WAT

It has been about a month since the last earnings report for Waters (WAT). Shares have added about 3.1% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Waters due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Waters Corporation before we dive into how investors and analysts have reacted as of late. Waters Corporation reported second-quarter 2026 adjusted earnings of $3.05 per share, up 3.4% year over year and surpassing the Zacks Consensus Estimate by 1.33%. Revenues of $1.645 billion surged 113.4% from the year-ago quarter and topped the consensus mark by 1.25%. Organic revenues rose 9% in constant currency, while the acquired Biosciences and Diagnostic Solutions businesses generated $817 million, exceeding guidance by $15 million. Organic revenues totaled $828 million, increasing 7% as reported and 9% in constant currency. The result topped the high end of management’s constant-currency guidance range by about 100 basis points, while orders again outpaced sales.Analytical Sciences revenues rose 7% as reported and 9% in constant currency to $669 million. Instruments grew 8% in constant currency, chemistry advanced 10%, and service increased 9%. Pharma sales climbed 11%, supported by instrument replacement, GLP-1, generics and biologics demand, while non-pharma revenues rose 4%. Academic and government revenues grew 11%, supported by demand for Waters’ revitalized mass spectrometry portfolio, while industrial growth remained modest despite continued strength in PFAS applications. In the second quarter, under Waters’ ownership, the Biosciences and Diagnostic Solutions businesses generated $817 million in revenues, exceeding guidance by $15 million and growing 4% from the prior-year comparable period. Management credited the outperformance to its 180-day growth plan, which has improved funnel conversion, increased field activity and strengthened commercial accountability.Pricing and contract compliance remain important growth levers. Waters achieved 90 basis points of net price realization in the quarter and continues to target 150 basis points. The company is remediating roughly 700 U.S. Diagnostic Solutions reagent rental contracts identified as out of compliance and has appointed a dedicated operational leader to oversee the program. Analytical Sciences, the former Waters Division, excluding the Clinical Business Unit, generated $669 million in revenues, up from $627 million in the year-ago quarter. At constant currency, instruments grew 8%, chemistry increased 10% and service advanced 9%, supported by strength in the pharma and academic and government markets. The Biosciences Division, formerly BD Biosciences, posted revenues of $368 million, up from $358 million in the prior-year comparable period. Flow Clinical grew 8% on stronger execution, pricing and improving customer activity, while Flow Research declined 2% as China-related instrument pressure offset a return to growth in research-use reagents. Advanced Diagnostics delivered $521 million in revenues, including $449 million from Diagnostic Solutions and $72 million from the Clinical Business Unit. Diagnostic Solutions grew 5%, while the Clinical Business Unit advanced 15% as reported and 14% at constant currency. Within Advanced Diagnostics, microbiology revenues totaled $319 million and increased 4%, driven by improved commercial execution and pricing actions. Molecular Diagnostics and Point of Care revenues rose 9% to $129 million, aided by strong HPV testing placements on the BD COR platform. Materials Sciences, formerly the TA Division, generated $87 million in revenues compared with $82 million a year earlier. Sales increased 6% as reported and 8% at constant currency, supported by aerospace and defense demand and electronics testing for semiconductor and data-center applications. Adjusted gross margin was 54%, while adjusted operating margin reached 25%, in line with management’s expectations. The sequential margin moderation was due to the inclusion of a full quarter of the acquired Biosciences and Diagnostic Solutions businesses, compared with only a partial quarter in the first quarter. In the second quarter of 2026, selling and administrative expenses were $405 million, up 104.5% year over year. Research and development expenses totaled $122 million, increasing 149% from the prior-year quarter, reflecting the expanded cost base following the acquisition. The company continued to advance revenue synergies across the combined portfolio. It placed about $10 million of mass spectrometry instruments into pharma drug metabolism and pharmacokinetics settings during the quarter and remains on track to deliver $50 million of revenue synergies in 2026.New products are expected to support second-half growth. Waters plans to launch the FACSDiscover A7 Cell Analyzer on Sept. 15, while placements of the BACTEC FXI blood culture system are beginning. Management highlighted more than 10,000 aged flow cytometry instruments and more than 12,000 aged BACTEC systems as replacement opportunities. As of July 4, 2026, cash and cash equivalents were $539 million, down from $588 million as of Dec. 31, 2025. Notes payable and debt increased to $5.09 billion from $1.41 billion at year-end, primarily reflecting financing associated with the Biosciences and Diagnostic Solutions acquisition. Net cash provided by operating activities was $200 million, compared with $41 million a year earlier. Adjusted free cash flow totaled $202 million versus $159 million in the prior-year quarter, despite severance and integration-related payments. Reflecting broad-based strength, WAT raised its 2026 organic constant-currency revenue growth guidance to 7%-9%. The company lifted adjusted earnings guidance to $14.45-$14.65 per share. The acquired businesses are expected to contribute approximately $3.045 billion in reported revenues, while total reported revenues are projected to be between $6.415 billion and $6.476 billion. For the third quarter of 2026, management expects total reported revenues to be in the range of $1.745-$1.762 billion and adjusted earnings of $3.95-$4.05 per share. Organic constant-currency revenue growth is projected at 8-10%, while acquired-business revenues are expected to total approximately $895 million. Waters expects its completed cost actions to generate $75 million in cumulative savings during 2026 and approximately $200 million on a run-rate basis. The company remains on track to deliver $50 million in revenue synergies through cross-selling, instrument replacement, service-plan attachment and e-commerce initiatives. In the past month, investors have witnessed a upward trend in fresh estimates. Currently, Waters has a subpar Growth Score of D, a score with the same score on the momentum front. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Waters has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Waters is part of the Zacks Medical - Instruments industry. Over the past month, OPKO Health (OPK), a stock from the same industry, has gained 25.2%. The company reported its results for the quarter ended June 2026 more than a month ago. OPKO Health reported revenues of $163.5 million in the last reported quarter, representing a year-over-year change of +4.3%. EPS of -$0.01 for the same period compares with -$0.19 a year ago. OPKO Health is expected to post a loss of $0.06 per share for the current quarter, representing a year-over-year change of -300%. Over the last 30 days, the Zacks Consensus Estimate has changed +3.3%. OPKO Health has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Waters Corporation (WAT) : Free Stock Analysis Report OPKO Health, Inc. (OPK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Waters Corporation’s Q2 results were met with a positive market reaction, driven by strong organic growth and momentum from its recently acquired Biosciences and Diagnostic Solutions businesses. Management pointed to robust demand across pharmaceutical, academic, and government markets, as well as the successful integration of new product launches. CEO Udit Batra highlighted that, "GLP-1 testing part of the business grew over 40% this quarter," with broad-based contributions across regions. The company also credited cross-divisional collaboration and improvements in commercial execution for boosting performance. Is now the time to buy WAT? Find out in our full research report (it’s free). Revenue: $1.65 billion vs analyst estimates of $1.62 billion (113% year-on-year growth, 1.3% beat) Adjusted EPS: $3.05 vs analyst estimates of $3.01 (1.4% beat) Revenue Guidance for Q3 CY2026 is $1.75 billion at the midpoint, roughly in line with what analysts were expecting Management slightly raised its full-year Adjusted EPS guidance to $14.55 at the midpoint Operating Margin: -5.2%, down from 24.4% in the same quarter last year Organic Revenue rose 7% year on year (beat) Market Capitalization: $40.43 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is 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. Vijay Kumar (Evercore ISI) asked about sustainability of mid-single-digit growth in the acquired businesses. CEO Udit Batra said execution remains on track, citing product launches and leadership changes as drivers to exit the year above 6% growth. Elizabeth Koslosky (Goldman Sachs) requested details on the pricing initiatives’ contribution to guidance. CFO Amol Chaubal explained that 90 basis points of price realization were achieved, with further gains targeted through deal desk implementations and contract compliance. Tycho Peterson (Jefferies) inquired about Flow Research turnaround efforts, especially in China. Batra described localized manufacturing, a broadened portfolio in Q4, and new commercial leadership as key to future growth in the region. Subhalaxmi Nambi (Guggenheim) asked about changes to discounting processes and the impact on competitiveness. Batra said the new deal desk model increases speed and clarity, with early benefits seen in pricing discipline. Dan Leonard (RBC Capital Markets) questioned the sustainability of BD’s growth and the impact of seasonal dynamics. Chaubal clarified that seasonality and past inventory build explain quarter-to-quarter variation, but the second half should show accelerating momentum. In future quarters, the StockStory team will be watching (1) the pace of adoption and customer feedback for the FACSDiscover A7 and BACTEC FXI launches, (2) whether localized manufacturing and leadership changes in China can turn recent improvements into sustained growth, and (3) tangible progress on reshoring-driven equipment demand in the U.S. Further, we will monitor the company’s ability to execute on pricing and cost-control initiatives as margin pressures persist. Waters Corporation currently trades at $411.77, up from $374.74 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 8 a.m. ET Head of Investor Relations - Caspar Tudor President and Chief Executive Officer - Udit Batra Senior Vice President and Chief Financial Officer - Amol Chaubal Operator: Welcome to the Waters Corporation Second Quarter 2026 Financial Results Conference Call. [Operator Instructions] This call is being recorded. If anyone has objections, please disconnect at this time. It is now my pleasure to turn the call over to Mr. Caspar Tudor, Head of Investor Relations. Please go ahead, sir. Caspar Tudor: Thank you, Leila, and good morning, everyone. Welcome to Waters Corporation's Second Quarter Earnings Call. Joining me today are Dr. Udit Batra, our President and Chief Executive Officer; and Amol Chaubal, our Senior Vice President and Chief Financial Officer. Before we begin, I will cover the cautionary language. In this conference call, we will make various forward-looking statements regarding future events or future financial performance of the company, including the financial and operational impact of Waters Biosciences and Diagnostic Solutions businesses acquired from Becton, Dickinson & Company, or BD. We'll provide guidance regarding possible future results and commentary on potential market and business conditions that may impact Waters Corporation over the third quarter of 2026 and full year 2026. These statements are only our present expectations and are subject to risks and uncertainties. Please see the risk factors included within our Form 10-K, our Form 10-Qs, our other SEC filings and the cautionary