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Waters Gears Up to Report Q3 Results: How to Play the Stock?
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Key Takeaways
Waters expects Q3 revenues of $1.745-$1.762 billion and adjusted EPS of $3.95-$4.05, up 16-19% year over year.
Strong pharma spending, GLP-1 testing demand and instrument replacements are likely to fuel Waters' Q3 growth.
Waters expects $895 million in acquired business revenues, aided by cross-selling and pricing gains.
Waters Corporation (WAT - Free Report) is scheduled to report third-quarter 2026 results on Nov. 3, before market open.
In the last reported quarter, the company’s adjusted earnings per share (EPS) of $3.05 surpassed the Zacks Consensus Estimate by 1.3%.
Let's look at the factors that may have shaped WAT’s performance before the announcement.
WAT’s Q3 Estimates
Currently, the Zacks Consensus Estimate for revenues is pegged at $1.75 billion, indicating growth of 119.1% year over year. The consensus mark for earnings is pinned at $3.99 per share, indicating an improvement of 17.4%.
For the third quarter, management expects 8-10% organic revenue growth in constant currency, with total reported revenue projected to be in the range of $1.745-$1.762 billion. Adjusted earnings per share are expected to be between $3.95 and $4.05, indicating year-over-year growth of 16-19%. Continued commercial execution, strengthening customer demand and contributions from the acquired businesses are expected to have supported the quarter’s performance.
WAT is expected to report healthy revenue growth in the third quarter of 2026, supported by sustained demand across its Analytical Sciences business, improving end-market conditions and continued momentum in its newly acquired Biosciences and Diagnostic Solutions businesses. In the second quarter, organic revenues grew 9% in constant currency, exceeding the high end of management’s guidance, as orders continued to outpace sales. The company benefited from improving pharmaceutical spending, stronger demand from academic and government customers and early contributions from cross-selling synergies.
The Analytical Sciences division is expected to have remained a key growth driver for Waters in the third quarter of 2026, supported by sustained pharmaceutical spending, an ongoing instrument replacement cycle and continued demand for high-growth applications. The division’s strong second-quarter performance, including 9% constant-currency revenue growth, provides a favorable base for the upcoming quarter. Improving capital expenditure trends across large pharmaceutical companies, contract development and manufacturing organizations (CDMOs) and generic drug manufacturers are expected to have supported continued demand for analytical instruments and chemistry products. The recovery in U.S. biotechnology and contract research organizations could provide an additional boost, as previously subdued customer segments begin to contribute more meaningfully to growth.
Waters also expects to benefit from the continued adoption of its mass spectrometry and bioseparations portfolio, with demand for GLP-1 testing, biologics and pharmaceutical research remaining important growth catalysts. In the second quarter, GLP-1 testing revenues surged more than 40%, with broad-based strength across geographies. Management reported a strong pipeline for both instruments and chemistry products, suggesting that this momentum could continue into the third quarter. However, the extent to which these growth drivers translate into incremental instrument orders and recurring chemistry revenues will be important to watch.
The acquired Biosciences and Diagnostic Solutions businesses are also expected to have supported Waters’ third-quarter 2026 revenue growth as commercial initiatives, pricing actions and new product launches begin to translate into stronger sales. The company expects revenues from these businesses to reach approximately $895 million in the third quarter, reflecting continued progress under its 180-day growth revitalization plan. Management anticipates an acceleration in the second half of 2026, supported by improved sales execution, instrument replacement opportunities and greater traction from cross-selling initiatives.
In diagnostics, the BACTEC FXI blood culture system is expected to drive incremental demand as commercialization expands across the United States, Europe and Japan. This is likely to be complemented by a substantial installed base of aging systems requiring replacement. Meanwhile, pricing initiatives and efforts to improve reagent rental contract compliance are likely to have aided revenue realization. Management is targeting 150 basis points of net price contribution in the acquired businesses, up from 90 basis points achieved in the second quarter.
However, persistent China-related headwinds, particularly in microbiology and flow research, could temper growth, although product localization and improved export license approvals are expected to have supported a gradual recovery. Overall, the acquired businesses are expected to have gained momentum as commercial improvements and product-led opportunities increasingly contribute to performance.
Earnings Beat Unlikely
Our proven model does not predict an earnings beat for WAT this earnings season. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Earnings ESP:Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank:The company has a Zacks Rank #3 at present.
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time:
PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.4%. The Zacks Consensus Estimate for the company’s first-quarter EPS indicates an increase of 8.2% from the year-ago quarter’s figure.
IDEXX Laboratories (IDXX - Free Report) has an Earnings ESP of +0.59% and a Zacks Rank #2. The company is slated to release third-quarter 2026 results on Nov. 2.
IDXX’s earnings beat estimates in each of the trailing four quarters, the average surprise being 5.7%. The Zacks Consensus Estimate for the company’s third-quarter EPS implies an increase of 9.1% from the year-ago quarter’s figure.
Becton, Dickinson and Company (BDX - Free Report) or BD has an Earnings ESP of +3.28% and a Zacks Rank #2. The company is set to release fourth-quarter fiscal 2026 results on Nov. 5.
BD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 2.94%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS calls for a rise of 2.5% from the year-ago quarter’s figure.
