Waters Corp.

Waters Corp.

WAT

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Market Cap$25B
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Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Waters Corp.Waters Corp.70.1-3%8.40.3

Earnings Call Q1 2026

May 5, 2026 - AI Summary

Strong combined start + beat on organic growth; profitability ahead of expectations - Reported Q1 2026 revenue: $1.267B = $747M organic + $520M from BD Biosciences & Diagnostic Solutions (post Feb 9, 2026 close). - Organic revenue: +13% reported / +11% constant currency, about 200 bps above the high end of guidance. - Adjusted EPS: $2.70 (+20% YoY), exceeding the high end of guidance by $0.35. - Margins beat: adjusted gross margin 54.7% and operating margin 23.6%, both ~200 bps better than expected, before synergies/cost actions fully flow through. - GAAP: reported diluted loss per share of $(0.87) (purchase-accounting effects typical post-acquisition).
New businesses performing better than feared, but still have specific headwinds (China + respiratory) - Acquired businesses in Q1 (ownership period) delivered $520M revenue and ~+7% estimated as-reported growth vs the prior-year equivalent period; $40M beat vs guidance. - Respiratory testing headwind: $20M dragged Q1 growth; ex-headwind growth ~+3% for the full quarter pro forma (surprising improvement vs Q4). - Biosciences (Flow): $230M revenue, +7% as-reported; pro forma -1% full quarter (improved vs -10% in Q4). Ex-China +4%, and management expects acceleration in H2 via China localization + new products + commercial actions. - Advanced Diagnostics (Diagnostics Solutions + clinical): - Q1 division performance: pro forma +3% (includes a ~4.5% respiratory headwind and ~2% China DRG headwind). - Ex-respiratory growth: +7.5% pro forma; microbiology delivered 10% underlying growth (ex-China low double digit; China down 12% due to DRG weakness).
Management’s “180-day plan” already showing early impact; pricing discipline + contract compliance called out - Immediate execution initiatives after close included: - Tighter forecast/funnel reviews (increasing weekly call rates; faster deal progression). - More field activity with KPIs/daily management. - Pricing actions early via new deal desks (Waters pricing team deployed). - Reagent rental contract compliance review: initial review of ~1,700–1,600 accounts, with ~half (and ~700 noted in the call) out of compliance, implying double-digit million annual revenue opportunity (timing suggests starting to play out in Q2). - China localization / manufacturing plan for Flow instruments to improve market access and reduce export complexity (expected to begin manufacturing in China starting Q3, driving share recovery in H2).

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$377.50

Target Price by Analysts

0.6% downsideWaters Target Price DetailsTarget Price
$174.83

Current Fair Value

54% downside

Overvalued by 54% based on the discounted cash flow analysis.

Share Statistics

Market cap$25.00 Billion
Enterprise Value$29.76 Billion
Dividend Yield$- (-)
Earnings per Share$10.8
Beta1.14
Outstanding Shares82,139,000

Return

Return on Equity2.94%ROE
Return on Assets1.83%
Return on Invested Capital2.48%

Valuation & Multiples

P/E Ratio70.13P/E Ratio
PEG-44.02PEG
Price to Sales8.44Price to Sales
Price to Book Ratio2.04Price to Book Ratio
Enterprise Value to Revenue7.89
Enterprise Value to EBIT48.82
Enterprise Value to Net Income66
Total Debt to Enterprise0.18
Debt to Equity0.34Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
May 12, 2026
EPS Estimate
$2.33
Average shareholder expectation
Revenue Estimate
$1.23 B
Average shareholder expectation

Next Earnings Call

Expected Date
August 3, 2026
EPS Estimate
$3.01
Average shareholder expectation
Revenue Estimate
$1.62 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.9885▼ 119.20%
Total Calls166,925▲ 181.49%
Total Puts165,001▲ 27.61%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %159.27%▲ 62.40%
Total Invested$29.09B▲ 32.84%
Investors Holding1,178▲ 362.00%

ESG Score

No data

About Waters Corp.

CEO: Udit Batra

Relevant Senate Committees

Joint Committee on Taxation

This committee provides critical analysis and revenue estimates for all tax legislation. Its influence on corporate tax structures, R&D tax credits, and capital investment policies directly affects Waters' financial planning, profitability, and ability to invest in innovation.

Finance

This powerful committee controls taxation and trade policy, which directly impact Waters' profitability, investment decisions, and global supply chain costs (e.g., tariffs). It also influences healthcare spending, indirectly affecting pharmaceutical and biotech customer demand.

Appropriations

This committee directly allocates discretionary federal spending across all government agencies, including major customers for Waters such as the NIH, FDA, EPA, DOE, and DoD. Funding levels for scientific research and regulatory bodies directly determine procurement budgets for analytical instruments.

Health, Education, Labor, and Pensions

This committee regulates the FDA and NIH. Waters' instruments are critical for drug development, quality control, and academic research in the pharmaceutical and biotech industries. FDA approval processes and NIH funding for research directly drive demand and regulatory requirements for Waters' products.

Environment and Public Works

This committee regulates the EPA, which sets environmental standards. Waters' analytical instruments are essential for environmental monitoring, compliance testing, and research in chemical, water, and air quality. Stricter regulations or funding for environmental initiatives directly drive demand for their products.