Waters Corp.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 5 May 2026: press release. Guidance figures: 5 raised, 5 new, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Reported revenue topped guidance range: Reported revenue was $1.267 billion, above the high end of the guidance range by $56 million, with gains in organic revenue and the acquired businesses. Source
• Adjusted EPS grew 20% to $2.70: Adjusted diluted EPS was $2.70, up from $2.25 in the first quarter of 2025. Source
• Acquired businesses delivered $520 million: Biosciences and Diagnostic Solutions revenue was $520 million on an owned-period basis, against an estimated prior-year equivalent of $485 million. Source
• Instruments high-single digit, chemistry mid-teens: Within the Analytical Sciences Division, instrument growth was high single digits and chemistry growth was mid-teens. Source
• Adjusted operating margin was 23.6%: Adjusted operating income was 23.6% of revenue, against 25.5% in the first quarter of 2025. Source
• Free cash flow was negative: Adjusted free cash flow was $(42) million against $234 million a year earlier; operating cash flow was $(3) million, and capital expenditures were $39 million. Source
• Acquisition costs of $83 million excluded: Acquisition-related costs were $83 million, mostly in selling and administrative expenses, and were excluded from adjusted results. Source

“Thanks to the hard work of our teams, we delivered an excellent first quarter as a combined company,”

Udit Batra, Ph.D., President & Chief Executive Officer, Waters Corporation

Guidance

What changed from last quarter

• Guidance raised: Full-year organic constant currency growth guidance raised to 6.5% to 8.0% from 5.5% to 7.0%. Source
• Guidance raised: Full-year adjusted EPS guidance raised to $14.40 to $14.60 from $14.30 to $14.50. Source
• Guidance raised: Acquired business revenue expectation raised to about $3.035 billion from about $3.000 billion. Source
• Guidance kept: Full-year total reported revenue range unchanged at $6.405 billion to $6.455 billion. Source
• New guidance: Second quarter 2026 guidance provided for the first time. Source
• New: Acquisition of the Biosciences and Diagnostic Solutions business closed on February 9, 2026, and is included from that date. Source
• New: Divisions renamed: former Waters Division is now the Analytical Sciences Division; TA Division is now the Materials Sciences Division. Source

Results and growth drivers

• Reported revenue topped guidance range: Reported revenue was $1.267 billion, above the high end of the guidance range by $56 million, with gains in organic revenue and the acquired businesses. Source
• Organic revenue grew 13% reported: Organic revenue was $747 million against $662 million a year earlier, up 13% as reported and 11% in constant currency. Source
• Adjusted EPS grew 20% to $2.70: Adjusted diluted EPS was $2.70, up from $2.25 in the first quarter of 2025. Source
• GAAP loss from purchase accounting: GAAP diluted loss per share was $0.87, against diluted EPS of $2.03 a year earlier, which the release ties to purchase accounting charges. Source

Segments and regions

• Acquired businesses delivered $520 million: Biosciences and Diagnostic Solutions revenue was $520 million on an owned-period basis, against an estimated prior-year equivalent of $485 million. Source
• Analytical Sciences grew to $607 million: Analytical Sciences Division revenue was $607 million, compared with $534 million in the first quarter of 2025. Source
• Biosciences Division reported $232 million: Biosciences Division, formerly BD Biosciences, reported $232 million on an owned-period basis within the quarter. Source
• Clinical unit rose to $61 million: Advanced Diagnostics comprised $349 million, including Diagnostic Solutions at $288 million and the Clinical Business Unit at $61 million, against $53 million a year earlier. Source
• Materials Sciences rose to $79 million: Materials Sciences Division revenue was $79 million, compared with $75 million for the first quarter of 2025. Source
• Europe, Americas and Asia all grew: Reported revenue was $350 million in Asia (up 58%), $505 million in the Americas (up 98%) and $412 million in Europe (up 122%). Source

“As we look ahead, we are raising our guidance to reflect the increased momentum we are seeing across our businesses.”

