Waters (NYSE:WAT) Issues Quarterly Earnings Results

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

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 Down 2.9%

NYSE:WAT opened at $449.12 on Tuesday. Waters has a one year low of $282.77 and a one year high of $482.28. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.29 and a current ratio of 1.86. The firm has a market cap of $44.13 billion, a P/E ratio of 112.00, a P/E/G ratio of 2.77 and a beta of 1.16. The firm has a 50-day simple moving average of $431.15 and a 200-day simple moving average of $370.83.

Insider Buying and Selling at Waters

In other news, Director Christopher Kuebler sold 3,626 shares of the stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $397.94, for a total transaction of $1,442,930.44. Following the transaction, the director directly owned 17,808 shares in the company, valued at approximately $7,086,515.52. This trade represents a 16.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.31% of the company’s stock.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on the company. JPMorgan Chase & Co. boosted their price target on Waters from $400.00 to $435.00 in a report on Wednesday, October 14th. Robert W. Baird increased their price objective on Waters from $456.00 to $495.00 and gave the stock an “outperform” rating in a research note on Thursday, October 8th. Barclays raised their price objective on Waters from $460.00 to $500.00 and gave the stock an “overweight” rating in a report on Wednesday, October 7th. Jefferies Financial Group lifted their target price on Waters from $450.00 to $455.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. Finally, TD Cowen upped their target price on Waters from $475.00 to $515.00 and gave the stock a “buy” rating in a report on Tuesday, October 13th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $457.50.

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.