Waters (WAT) Q1 2026 earnings summary

Executive summary

• Achieved double-digit organic revenue growth in Q1 2026, with strong performance from both legacy and newly acquired Biosciences and Diagnostic Solutions businesses, exceeding guidance.

• Adjusted EPS grew 20% year-over-year to $2.70, surpassing guidance by $0.35, while GAAP EPS was a loss of $0.87 due to acquisition-related charges.

• Integration of acquired businesses progressed rapidly, with early realization of revenue and cost synergies and above-guidance performance.

• Launched significant new product innovations, including MaxPeak Premier columns, omniDAWN detector, BACTEC FXI blood culture system, and FDA-cleared BD Onclarity HPV self-collection kit.

• Raised full-year 2026 organic constant currency revenue growth and adjusted EPS guidance.

Financial highlights

• Q1 2026 total revenue: $1.267 billion ($747M organic, $520M acquired), up 13% as reported and 11% in constant currency.

• Adjusted gross margin: 54.7%; adjusted operating margin: 23.6%; adjusted operating income: $300 million.

• GAAP diluted loss per share of $0.87 due to acquisition-related charges; adjusted net income: $222 million.

• Free cash flow for Q1 2026: $(42) million, impacted by transaction costs and acquisition-related items.

• Regional revenue: Americas $505M, Europe $412M, Asia $350M.

Outlook and guidance

• Full-year 2026 organic constant currency revenue growth guidance raised to 6.5%-8%; total reported revenue expected at $6.405B-$6.455B.

• Adjusted EPS guidance raised to $14.40-$14.60 (10%-11% growth).

• Q2 2026 organic constant currency revenue growth expected at 6%-8%; adjusted EPS $2.95-$3.05.

• Second half guidance de-risked with prudent growth assumptions.