Waters (NYSE:WAT) Releases Quarterly Earnings Results, Beats Estimates By $0.39 EPS

Key Points

• Waters reported Q1 adjusted EPS of $2.70, beating estimates by $0.39, with revenue of $1.267 billion versus a $1.20B consensus and year‑over‑year revenue growth well above prior-year levels.
• Management raised guidance, setting Q2 EPS at $2.95–$3.05 and FY2026 adjusted EPS at $14.40–$14.60, citing traction from the BD Biosciences & Diagnostic Solutions acquisition (owned‑period revenue ≈ $520M) and lifting organic growth targets to 6.5%–8%.
• Shares jumped about 12.7% intraday to $340.16 on the results; Wall Street sentiment is broadly positive with a consensus "Moderate Buy" and a $387.53 price target, though analysts note some short‑term headwinds (weaker respiratory season and China constraints).

Waters (NYSE:WAT - Get Free Report) posted its quarterly earnings results on Tuesday. The medical instruments supplier reported $2.70 earnings per share for the quarter, topping analysts' consensus estimates of $2.31 by $0.39, FiscalAI reports. Waters had a net margin of 20.30% and a return on equity of 34.79%. The firm had revenue of $1.27 billion for the quarter, compared to analyst estimates of $1.20 billion. During the same period in the previous year, the business posted $2.25 earnings per share. Waters's quarterly revenue was up 91.4% on a year-over-year basis. Waters updated its Q2 2026 guidance to 2.950-3.050 EPS and its FY 2026 guidance to 14.400-14.600 EPS.

Here are the key takeaways from Waters' conference call:

• Waters delivered a strong start to 2026 with $1.267 billion in Q1 revenue, organic growth of ~11% constant currency, and adjusted EPS up 20% to $2.70, materially beating guidance.
• The BD Biosciences and Diagnostic Solutions acquisition is gaining traction (owned-period revenue of $520M, roughly +7% as-reported) and management raised full-year organic growth guidance to 6.5%–8% and adjusted EPS to $14.40–$14.60.
• Integration actions (a 180-day plan) are already producing early revenue upside via tighter forecast/funnel discipline, new deal desks/pricing reviews, and identified contract compliance opportunities (management flagged ~700 of 1,600 U.S. contracts out of compliance).
• Management highlighted multiple product and regulatory wins that should support future growth, including CE-marked BACTEC FXi launches in Europe/Japan, FDA-cleared BD Onclarity HPV self-collection, and new chemistry/light-scattering products (MaxPeak Premier, omniDAWN).
• Certain near-term headwinds remain, including a ~$20M respiratory/weak-flu-season impact, China DRG and export constraints that pressured instrument sales, and pockets of softness in Asia that could weigh on short-term results.

Waters Trading Up 12.7%

Shares of WAT traded up $38.28 during midday trading on Tuesday, hitting $340.16. 480,041 shares of the stock were exchanged, compared to its average volume of 1,036,483. Waters has a 52-week low of $275.05 and a 52-week high of $414.15. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.27 and a current ratio of 1.73. The stock has a fifty day simple moving average of $309.75 and a 200 day simple moving average of $351.98. The firm has a market cap of $33.39 billion, a P/E ratio of 31.57, a P/E/G ratio of 1.99 and a beta of 1.14.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. Evercore upgraded Waters from an "in-line" rating to an "outperform" rating and set a $350.00 price objective on the stock in a research report on Monday, April 6th. Guggenheim restated a "buy" rating and issued a $440.00 target price on shares of Waters in a report on Tuesday, February 10th. Deutsche Bank Aktiengesellschaft cut their target price on Waters from $370.00 to $330.00 and set a "hold" rating for the company in a research note on Wednesday, March 25th. Wall Street Zen cut shares of Waters from a "buy" rating to a "hold" rating in a research report on Sunday, February 8th. Finally, The Goldman Sachs Group raised shares of Waters to a "strong-buy" rating in a report on Wednesday, April 1st. Three equities research 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 company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $387.53.

More Waters News

Here are the key news stories impacting Waters this week:

• Positive Sentiment: Q1 results topped estimates — Waters reported $2.70 EPS vs. $2.31 expected and revenue of $1.267B (beat the $1.20B consensus); margins and ROE were strong and revenue was up sharply year‑over‑year. This is the primary driver of the stock move. Zacks: Waters (WAT) Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Organic growth and revenue outperformance — Management said total reported revenue exceeded the high end of guidance by ~$56M; organic revenue grew ~13% (11% constant currency), led by Instruments and Chemistry within Analytical Sciences. That suggests durable end‑market demand. PR Newswire: Waters Q1 2026 Financial Results
• Positive Sentiment: Analyst support — William Blair’s Matt Larew reiterated a Buy on WAT, reinforcing investor confidence in the company’s growth trajectory and BD synergies despite a price target below current levels. TipRanks: Analyst Reiterates Buy on Waters
• Neutral Sentiment: Company materials available — Management posted the press release, slide deck and conference call transcript (useful for digging into segment trends and margins). MarketBeat: Listen to Conference Call / View Materials
• Negative Sentiment: Q2 EPS guidance slightly soft vs. consensus — Waters set Q2 EPS at $2.95–$3.05 (consensus ~3.03) and gave revenue around $1.6B; the lower end of the EPS range and a flat revenue outlook could limit near‑term upside and increase focus on execution. PR Newswire: Q2/FY Guidance in Q1 Release

Insider Activity

In other news, Director Wei Jiang bought 500 shares of the firm's stock in a transaction that occurred on Monday, March 16th. The shares were purchased at an average price of $289.46 per share, with a total value of $144,730.00. Following the purchase, the director owned 3,441 shares in the company, valued at approximately $996,031.86. The trade was a 17.00% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Corporate insiders own 0.31% of the company's stock.

Institutional Investors Weigh In On Waters

Several large investors have recently added to or reduced their stakes in WAT. Pacer Advisors Inc. raised its position in Waters by 11.5% in the 4th quarter. Pacer Advisors Inc. now owns 5,787 shares of the medical instruments supplier's stock valued at $2,198,000 after purchasing an additional 595 shares in the last quarter. Compound Planning Inc. grew its position in shares of Waters by 3.2% during the fourth quarter. Compound Planning Inc. now owns 1,538 shares of the medical instruments supplier's stock worth $584,000 after buying an additional 47 shares in the last quarter. Corient Private Wealth LLC grew its position in shares of Waters by 728.4% during the fourth quarter. Corient Private Wealth LLC now owns 38,926 shares of the medical instruments supplier's stock worth $14,785,000 after buying an additional 34,227 shares in the last quarter. Beacon Pointe Advisors LLC increased its stake in shares of Waters by 48.8% during the fourth quarter. Beacon Pointe Advisors LLC now owns 1,034 shares of the medical instruments supplier's stock worth $393,000 after buying an additional 339 shares during the period. Finally, State of Tennessee Department of Treasury increased its stake in shares of Waters by 85.9% during the fourth quarter. State of Tennessee Department of Treasury now owns 12,818 shares of the medical instruments supplier's stock worth $4,752,000 after buying an additional 5,923 shares during the period. 94.01% of the stock is owned by hedge funds and other institutional investors.

Waters Company Profile

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.

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