Waters raises 2026 forecast as Q3 profit rises 21%
Waters reported Q3 adjusted EPS of $4.10, above the $4.04 estimate, and revenue of $1.767 billion, in line with the $1.77 billion estimate, per Finnhub. It raised its 2026 adjusted EPS forecast to $14.60 to $14.70.
Key takeaways
- Waters (WAT) reported third-quarter revenue of $1.767 billion, in line with estimates, and adjusted EPS of $4.10, above estimates. It raised its full-year 2026 adjusted EPS forecast to $14.60 to $14.70. The company also said it has acquired MOBILion Systems, Inc.
Waters (WAT) said on Nov. 3 that third-quarter revenue reached $1.767 billion, in line with estimates, and adjusted earnings per share rose 21% to $4.10, above estimates. The company also raised its full-year 2026 forecast, a regulatory filing showed.
Here's how the company did:
- Revenue: $1.767 billion vs. $800 million a year earlier, $1.77 billion expected
- Adjusted EPS: $4.10 vs. $3.40 a year earlier, $4.04 expected
- GAAP diluted EPS: $0.82 vs. $2.50 a year earlier
Organic revenue was $871 million, up 9% as reported and 10% in constant currency. Revenue from the Biosciences and Diagnostic Solutions businesses, acquired from Becton, Dickinson and Company on Feb. 9, was $896 million.
Revenue has risen in each of the last three quarters, from $799.9 million to $1.65 billion, according to its SEC filings.
2026 guidance
The company raised full-year reported revenue guidance to $6.479 billion to $6.497 billion, from the $6.415 billion to $6.476 billion range it gave on Aug. 4.
Adjusted EPS guidance rose to $14.60 to $14.70, from $14.45 to $14.65 previously. For the fourth quarter, the company expects adjusted EPS of $4.58 to $4.68 and reported revenue of $1.801 billion to $1.819 billion.
“Our team delivered exceptional results led by best-in-class consumables growth across both our Analytical Sciences and Biosciences divisions,” said President & Chief Executive Officer Udit Batra. “LC-MS instrument growth also strengthened, growing double-digits in constant currency.”
Segment results
The Analytical Sciences Division reported revenue of $703 million, up from $649 million a year earlier. The Biosciences Division reported $396 million, compared with $387 million in the prior-year comparable period.
The Advanced Diagnostics Division reported $575 million in the quarter. The Materials Sciences Division reported $93 million, up from $87 million.
Acquisition and charges
The company also said it has acquired MOBILion Systems, Inc., a maker of ion mobility separation technology. A separate release on the deal was issued earlier on Nov. 3.
GAAP operating income was $128 million, down from $192 million a year earlier. Purchased intangibles amortization was $244 million, against $12 million, and restructuring charges were $12 million.
Adjusted free cash flow was $68 million, compared with $160 million a year earlier.