Waters Corporation’s first quarter saw a strong market response, as the company delivered results ahead of Wall Street’s revenue and earnings expectations despite headline sales declining year over year. Management pointed to robust organic growth in its legacy divisions and better-than-expected early performance from recently acquired Biosciences and Diagnostic Solutions businesses. CEO Udit Batra credited the swift execution of a 180-day integration plan and operational improvements for driving momentum, highlighting that both instrument replacement activity and new product launches contributed meaningfully to the quarter’s outcome.
Is now the time to buy WAT? Find out in our full research report (it’s free for active Edge members).
Waters Corporation (WAT) Q1 CY2026 Highlights:
- Revenue: $1.27 billion vs analyst estimates of $1.21 billion (91.5% year-on-year growth, 4.5% beat)
- Adjusted EPS: $2.70 vs analyst estimates of $2.31 (17% beat)
- Adjusted EBITDA: $416.3 million vs analyst estimates of $316.9 million (32.9% margin, 31.4% beat)
- Revenue Guidance for Q2 CY2026 is $1.62 billion at the midpoint, above analyst estimates of $1.57 billion
- Management slightly raised its full-year Adjusted EPS guidance to $14.50 at the midpoint
- Operating Margin: -3.7%, down from 22.9% in the same quarter last year
- Organic Revenue rose 13% year on year (beat)
- Market Capitalization: $34.17 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Waters Corporation’s Q1 Earnings Call
- Tycho Peterson (Jefferies) asked about the sources and timing of revenue synergies and the impact of pricing actions. CFO Amol Chaubal responded that instrument replacement, service plan attachment, and e-commerce were the main synergy drivers, while additional opportunities from pricing and contract compliance were not yet factored into guidance.
- Patrick Donnelly (Citi) sought clarity on the durability of instrument demand and the trajectory for biopharma growth. CEO Udit Batra emphasized ongoing replacement cycles, strong biopharma activity in the U.S., Europe, and especially China, and confidence in product positioning for sustained growth.
- Vijay Kumar (Evercore ISI) questioned the sustainability of growth rates in the acquired business and the prudence of second-half guidance. Chaubal explained that extra working days benefited the quarter but underlying demand remained strong, and that guidance was intentionally cautious to reflect macro uncertainty and fewer working days later in the year.
- Douglas Schenkel (Wolfe) asked about competitive responses and the challenges of competing against private equity-owned businesses. Batra stated the company’s focus on regulated, high-volume applications and confidence in Waters’ brands and pricing leadership, expecting rational competition.
- Elizabeth Koslosky (Goldman Sachs) probed the durability of chemistry growth and the rationale for localizing manufacturing in China. Batra explained that sustained R&D investment and product launches underpin chemistry’s growth, while China localization is aimed at capturing demand from local biopharma and mitigating export controls.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be tracking (1) the pace and effectiveness of integration initiatives and synergy capture from the BD acquisition, (2) execution and uptake of new product launches in diagnostics and analytical sciences, and (3) progress in localizing manufacturing and expanding commercial presence in China. We will also monitor margin trends as cost actions and procurement efficiencies begin to impact results.
Waters Corporation currently trades at $348.01, up from $301.88 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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