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10-Q2026-05-12· grok-4-1-fast-non-reasoning

WAT · Waters Corporation

0001193125-26-219487

SEC filing

Summary

Transformational 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.

Key takeaways

Full analysis

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.