WAT · Waters Corporation

Waters Corporation delivered a materially strong first quarter of 2026 as its first reporting period incorporating the recently closed acquisition of Becton, Dickinson and Company’s Biosciences and Diagnostic Solutions (BDS) businesses on February 9, 2026. Total reported revenue of $1.267 billion consisted of $747 million in organic revenue — up 13% year-over-year as reported and 11% in constant currency, exceeding guidance by 200 basis points — and $520 million from the acquired businesses, $40 million above expectations. Organic growth was driven by high-single-digit instrument sales and mid-teens chemistry growth within the Analytical Sciences Division, while the Biosciences and Advanced Diagnostics Divisions demonstrated immediate commercial traction post-acquisition. GAAP results reflected significant purchase accounting impacts: $140 million in amortization of acquired intangibles and $99 million in inventory step-up charges, resulting in a GAAP net loss of $72 million and diluted EPS of ($0.87). In contrast, Adjusted EPS of $2.70 grew 20% year-over-year, supported by robust top-line performance and margin discipline. Management attributed the outperformance to execution discipline, new product launches, cross-divisional collaboration enabling early revenue synergies, and continued strength in the instrument replacement cycle. Reflecting this momentum, Waters raised full-year 2026 organic constant currency revenue guidance to 6.5%–8.0% and adjusted EPS guidance to $14.40–$14.60, implying double-digit growth. The updated outlook incorporates $15 million of expected organic revenue synergies and $35 million from the acquired businesses, underscoring confidence in integration progress and portfolio synergy realization. This filing marks a pivotal inflection point for Waters as it transitions into a broader life sciences platform with expanded scale, diversification, and cross-selling potential across analytical, biosciences, and diagnostics end markets.