language included in this morning's earnings release. During today's call, we will refer to certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures are attached to our earnings release and in the appendix of the slide presentation accompanying today's call. Unless stated otherwise, all organic revenue growth rates are presented on a constant currency basis and are in comparison to the second quarter of 2025. For acquired business revenue, unless stated otherwise, all growth rates are presented on an as-reported basis, covering the current period in comparison to the revenue as reported by BD for the prior year comparable period that predates Waters ownership. Finally, we do not intend to update our guidance, predictions or projections, except as part of a regularly scheduled earnings release or as otherwise required by law. On today's call, Udit will begin with our key messages and business highlights. Amol will then review our financial results and updated guidance. After that, we will open up the lines for questions. I will now turn the call over to Udit. Udit Batra: Thank you, Caspar, and good morning, everyone. We delivered an excellent second quarter, executing ahead of guidance across all 4 divisions as a powerful new era of growth extends across Waters. We sustained industry-leading results at our legacy businesses, fueled by strong commercial performance and pioneering innovation in our product portfolio. While recovery in our end markets broadened into previously lagging customer segments, and further augmented our growth. We built outstanding momentum in our newly acquired businesses in their first full quarter under Waters' leadership, driving an acceleration to mid-single-digit growth as the controlled actions from a 180-day plan have quickly taken hold and are already reshaping their trajectory. We also took further decisive steps towards building our new platform for sustained long-term growth, executing flawlessly on our revenue synergies and cost actions as we enter our next phase of growth. Over the last few months, I visited many sites and many customers. Our teams are executing with rigor and speed and advancing our value creation road map faster than we expected. I want to thank them for their dedication before we turn to the results. In the second quarter, total company as reported revenue was USD 1.645 billion, comprising of $828 million of organic revenue and $817 million of Waters Bioscience and Diagnostic Solutions. Organic revenue grew 7% as reported and 9% in constant currency, exceeding the high end of our currency guidance range by approximately 100 basis points, with orders again outpacing sales. Underlying growth was double digits as this performance absorbed a 1% headwind from pull forward in last year's second quarter. Bioscience and Diagnostic Solutions revenue also exceeded our guidance. Revenue outpaced guidance by $15 million and grew 4% on a reported basis versus the prior year comparable period. With these businesses under our leadership for the entirety of the quarter, we achieved a 400 basis point improvement in reported growth versus last quarter's flat full quarter growth rate. Our strong momentum and disciplined cost management offset adverse foreign exchange translation as the U.S. dollar strengthened since our last call. Adjusted EPS grew 3% to $3.05, landing at the high end of our guidance range. Let me now cover these drivers of strength in more detail. Beginning with the Analytical Sciences division, growth was 7% as reported and 9% in constant currency, with instruments up 8%, chemistry up 10% and service up 9%. We grew double digits in both our pharma and academic and government end markets for the second consecutive quarter, driven by improving market conditions, strong commercial execution and the merits of new product innovation in our industry-leading portfolio. Thanks to continued cross-divisional collaboration, we placed approximately $10 million of mass spec instruments into pharma DMPK settings in the quarter as early revenue synergies continued to build. In Analytical Sciences, we have continued to build our innovation leadership position with a number of new product launches in recent months. At ASMS, we launched 2 new high-resolution mass spec products, the Cyclic IMS P20 and the Xevo MRT P10. Both deliver step change improvements in sensitivity as the Cyclic IMS P20 raises the bar in structural and spatial omics, while the Xevo MRT P10 not only sets a new standard for speed and throughput in multi-omics, but does so in a highly efficient benchtop format, which is unique in high-resolution mass spec. In Bioseparations, we launched our BioResolve Peptide and GTxResolve Lipid columns. Both delivered industry-first particle optimization, reliably separating structurally and chemically similar impurities in GLP-1 peptides, insulin and nanoparticles with twice the resolving power and sensitivity of competing products. The Biosciences division grew 3% as reported, improving 400 basis points from the 1% full quarter decline in the first quarter. Excluding China, which represented a 2% headwind to growth, the division grew 5%. The growth acceleration was primarily driven by Flow Clinical, which grew 8% on a reported basis, improving versus both the 7% partial growth rate and flat full quarter growth rate in the first quarter. Performance was led by mid-teens growth outside of China, reflecting sharpened execution, greater commercial activity from new KPIs and early benefits of our incremental pricing initiatives. In Flow Research, reagents returned to positive growth in the quarter, reflecting an improvement in customer activity levels. At the divisional level, Advanced Diagnostics grew 7% on a reported basis, even with China remaining a notable drag on growth due to ongoing DRG headwinds. Within the division, the acquired Diagnostic Solutions business grew 5% as reported, accelerating versus the 1% full quarter growth rate in Q1. Excluding China, growth was 7%. In Microbiology, we grew mid-single digits as we drove relentless focus on execution, improved utilization of BACTEC bottles and began to enact list price increases across the portfolio. In Molecular Diagnostics and Point of Care, we grew high single digits, driven by strong placements in Molecular diagnostics related to HPV testing on BD COR. Also within the division, the organic clinical business unit grew 15% as reported and 14% in constant currency, led by double-digit strength in the Americas and Europe. We recently launched the Xevo TQ Absolute XR IVD mass spec, the industry's most sensitive and robust clinical IVD system. It delivers 5x greater sensitivity and a sixfold increase in robustness for critical applications, including women's health, cancer assessment and toxicology, further expanding our technological advantage in the IVD market. The Materials Science division returned to high single-digit growth in constant currency. Strength was driven by electronics research testing, semiconductor and data center applications, together with advanced materials testing in aerospace and defense applications. Our leadership in battery safety testing was recently expanded with the launch of our Coin Cell Differential Scanning Calorimeter, which represents a significant advancement in battery thermal analysis, simultaneously capturing thermal, evolved gas and electrochemical data. Our organic growth results reflect a successful strategy that has played out over the past several years across commercial execution, new product innovation and entering faster-growing adjacencies. Having delivered in each of these areas, we have achieved our promise of high single-digit growth over the past 7 quarters. This is the long-term trajectory, our strategy was built to deliver and legacy Waters is now structurally a durable high single-digit growth business. So far, in 2026, our organic business has accelerated further, marked by 10% constant currency growth for the first half of the year. These industry-leading results reflect outstanding growth momentum now amplified as our end markets have continued to strengthen and early cross-selling revenue synergies have continued to build. Looking within Analytical Sciences, the breadth of this performance is clear. In Pharma, we've grown double digits this year, driven by robust CapEx spending trends across large pharma, contract organizations and generics. This has been augmented by our idiosyncratic growth drivers tied to GLP-1 testing, India and biologics, which includes bioseparations and bioanalytical characterization. Notably, though, U.S. biotech and CROs have improved over the past 2 quarters, adding a new layer of demand to the recovery. At the same time, we have seen a strong recovery from our pharma customers in China with double-digit growth in the first half of the year, accelerating versus last year's 6% growth rate and making China now accretive to our growth again. This reflects excellent commercial execution alongside a resurgence in biotech, CDMOs and CRO activity as Chinese companies buoyed by the commercial success of their research and out-licensing model, attract investment and reinvest into R&D. Beyond the near-term recovery, this points to a broader structural tailwind. As Chinese discovery output continues to scale and the out-licensing model matures, we are well indexed to the theme since molecules developed on Waters platforms transfer cleanly into Western development and regulatory pathways. In our non-pharma end markets, we have seen growth rate acceleration led by double-digit growth in academic and government. Performance was broad-based across geographies, including a return to positive growth in the Americas in the second quarter. In Industrial, which grew low single digits in the Analytical Sciences division, PFAS has remained a source of strength and has grown double digits this year. Our growth is led by food analysis, which has now surpassed environmental analysis as our largest PFAS application for the first time. The broad strength of our customers bodes well for the instrument replacement cycle, where we remain firmly in the middle innings with a significant runway still ahead. Despite recent strong growth trends, our instrument revenue has grown only 2.5% on an organic constant currency CAGR basis versus 2019, well below the 5% long-term historical growth rate from 2009 to 2019. This gap reflects the multiphase recovery that has emerged since the middle of 2024, which has elongated the replacement cycle beyond what has historically been a 2- to 3-year typical duration. Beyond the replacement cycle, pharma reshoring also represents an increasingly well-defined incremental growth opportunity for Waters in the years ahead. We've been tracking 76 expansion sites linked to U.S. pharma investment announcements. Roughly half are now under active construction, representing approximately $100 billion in CapEx spend, confirming that at least a portion of these commitments are beginning to translate into real capital deployment on the ground. Weighing the focus, modality and analytical intensity of each site, we expect instrument outfitting to drive a revenue tailwind for our Analytical Sciences division over the next 3 to 5 years. As sites move from construction to equipping, we are well positioned to capture a disproportionate share of the resulting demand given that approximately 70% of the tracked sites are linked to customer accounts where Waters holds a high market share. We are already seeing funnel activity tied to a number of these sites. In our acquired businesses, we have continued to drive positive impact from our 180-day growth revitalization plan with each of our 3 near-term rapid execution initiatives already contributing to our results. Our first priority, driving urgency, accountability and transparency, the commercial discipline and KPI focus we quickly established at the close of the transaction is now embedded and compounding across the acquired businesses. As a result, funnel conversion rates are rising, field activity has stepped up materially and the outbound momentum we built in Q1 has progressed further through the second quarter. On our second priority, pricing excellence and contract compliance, we have made fast moves to embed the same discipline at Biosciences and Diagnostic Solutions that we established