Waters (NYSE:WAT) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• Waters reported Q1 EPS of $2.70 versus consensus $2.31 and revenue of $1.27B versus $1.20B, with revenue up 91.4% year‑over‑year, prompting the stock to gap up from $301.88 to an $338.09 open (last ~$338.30).
• The company set Q2 2026 guidance at $2.95–$3.05 EPS and FY2026 at $14.40–$14.60, while reporting strong profitability metrics (ROE 34.79%, net margin 20.30%).
• Analyst sentiment is a consensus "Moderate Buy" with a $387.53 target (including a Goldman Sachs "strong-buy"), and insiders/institutions remain active—an insider bought 500 shares and institutions own about 94.01% of the stock.

Waters Corporation (NYSE:WAT - Get Free Report)'s stock price gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $301.88, but opened at $338.09. Waters shares last traded at $338.2970, with a volume of 330,174 shares traded.

The medical instruments supplier reported $2.70 earnings per share for the quarter, beating analysts' consensus estimates of $2.31 by $0.39. Waters had a return on equity of 34.79% and a net margin of 20.30%.The business had revenue of $1.27 billion for the quarter, compared to the consensus estimate of $1.20 billion. During the same quarter last year, the business posted $2.25 earnings per share. The company's revenue for the quarter was up 91.4% on a year-over-year basis. Waters has set its Q2 2026 guidance at 2.950-3.050 EPS and its FY 2026 guidance at 14.400-14.600 EPS.

Analyst Upgrades and Downgrades

WAT has been the topic of a number of recent research reports. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Waters in a research note on Monday, April 20th. Wall Street Zen cut Waters from a "buy" rating to a "hold" rating in a research note on Sunday, February 8th. The Goldman Sachs Group raised Waters to a "strong-buy" rating in a research note on Wednesday, April 1st. William Blair initiated coverage on Waters in a research note on Monday, January 5th. They set an "outperform" rating on the stock. Finally, Deutsche Bank Aktiengesellschaft reduced their price objective on Waters from $370.00 to $330.00 and set a "hold" rating on the stock in a research note on Wednesday, March 25th. Three analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and eight have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $387.53.

Insiders Place Their Bets

In other Waters news, Director Wei Jiang acquired 500 shares of the company's stock in a transaction on Monday, March 16th. The stock was acquired at an average price of $289.46 per share, for a total transaction of $144,730.00. Following the acquisition, the director owned 3,441 shares in the company, valued at $996,031.86. This represents a 17.00% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Company insiders own 0.31% of the company's stock.

Institutional Investors Weigh In On Waters

Several institutional investors and hedge funds have recently bought and sold shares of WAT. Root Financial Partners LLC bought a new stake in Waters in the third quarter valued at $26,000. ANTIPODES PARTNERS Ltd bought a new stake in Waters in the third quarter valued at $26,000. Anchor Investment Management LLC bought a new stake in Waters in the first quarter valued at $27,000. Zions Bancorporation National Association UT boosted its holdings in Waters by 121.2% in the fourth quarter. Zions Bancorporation National Association UT now owns 73 shares of the medical instruments supplier's stock valued at $28,000 after acquiring an additional 40 shares in the last quarter. Finally, Louisbourg Investments Inc. bought a new stake in Waters in the first quarter valued at $30,000. Hedge funds and other institutional investors own 94.01% of the company's stock.

Waters Stock Performance

The company has a 50-day simple moving average of $309.75 and a two-hundred day simple moving average of $351.98. 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 firm has a market capitalization of $33.52 billion, a P/E ratio of 31.63, a PEG ratio of 1.99 and a beta of 1.14.

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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