PE ratio of 30.35, a PEG ratio of 2.72 and a beta of 1.18. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.53 and a quick ratio of 1.08. The business’s 50-day moving average is $385.01 and its 200 day moving average is $347.69.

Key Headlines Impacting Waters

Here are the key news stories impacting Waters this week:

• Positive Sentiment: Closed the Reverse Morris Trust combination with BD’s Biosciences & Diagnostic Solutions, creating a larger life?sciences company and adding scale and product breadth; management named Claire M. Fraser, Ph.D. to the leadership team. Waters Completes Combination with BD’s Biosciences & Diagnostic Solutions Businesses
• Positive Sentiment: Q4 results beat consensus: $4.53 EPS vs. $4.50 expected and revenue roughly in line, demonstrating underlying profitability and margin strength ahead of integration synergies. Waters (WAT) Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: Some analysts reaffirmed bullish views and initiated coverage with high targets (Guggenheim $440 PT; Citigroup $425 PT), indicating conviction on longer?term upside from the BD deal and margin improvement. Analyst Coverage Notes
• Neutral Sentiment: Full?year 2026 EPS guidance was set at $14.30–$14.50, roughly in line with consensus—suggests management expects the BD integration to support margins over the year, but it doesn’t alleviate near?term concerns. Waters forecasts first-quarter profit below Wall Street estimates, shares slide
• Negative Sentiment: Q1 2026 EPS guidance (2.25–2.35) came in below the street (~2.52), triggering an immediate sell?off as investors price in weaker near?term earnings while integration costs and seasonality play out. Waters forecasts weak first-quarter profit, shares slide
• Negative Sentiment: Several firms trimmed targets or reiterated caution (Bank of America cut its PT to $350, TD Cowen lowered its PT and kept a Hold), reflecting concerns about BD Life Sciences weakness and a reduced premium valuation near?term. TD Cowen Hold / PT Cut
• Negative Sentiment: Market commentary highlights the stock underperforming peers amid the guidance reset and integration uncertainty, contributing to the downward pressure on the share price today. Waters Corp. stock underperforms Monday when compared to competitors

Analysts Set New Price Targets

A number of equities analysts recently commented on WAT shares. Barclays assumed coverage on shares of Waters in a research report on Tuesday. They issued an “overweight” rating and a $400.00 target price on the stock. Morgan Stanley started coverage on Waters in a research note on Monday, December 1st. They set an “equal weight” rating and a $423.00 price objective on the stock. Evercore ISI began coverage on Waters in a report on Tuesday. They issued a “hold” rating and a $360.00 price objective on the stock. William Blair assumed coverage on Waters in a report on Monday, January 5th. They set an “outperform” rating for the company. Finally, Robert W. Baird set a $363.00 price target on Waters in a research report on Tuesday. Two investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and nine have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Waters has a consensus rating of “Moderate Buy” and a consensus target price of $400.84.

Institutional Investors Weigh In On Waters

A number of large investors have recently made changes to their positions in WAT. Brighton Jones LLC increased its stake in shares of Waters by 112.9% during the fourth quarter. Brighton Jones LLC now owns 1,269 shares of the medical instruments supplier’s stock valued at $471,000 after buying an additional 673 shares during the period. Integrated Wealth Concepts LLC lifted its stake in Waters by 2.9% in the first quarter. Integrated Wealth Concepts LLC now owns 1,048 shares of the medical instruments supplier’s stock worth $386,000 after acquiring an additional 30 shares during the period. Goldman Sachs Group Inc. boosted its holdings in Waters by 3.6% in the first quarter. Goldman Sachs Group Inc. now owns 200,051 shares of the medical instruments supplier’s stock valued at $73,733,000 after acquiring an additional 6,976 shares in the last quarter. Empowered Funds LLC increased its position in Waters by 16.6% during the 1st quarter. Empowered Funds LLC now owns 1,126 shares of the medical instruments supplier’s stock valued at $415,000 after purchasing an additional 160 shares during the period. Finally, Sivia Capital Partners LLC purchased a new position in Waters during the 2nd quarter valued at $232,000. 94.01% of the stock is currently owned by institutional investors.

About Waters

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.