at legacy Waters. We have hired dedicated pricing directors for each division, structured our 2026 and 2027 pricing actions to drive incremental price realization and have already enacted list price increases across parts of the acquired portfolio, achieving 90 basis points of net price realization in the second quarter alone. We are well on our way towards our goal of achieving 150 basis points of price contribution in the acquired businesses. On reagent rental compliance, a review of global Diagnostic Solutions contracts remains active. Remediation efforts are underway across the approximately 700 U.S. contracts already identified as out of compliance. To supplement this effort, we have brought in a dedicated operational leader with deep industry experience who has managed similar programs before. On our third priority, regaining share in Flow Research, we have made meaningful progress across several fronts. In China, we have significantly improved the speed and efficiency of export license approvals, generating twice the number of license approvals in the second quarter versus the first full quarter and helping to reverse the share loss dynamics that constrained prior performance. The results have been tangible. China Flow Research, which declined 30% in the full first quarter, improved to mid-single-digit decline in the second quarter, a swing of approximately 25 percentage points. Meanwhile, our localized manufacturing program for flow instruments is well underway and expected to begin contributing to growth in the fourth quarter. With a successful transformation behind him, Ching Lee, our General Manager for the ASD's China business has now taken on the added responsibility of revitalizing growth for Biosciences in China. Ching and his team are moving decisively to implement new commercial rigor and accountability while sharpening our focus on the pharma market given the resurgence in Chinese biotech, CDMO and CRO activity. Across our geographies, we also have an attractive share recapture and instrument replacement opportunity in flow cytometry with the FACSDiscover A7 Cell Analyzer, which we unveiled at CYTO and is set to launch on September 15. The A7 fills a key gap in our portfolio while setting a new benchmark in spectral flow cytometry, bringing IVD level standardization and reproducibility to a spectral analyzer for the first time. Leveraging automation and cell calibration, it also enables workflows to easily transition between instruments and users representing meaningful innovation for our customers. In Advanced Diagnostics, BACTEC FXI, our next-generation blood culture system, recently received FDA 510(k) clearance, enabling U.S. commercialization as we scale the launch globally in microbiology. With placements now beginning in Japan and Europe, we are excited about the instrument replacement potential that BACTEC FXI holds, particularly given the early customer feedback we've received. BACTEC FXI is a groundbreaking system. It detects bloodstream infections up to 3 hours faster than competing systems, offers 2x to 3x the input capacity and provides customers with meaningful productivity advantages and labor cost savings. It leads across each of the critical attributes that matter to our customers and is now the flagship product of the industry. Depending on daily volume, customers can expect up to 10 days of annualized time savings versus the prior generation systems. We are already seeing benefits in practice as one of our early adopter sites in Japan reported an 80% reduction in hands-on time after switching to FXI. With these notable new advantages, the funnel is building and the commercial opportunity ahead is substantial. With over 12,000 aged BACTEC systems past due for replacement, we have a large, well-defined installed base that we intend to convert. Much like how Alliance iS has driven durable replacement revenue in HPLC, we expect BACTEC FXI to be a multiyear growth engine in microbiology. Beyond our near-term execution, we're also making early strides into high-growth adjacency in biosciences that we believe will become increasingly important over time. As AI models continue to become more capable of designing -- as AI models grow more capable of designing new antibodies, proteins and genetic constructs, the limiting factor is shifting from computation to biology. Generating large-scale immune and disease data sets, these models depend on and require physical biology testing. Flow cytometry is well positioned as an enabling hardware layer given its unique ability to capture high parameter single cell resolution at real-time clinical scale. Our recently announced strategic partnership with IMU Biosciences is an early proof point of our important role supporting next-generation immune profiling and AI-enabled precision medicine in clinical diagnostic applications. IMU has raised over $50 million to date as it accelerates its work to decode the immune system and transform how we understand, diagnose and treat disease. Together, we're scaling a precision immunology platform for population-wide immune mapping and disease characterization in what is expected to become the world's largest immune data set. Turning now to our cost actions and updated guidance. We have completed our planned cost actions for 2026 as our teams flawlessly implemented our restructuring plan with speed and discipline. In operations, we've unlocked spend control, driven by early direct procurement savings, restructured field operations and service and begun optimizing manufacturing and supply chain costs. Across functions, we've made significant progress on cost efficiency by optimizing spans and layers, eliminating redundancy and achieving a leaner centralized cost structure. These actions also carry an important strategic dimension beyond the cost benefit. They sharpen the structure of acquired businesses, reduce bureaucracy and accelerate information flow. They also support the direction of accountability and commercial focus that will make them structurally stronger over time. Together, these actions reflect $75 million in cumulative cost savings expected in 2026 supporting solid margin progression in the second half of the year. They also represent approximately $200 million of expected run rate savings, placing us ahead of schedule that we had already laid out. They put us in a strong position to hit our margin expansion goals and drive mid-teens adjusted EPS growth over the next several years. To close, let me frame our 2026 guidance and give an update on our value creation road map. With momentum building across our portfolio and end markets, we are raising every component of our full year 2026 guidance, which Amol will detail shortly. Our growth strategy has delivered and legacy Waters is now a sustainable high single-digit grower. For the acquired businesses, we are running ahead of our goals for the first half of the year and are positioned for growth acceleration in the second half of the year. The 180-day plan has progressed rapidly. Revenue synergies are already contributing to our results, and we are launching category-defining new products. This positions us to build further momentum in the second half where cross-selling synergies are joined by instrument replacement, service plan attachment and digital channel adoption. In total, we remain well on track to deliver $50 million of revenue synergies this year. In Biosciences, we will benefit from China localization and new commercial leadership in the second half, positioning us well with the local biotech and CDMO community and driving faster growth while the launch of FACSDiscover A7 coincides nicely with the strengthening biotech and academic end market in the U.S. In Advanced Diagnostics, we delivered high single-digit growth despite a 2% China DRG headwind that rolls into the baseline in the fourth quarter. With BACTEC FXI and Onclarity HPV at-home testing solution now launching, the setup for the second half is excellent. As end market conditions continue to strengthen and our growth strategy compounds, Waters is better positioned today than at any point in recent history with a broad portfolio, a larger installed base and the cleanest set of growth catalysts we've ever had. With that, I will now turn the call over to Amol to cover our financial results and guidance in more detail. Amol Chaubal: Thank you, Udit, and good morning, everyone. In the second quarter of 2026, we delivered total company as reported revenue of $1.645 billion. Organic revenue was $828 million, growing 7% as reported and 9% in constant currency. Versus our guidance, constant currency sales were 100 basis points above the high end of the guidance range, while foreign exchange translation was 150 basis points adverse. Biosciences and Diagnostic Solutions generated $817 million of revenue, representing 4% reported growth versus the prior year comparable period, led by 6% growth outside of China. By geography, as reported revenue was $690 million in Americas, $505 million in Europe and $450 million in Asia. Total company adjusted gross margin came in line with our expectations at 54%, reflecting an anticipated sequential step down as our ownership of the acquired businesses normalized to a full quarter versus a partial quarter in the last period. Total company adjusted operating margin was also consistent with our expectations at 25%. Our tax rate was 15.6%, and net interest expense was $55 million with adjusted EPS of $3.05, landing at the high end of our guidance range. On a GAAP basis, we reported a diluted loss per share of $1.39, reflecting acquisition-related purchase accounting charges, including amortization of acquired intangibles and inventory step-up as is typical following a transaction of this scale. Free cash flow for the quarter was $202 million after approximately $21 million in severance payments, $27 million of integration cost payments and given timing of net cash settlement. At the end of June, the net cash settlement due to orders from BD was $157 million. Turning to our results by operating segments. The Analytical Sciences Division delivered as reported revenue of $669 million, up 7% as reported and 9% in constant currency. In constant currency, instruments grew 8%, chemistry grew 10% and service grew 9%. By end market, pharma grew 11%, while non-pharma grew 4% as academic and government grew 11% and industrial grew 1%. Within pharma, strength was driven by robust replacement activity, our idiosyncratic growth drivers and further traction in pharma DMPK clinical settings. We also saw further improvement in market conditions with stronger U.S. biotech and CRO spending, adding a new layer of demand to the recovery. Growth was led by the U.S., China and the rest of Asia, each up double digits or better. Within academic and government, strength was driven by mid-teens growth in Europe, double-digit growth in Asia and 6% growth in the Americas. Demand remains strong for our revitalized mass spectrometry portfolio in discovery applications, including for the Xevo MRT, which is seeing strong customer traction. We also saw an emerging growth contribution in A&G from semiconductor research. Within industrial, continued strength in food and environmental, led by double-digit growth in PFAS applications, was partially offset by softness in chemical analysis, where customer ordering pattern can be lumpy and more macro sensitive. The Biosciences Division delivered as reported revenue of $368 million, representing 3% reported growth versus the prior year comparable period and a 400 basis points acceleration in year-over-year growth versus the full first quarter trends. Flow Clinical grew 8% on strong commercial execution, pricing and improving end market conditions. Flow Research declined 2% with the trajectory improving through the quarter as the reagents returned to growth. In Flow Clinical, we grew mid-teens outside of China, while China declined 20% due to ongoing DRG constraints and lack of localized product portfolio, which we are in the process of addressing. In Flow Research, the return to positive growth for RUO reagents reflects an improvement in execution, pricing and underlying customer activity levels as market conditions continue to strengthen. Our initial wave of commercial actions tied to RUO share recovery also began to contribute