Waters (WAT) Q1 2026 earnings summary

Executive summary

• Reported Q1 2026 revenue of $1.267 billion, exceeding guidance by $56 million, with strong double-digit organic growth and significant contributions from the newly acquired Biosciences and Diagnostic Solutions businesses.

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

• Integration of acquired businesses is progressing rapidly, with early realization of revenue and cost synergies and robust execution of a 180-day growth revitalization plan.

• 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.

• Net loss of $72 million for Q1 2026, primarily due to acquisition-related costs and amortization.

Financial highlights

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

• Adjusted gross margin: 54.7%, adjusted operating margin: 23.6%, both above expectations.

• GAAP diluted loss per share of $0.87 due to acquisition-related charges.

• Free cash flow: $(42) million, impacted by transaction costs and cash settlement timing.

• Cash and cash equivalents at quarter-end were $462 million, with $425 million held by foreign subsidiaries.

Outlook and guidance

• Full-year 2026 organic constant currency revenue growth guidance raised to 6.5%-8.0%.

• Full-year 2026 total reported revenue expected at $6.405B-$6.455B; acquired businesses to generate ~$3.035B.

• 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.