Waters Corporation

What they do

Waters designs, manufactures, and services liquid chromatography, mass spectrometry, thermal analysis, rheometry, and calorimetry systems, along with consumables and software. Following the BDS Business Acquisition, it also offers diagnostic specimen collection, infectious disease and cancer testing, flow cytometry instruments and reagents, and immunology research tools. The company operates through four segments: Waters Analytical Sciences, Waters Biosciences, Waters Advanced Diagnostics, and Waters Materials Sciences.

Revenue drivers

• Analytical Sciences Division (ASD) — Legacy Waters instruments and consumables; reported $669 million in Q2 2026, with 8% instrument growth and double-digit chemistry consumables growth in constant currency.
• Biosciences Division (WBD) — Former BD Biosciences; reported $368 million in Q2 2026, growing 4% year-over-year on a comparable basis.
• Advanced Diagnostics Division (ADx) — Former BD Diagnostic Solutions plus legacy Clinical Business Unit; $449 million from Diagnostic Solutions and $72 million from Clinical Business Unit in Q2 2026, totaling $521 million.
• Materials Sciences (TA Instruments) — Thermal analysis, rheometry, and calorimetry instruments; part of the legacy portfolio, not separately broken out in the latest quarter.

Recent performance

In Q2 2026, total reported revenue was $1.645 billion, with $828 million organic (up 7% as reported, 9% constant currency) and $817 million from the acquired businesses. GAAP diluted EPS was a loss of $1.39, reflecting acquisition-related purchase accounting charges, while adjusted EPS was $3.05, up 3% year-over-year. Full-year 2025 revenue was $3.17 billion with net income of $642.6 million and diluted EPS of $10.76. The company raised all components of its full-year 2026 guidance.

Strategy

Management is executing a 180-day growth revitalization plan for the acquired businesses, which drove faster-than-expected acceleration to mid-single-digit growth. The integration is focused on commercial execution, operational improvements, and cost actions, with early cost actions offsetting unfavorable FX. The company emphasizes synergies and a broader portfolio, larger installed base, and multiple growth catalysts. They have reorganized into four divisions to support the expanded scope.

Risks

• Integration risk — Failure to successfully integrate the BDS Business within expected timelines could adversely affect results.
• Restructuring and cost overruns — Restructuring activities may be disruptive, incur additional costs, and may not achieve anticipated cost savings.
• High debt burden — Substantial debt assumed from the acquisition could reduce operational flexibility and increase borrowing costs.
• Macroeconomic exposure — International operations are exposed to political events, currency fluctuations, and regulatory changes that could materially hurt results.

Outlook

Management raised full-year 2026 guidance: organic constant currency revenue growth of 7% to 9%, acquired business reported revenue of $3.045 billion, and adjusted EPS of $14.45 to $14.65, reflecting 10-12% growth. The company sees broad strengthening in end markets, with previously lagging customer segments returning to growth. Over the longer term, they expect momentum to continue as integration synergies and growth strategy compound.