such as improvement in China research instrument growth trends tied to export license approval volumes. The Advanced Diagnostics Division comprised the formal BD Diagnostic Solutions business and the Clinical Business Unit previously reported within Waters Division. Total as reported revenue for the division was $521 million, representing 7% reported growth versus prior year comparable period. Within the division, Diagnostic Solutions delivered $449 million of as reported revenue, representing 5% growth in the quarter and also a 400 basis points acceleration in growth versus full first quarter trend. The Clinical Business Unit delivered $72 million of revenue, up 15% as reported and 14% in constant currency. In microbiology, reported revenue was $319 million, reflecting 4% growth driven by improved commercial execution and incremental pricing actions. Growth outside of China was 6%, while China declined 13%, which was better than expected. In Molecular Diagnostics and Point of Care, reported revenue was $129 million, reflecting 9% growth in the quarter, driven by strong placements in HPV testing on our BD COR platform. In the Clinical Business Unit, growth was led by double-digit strength in the Americas and Europe, with early commercial collaboration across Advanced Diagnostics also beginning to contribute. The Material Sciences Division delivered as reported revenue of $87 million in the quarter, representing an increase of 6% as reported and 8% in constant currency as spending trends improved across a range of applications, including aerospace and defense and electronics testing for semiconductors and data center applications. Now I will share further commentary on our full year outlook and provide our third quarter guidance. Beginning with organic revenue, we have achieved excellent results so far in 2026 as our sustained growth trajectory is being augmented by additional customer segments now returning to growth. With this strong momentum, we are raising our full year 2026 organic constant currency revenue growth guidance to 7% to 9%. Foreign exchange translation is now expected to be a headwind of approximately 60 basis points, resulting in 2026 organic reported revenue of $3.37 billion to $3.431 billion. Turning to our acquired businesses. We now expect Biosciences and Diagnostic Solutions to deliver approximately $3.045 billion of reported revenue in 2026, raising our prior guidance by $10 million, which reflects an underlying improvement of $25 million, offset by $15 million of FX. Together, total 2026 reported revenue is expected to be approximately $6.415 billion to $6.476 billion based on latest FX rates. Our full year adjusted EBIT margin is expected to be 28.2% in 2026, consistent with our prior expectations as foreign exchange translation is offset by the $20 million of overachievement from our 2026 cost actions. Net interest expense is now expected to be approximately $190 million and our full year tax rate is now expected to be approximately 15.5%. Putting all this together, full year 2026 adjusted earnings per fully diluted share is now expected to be $14.45 to $14.65. This represents year-over-year growth of 10% to 12% and is 12% to 14% in constant currency. For the third quarter of 2026, we expect organic constant currency revenue growth to be in the range of 8% to 10%. Including the effect of currency translation, organic reported revenue is expected to be in the range of $850 million to $867 million. We expect revenue from Biosciences and Diagnostic Solutions to be approximately $895 million in the third quarter of 2026, in line with the typical sequential seasonality for these businesses. Together, this results in total reported third quarter 2026 revenue of $1.745 billion to $1.762 billion. Third quarter adjusted earnings per fully diluted share is expected to be in the range of $3.95 to $4.05, which is 16% to 19% growth. Turning to our implied guidance assumptions during the second half of the year. At the midpoint, our organic revenue guidance prudently calls for a 3.6% quarter-over-quarter step-up between the second and the third quarter, below the seasonality patterns we've seen over the last 2 years. Additionally, it prudently implies a 12.8% step-up in the fourth quarter, which is also below recent seasonal patterns. In the overall P&L, our cost actions are expected to yield a $25 million adjusted operating income benefit in the third quarter and a $50 million benefit in the fourth quarter for a combined positive estimated P&L impact of approximately $75 million, underwriting the solid margin progression in the second half guidance. With that, I will now hand it back to Caspar. Caspar Tudor: Thanks, Amol. That concludes our prepared remarks. We are now happy to open the lines and take your questions. Operator: [Operator Instructions] Our first question will come from Vijay Kumar with Evercore ISI. Vijay Kumar: Congrats on a nice print here. Udit, maybe a first one for you on BD Life Sciences. It likely grew north of a 5% constant currency. This is well above deal model, right? We're like 5 months into the deal, we're doing north of 5%. This is despite China headwinds persisting before any contribution from new products like your BACTEC FXI and pricing actions. Like how should we think about BDLS in the medium term? Is this now like a north of 6% asset in your mind? Udit Batra: Vijay, thanks for the question, and good morning to you. Look, first just setting the context, I am ecstatic about the execution that we're seeing from our teams in Life Science -- in BD Life Sciences and BD Biosciences and Diagnostics. It is A-plus, right? And Waters is an execution machine, but I rate this as A-plus, really fantastic. Mid-single-digit growth for the acquired businesses already. As we move into the second half of 2026 and into '27, enabled by leadership changes, strengthened execution, as you mentioned, across pricing, instrument replacement, digital commerce, we have a fantastic operating rhythm, right? And for Bioscience, A7, FACSDiscover A7 is launching on September 15, in now a much improved biotech and academic funding environment. In China, we've localized our portfolio and we have the full flow cytometry portfolio available in Q4. So that should bring some nice growth there. For Diagnostic Solutions, FXI has launched well in Japan and in Europe and now available in the U.S. with the 510(k) approval, roughly 4,500 instruments in the U.S. alone waiting for replacement. And in China in Q4, the DRG headwinds will be in the baseline. So you put it all together, we expect to exit the year with 6% or better growth rate for the 2 businesses. And that sets us up really well entering into 2027. So could not be more pleased with the execution we are seeing. Vijay Kumar: That's helpful, Udit. And Amol, maybe one for you. Organic revenues were raised. Your cost action estimates were raised, but EPS increase of $0.05, that just reflects the second quarter beat being carried forward, right? Are we being conservative here on the EPS fall through? And can you just clarify if any tariff refund assumptions were baked into this EPS? Amol Chaubal: There's a couple of things there, right? So look, I mean, between the organic sales raise and the higher cost actions, we get about $0.30 of EPS, but then about $0.25 of EPS are eaten up by stronger U.S. dollar. And that's why you sort of see $0.05 EPS raise for the full year. Two, if you look at how the implied guide is for Q4 for the organic business, it is at like 4% constant currency growth. No doubt, we have about 3 less working days in Q4, but they will translate to about 1%, 1.5% headwind to growth. And I think where the business trajectory is at this point, we're quite confident that the business is performing really well and will relatively stay there. So it's a prudent guide for Q4, and we see how it plays out in Q4 on that context. And then the last piece is on the tariff refund side. I mean, as you know, from last year, we were the first ones out of the gate to rapidly neutralize the impact of tariffs in our P&L. By early October, the P&L was neutralized. So when the tariff refunds would come, we would also have to go back on some of the surcharges we've charged customers, right? So net-net, it will be net neutral. Operator: Your next question will come from Evie Koslosky with Goldman Sachs. Elizabeth Koslosky: So you mentioned you're starting to see pricing flow through in the BD business. Maybe walk us through how much of the guidance raise in the acquired business is related to pricing? And then how quickly we could ramp to the 150 basis points? And I guess, anything you're hearing from customers as you work through these implementations? Amol Chaubal: Yes. So Q2, Evie, we did 0.9% versus the traditional 0.5%. 0.5% was embedded in our guide last time. So we are increasing it to 0.9% for the remainder of the year. The goal and aspiration is still to get as quickly as possible to 150 basis points. Udit Batra: Yes. I mean just to build on that, Evie, for one second, you will also remember we talked about the reagent rental compliance. We have about 700 accounts in the U.S. that we've profiled, segmented. We've hired an expert from outside who is actually used to renegotiating these contracts and getting benefit for the company. So we expect that to help not just improve pricing, but also accelerate the uptake of our new products in those customer segments. So very excited about what we're seeing on that front. Elizabeth Koslosky: Okay. Great. And then I wanted to touch on some of your comments on reshoring. How much of this is incremental versus just kind of shifting geographies? And then should we expect this to be additive to your organic growth expectations or more of just kind of a shifting forward? And then anything you could provide in terms of timing of when you expect this to flow through? Udit Batra: Look, I mean, first, on incremental growth. Look, we've been growing 8% on average for the last 7 quarters in what's been an up and down market for many of our peers, right? So we don't need reshoring to add on, but it is incremental in the short to medium term. Over the long term, it's probably left pocket, right pocket as you look at the global pill count. But in the short term, by short term, I mean 2027 to '30. I mean we have incredible visibility on customers who have broken ground. I mean we talked about 37 or so of them. There is another similar number that are planning to break ground. There, we feel we have a very strong position. Roughly, 70% of those customers are Waters accounts. So as they shift from one geography to the other, we expect to maintain our share or gain share. So really excited about that. Overall, the reshoring benefit, I mean, if you take just 2 things away from our prepared remarks and what I'm saying now, one, it's a concrete opportunity in -- from 2027 to 2030. And two, we are very well placed to capture the opportunity. I won't quantify at this stage what we're going to see, and you'll see that coming through over the next few quarters. But very happy with the visibility and the position we have there. Operator: Your next question will come from Tycho Peterson with Jefferies. Tycho Peterson: Udit, I want to touch on some of the flow cytometry initiatives. Good to see the return of growth in Clinical. Just on the Research side, how much of the pressure do you think is just lingering headwinds on U.S. academic and government and biotech versus other factors? You mentioned the China initiatives, but I'm just curious about some of the other initiatives to turn around the Flow Research business? Udit Batra: Yes. It's a great question, Tycho. On the flow reagent side, that grew this quarter, so low single digits. The headwinds are largely based on the instrument side. Bulk of it is from China. In fact, the U.S. saw growth on the instrument side in Bioscience and we are seeing benefits of an improving academic and biotech market in the U.S. for sure. And just to sort of complete the thought on China, in China, there are sort of 2 independent variables that you need to keep in mind. One, we have a broader flow cytometry portfolio available starting Q4. We've sort of localized our portfolio, the same playbook we ran for legacy analytical sciences. And two, from an execution standpoint, we've put the guy in