Udit Batra, Ph.D., President & Chief Executive Officer, Waters Corporation

Products and customers

• Product sales rose 129%, services 33%: Product revenue was $919 million, up 129%; service revenue was $348 million, up 33%. Source
• Instruments high-single digit, chemistry mid-teens: Within the Analytical Sciences Division, instrument growth was high single digits and chemistry growth was mid-teens. Source
• Launched initiatives drove early traction: Biosciences and diagnostic businesses' revenue was attributed to commercial execution and operational improvement initiatives launched during the quarter. Source

Costs, margins and pricing

• Adjusted operating margin was 23.6%: Adjusted operating income was 23.6% of revenue, against 25.5% in the first quarter of 2025. Source
• Purchase accounting added to cost of revenue: Cost of revenue included $99 million of purchase accounting adjustments for the fair value step-up of inventory and fixed assets since the acquisition date. Source
• Intangibles amortization rose with acquisition: Purchased intangibles amortization was $152 million, including $140 million of purchase accounting amortization on the acquired intangibles. Source
• GAAP operating loss of $47 million: GAAP operating loss was $47 million, against operating income of $151 million a year earlier; interest expense, net was $42 million. Source

“Our teams are focused on executing a seamless integration, delivering industry-leading growth, and building a highly differentiated portfolio”

Udit Batra, Ph.D., President & Chief Executive Officer, Waters Corporation

Demand and the order book

• Currency added two points to growth: Currency translation added 2 percentage points to organic reported growth of 13%, leaving 11% in constant currency. Source
• Instrument replacement cycle drives momentum: Management credited the instrument replacement cycle, new product launches and idiosyncratic growth drivers for organic momentum. Source
• Biosciences growth improved versus pre-close: Management said the Biosciences and Advanced Diagnostics divisions showed improved growth rates against pre-close trends, reflecting execution discipline. Source

Capital, cash and returns to shareholders

• Free cash flow was negative: Adjusted free cash flow was $(42) million against $234 million a year earlier; operating cash flow was $(3) million, and capital expenditures were $39 million. Source
• Working capital included $140 million receivable: Operating assets and liabilities included a net $140 million receivable due from the transition services provider, tied to the acquisition. Source
• Debt rose to $5,215 million: Notes payable and debt were $5,215 million at April 4, 2026, against $1,407 million at December 31, 2025. Source
• Debt issued $3,530 million, repaid $3,700 million: The company issued $3,530 million of debt and made $3,700 million of debt payments in the quarter, with $25 million of issuance costs paid. Source
• Treasury share purchases were $12 million: Purchases of treasury shares were $12 million, against $14 million in the first quarter of 2025. Source

Strategy and investment

• Guidance embeds $15 million synergies: Organic full-year guidance includes $15 million of expected revenue synergies; acquired business guidance includes $35 million. Source
• Analytical collaboration produced synergies: Management said collaboration with the Analytical Sciences Division has already enabled some revenue synergies. Source
• Commercial initiatives set up at close: The February release described commercial initiatives on instrument replacement, e-commerce and service attachment, to be launched at the close.

Integration, people and transformation costs

• ERP transition costs in adjusted results: ERP implementation and transformation costs were $9 million in the quarter and were excluded from adjusted results. Source
• Restructuring and other items of $4 million: Restructuring costs and certain other items were $4 million in the quarter and were excluded from adjusted results. Source
• Acquisition costs of $83 million excluded: Acquisition-related costs were $83 million, mostly in selling and administrative expenses, and were excluded from adjusted results. Source
• Headcount about 16,000 employees: The release describes about 16,000 employees, compared with the 7,900+ given in the February release. Source

Coming up, as management said on 5 May 2026

• Upcoming product launches in focus: Management cited a sharper focus on upcoming new product launches in the Biosciences and Advanced Diagnostics divisions. Source

Earlier plans management reported on

• Not stated: The February release expected progress on cost synergies in the months ahead; this release gives no cost synergy update.
• Ahead: Management reports acquired business revenue of $520 million, which it describes as $40 million above guidance. Source
• Ahead: Management reports organic constant currency growth of 11%, which exceeded the high end of the guidance range by 200 basis points. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.