View the Zacks #1 Rank List
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Waters Gears Up to Report Q3 Results: How to Play the Stock?
Key Takeaways
Waters Corporation (WAT - Free Report) is scheduled to report third-quarter 2026 results on Nov. 3, before market open.
In the last reported quarter, the company’s adjusted earnings per share (EPS) of $3.05 surpassed the Zacks Consensus Estimate by 1.3%.
Let's look at the factors that may have shaped WAT’s performance before the announcement.
WAT’s Q3 Estimates
Currently, the Zacks Consensus Estimate for revenues is pegged at $1.75 billion, indicating growth of 119.1% year over year. The consensus mark for earnings is pinned at $3.99 per share, indicating an improvement of 17.4%.
For the third quarter, management expects 8-10% organic revenue growth in constant currency, with total reported revenue projected to be in the range of $1.745-$1.762 billion. Adjusted earnings per share are expected to be between $3.95 and $4.05, indicating year-over-year growth of 16-19%. Continued commercial execution, strengthening customer demand and contributions from the acquired businesses are expected to have supported the quarter’s performance.
Waters Corporation Price and EPS Surprise
Waters Corporation price-eps-surprise | Waters Corporation Quote
Factors to Note Before WAT Reports
WAT is expected to report healthy revenue growth in the third quarter of 2026, supported by sustained demand across its Analytical Sciences business, improving end-market conditions and continued momentum in its newly acquired Biosciences and Diagnostic Solutions businesses. In the second quarter, organic revenues grew 9% in constant currency, exceeding the high end of management’s guidance, as orders continued to outpace sales. The company benefited from improving pharmaceutical spending, stronger demand from academic and government customers and early contributions from cross-selling synergies.
The Analytical Sciences division is expected to have remained a key growth driver for Waters in the third quarter of 2026, supported by sustained pharmaceutical spending, an ongoing instrument replacement cycle and continued demand for high-growth applications. The division’s strong second-quarter performance, including 9% constant-currency revenue growth, provides a favorable base for the upcoming quarter. Improving capital expenditure trends across large pharmaceutical companies, contract development and manufacturing organizations (CDMOs) and generic drug manufacturers are expected to have supported continued demand for analytical instruments and chemistry products. The recovery in U.S. biotechnology and contract research organizations could provide an additional boost, as previously subdued customer segments begin to contribute more meaningfully to growth.
Waters also expects to benefit from the continued adoption of its mass spectrometry and bioseparations portfolio, with demand for GLP-1 testing, biologics and pharmaceutical research remaining important growth catalysts. In the second quarter, GLP-1 testing revenues surged more than 40%, with broad-based strength across geographies. Management reported a strong pipeline for both instruments and chemistry products, suggesting that this momentum could continue into the third quarter. However, the extent to which these growth drivers translate into incremental instrument orders and recurring chemistry revenues will be important to watch.
The acquired Biosciences and Diagnostic Solutions businesses are also expected to have supported Waters’ third-quarter 2026 revenue growth as commercial initiatives, pricing actions and new product launches begin to translate into stronger sales. The company expects revenues from these businesses to reach approximately $895 million in the third quarter, reflecting continued progress under its 180-day growth revitalization plan. Management anticipates an acceleration in the second half of 2026, supported by improved sales execution, instrument replacement opportunities and greater traction from cross-selling initiatives.
In diagnostics, the BACTEC FXI blood culture system is expected to drive incremental demand as commercialization expands across the United States, Europe and Japan. This is likely to be complemented by a substantial installed base of aging systems requiring replacement. Meanwhile, pricing initiatives and efforts to improve reagent rental contract compliance are likely to have aided revenue realization. Management is targeting 150 basis points of net price contribution in the acquired businesses, up from 90 basis points achieved in the second quarter.
However, persistent China-related headwinds, particularly in microbiology and flow research, could temper growth, although product localization and improved export license approvals are expected to have supported a gradual recovery. Overall, the acquired businesses are expected to have gained momentum as commercial improvements and product-led opportunities increasingly contribute to performance.
Earnings Beat Unlikely
Our proven model does not predict an earnings beat for WAT this earnings season. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Earnings ESP:Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank:The company has a Zacks Rank #3 at present.
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time:
Phibro Animal Health (PAHC - Free Report) has an Earnings ESP of +2.10% and a Zacks Rank #2. The company is expected to release first-quarter fiscal 2027 results soon. You can see the complete list of today’s Zacks #1 Rank stocks here.
PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.4%. The Zacks Consensus Estimate for the company’s first-quarter EPS indicates an increase of 8.2% from the year-ago quarter’s figure.
IDEXX Laboratories (IDXX - Free Report) has an Earnings ESP of +0.59% and a Zacks Rank #2. The company is slated to release third-quarter 2026 results on Nov. 2.
IDXX’s earnings beat estimates in each of the trailing four quarters, the average surprise being 5.7%. The Zacks Consensus Estimate for the company’s third-quarter EPS implies an increase of 9.1% from the year-ago quarter’s figure.
Becton, Dickinson and Company (BDX - Free Report) or BD has an Earnings ESP of +3.28% and a Zacks Rank #2. The company is set to release fourth-quarter fiscal 2026 results on Nov. 5.
BD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 2.94%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS calls for a rise of 2.5% from the year-ago quarter’s figure.