charge who has driven really outsized growth in China for us for the last 6, 7 quarters and driven sort of double-digit growth in China for us for the Analytical Science business. This is Ching Lee. So we feel very good about the setup for Biosciences. And as I said in my prepared remarks and to an earlier question, we expect to exit this year in Bioscience north of 6%. Amol Chaubal: And just the only thing I would add is that S8 and A8 are doing fantastic. But then there is the gap that will rapidly be addressed with the launch of A7, and that will take care of the ex China, any remaining headwind. Udit Batra: Yes, fantastic. And on A7, what you need to keep in mind is this is down Waters' fairway, right? It's an instrument designed for high-volume use where you can transfer methods from one flow cytometer to another, one user to another. So feel very good about the product. Tycho Peterson: Okay. That's helpful. And then a follow-up on the guidance. Maybe just a little bit more color. I mean you're raising BD by more than the beat, obviously. How much of that is bioscience versus microbio versus molecular? And then on margins, you're maintaining the guide despite taking up cost synergies. I guess how should we think about the underlying margin trajectory? Really thinking about '27 here is 100 basis points still on the table for next year. Amol Chaubal: Yes. So a couple of things there, right? So on the BD raise, we are raising the underlying by about $25 million, and then that's partially offset by strong U.S. dollar by about $15 million. So the net raise is about $10 million. It's relatively evenly spread between Flow versus Diagnostic Solutions and even within Diagnostic Solutions sort of evenly spread between molecular and micro and a little bit lopsided to clinical versus research on the Biosciences side. Then when you look at the margin, I mean, no doubt the $20 million of additional cost actions brought in 30 basis points of better margin. But because of the currency mix of our business, the stronger U.S. dollar took away the 30 basis points on margin, returning back to 28.2%. We're still ahead of our underwriting on margin, right, because we kind of said we go from 27% to 32% over the course of 5 years, 100 basis points each year. So we're running ahead of the 28% for this year, and our outlook is 100 basis points a year. Operator: Your next question will come from Subbu Nambi with Guggenheim. Subhalaxmi Nambi: Our checks suggest that you've already implemented a change in how discounting is managed at BD in general. We've heard that even in flow cytometry and to some extent in microbiology, where are you in the process of how BD manages discounting? How is this driving you towards your eventual pricing goals? Meaning is this still early innings? And then lastly, as you make these changes, is there a risk that as you potentially require more approvals to discount, you become less nimble relative to competitors? How do you manage that? Udit Batra: Yes. I think, Subbu, great question. Look, we've implemented this playbook on the legacy Waters side, where we set up a deal desk. In fact, from a bureaucracy standpoint, it reduces the bureaucracy. Everyone is clear on what the escalation is. Sometimes these approvals even come to my desk. So the deal desk model is efficient. It's been adopted by both divisions now. We have deal desks across every region, very clear escalation protocols that allows us to manage the discounting really well. If anything, it's faster. And in terms of pace, I mean, it's just the beginning, right? So we've already seen 90 basis points in Q2, where implementation of the deal desk and the execution discipline gave us a lift from the historical 50 basis points to 90. We're well on our way to get to the 150 basis points. And as I said, you should expect faster approvals as opposed to slower. Subhalaxmi Nambi: Fantastic. And recently, you had a competitor come out and adjust their outlook for China microbiology. Can you give us your latest thoughts on how you see growth potential in that market? And the specific ways you expect to maintain your outlook in the region despite reform? Udit Batra: Yes. Look, I mean -- first, I mean, if you just take a step back on China as a whole on the Diagnostics side, it's mostly microbiology for us. It came in actually better this quarter than we had predicted. It grew -- it basically declined low teens as opposed to 30% that we had put into our models. So it did better. And then from a future perspective, we've implemented several changes in the country itself. We are localizing our FX portfolio. That should be available in Q4 in the country. We've made leadership changes, and we've made execution changes on the ground level. So we feel pretty good about where we sit on the microbiology business. And what is ahead of Waters and not just the industry -- ahead for Waters, not just the industry. So with the availability of FX and FXI that is locally made with the leadership changes, feel pretty good about what we want -- what we expect with China going forward. Operator: Your next question will come from Puneet Souda with Leerink. Puneet Souda: Congrats on a great print here. Good to see the BD acceleration here, Udit. The first one is actually on Waters, core instrumentation and GLP-1s. Pharma is clearly strong for you here. But just wanted to see how much contribution you saw from GLP-1s in the quarter? And how should we think about that trajectory going forward, both in the developed markets and in India as well? I just recall this being a major contributor that you had talked about at the prior Investor Day, so I wanted to get some color there. Udit Batra: Yes. Let me start and then let Amol add in. Look, GLP-1s, Puneet, grew that part. GLP-1 testing part of the business grew over 40% this quarter. Broad-based growth across virtually every geography. Americas over 30%. Europe over 36%. India almost doubling the business itself. So very broad-based. And also in China, where one of the leading contract manufacturers are supporting Eli Lilly in their contract manufacturing where we have a meaningful share. So very broad-based growth on GLP-1 testing. And as you look ahead, I mean, there are no signs of slowing down. The pipeline is very good. The funnel looks, both on instruments as well as on the chemistry side. So really no slowdown on that front. In fact, moving ahead of what we had promised on the GLP-1 testing contribution. Amol Chaubal: Yes. I mean, look, broadly, we have said the idiosyncratic growth drivers will all add up to about 200 basis points. And the GLP-1 contribution there was about 30 basis points. Clearly, GLP-1s are running well ahead of that. Puneet Souda: Got it. Got it. Great. And then on the BD side, I mean, with the 180-day plus plan, it seems that's run its course. I mean you're seeing strong results across the BD enterprise. Which of the initiatives are more permanent run rate versus one-timers in the enterprise? I'm wondering how should we start to think about the sort of the annualized revenue contribution here in '27? How should we think about '27 with the BD raise here in '26? Udit Batra: There will be ample time to talk about 2027, Puneet. But I mean, all I can say is add it all up and we exit '26 north of 6%. And that's sort of very aggressive from what we had started with or very positive from where we started with a minus 10% last year same time. So really happy with the execution. On the 180-day plan, these are systemic improvements, right? So the first one is on the commercial execution. I mean we expect that to now be embedded in the organization on funnel management, on pricing and the like. The second one is pricing and reagent compliance. I mean we -- as I mentioned earlier, already 90 basis points. We're well on our way to get to 150 basis points. And the reagent rental compliance, I mean, we know the customers that have been delinquent. We have value propositions for different segments, and those will get implemented over time. And the third one was around China, right? I mean once we localize our portfolio in China, that's a gift that should keep giving, plus we have one of our best GMs in the company leading now Bioscience in addition to his Analytical Sciences Division responsibility. So those are systemic improvements that we expect to contribute going forward. And as you look ahead, remember, our revenue synergies were not just cross-selling of what we talked about earlier, which is $50 million for this year. Total revenue synergies, including cross-selling in drug metabolism, but also cross-selling of LC-MS and diagnostics, instrument replacement, digital commerce, service and pricing, all of those will augment to the growth already that you're seeing from the 180-day plan. So very excited about what we're seeing. I mean the teams are collaborating really, really well. Couldn't have asked for better execution. As I mentioned earlier, I mean, Waters is a strong execution company, but this is A-plus execution. Operator: Your next question will come from Jack Meehan with Operon Research. Jack Meehan: First question, I wanted to follow up on Tycho's second question more around the cost actions, though. So you've built in $75 million for 2026 with a $200 million run rate. Is that $50 million in 4Q a good starting point for thinking about what 2027 could look like? Or should -- or is there a different way we should think about kind of the building blocks in the next year on the cost synergy side? Amol Chaubal: Yes. I mean great question, Jack. So the $50 million in Q4 is largely in hand because we've already taken these cost actions. People have been communicated, they have their dates, et cetera. And so that already puts us at a $200 million run rate. And that covers a big portion of the scope we outlined. But I mean, as you can imagine, as we look at the business and optimize the business further, there are areas which we continue to look at, such as network consolidation at this point that takes typically time, looking at things such as how we manage inventory and that produces outcomes. So those things will come as we go through the years to come. Udit Batra: Yes. Let me add on a bit, Jack, right? I mean you'll remember our benchmark that we had shared from some previous deals was about 7.5% of total cost base. I mean $200 million is 4%. We have a fair number of initiatives that we want to continue to implement beyond the $200 million that we've already delivered. It's too early to add that on to 2027 and beyond. I mean we'll have ample time to talk about it. But I think you think -- your question is the right one. I mean what else do we expect? There's more. I mean there's no question about that. Jack Meehan: Great. And then, Amol, one just phasing question for you. So when I look at the acquired revenue, you did $817 million this quarter. You're guiding to $895 million next quarter. How much of that is like the historical seasonality of these BD businesses? Obviously, like they had a different fiscal year-end than Waters. So I'm wondering whether the seasonality should look similar in Waters' hands like just in terms of how the sales force is being incentivized? Amol Chaubal: Yes. I mean pretty much so, right? I mean just keep in mind, our transformation is running ahead of plan, and that could normalize some of that seasonality. But other than that, I mean, it's about consistent with how the businesses have been performing in the last 2 or 3 years. Operator: Your next question will come from Dan Leonard with RBC Capital Markets. Dan Leonard: At risk of being a bit redundant here, I just want to talk a bit more about the sustainability of the improved trajectory in BD and reconcile some of the math. So Udit, I hear you that the exit is greater than 6% growth, but you have a negative 10% comp in Q4. And that $895 million Q3 guide, that does assume a deceleration in growth compared to your Q2 trend. So sort of similar to Jack, I'm not sure if there's a fiscal versus calendar dynamic, but just hoping you could reconcile some of that math. Amol Chaubal: Yes, there is some amount of that, right, in the sense, if you specifically look at Q3 being year-end for BD, there was about $20 million of trade inventory build in Q3 that unwound in Q4. And that creates a 3% or so growth headwind in Q3 and a 3% tailwind