Waters Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported revenue for Q3 2026 was $1.767 billion, exceeding the guidance midpoint by $14 million.
• Organic revenue was $871 million, representing a 9% increase as reported and 10% in constant currency compared to Q3 2025.
• Revenue from acquired Biosciences and Diagnostic Solutions businesses was $896 million in Q3 2026, compared to $885 million on a prior year comparable basis.
• GAAP diluted EPS was $0.82 for Q3 2026, compared to $2.50 in Q3 2025, reflecting acquisition-related purchase accounting charges, acquisition-related costs, and restructuring costs.
• Adjusted EPS was $4.10 for Q3 2026, a 21% increase from $3.40 in Q3 2025.
• For the nine months ended October 3, 2026, GAAP net loss was $127 million, while adjusted net income was $927 million.
• Operating income for Q3 2026 was $128 million on a GAAP basis and $532 million on an adjusted basis.
• Free cash flow (Adjusted Non-GAAP) was $68 million for Q3 2026 and $228 million for the nine months ended October 3, 2026.
• Total debt (Notes payable and debt) was $5.133 billion as of October 3, 2026, compared to $1.407 billion as of December 31, 2025.
• Cash and cash equivalents were $593 million as of October 3, 2026.

Guidance and Future Outlook:

• Full-year 2026 organic constant currency revenue growth guidance raised to 9.1%–9.7%.
• Full-year 2026 organic reported revenue guidance raised to $3.429 billion–$3.447 billion.
• Full-year 2026 acquired business reported revenue expectation raised to approximately $3.050 billion.
• Full-year 2026 total reported revenue guidance raised to $6.479 billion–$6.497 billion.
• Full-year 2026 adjusted EPS guidance raised to $14.60–$14.70, representing 11%–12% year-over-year growth.
• Q4 2026 organic constant currency revenue growth guidance is 7.0%–9.0%.
• Q4 2026 organic reported revenue guidance is $984 million–$1.002 billion.
• Q4 2026 acquired business reported revenue is expected to be approximately $817 million.
• Q4 2026 total reported revenue guidance is $1.801 billion–$1.819 billion.
• Q4 2026 adjusted EPS guidance is $4.58–$4.68, representing 1%–3% year-over-year growth.
• Management expects double-digit growth in both organic and acquired businesses in Q4 2026 on a days-adjusted basis.
• Management will provide a 2027 starting growth framework on the earnings conference call, citing reshoring, synergies, and AI-related demand drivers.

Business Segments and Product Lines:

• Analytical Sciences Division (ASD) revenue was $703 million in Q3 2026, an 8% increase as reported and 9% in constant currency.
• ASD growth was driven by double-digit instrument and chemistry growth, new product innovation, and rising customer testing volume.
• LC-MS instrument growth strengthened, growing double-digits in constant currency, driven by instrument replacement trends and demand related to GLP-1s, PFAS, and India generics.
• Biosciences Division (WBD) revenue was $396 million in Q3 2026, compared to $387 million in the prior year comparable period.
• WBD reagents grew high single-digits on a prior year comparable basis, reflecting a 400 basis point acceleration in year-over-year growth.
• Advanced Diagnostics Division (ADx) revenue was $575 million in Q3 2026 (Diagnostic Solutions $500 million; Clinical Business Unit $75 million).
• ADx microbiology grew mid-single-digits on a prior year comparable basis.
• Materials Sciences Division (MSD) revenue was $93 million in Q3 2026, a 7% increase from $87 million in Q3 2025.
• ASD revenue for the nine months ended October 3, 2026, was $1.979 billion, up 9% from $1.810 billion in the prior year period.

Market and Competitive Landscape:

• The company outperformed the market with leading solutions for complex biologics.
• Growth drivers include robust instrument replacement trends and idiosyncratic demand across GLP-1s, PFAS, and India generics.
• The company is delivering ahead of schedule on synergy and integration commitments for acquired businesses.
• End market conditions are improving with momentum accelerating across the combined company.

Risks and Challenges:

• Risks include failure to realize anticipated benefits of the acquisition of Biosciences and Diagnostic Solutions businesses from BDX.
• Potential delays in integrating the BDS Businesses with the Company or failure to achieve revenue and cost synergies.
• Uncertainty regarding the anticipated benefits of the MOBILion Systems, Inc. acquisition.
• Risks related to the development of new analytical instruments, software, consumables, and manufacturing capabilities.
• Exposure to future economic and market conditions, including potential impacts of tariffs and supply chain challenges.
• Risks associated with retaining and attracting customers in various geographies and market segments.
• Forward-looking statements regarding adjusted EPS guidance cannot be reconciled to GAAP measures without unreasonable effort due to the unpredictability of acquisition-related amortization, restructuring costs, and legal/advisory fees.

Management Commentary and Tone:

• Dr. Udit Batra, President & CEO, described results as "exceptional," led by best-in-class consumables growth across Analytical Sciences and Biosciences divisions.
• Management highlighted strong execution, new product innovation, and rising customer testing volume as key accelerators.
• Management expressed confidence in the synergy and integration progress for acquired businesses.
• The tone regarding future growth is positive, citing new growth vectors layering onto a strong foundation of existing demand.

Other Key Points:

• The Company announced the acquisition of MOBILion Systems, Inc., the pioneer of SLIM high-resolution ion mobility separation technology.
• The MOBILion acquisition is expected to broaden Waters' entry into the proteomics market and complement its mass spectrometry portfolio.
• The acquisition of Biosciences and Diagnostic Solutions businesses from Becton, Dickinson & Company (BDX) closed on February 9, 2026.
• The Company recognized $80 million in purchase accounting adjustments for inventory and fixed asset step-ups in Q3 2026 related to the BDS acquisition.
• The Company recognized $232 million in purchased intangibles amortization adjustments related to the BDS acquisition in Q3 2026.
• The Company is unable to provide reconciliations of forward-looking adjusted EPS guidance to GAAP measures due to the inherent difficulty in forecasting acquisition-related amortization and restructuring costs.
• The Company webcast its Q3 2026 earnings conference call on November 3, 2026, at 8:00 a.m. ET.