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SEC filingTransformational BDS acquisition drove Q1 revenue to $1.3B, up 91.5% year-over-year, but generated operating loss of $47M due to purchase accounting step-ups and integration costs, shifting scale amid short-term profitability pressure.
Waters Corporation's Q1 FY2026 financials reflect the transformative impact of the BDS Business Acquisition, which closed on February 9, substantially expanding revenue scale while introducing significant non-cash and integration-related costs.
Revenue surged 91.5% to $1.3 billion from $661.7 million in the prior-year quarter. This growth stems from the BDS contribution since closing, alongside legacy business momentum. Analytical Sciences saw double-digit consumables growth from sustained demand across geographies, fueled by uptake in columns and application-specific testing kits for pharmaceutical customers. Service revenue increased due to higher demand billing in most major regions, while instrument systems demand for LC/MS drove further expansion.
Operating cash flow turned negative at $3 million, versus $260 million provided last year, primarily attributable to the BDS acquisition. This usage reflects deal-related payments and working capital shifts amid the sales ramp.