Waters (NYSE:WAT) Posts Earnings Results

Waters (NYSE:WAT) announced its quarterly earnings results on Tuesday. The medical instruments supplier reported $3.05 earnings per share for the quarter, beating analysts’ consensus estimates of $3.01 by $0.04, Zacks reports. Waters had a net margin of 11.91% and a return on equity of 15.60%. During the same quarter in the previous year, the firm earned $2.95 earnings per share. The company’s revenue for the quarter was up 113.3% compared to the same quarter last year. Waters updated its Q3 2026 guidance to 3.950-4.050 EPS and its FY 2026 guidance to 14.450-14.650 EPS.

Here are the key takeaways from Waters’ conference call:

• Organic growth exceeded expectations, with second-quarter organic revenue up 9% in constant currency and orders outpacing sales. Waters raised its full-year organic growth outlook to 7%-9% and guided to 8%-10% organic constant-currency growth in the third quarter.
• The acquired Biosciences and Diagnostic Solutions businesses accelerated to 4% reported growth in the quarter, up 400 basis points from the prior quarter. Management expects these businesses to exit 2026 at a growth rate of 6% or better, supported by pricing, China localization, new products and commercial execution.
• Waters completed planned restructuring actions and now expects approximately $75 million of 2026 savings and $200 million in annualized run-rate savings. The company said these actions should support second-half margin improvement and longer-term mid-teens adjusted EPS growth.
• New products and replacement opportunities are creating potential multiyear growth drivers, including the BACTEC FXI blood-culture system, FACSDiscover A7 flow cytometer and pharma reshoring. Management cited more than 12,000 aged BACTEC systems eligible for replacement and approximately $100 billion of announced U.S. pharma construction spending tied to tracked sites.
• Despite operational momentum, foreign-exchange translation remains a headwind, and the company reported a GAAP diluted loss of $1.39 per share due to acquisition-related amortization and inventory step-up charges. China also continues to pressure Biosciences and Diagnostics, particularly through diagnostic reimbursement reforms, although management expects some of those headwinds to normalize later in 2026.

Waters Stock Up 3.4%

NYSE:WAT traded up $12.69 during midday trading on Tuesday, reaching $387.43. The company had a trading volume of 332,724 shares, compared to its average volume of 1,022,306. Waters has a 12-month low of $275.05 and a 12-month high of $414.15. The firm has a market capitalization of $38.04 billion, a price-to-earnings ratio of 49.53, a PEG ratio of 2.28 and a beta of 1.20. The company has a current ratio of 1.79, a quick ratio of 1.13 and a debt-to-equity ratio of 0.32. The stock’s fifty day simple moving average is $369.92 and its 200-day simple moving average is $344.99.

Institutional Investors Weigh In On Waters

A number of hedge funds have recently bought and sold shares of the stock. Invesco Ltd. grew its position in shares of Waters by 32.3% during the third quarter. Invesco Ltd. now owns 1,472,419 shares of the medical instruments supplier’s stock worth $441,446,000 after buying an additional 359,596 shares in the last quarter. Veritas Asset Management LLP increased its stake in shares of Waters by 112.3% during the fourth quarter. Veritas Asset Management LLP now owns 1,241,206 shares of the medical instruments supplier’s stock worth $471,447,000 after buying an additional 656,436 shares during the period. Price T Rowe Associates Inc. MD raised its holdings in Waters by 509.8% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 671,103 shares of the medical instruments supplier’s stock valued at $254,906,000 after acquiring an additional 561,047 shares in the last quarter. Marshall Wace LLP lifted its stake in Waters by 1,611.3% in the fourth quarter. Marshall Wace LLP now owns 581,063 shares of the medical instruments supplier’s stock worth $220,705,000 after acquiring an additional 547,109 shares during the last quarter. Finally, Bank of America Corp DE lifted its stake in Waters by 4.3% in the third quarter. Bank of America Corp DE now owns 543,149 shares of the medical instruments supplier’s stock worth $162,842,000 after acquiring an additional 22,586 shares during the last quarter. Institutional investors and hedge funds own 94.01% of the company’s stock.

Analysts Set New Price Targets

WAT has been the subject of several research reports. Wall Street Zen downgraded shares of Waters from a “buy” rating to a “hold” rating in a report on Monday, July 20th. Robert W. Baird set a $387.00 price target on Waters in a research note on Wednesday, May 6th. Wolfe Research began coverage on Waters in a research report on Tuesday, June 2nd. They set an “outperform” rating and a $425.00 price target for the company. UBS Group lifted their price objective on Waters from $330.00 to $375.00 and gave the company a “neutral” rating in a research note on Wednesday, May 6th. Finally, Piper Sandler assumed coverage on Waters in a report on Thursday, June 11th. They issued a “neutral” rating and a $400.00 price objective on the stock. Three equities research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and nine have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $402.47.

About Waters

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.