in Q4. Yes, so we don't plan to do that this year, yes. Udit Batra: Yes. And on the 6% growth, right, look, I mean, Q3 had a higher base, Q4 had a lower base. But I mean, the better way to think about it is the second half of the year, right? First half, we -- basically, the first quarter of full ownership, we finished at 4%. And when you look at the second half, we're accelerating versus the first half of the calendar year, right? So the business is accelerating as you go from the first half to the second half. I mean the quarterization, guys, is very difficult to predict in a newly acquired business, and this is something that I've seen in the past with the Sigma-Aldrich acquisition as well. We feel very good about the momentum that we're seeing in the business, and the 6% gives you a very good starting point as we enter 2027. Amol Chaubal: Yes. And also ex China is 6% already for both the businesses. And China started coming to baseline into Q4... Udit Batra: For both businesses. Dan Leonard: Understood. And then as a follow-up, I was hoping you could share more of your early insight into the diagnostics replacement opportunity with the FXI. Would you -- you compare it to the Alliance iS, but just given that the markets are different between diagnostics and pharma, I was hoping to get some of your early learnings. Udit Batra: Yes, some similarity and some differences. Look, I mean, it's a replacement business regardless. That's the similarity. It's 12,000 instruments that are ripe for replacement, 4,500 in the U.S. alone. Excellent uptake of FXI. It's a differentiated product with a clear value proposition, and customers are seeing the benefit wherever we've launched it already. So remember, whenever we talk about replacement cycles, it's not just the math, it's also the value proposition of the new product, right? So the reason we're excited about the replacement cycle that we see with FXI as well as with A7, there's an installed base that is ripe for replacement. But these are fantastic new products that are meeting clear, clear unmet needs. So the similarity to Alliance iS, it's a differentiated product with an incumbent installed base that we know, we know the segmentation and the installed base replacement will go exactly according to what happened with Alliance iS. It's a multiyear process. The difference is that it's a reagent rental model, right, which in itself is actually an advantage because the -- it allows you to take advantage not just of the replacement opportunity, but also of delinquent accounts where you can go into the customer and say, "Hey, you owe me XYZ from the past, let's accelerate your replacement with the FXI BACTEC, right? So the reagent rental model has several advantages, one of which is the lack of compliance that we see from the past, and that presents an opportunity. And the second, it shows up as recurring revenue where you can add on pricing in a sustainable way. So it's similar and different, similar in the sense that it's a replacement cycle with new products, different in the sense that it's actually going to be a sustainable recurring revenue that you will see over -- a benefit of over many, many years. Operator: This concludes the Q&A portion of the call. I will now hand it back to Caspar. Caspar Tudor: Thank you, Leila. This concludes our call. We look forward to connecting with many of you at upcoming events and conferences. Before you buy stock in Waters, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Waters wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Waters (WAT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Waters Corporation? Here are five stocks we like better. Waters exceeded second-quarter expectations, reporting $1.645 billion in revenue, 9% organic constant-currency growth and adjusted EPS of $3.05. Organic growth was led by pharma demand, GLP-1 testing and strength in instruments, chemistry and services. The acquired Biosciences and Diagnostic Solutions businesses accelerated to 4% growth, while management advanced pricing, contract-compliance and cost initiatives. Waters expects $75 million in 2026 savings and approximately $200 million in run-rate savings. The company raised its full-year outlook to 7%–9% organic constant-currency revenue growth and adjusted EPS of $14.45–$14.65. China remains a notable headwind, particularly for Biosciences and microbiology, despite planned localized product launches. Agilent Technologies Thrives From the Forever Chemicals Crackdown Waters (NYSE:WAT) reported second-quarter 2026 revenue of $1.645 billion, driven by 9% organic constant-currency growth and a 4% increase in revenue from its acquired Biosciences and Diagnostic Solutions businesses. The company raised its full-year outlook for organic revenue, acquired-business revenue and adjusted earnings per share after results exceeded its prior guidance. Adjusted earnings per share rose 3% to $3.05, at the high end of Waters’ guidance range. On a GAAP basis, the company recorded a diluted loss per share of $1.39, reflecting acquisition-related purchase accounting charges, including acquired-intangible amortization and inventory step-up expenses. Free cash flow was $202 million during the quarter, after severance and integration-cost payments. → No Hangover: Revisiting Microsoft One Week After Earnings Medical Stocks Waters, Agilent, Illumina Show Growth Potential Organic revenue totaled $828 million, increasing 7% as reported and 9% in constant currency. That performance was about 100 basis points above the high end of the company’s constant-currency guidance range, according to Chief Executive Officer Udit Batra. Orders again outpaced sales, he said. The Analytical Sciences Division generated $669 million in revenue, up 7% as reported and 9% in constant currency. Instruments grew 8%, chemistry increased 10%, and service rose 9% on a constant-currency basis. Pharma revenue increased 11%, while non-pharma revenue rose 4%, including 11% growth in academic and government customers. → MarketBeat Week in Review – 08/03 - 08/07 Batra said pharma demand was supported by capital spending from large pharmaceutical companies, contract organizations and generics customers, alongside demand tied to GLP-1 testing, India and biologics. During the question-and-answer session, he said GLP-1 testing-related revenue grew more than 40% in the quarter, with growth above 30% in the Americas, above 36% in Europe and nearly doubled revenue in India. The Materials Science Division returned to growth, posting revenue of $87 million, up 6% as reported and 8% in constant currency. The company cited electronics testing for semiconductor and data-center applications as well as aerospace and defense testing demand. → Why the Landlord of the AI Boom Could Outlast the Chipmakers The Biosciences and Diagnostic Solutions businesses acquired from Becton, Dickinson and Company generated $817 million in second-quarter revenue, up 4% from the comparable prior-year period and ahead of Waters’ guidance. Batra said the growth rate improved 400 basis points from flat growth in the prior quarter’s full-quarter comparison. The Biosciences Division recorded $368 million in revenue, up 3%. Flow clinical revenue rose 8%, helped by commercial execution, pricing measures and improved market conditions. Flow research revenue declined 2%, although research-use-only reagents returned to growth during the quarter. China remained a headwind for Biosciences, particularly in flow clinical, where China revenue declined 20% amid diagnostic-related group constraints and the lack of a localized product portfolio. Waters said it expects localized flow products to be available in China during the fourth quarter and plans to launch its FACSDiscover A7 cell analyzer on Sept. 15. The Advanced Diagnostics Division produced $521 million in revenue, up 7%. Its Diagnostic Solutions business generated $449 million, rising 5%, while the company’s Clinical Business Unit generated $72 million, up 15% as reported and 14% in constant currency. Within Diagnostic Solutions, microbiology revenue rose 4% to $319 million, supported by commercial execution and pricing actions. Molecular diagnostics and point-of-care revenue increased 9% to $129 million, driven by placements for HPV testing on the BD COR system. China microbiology revenue declined 13%, though management said the result was better than expected. Waters said its BACTEC FXI blood culture system received FDA 510(k) clearance and is now available commercially in the United States, following initial placements in Japan and Europe. Batra said more than 12,000 older BACTEC systems are past due for replacement, including roughly 4,500 in the U.S. Management said its 180-day revitalization plan for the acquired businesses is focused on commercial accountability, pricing and contract compliance, and share recovery in flow research. The company achieved 90 basis points of net price realization in the acquired businesses during the second quarter, up from a historical 50 basis points, and is targeting 150 basis points of price contribution. Waters also said it identified approximately 700 U.S. Diagnostic Solutions reagent-rental contracts that were out of compliance and has begun remediation efforts. Batra said the company has implemented regional “deal desks” designed to manage discounting and speed approvals. The company completed its planned 2026 cost actions and now expects $75 million in cumulative savings this year. Management said the actions represent approximately $200 million of run-rate savings, ahead of its previous schedule. Chief Financial Officer Amol Chaubal said the company expects the cost actions to provide a $25 million adjusted operating-income benefit in the third quarter and a $50 million benefit in the fourth quarter. Waters raised its full-year organic constant-currency revenue growth outlook to 7% to 9%. Foreign exchange is expected to be a roughly 60-basis-point headwind, resulting in projected organic reported revenue of $3.370 billion to $3.431 billion. The company now expects the acquired businesses to produce approximately $3.045 billion of 2026 revenue, a $10 million increase from previous guidance. Total reported revenue is projected to be $6.415 billion to $6.476 billion, while adjusted EBIT margin is expected to remain 28.2%. Full-year adjusted EPS is forecast at $14.45 to $14.65, representing 10% to 12% growth as reported and 12% to 14% growth in constant currency. For the third quarter, Waters expects total reported revenue of $1.745 billion to $1.762 billion and adjusted EPS of $3.95 to $4.05. Waters Corporation is a global provider of analytical instruments, software and services for laboratory and research applications. The company designs, manufactures and sells technologies centered on liquid chromatography, mass spectrometry, separation science, and related sample preparation and detection systems. Its product portfolio includes chromatographs, mass spectrometers, columns and consumables, laboratory informatics and workflow software, as well as technical support and training services that help customers run and interpret complex analyses. Waters serves a wide range of end markets that include pharmaceutical and biotechnology companies, contract research and testing laboratories, academic and government research institutions, clinical diagnostics, food and environmental testing, and industrial and chemical manufacturers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Waters Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Waters Corporation WAT reported second-quarter 2026 adjusted earnings of $3.05 per share, up 3.4% year over year and surpassing the Zacks Consensus Estimate by 1.33%. Revenues of $1.645 billion surged 113.4% from the year-ago quarter and topped the consensus mark by 1.25%. Organic revenues rose 9% in constant currency, while the acquired Biosciences and Diagnostic Solutions businesses generated $817 million, exceeding guidance by $15 million. Organic revenues totaled $828 million, increasing 7% as reported and 9% in constant currency. The result topped the high end of management’s constant-currency guidance range by about 100 basis points, while orders again outpaced sales.Analytical Sciences revenues rose 7% as reported and 9% in constant currency to $669 million. Instruments grew 8% in constant