Waters Corporation

Second-quarter 2026 total company revenue was $1.645 billion. Organic revenue was $828 million, up 7% as reported and 9% in constant currency, and adjusted EPS was $3.05, up 3% year over year. Adjusted gross margin was 54% and adjusted operating margin was 25%; GAAP diluted loss per share was $1.39. Biosciences and Diagnostic Solutions revenue was $817 million, up 4% reported. For full-year 2026, Waters raised organic constant-currency growth guidance to 7% to 9%, organic reported revenue guidance to $3.37 billion to $3.431 billion, acquired-business revenue guidance to about $3.045 billion, total reported revenue guidance to $6.415 billion to $6.476 billion, adjusted EBIT margin guidance to 28.2%, and adjusted EPS guidance to $14.45 to $14.65. Third-quarter 2026 guidance calls for organic constant-currency growth of 8% to 10%, organic reported revenue of $850 million to $867 million, acquired-business revenue of about $895 million, total reported revenue of $1.745 billion to $1.762 billion, and adjusted EPS of $3.95 to $4.05.

Udit Batra framed the quarter as an “excellent” one, saying Waters executed ahead of guidance across all four divisions and that its legacy businesses remain durable high-single-digit growers. He emphasized broadening end-market recovery, strong product innovation, and early success in integrating the acquired BD businesses through pricing discipline, commercial execution, and cost actions. His tone was highly optimistic, especially around 2026 momentum, revenue synergies, reshoring, and new products like FXI and A7.

Amol Chaubal said the quarter’s $1.645 billion of revenue and $3.05 adjusted EPS landed at the high end of guidance, with 54% adjusted gross margin and 25% adjusted operating margin. He noted free cash flow of $202 million after about $21 million of severance payments and $27 million of integration cost payments, and said the net cash settlement due to orders from BD was $157 million at quarter-end. For the full year, he raised organic growth, revenue, and EPS guidance, while keeping EBIT margin at 28.2% because $20 million of cost-action benefit was offset by foreign exchange; he also said net interest expense should be about $190 million and the tax rate about 15.5%.

Analysts focused on whether the acquired BD businesses can sustainably grow above 5% to 6%, how much of the revenue raise came from pricing, and whether the margin outlook is conservative. Management said the acquired businesses should exit 2026 at 6% or better growth, that Q2 pricing realization was 90 basis points versus a historical 50 basis points, and that they still aim for 150 basis points. They also addressed China microbiology, saying Q2 was better than expected, and explained the Q3-to-Q4 phasing by noting BD’s year-end trade-inventory build in the prior year created an unusual seasonal pattern.