WAT WATERS CORP /DE/
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Executive Summary
Waters reported Q1 2026 total revenue of $1.267B, well above the $1.20B consensus, driven by $747M in organic revenue (up 13% as reported, 11% constant currency) and $520M from the newly acquired BDS business. Adjusted EPS of $2.70 grew 20% YoY, beating the $2.31 consensus by 16.9%. The company raised full-year 2026 adjusted EPS guidance to $14.40-$14.60 and organic constant currency growth to 6.5%-8.0%, signaling strong momentum from the acquisition and organic execution.
Key Financial Metrics
Actionable Insight
The strong beat and raised guidance confirm accelerating momentum from both organic growth and the transformative BDS acquisition. Watch for Q2 guidance of $2.95-$3.05 adjusted EPS (flat to +3.4% YoY) as the integration progresses; the stock should re-rate higher on the raised full-year outlook. Monitor free cash flow trajectory in coming quarters as working capital normalizes.
Key Facts
- Total reported revenue of $1.267B exceeded the high end of guidance by $56M and consensus of $1.20B.
- Organic revenue grew 13% as reported and 11% in constant currency, exceeding the high end of guidance by 200 bps.
- Adjusted EPS of $2.70 grew 20% YoY, beating consensus of $2.31 by 16.9%.
- Biosciences and Diagnostic Solutions (BDS) contributed $520M in revenue since the Feb 9 acquisition close, $40M above guidance.
- Full-year 2026 adjusted EPS guidance raised to $14.40-$14.60 (from $14.30-$14.50), representing 10%-11% YoY growth.
- Full-year 2026 organic constant currency revenue growth guidance raised to 6.5%-8.0% (from 5.5%-7.0%).
- GAAP diluted EPS was ($0.87) due to $251M in acquisition-related purchase accounting charges (intangibles amortization and inventory step-up).
- Free cash flow was negative ($42M) in Q1 vs positive $234M in the prior year, impacted by working capital build and BDS integration.
Financial Impact
Adjusted EPS beat consensus by $0.39 (16.9%); total revenue beat consensus by ~$67M (5.6%); guidance raised for both revenue and EPS.
Risk Factors
- Integration risk from the large BDS acquisition; $5.2B in debt on the balance sheet increases financial leverage.
- GAAP losses from purchase accounting charges will persist through 2026, potentially confusing headline readers.
- Q2 adjusted EPS guidance of $2.95-$3.05 implies only flat to +3.4% YoY growth, a deceleration from Q1's 20% growth.
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-204955 |
| Document: d131836d8k.htm | 0001193125-26-204955 |
| Document: 0001193125-26-204955-index-headers.html | 0001193125-26-204955 |
| Document: 0001193125-26-204955-index.html | 0001193125-26-204955 |
| Document: 0001193125-26-204955.txt | 0001193125-26-204955 |
| 8-K Data (Synthetic) | 0001193125-26-204955 |
US Market Status
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