Waters (WAT) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered strong results, exceeding guidance with total revenue of $1.645 billion and robust growth across all divisions, driven by commercial execution, innovation, and successful integration of acquired Biosciences and Diagnostic Solutions businesses.

• Adjusted EPS grew 3% to $3.05, at the high end of guidance, while GAAP EPS was a loss of $1.39 due to acquisition-related charges.

• Decisive cost actions and revenue synergies supported margin expansion, with $75 million in Q2 cost savings and a $200 million run-rate expected for 2026.

• Industry-leading results in legacy businesses, with double-digit growth in pharma and academic/government end markets, and mid-single-digit growth in acquired businesses.

• Integration of acquired businesses is progressing, with operational improvements and a 180-day growth plan exceeding expectations.

Financial highlights

• Q2 2026 as-reported revenue: $1.645 billion; organic revenue: $828 million (7% as reported, 9% constant currency).

• Biosciences and Diagnostic Solutions revenue: $817 million, up 4% year-over-year.

• Adjusted EPS: $3.05, up 3% year-over-year; adjusted gross margin: 54%; adjusted operating margin: 25%.

• Free cash flow: $202 million after severance and integration costs.

• GAAP net loss: $136 million for Q2 2026, with GAAP diluted loss per share of $1.39 due to acquisition-related charges.

Outlook and guidance

• Full-year 2026 organic constant currency revenue growth guidance raised to 7%-9%; total reported revenue expected: $6.415-$6.476 billion.

• Adjusted EBIT margin expected at 28.2% for 2026; full-year adjusted EPS expected: $14.45-$14.65 (10%-12% growth year-over-year).

• Q3 2026 revenue guidance: $1.745-$1.762 billion; adjusted EPS: $3.95-$4.05; organic constant currency revenue growth expected at 8%-10%.