A month has gone by since the last earnings report for Waters (WAT Quick QuoteWAT - Free Report) . Shares have added about 8.7% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Waters due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

WAT Q1 Earnings Beat Estimates, BD Acquisition Aids Revenues

Waters delivered first-quarter 2026 adjusted earnings of $2.70 per share, up 20% year over year and beating the Zacks Consensus Estimate by 16.9%. Revenues jumped 91.5% from the year-ago quarter to $1.27 billion and topped the consensus mark of $1.20 billion by 5.2%.

The quarter reflected double-digit organic constant currency (cc) revenue growth of 11%, supported by strength across instruments, chemistry, and service, alongside an early contribution from the recently acquired BD Biosciences and Diagnostic Solutions businesses.

WAT’s Organic Engine Stayed in High Gear

Organic revenues increased 13% on a reported basis and 11% at cc, with management noting that orders again outpaced sales. The Analytical Sciences Division rose 12% in cc, led by 8% instrument growth, 13% chemistry growth, and 14% service growth.

End-market momentum leaned heavily toward pharma, where the company highlighted mid -teens growth supported by instrument replacement activity and idiosyncratic demand drivers such as GLP-1 manufacturing volume and PFAS testing applications. Academic and government demand also improved, aided by a revitalized high-resolution mass spec portfolio.

Waters Sees Early Execution Wins in Newly Acquired Units

Less than 90 days after closing the Feb. 9 transaction, Waters said newly acquired Biosciences and Diagnostic Solutions generated $520 million of owned-period revenue, exceeding guidance by $40 million. Leadership attributed the upside to a 180-day growth plan emphasizing tighter funnel discipline, higher field activity and faster decision-making.

Pricing discipline and contract compliance are also emerging levers. Management noted it is establishing two deal desks, deploying Waters’ pricing expertise and reviewing reagent rental contracts, identifying roughly 700 out of 1,600 U.S. Diagnostic Solutions contracts as out of compliance, representing a double-digit million-dollar annual shortfall opportunity.

WAT’s Divisions Showed Broad-Based Momentum

Analytical Sciences (former Waters division, excluding the Clinical Business unit) posted $607 million of revenue compared with $534 million in the year-ago quarter. The Biosciences division (formerly known as BD Biosciences) contributed $232 million during the owned period, with Flow Research and Flow Clinical each growing 7% year over year on an estimated as-reported basis. Reagents grew at a low double-digit rate, while instruments remained pressured by U.S. academic trends and China-related constraints.

Advanced Diagnostics delivered $349 million of revenue, combining Diagnostic Solutions of $288 million for the owned period and the Clinical Business Unit at $61 million for the reported quarter (compared with $53 million in the year-ago quarter). The Advanced Diagnostics Division comprises the former BD Diagnostic Solutions business and the Clinical Business unit previously reported within the Waters Division.

Microbiology revenues totaled $203 million for the period and were weighed down by weak respiratory testing tied to a soft flu season. 

Materials Sciences (formerly known as TA Division) added $79 million (compared with $75 million in the year-ago quarter), driven by strength in batteries, electronics testing and aerospace, partly offset by softness in core industrial applications.

Waters’ Profitability Improved as Operating Discipline Held

Adjusted gross margin expanded to 54.7%, and adjusted operating margin reached 23.6% (contracted from 25.5% reported in the year-ago quarter), reflecting better-than-expected margin performance before the bulk of cost synergies begin flowing through later in the year. 

In the first quarter of 2026, non-GAAP selling and administrative expenses were $299 million, up 76% year over year. Research and development expenses of $95 million, up 106.5% year over year.

WAT’s Balance Sheet Details

As of April 4, 2026, cash and cash equivalents were $462 million, down from $588 million as of Dec. 31, 2025.

Free cash flow was a $42 million outlay, affected by deal-related transaction costs and the timing of net cash settlement with BD.

WAT Raises 2026 Guidance With Synergies in View

Reflecting the strong start, WAT raised 2026 organic cc revenue growth guidance to 6.5%-8%. The company lifted adjusted earnings guidance to $14.40-$14.60 per share. The company now expects acquired businesses to contribute approximately $3.035 billion of reported revenue in 2026, while total reported revenue is projected at $6.405-$6.455 billion.

For the second quarter of 2026, management expects total reported revenue of $1.616-$1.631 billion and adjusted earnings of $2.95-$3.05 per share. 

Waters reiterated that it remains on track for $55 million of cost synergies and $50 million of revenue synergies in 2026, driven by cross-selling, instrument replacement, service plan attachment and e-commerce initiatives.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

VGM Scores

At this time, Waters has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Waters has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.