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Waters' Q3 adjusted EPS rose 21% to $4.10, while revenues surged 121% to $1.77 billion, beating estimates.
WAT's organic revenues grew 9%, driven by strong demand for analytical instruments and chemistry consumables.
Waters raised its 2026 revenue outlook to $6.479B-$6.497B and adjusted EPS guidance to $14.60-$14.70.
Waters Corporation (WAT - Free Report) reported third-quarter 2026 adjusted earnings of $4.10 per share, increasing 21% year over year and surpassing the Zacks Consensus Estimate by 2.75%.
GAAP earnings declined 67.2% year over year to 82 cents per share.
Revenues of $1.77 billion surged 121% from the year-ago quarter and topped the consensus mark by 1.14%, primarily reflecting contributions from the acquired Biosciences and Diagnostic Solutions businesses.
WAT's Organic Growth Gains Momentum
Organic revenues totaled $871 million, increasing 9% year over year. Constant-currency growth reached 10%, driven by strong demand across analytical instruments and chemistry consumables.
LC-MS instrument revenues grew at a double-digit rate in constant currency, benefiting from robust instrument replacement trends. Demand associated with GLP-1 therapies, PFAS testing and Indian generics supported growth. The company also maintained strength in solutions for complex biologics.
Waters' Divisions Deliver Broad-Based Growth
Analytical Sciences Division revenues increased 8% year over year to $703 million. At constant currency, revenues grew 9%, supported by double-digit growth in instruments and chemistry consumables.
Instrument revenues reached $282 million, increasing 9% as reported and 10% in constant currency. Chemistry consumables revenues totaled $157 million, advancing 10% as reported and 12% in constant currency, reflecting strong execution and rising customer testing volumes.
The Biosciences Division generated $396 million in revenues, increasing approximately 2.3% on a prior-year comparable basis. Reagents grew at a high-single-digit rate, representing a 400-basis-point acceleration in year-over-year growth. Both research and clinical reagents recorded high-single-digit growth.
Advanced Diagnostics delivered $575 million in revenues. Diagnostic Solutions generated $500 million, increasing approximately 0.4% on a prior-year comparable basis. The Clinical Business Unit contributed $75 million, rising approximately 17.2% year over year.
Materials Sciences revenues reached $93 million, increasing 7% from the prior-year quarter.
Adjusted operating income reached $532 million, increasing approximately 119.8% year over year. However, adjusted operating margin contracted 20 basis points to 30.1%, reflecting the expanded business structure.
Selling and administrative expenses increased 86% year over year to $398 million, while research and development expenses surged 96.3% to $106 million.
Waters ended the third quarter with cash and cash equivalents of $593 million, sequentially up from $539 million in the second quarter.
Cumulative net cash provided by operating activities totaled $296 million compared with $488 million a year ago.
Capital expenditures and software capitalization increased 72% to $43 million. The decline in operating cash flow, despite higher revenues, highlights the cash generation challenges accompanying the integration of acquired businesses.
Waters Corporation Price, Consensus and EPS Surprise
Waters raised 2026 organic constant-currency revenue growth guidance to 9.1%-9.7%. Organic reported revenues are expected to be between $3.429 billion and $3.447 billion, while acquired businesses are projected to contribute approximately $3.050 billion.
Total reported revenues are now expected to be between $6.479 billion and $6.497 billion, representing a $43 million increase at the midpoint. Adjusted earnings guidance was raised to $14.60-$14.70 per share, indicating 11%-12% year-over-year growth.
For the fourth quarter of 2026, management expects reported revenues of $1.801-$1.819 billion and adjusted earnings of $4.58-$4.68 per share. Organic constant-currency revenue growth is projected to be in the range of 7%-9%, while acquired-business revenues are expected to reach approximately $817 million.
Waters Expands Its Product Portfolio
Waters announced the acquisition of MOBILion Systems, a pioneer in high-resolution ion mobility separation technology. The acquisition complements its mass spectrometry portfolio and is expected to strengthen its position in the proteomics market.
Management highlighted integration and synergy progress ahead of schedule. The company plans to outline its starting 2027 growth framework, focusing on reshoring, synergies and artificial intelligence-related demand drivers.
WAT’s Zacks Rank & Other Stocks to Consider
WAT currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are OPKO Health (OPK - Free Report) , Globus Medical (GMED - Free Report) and Merit Medical Systems (MMSI - Free Report) .
OPKO Health, currently flaunting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted loss of 1 cent per share, which surpassed the Zacks Consensus Estimate by 87.5%. Revenues of $163.6 million beat the Zacks Consensus Estimate by 24.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
OPK has an estimated earnings growth rate of 23.3% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 95.1%.
Globus Medical, currently carrying a Zacks Rank #2, reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Merit Medical Systems, carrying a Zacks Rank #2 at present, reported second-quarter 2026 adjusted EPS of $1.19, which beat the Zacks Consensus Estimate by 23.9%. Revenues of $418.8 million surpassed the Zacks Consensus Estimate by 3.5%.
MMSI has an estimated long-term earnings growth rate of 10.4%. Merit Medical Systems’ earnings surpassed estimates in the trailing four quarters, with the average surprise being 14.1%.