currency, chemistry advanced 10%, and service increased 9%. Pharma sales climbed 11%, supported by instrument replacement, GLP-1, generics and biologics demand, while non-pharma revenues rose 4%. Academic and government revenues grew 11%, supported by demand for Waters’ revitalized mass spectrometry portfolio, while industrial growth remained modest despite continued strength in PFAS applications. Waters Corporation price-consensus-eps-surprise-chart | Waters Corporation Quote In the first quarter, under Waters’ ownership, the Biosciences and Diagnostic Solutions businesses generated $817 million in revenues, exceeding guidance by $15 million and growing 4% from the prior-year comparable period. Management credited the outperformance to its 180-day growth plan, which has improved funnel conversion, increased field activity and strengthened commercial accountability.Pricing and contract compliance remain important growth levers. Waters achieved 90 basis points of net price realization in the quarter and continues to target 150 basis points. The company is remediating roughly 700 U.S. Diagnostic Solutions reagent rental contracts identified as out of compliance and has appointed a dedicated operational leader to oversee the program. Analytical Sciences, the former Waters Division, excluding the Clinical Business Unit, generated $669 million in revenues, up from $627 million in the year-ago quarter. At constant currency, instruments grew 8%, chemistry increased 10% and service advanced 9%, supported by strength in the pharma and academic and government markets. The Biosciences Division, formerly BD Biosciences, posted revenues of $368 million, up from $358 million in the prior-year comparable period. Flow Clinical grew 8% on stronger execution, pricing and improving customer activity, while Flow Research declined 2% as China-related instrument pressure offset a return to growth in research-use reagents. Advanced Diagnostics delivered $521 million in revenues, including $449 million from Diagnostic Solutions and $72 million from the Clinical Business Unit. Diagnostic Solutions grew 5%, while the Clinical Business Unit advanced 15% as reported and 14% at constant currency. Within Advanced Diagnostics, microbiology revenues totaled $319 million and increased 4%, driven by improved commercial execution and pricing actions. Molecular Diagnostics and Point of Care revenues rose 9% to $129 million, aided by strong HPV testing placements on the BD COR platform. Materials Sciences, formerly the TA Division, generated $87 million in revenues compared with $82 million a year earlier. Sales increased 6% as reported and 8% at constant currency, supported by aerospace and defense demand and electronics testing for semiconductor and data-center applications. Adjusted gross margin was 54%, while adjusted operating margin reached 25%, in line with management’s expectations. The sequential margin moderation was due to the inclusion of a full quarter of the acquired Biosciences and Diagnostic Solutions businesses, compared with only a partial quarter in the first quarter. In the second quarter of 2026, selling and administrative expenses were $405 million, up 104.5% year over year. Research and development expenses totaled $122 million, increasing 149% from the prior-year quarter, reflecting the expanded cost base following the acquisition. The company continued to advance revenue synergies across the combined portfolio. It placed about $10 million of mass spectrometry instruments into pharma drug metabolism and pharmacokinetics settings during the quarter and remains on track to deliver $50 million of revenue synergies in 2026.New products are expected to support second-half growth. Waters plans to launch the FACSDiscover A7 Cell Analyzer on Sept. 15, while placements of the BACTEC FXI blood culture system are beginning. Management highlighted more than 10,000 aged flow cytometry instruments and more than 12,000 aged BACTEC systems as replacement opportunities. As of July 4, 2026, cash and cash equivalents were $539 million, down from $588 million as of Dec. 31, 2025. Notes payable and debt increased to $5.09 billion from $1.41 billion at year-end, primarily reflecting financing associated with the Biosciences and Diagnostic Solutions acquisition. Net cash provided by operating activities was $200 million, compared with $41 million a year earlier. Adjusted free cash flow totaled $202 million versus $159 million in the prior-year quarter, despite severance and integration-related payments. Reflecting broad-based strength, WAT raised its 2026 organic constant-currency revenue growth guidance to 7%-9%. The company lifted adjusted earnings guidance to $14.45-$14.65 per share. The acquired businesses are expected to contribute approximately $3.045 billion in reported revenues, while total reported revenues are projected to be between $6.415 billion and $6.476 billion. For the third quarter of 2026, management expects total reported revenues to be in the range of $1.745-$1.762 billion and adjusted earnings of $3.95-$4.05 per share. Organic constant-currency revenue growth is projected at 8-10%, while acquired-business revenues are expected to total approximately $895 million. Waters expects its completed cost actions to generate $75 million in cumulative savings during 2026 and approximately $200 million on a run-rate basis. The company remains on track to deliver $50 million in revenue synergies through cross-selling, instrument replacement, service-plan attachment and e-commerce initiatives. Currently, Waters carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader Zacks Computer and Technology sector include Kimball Electronics KE, NVIDIA NVDA and Onto Innovation ONTO. Each stock currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Shares of Kimball Electronics have declined 2.5% in the year-to-date period. KE is set to report the fourth quarter of fiscal 2026 results on Aug. 12.Shares of NVIDIA have increased 13.7% in the year-to-date period. NVDA is slated to report second-quarter 2026 results on Aug. 26.Onto Innovation shares have gained 82.2% in the year-to-date period. ONTO is set to report first-quarter fiscal 2027 results on Aug. 6. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Waters Corporation (WAT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Kimball Electronics, Inc. (KE) : Free Stock Analysis Report Onto Innovation Inc. (ONTO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Waters (WAT) came out with quarterly earnings of $3.05 per share, beating the Zacks Consensus Estimate of $3.01 per share. This compares to earnings of $2.95 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.33%. A quarter ago, it was expected that this maker of products used in drug discovery and development would post earnings of $2.31 per share when it actually produced earnings of $2.7, delivering a surprise of +16.88%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Waters, which belongs to the Zacks Medical - Instruments industry, posted revenues of $1.65 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.25%. This compares to year-ago revenues of $771.33 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Waters shares have lost about 1.3% since the beginning of the year versus the S&P 500's gain of 11%. While Waters has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Waters was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.99 on $1.76 billion in revenues for the coming quarter and $14.51 on $6.44 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Instruments is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Steris (STE), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This medical products maker is expected to post quarterly earnings of $2.54 per share in its upcoming report, which represents a year-over-year change of +8.6%. The consensus EPS estimate for the quarter has been revised 1.1% lower over the last 30 days to the current level. Steris' revenues are expected to be $1.51 billion, up 8.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Waters Corporation (WAT) : Free Stock Analysis Report STERIS plc (STE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Second Quarter 2026 Highlights Total reported revenue of $1.645 billion surpassed the high end of the guidance range, driven by broad-based outperformance across both organic revenue and the acquired businesses. Organic revenue of $828 million grew 7% as reported and 9% in constant currency; the Analytical Sciences Division (ASD) delivered 8% instrument growth and double-digit chemistry consumables growth, led by low-double-digit growth in both Pharma and A&G end markets, in constant currency, as the market recovery has entered a broader phase, expanding across additional customer segments. Biosciences and Diagnostic Solutions revenue of $817 million exceeded guidance by $15 million and grew 4% on a prior year comparable basis, reflecting strong traction from commercial execution and operational improvements under the Company's 180-day growth revitalization plan that drove a faster-than-expected acceleration to mid-single-digit growth. GAAP EPS of ($1.39); Adjusted EPS of $3.05 landed at the high end of the guidance range, as early cost actions offset unfavorable foreign exchange translation. The Company is raising all components of its full-year 2026 guidance, given better-than-expected results and broad strengthening in end-market conditions. It now expects full-year 2026 organic constant currency revenue growth of 7% to 9%, acquired business reported revenue of $3.045 billion, and adjusted EPS of $14.45 to $14.65, reflecting 10-12% growth. MILFORD, Mass., Aug. 4, 2026 /PRNewswire/ -- Waters Corporation (NYSE: WAT),today announced its financial results for the second quarter of 2026. Overall Financial Results The Company's reported revenue for the second quarter of 2026 was $1.645 billion, reflecting $828 million of organic revenue and $817 million of revenue from the recently acquired Biosciences and Diagnostic Solutions businesses. Organic revenue for the second quarter of 2026 was $828 million, compared to $771 million for the second quarter of 2025, representing an increase of 7% as reported and 9% in constant currency. Revenue from Biosciences and Diagnostic Solutions was $817 million for the second quarter of 2026, compared to $783 million on a prior year comparable basis. On a GAAP basis, the Company reported a diluted loss per share of $1.39 for the second quarter of 2026, compared to diluted EPS of $2.47 for the second quarter of 2025, reflecting acquisition-related purchase accounting charges, including amortization of acquired intangibles and inventory step-up. Adjusted EPS for the second quarter of 2026 grew 3% to $3.05, compared to $2.95 for the second quarter of 2025. "Thanks to the hard work of our teams, we delivered industry-leading growth again this quarter, executing ahead of guidance across all four divisions," said Udit Batra, Ph.D., President & Chief Executive Officer, Waters Corporation. "Organic revenue grew 9% in constant currency, and our newly acquired businesses grew mid-single-digits in their first full quarter under Waters ownership. This performance reflects strong execution across the combined Company as our integration continues to gain momentum, while the recovery across our end markets has broadened with previously lagging customer segments now returning to growth." Dr. Batra continued, "With momentum building across our portfolio, end markets, and synergies, we are raising every component of our full-year 2026 guidance. Looking ahead, as end market conditions continue to strengthen and our growth strategy compounds, Waters is better positioned today than at any point in our recent history, with a broader portfolio, a larger installed base, and the clearest set of growth catalysts we have ever had." Analytical Sciences Division (ASD) The Analytical Sciences Division – the former Waters Division, excluding the Clinical Business Unit – delivered reported revenue of $669 million in the quarter, compared to $627 million for the second quarter of 2025. Biosciences Division (WBD) The Biosciences Division – formerly known as BD Biosciences – delivered reported revenue of $368 million in the quarter, compared to $358 million for the prior year comparable period. Advanced Diagnostics