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

Waters (NYSE:WAT) announced its quarterly earnings results on Tuesday. The medical instruments supplier reported $3.05 EPS for the quarter, beating analysts’ consensus estimates of $3.01 by $0.04, Zacks reports. The company had revenue of $1.65 billion during the quarter, compared to analyst estimates of $1.62 billion. Waters had a return on equity of 11.27% and a net margin of 3.58%.The firm’s revenue was up 113.3% on a year-over-year basis. During the same period in the prior year, the company earned $2.95 earnings per share. 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 Trading Down 0.8%

Shares of NYSE:WAT traded down $3.16 during trading hours on Thursday, hitting $396.84. 293,992 shares of the company’s stock traded hands, compared to its average volume of 1,029,729. The firm has a market capitalization of $38.97 billion, a P/E ratio of 98.74, a price-to-earnings-growth ratio of 2.39 and a beta of 1.19. The business has a fifty day moving average price of $372.13 and a 200-day moving average price of $345.04. 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 0.77 and a quick ratio of 1.13.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the stock. Stifel Nicolaus set a $420.00 price target on shares of Waters in a research report on Wednesday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Waters in a report on Friday, July 17th. Sanford C. Bernstein assumed coverage on Waters in a research note on Friday, June 26th. They set an “outperform” rating and a $435.00 price objective on the stock. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and issued a $400.00 price objective on shares of Waters in a research note on Wednesday. Finally, Piper Sandler began coverage on Waters in a report on Thursday, June 11th. They issued a “neutral” rating and a $400.00 target price for the company. Three investment analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $418.10.

Hedge Funds Weigh In On Waters

Hedge funds have recently bought and sold shares of the business. Brighton Jones LLC boosted its position in Waters by 112.9% in the 4th 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 holdings in shares of Waters by 2.9% during the first quarter. Integrated Wealth Concepts LLC now owns 1,048 shares of the medical instruments supplier’s stock worth $386,000 after purchasing an additional 30 shares during the period. Goldman Sachs Group Inc. raised its position in shares of Waters by 3.6% in the first quarter. Goldman Sachs Group Inc. now owns 200,051 shares of the medical instruments supplier’s stock worth $73,733,000 after acquiring an additional 6,976 shares during the period. Empowered Funds LLC increased its position in shares of Waters by 16.6% during the first quarter. Empowered Funds LLC now owns 1,126 shares of the medical instruments supplier’s stock worth $415,000 after purchasing an additional 160 shares in the last quarter. Finally, Sivia Capital Partners LLC acquired a new position in Waters during the second quarter worth $232,000. Institutional investors own 94.01% of the company’s stock.

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.