Waters Corporation ( NYSE : WAT ) Announces financial results for the third quarter of 2026 on Monday.
The company stated that its revenue for the third quarter was $1.767 billion, which is $14 million higher than the midpoint of its guidance. Of this, organic revenue amounted to $871 million, representing a year-over-year increase of 9% and a growth of 10% when calculated using a fixed exchange rate; business revenue from mergers and acquisitions was $896 million, slightly higher than the guidance.
Calculated according to GAAP, the diluted earnings per share for the third quarter were 0.82 dollars, which is lower than the 2.50 dollars in the same period of 2025. The reasons include acquisition-related purchase accounting expenses, acquisition-related costs, and restructuring costs. After adjustment, earnings per share increased by 21% year-over-year to 4.10 dollars, higher than the 3.40 dollars in the same period last year.
President and CEO Udit Batra Dr. Waters stated: "Our team has delivered outstanding results. The consumables businesses in both analytical science and bioscience departments have achieved industry-leading growth. Strong execution, new product innovation, and an increase in customer testing volumes have driven this accelerated growth."
He also stated: "The LC-MS instrument business has further strengthened, achieving double-digit growth when calculated at a fixed exchange rate. This is driven by a steady trend in instrument updates, specific growth factors such as GLP-1, PFAS, and Indian generic drugs, as well as our leading solutions in the field of complex biologics that continue to outperform the market."
Batra also mentioned that, thanks to the team's efforts, the company has been "moving ahead ahead of schedule" in terms of the coordination and integration of its mergers and acquisitions business. With the improvement in the terminal market conditions and the enhanced momentum of the combined company, the company has raised its annual revenue guidance for 2026 by $43 million; for the fourth quarter, it is expected that both organic business and mergers and acquisitions business will achieve double-digit growth after calendar adjustments.
Looking at each department separately, the revenue of the Analytical Sciences Department ( ASD , formerly the Waters department, excluding clinical business units) in the third quarter was 703 million US dollars, which is higher than the 649 million US dollars in the same period last year.
The Bioscience Department ( WBD , formerly BD Biosciences ) reported revenue of $396 million in the third quarter, which is higher than the $387 million in the same period last year.
The Advanced Diagnostic Department (ADx) is composed of the original BD Diagnostic Solutions business and the clinical business units that were previously part of the Waters department. Among them, the diagnostic solutions business reported revenue of $500 million in the third quarter, compared to $498 million in the same period last year; the clinical business units reported revenue of $75 million in the third quarter, which is higher than the $64 million in the same period last year.
The Materials Science Department ( MSD , formerly the TA Department ) reported revenue of $93 million in the third quarter, which is higher than the $87 million in the same period last year.
The company stated that the comparison and explanation of GAAP results versus non-GAAP results are shown in the table below, and can also be found on the company's website under the Investor Relations page.
For the entire year of 2026, the company has raised its guidance for organic fixed exchange rate revenue growth to 9.1% to 9.7%. After accounting for the impact of exchange rate conversions, the annual organic reported revenue is expected to be between $3.429 billion and $3.447 billion.
The company also raised its expectations for merger and acquisition business revenue, anticipating that the annual reported revenue from merger and acquisition activities in 2026 will be approximately $3.05 billion, calculated over the holding period.
The total reported revenue for the entire year of 2026 is expected to be between $6.479 billion and $6.497 billion.
The company has updated its full-year 2026 adjusted earnings per share guidance to $14.60 to $14.70, which represents a year-over-year increase of 11% to 12%, and a growth of 13% to 14% when calculated using a fixed exchange rate.
For the fourth quarter of 2026, the company expects organic fixed exchange rate revenue to grow by 7.0% to 9.0%. After accounting for the impact of exchange rate conversions, organic reported revenue for the fourth quarter is expected to be between $984 million and $1.002 billion.
The company expects the revenue from mergers and acquisitions in the fourth quarter to be approximately $817 million.
Fourth-quarter total report revenue is expected to be between $1.801 billion and $1.819 billion.
The company expects adjusted earnings per share in the fourth quarter to be between $4.58 and $4.68, with a year-over-year increase of 1% to 3%.
Management will present the company's growth framework starting from 2027 at today's earnings conference call at 8:00 a.m. (Eastern Time), explaining how the return to manufacturing, synergies, and demand drivers related to artificial intelligence are expected to impact growth next year.
The company also announced the acquisition of MOBILion Systems, Inc. MOBILion is a pioneer in SLIM's high-resolution ion migration separation technology, which can separate molecules based on size, shape, and charge within milliseconds, making it suitable for complex molecular analysis. The company stated that this acquisition will complement Waters's industry-leading mass spectrometry product portfolio and is expected to expand the company's presence in the proteomics market. For more details, please refer to a separate announcement released earlier on the same day.