View the Zacks #1 Rank List
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Waters Q3 Earnings & Revenues Beat Estimates, 2026 Guidance Raised
Key Takeaways
Waters Corporation (WAT - Free Report) reported third-quarter 2026 adjusted earnings of $4.10 per share, increasing 21% year over year and surpassing the Zacks Consensus Estimate by 2.75%.
GAAP earnings declined 67.2% year over year to 82 cents per share.
Revenues of $1.77 billion surged 121% from the year-ago quarter and topped the consensus mark by 1.14%, primarily reflecting contributions from the acquired Biosciences and Diagnostic Solutions businesses.
WAT's Organic Growth Gains Momentum
Organic revenues totaled $871 million, increasing 9% year over year. Constant-currency growth reached 10%, driven by strong demand across analytical instruments and chemistry consumables.
LC-MS instrument revenues grew at a double-digit rate in constant currency, benefiting from robust instrument replacement trends. Demand associated with GLP-1 therapies, PFAS testing and Indian generics supported growth. The company also maintained strength in solutions for complex biologics.
Waters' Divisions Deliver Broad-Based Growth
Analytical Sciences Division revenues increased 8% year over year to $703 million. At constant currency, revenues grew 9%, supported by double-digit growth in instruments and chemistry consumables.
Instrument revenues reached $282 million, increasing 9% as reported and 10% in constant currency. Chemistry consumables revenues totaled $157 million, advancing 10% as reported and 12% in constant currency, reflecting strong execution and rising customer testing volumes.
The Biosciences Division generated $396 million in revenues, increasing approximately 2.3% on a prior-year comparable basis. Reagents grew at a high-single-digit rate, representing a 400-basis-point acceleration in year-over-year growth. Both research and clinical reagents recorded high-single-digit growth.
Advanced Diagnostics delivered $575 million in revenues. Diagnostic Solutions generated $500 million, increasing approximately 0.4% on a prior-year comparable basis. The Clinical Business Unit contributed $75 million, rising approximately 17.2% year over year.
Materials Sciences revenues reached $93 million, increasing 7% from the prior-year quarter.
WAT's Profitability Reflects Higher Acquisition Costs
Adjusted operating income reached $532 million, increasing approximately 119.8% year over year. However, adjusted operating margin contracted 20 basis points to 30.1%, reflecting the expanded business structure.
Selling and administrative expenses increased 86% year over year to $398 million, while research and development expenses surged 96.3% to $106 million.
Waters' Cash Flow Declines Amid Integration Spending
Waters ended the third quarter with cash and cash equivalents of $593 million, sequentially up from $539 million in the second quarter.
Cumulative net cash provided by operating activities totaled $296 million compared with $488 million a year ago.
Capital expenditures and software capitalization increased 72% to $43 million. The decline in operating cash flow, despite higher revenues, highlights the cash generation challenges accompanying the integration of acquired businesses.
Waters Corporation Price, Consensus and EPS Surprise
Waters Corporation price-consensus-eps-surprise-chart | Waters Corporation Quote
WAT Raises 2026 Guidance on Strong Demand
Waters raised 2026 organic constant-currency revenue growth guidance to 9.1%-9.7%. Organic reported revenues are expected to be between $3.429 billion and $3.447 billion, while acquired businesses are projected to contribute approximately $3.050 billion.
Total reported revenues are now expected to be between $6.479 billion and $6.497 billion, representing a $43 million increase at the midpoint. Adjusted earnings guidance was raised to $14.60-$14.70 per share, indicating 11%-12% year-over-year growth.
For the fourth quarter of 2026, management expects reported revenues of $1.801-$1.819 billion and adjusted earnings of $4.58-$4.68 per share. Organic constant-currency revenue growth is projected to be in the range of 7%-9%, while acquired-business revenues are expected to reach approximately $817 million.
Waters Expands Its Product Portfolio
Waters announced the acquisition of MOBILion Systems, a pioneer in high-resolution ion mobility separation technology. The acquisition complements its mass spectrometry portfolio and is expected to strengthen its position in the proteomics market.
Management highlighted integration and synergy progress ahead of schedule. The company plans to outline its starting 2027 growth framework, focusing on reshoring, synergies and artificial intelligence-related demand drivers.
WAT’s Zacks Rank & Other Stocks to Consider
WAT currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are OPKO Health (OPK - Free Report) , Globus Medical (GMED - Free Report) and Merit Medical Systems (MMSI - Free Report) .
OPKO Health, currently flaunting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted loss of 1 cent per share, which surpassed the Zacks Consensus Estimate by 87.5%. Revenues of $163.6 million beat the Zacks Consensus Estimate by 24.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
OPK has an estimated earnings growth rate of 23.3% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 95.1%.
Globus Medical, currently carrying a Zacks Rank #2, reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Merit Medical Systems, carrying a Zacks Rank #2 at present, reported second-quarter 2026 adjusted EPS of $1.19, which beat the Zacks Consensus Estimate by 23.9%. Revenues of $418.8 million surpassed the Zacks Consensus Estimate by 3.5%.
MMSI has an estimated long-term earnings growth rate of 10.4%. Merit Medical Systems’ earnings surpassed estimates in the trailing four quarters, with the average surprise being 14.1%.