The strong beat and raised guidance confirm accelerating momentum from both organic growth and the transformative BDS acquisition. Watch for Q2 guidance of $2.95-$3.05 adjusted EPS (flat to +3.4% YoY) as the integration progresses; the stock should re-rate higher on the raised full-year outlook. Monitor free cash flow trajectory in coming quarters as working capital normalizes.
Price Chart
Executive Summary
Waters reported Q1 2026 total revenue of $1.267B, well above the $1.20B consensus, driven by $747M in organic revenue (up 13% as reported, 11% constant currency) and $520M from the newly acquired BDS business. Adjusted EPS of $2.70 grew 20% YoY, beating the $2.31 consensus by 16.9%. The company raised full-year 2026 adjusted EPS guidance to $14.40-$14.60 and organic constant currency growth to 6.5%-8.0%, signaling strong momentum from the acquisition and organic execution.
Key Financial Metrics
Key Facts
- Total reported revenue of $1.267B exceeded the high end of guidance by $56M and consensus of $1.20B.
- Organic revenue grew 13% as reported and 11% in constant currency, exceeding the high end of guidance by 200 bps.
- Adjusted EPS of $2.70 grew 20% YoY, beating consensus of $2.31 by 16.9%.
- Biosciences and Diagnostic Solutions (BDS) contributed $520M in revenue since the Feb 9 acquisition close, $40M above guidance.
- Full-year 2026 adjusted EPS guidance raised to $14.40-$14.60 (from $14.30-$14.50), representing 10%-11% YoY growth.
- Full-year 2026 organic constant currency revenue growth guidance raised to 6.5%-8.0% (from 5.5%-7.0%).
- GAAP diluted EPS was ($0.87) due to $251M in acquisition-related purchase accounting charges (intangibles amortization and inventory step-up).
- Free cash flow was negative ($42M) in Q1 vs positive $234M in the prior year, impacted by working capital build and BDS integration.
Financial Impact
Adjusted EPS beat consensus by $0.39 (16.9%); total revenue beat consensus by ~$67M (5.6%); guidance raised for both revenue and EPS.
Risk Factors
- Integration risk from the large BDS acquisition; $5.2B in debt on the balance sheet increases financial leverage.
- GAAP losses from purchase accounting charges will persist through 2026, potentially confusing headline readers.
- Q2 adjusted EPS guidance of $2.95-$3.05 implies only flat to +3.4% YoY growth, a deceleration from Q1's 20% growth.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-204955 |
| Document: d131836d8k.htm | 0001193125-26-204955 |
| Document: 0001193125-26-204955-index-headers.html | 0001193125-26-204955 |
| Document: 0001193125-26-204955-index.html | 0001193125-26-204955 |
| Document: 0001193125-26-204955.txt | 0001193125-26-204955 |
| 8-K Data (Synthetic) | 0001193125-26-204955 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 21, 2026 6w ago | 8-K | $410.70 $423.92 | ▲ +3.22% | ▲ +2.20% | $429.05 (+4.47%) |
Aug 4, 2026 8w ago | Press Release | $396.08 $405.84 | ▲ +2.46% | ▲ +3.70% | $429.05 (+8.33%) |
Jun 25, 2026 14w ago | Institutional Cluster | $376.89 $382.41 | ▲ +1.46% | ▲ +0.94% | $429.05 (+13.84%) |
May 5, 2026 21w ago | 8-K | $342.75 $371.93 | ▲ +8.51% | ▲ +3.56% | $429.05 (+25.18%) |
US Market Status
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