The company stated that it is not possible to provide a comparison of the forward-looking adjusted earnings per share guidance with the most directly comparable GAAP indicator without making unreasonable efforts, as this involves acquisition-related amortization, acquisition and restructuring costs, as well as certain legal, advisory, and tax costs, which are difficult to predict accurately and may have a significant impact on future GAAP performance. Except for percentages and earnings per share data, all amounts are expressed in millions of US dollars. Due to rounding, some totals and percentages may not add up exactly.
The company also stated that the performance of the acquired bioscience and diagnostic solutions business for the same period last year came from the quarterly results as of September 30, 2025, which were disclosed in Attachment 99.1 of the current report Form filed with the U.S. Securities and Exchange Commission on November 6, 2025 (BDX). These historical financial figures reflect the operational outcomes of these businesses under the historical management of BDX and in compliance with U.S. GAAP regulations. Therefore, they do not necessarily represent the results if these businesses had operated as part of Waters during that period, nor do they reflect the changes that have occurred since the acquisition, including changes in financing, cash management, operations, cost structure, and staffing requirements, or differences in accounting policies. For example, prior to being acquired by Waters, BDX provided legal, financial, information technology, human resources, and other infrastructure support to these businesses. The costs associated with these services were allocated to the operational results of these businesses based on a proportion of revenue or the number of employees. However, if these businesses had operated as part of Waters during that period, such allocated costs may not be representative and may not necessarily reflect the costs that will occur in the future.
Waters indicates that a live webcast of the third-quarter earnings conference call will be held at 8:00 a.m. on November 3, 2026 (Eastern Time). Investors can visit the company's website, select Investor Relations under About Waters, enter Events & Presentations, and click Webcast to listen to the call and view the accompanying slides. The replay will be available until at least December 1, 2026.
Waters Corporation is a global leader in the life sciences and diagnostics field, dedicated to accelerating the value brought by cutting-edge science through analytics technology, informatics, and services. The company focuses on regulated high-throughput testing environments, and its product portfolio combines deep scientific expertise in chemistry, physics, and biology. It collaborates with customers worldwide to facilitate the launch of effective, high-quality drugs, ensure food and water safety, and improves patient outcomes by enabling earlier detection of diseases, managing common infections, and combating antibiotic resistance. The company employs approximately 15,000 people.
The company states that this press release contains non-GAAP financial indicators such as organic fixed exchange rate growth rate, fixed exchange rate growth rate, comparable revenue from the same period last year, and adjusted diluted earnings per share. These indicators should be considered supplementary, not a substitute for the financial information prepared in accordance with GAAP. The company's definition of these non-GAAP indicators may differ from that of other companies. The company typically uses these indicators to assist management in making financial and operational decisions, including evaluating historical operating results, comparing competitor performance, and determining management incentive compensation. These non-GAAP indicators provide another way to observe the company's operating conditions, and when used in conjunction with the GAAP results and corresponding tables, they may help to more comprehensively understand the factors and trends affecting the company's business. Since non-GAAP indicators exclude items that could increase or decrease the company's reported operating results, management strongly recommends that investors read the company's consolidated financial statements and publicly submitted reports in their entirety. Relevant definitions and comparisons with the most directly comparable GAAP indicators are provided in the appendices of this press release.
The company also notes that this press release contains “forward-looking” statements regarding future results and events. Except for statements of historical fact, other statements may be considered forward-looking. Words such as “believes,” “expects,” “plans,” “anticipates,” “intends,” “implies,” “seems,” “estimates,” “predicts,” and their negatives or similar expressions are intended to identify forward-looking statements. For various reasons, actual results may differ significantly from the forward-looking statements contained in this press release, including but not limited to risks or uncertainties related to the company’s acquisition of the bioscience and diagnostic solutions business from BDX. These include the possibility of not achieving expected benefits, the inability to complete the integration within the anticipated time frame, or even the inability to complete it at all, as well as the company’s ability to implement its business strategy and achieve revenue and cost synergies; the expected benefits of the acquisitions of MOBILion Systems and Inc; the expected progress of Waters research projects; the development of new analytical instruments and related software or consumables; manufacturing development and capacity; future financial and operational performance; future economic and market conditions, including expectations for certain market growth rates; strategic initiatives, including instrument renewal plans; the ability to respond to global dynamic changes, including the potential impact of tariffs and supply chain challenges; the ability to retain and attract customers in different regions and market segments; market size and growth opportunities; competitive position; estimated costs; technical capabilities and plans; management objectives, and other risk factors occasionally detailed in reports submitted to the U.S. Securities and Exchange Commission by Waters. The aforementioned factors and other content are discussed more fully in the “Forward-Looking Statements” and “Risk Factors” sections of the company’s annual report 10-K for the year ending December 31, 2025, which is referenced and incorporated into this press release, and will be updated as the company submits subsequent documents to SEC.The forward-looking statements in the press release represent only the company's estimates or opinions as of the date of issuance and should not be considered as estimates or opinions for any subsequent date. Except as required by law, the company assumes no obligation to update any forward-looking statements.
Contact: Caspar Tudor, Director of Investor Relations, (508) 482-3448