Division (ADx) The Advanced Diagnostics Division comprises the former BD Diagnostic Solutions business and the Clinical Business Unit previously reported within Waters Division. The Diagnostic Solutions business delivered reported revenue of $449 million in the quarter, compared to $425 million for the prior year comparable period. The Clinical Business Unit delivered reported revenue of $72 million in the quarter, compared to $62 million for the second quarter of 2025. Materials Sciences Division (MSD) The Materials Sciences Division – formerly known as TA Division – delivered reported revenue of $87 million in the quarter, compared to $82 million for the second quarter of 2025. A description and reconciliation of GAAP to non-GAAP results appear in the tables below and can be found on the Company's website www.waters.com in the Investor Relations section. Full-Year and Third Quarter 2026 Financial Guidance Full-Year 2026 Financial Guidance The Company is raising its full-year 2026 organic constant currency revenue growth guidance to the range of 7.0% to 9.0%. Including the effect of currency translation, full-year 2026 organic reported revenue is expected to be in the range of $3.370 billion to $3.431 billion. The Company is raising its acquired business revenue expectation and now expects full-year 2026 acquired business reported revenue of approximately $3.045 billion on an owned-period basis. Total Company reported revenue for full-year 2026 is expected to be in the range of $6.415 billion to $6.476 billion. The Company is raising its full-year 2026 adjusted EPS guidance to the range of $14.45 to $14.65,which represents 10% to 12% year-over-year adjusted EPS growth and is 12% to 14% on a constant currency basis. Third Quarter 2026 Financial Guidance The Company expects third quarter 2026 organic constant currency revenue growth to be in the range of 8% to 10%. Including the effect of currency translation, third quarter 2026 organic reported revenue is expected to be in the range of $850 million to $867 million. The Company expects acquired business reported revenue for the third quarter of 2026 to be approximately $895 million. Total Company reported revenue for the third quarter of 2026 is expected to be in the range of $1.745 billion to $1.762 billion. The Company expects third quarter 2026 adjusted EPS to be in the range of $3.95 to $4.05, which represents 16% to 19% year-over-year adjusted EPS growth. Please refer to the tables below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the full-year and third quarter. The Company is unable to provide reconciliations of forward-looking presentations of adjusted EPS guidance measures to the most directly comparable GAAP measures. Such reconciliations cannot be prepared without unreasonable efforts due to the inherent difficulty and unpredictability in forecasting and quantifying certain amounts that would be necessary for such reconciliations, including acquisition-related amortization, acquisition and restructuring costs, as well as certain legal, advisory and tax costs, or other costs that may arise, which amounts could be significant and could have a material impact on the Company's future GAAP financial results. All amounts, other than percentages and per share data, are presented in millions of dollars. Certain totals and percentages may not recalculate due to rounding. Results for the Biosciences and Diagnostic Solutions businesses for prior year comparable period are the quarterly results for the Biosciences and Diagnostic Solutions units for the three months ended June 30, 2025, as reported in the quarterly report on Form 10-Q filed by Becton, Dickinson and Company with the Securities and Exchange Commission ("SEC") on August 7, 2025. This historical financial information reflects the results of operations of these businesses as they were historically managed in conformity with U.S. GAAP. Therefore, such historical financial information does not necessarily reflect what these businesses results of operations would have been had they operated as a part of Waters during the period presented, and do not reflect changes that have occurred since the consummation of the acquisition of these businesses by Waters, including, among other things, changes in the financing, cash management, operations, cost structure and personnel needs or differences in accounting policies. For example, BD provided certain services, such as legal, finance, information technology, human resources, and other infrastructure support to the BDS Businesses prior to their acquisition by Waters. Costs of these services were included in the BDS Businesses' results of operations through allocations based upon a proportion of revenue or headcount as determined by BD in conformity with GAAP. Such allocated costs may not be indicative or necessary if the BDS Businesses operated as a part of Waters during the period presented, nor are they necessarily representative of the costs that may be incurred in the future. Conference Call Details Waters Corporation will webcast its second quarter 2026 financial results conference call today, August 4, 2026, at 8:00 a.m. Eastern Time. To listen to the call and see the accompanying slide presentation, please visit www.waters.com, select "Investor Relations" under the "About Waters" section, navigate to "Events & Presentations," and click on the "Webcast." A replay will be available through at least September 1, 2026. About Waters Corporation Waters Corporation (NYSE: WAT) is a global leader in life sciences and diagnostics, dedicated to accelerating the benefits of pioneering science through analytical technologies, informatics, and service. With a focus on regulated, high-volume testing environments, our innovative portfolio harnesses deep scientific expertise across chemistry, physics, and biology. We collaborate with customers around the world to advance the release of effective, high-quality medicines, ensure the safety of food and water, and drive better patient outcomes by detecting diseases earlier, managing routine infections, and combating antibiotic resistance. Through a shared culture of relentless innovation, our passionate team of ~16,000 colleagues turn scientific challenges into breakthroughs that improve lives worldwide. Non-GAAP Financial Measures This release contains financial measures, such as organic constant currency growth rates, constant currency growth rates, prior year comparable revenue, adjusted earnings per diluted share, and adjusted free cash flow, among others, which are considered "non-GAAP" financial measures under applicable SEC rules and regulations. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP). The Company's definitions of these non-GAAP measures may differ from similarly titled measures used by others. The non-GAAP financial measures used in this release adjust for specified items that can be highly variable or difficult to predict. The Company generally uses these non-GAAP financial measures to facilitate management's financial and operational decision-making, including evaluation of the Company's historical operating results, comparison to competitors' operating results and determination of management incentive compensation. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends affecting the Company's business. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company's reported results of operations, management strongly encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety. Definitions of the non-GAAP financial measures and reconciliations to the most directly comparable GAAP financial measures are included in the tables accompanying this release. Cautionary Statement This release contains "forward-looking" statements regarding future results and events. For this purpose, any statements that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words "feels," "believes," "anticipates," "plans," "expects," "intends," "suggests," "appears," "estimates," "projects," and similar expressions, whether in the negative or affirmative, are intended to identify forward-looking statements. Our actual results may differ significantly from the results discussed in the forward-looking statements within this release for a variety of reasons, including and without limitation, risks or uncertainties related to our acquisition of Becton, Dickinson and Company's Biosciences and Diagnostic Solutions businesses (the "BDS Business"), including failure to realize the anticipated benefits of this acquisition, including as a result of delay in integrating the BDS Businesses with the Company on the expected timeframe or at all, and the ability of the Company to implement its business strategy and achieve revenue and cost synergies, anticipated progress on Waters' research programs, development of new analytical instruments and associated software or consumables, manufacturing development and capabilities, our future financial and operational performance, future economic and market conditions, including our expectations about the growth rates of certain markets, our strategic initiatives, including our instrument replacement initiatives, our ability to respond and adapt to changing global dynamics, including the potential impacts of tariffs and supply chain challenges, our ability to retain and attract customers in various geographies and market segments, our market size and growth opportunities, our competitive positioning, projected costs, technological capabilities and plans, and objectives of management, and other risk factors detailed from time to time in Waters' reports filed with the SEC. Such factors and others are discussed more fully in the sections entitled "Forward-Looking Statements" and "Risk Factors" of the Company's annual report on Form 10-K for the year ended December 31, 2025, as filed with the SEC, which discussions are incorporated by reference in this release, as updated by the Company's subsequent filings with the SEC. The forward-looking statements included in this release represent the Company's estimates or views as of the date of this release and should not be relied upon as representing the Company's estimates or views as of any date subsequent to the date of this release. Except as required by law, the Company does not assume any obligation to update any forward-looking statements. Contact: Caspar Tudor, Head of Investor Relations – (508) 482-3448 View original content:https://www.prnewswire.com/news-releases/waters-corporation-nyse-wat-reports-second-quarter-2026-financial-results-302841670.html

Waters Corporation (NYSE:WAT) reported second-quarter 2026 results that came in ahead of Wall Street expectations, supported by strong organic growth across its pharmaceutical and industrial businesses. The analytical instruments and diagnostics company’s shares were little changed in pre-market trading, edging up 0.07% following the earnings release. Waters posted adjusted earnings of $3.05 per share for the second quarter, slightly ahead of the analyst consensus estimate of $3.01. Revenue increased to $1.645 billion, exceeding market expectations of approximately $1.62 billion. Organic revenue grew 9% on a constant-currency basis, reflecting continued demand across the company’s key end markets. Total reported revenue more than doubled from $771 million in the second quarter of 2025, largely due to the acquisition of Becton Dickinson’s Biosciences and Diagnostic Solutions businesses. Organic revenue reached $828 million, representing reported growth of 7% compared with the same period last year. The acquired businesses contributed $817 million in revenue during the quarter and delivered comparable growth of 4%. President and Chief Executive Officer Udit Batra said the company continued to outperform its own expectations. “Thanks to the hard work of our teams, we delivered industry-leading growth again this quarter, executing ahead of guidance across all four divisions,” said Udit Batra, President and Chief Executive Officer. “Organic revenue grew 9% in constant currency, and our newly acquired businesses grew mid-single-digits in their first full quarter under Waters ownership.” Waters increased its full-year 2026 adjusted earnings per share guidance to between $14.45 and $14.65. The midpoint of the revised range, $14.55 per share, is slightly above the analyst consensus estimate of $14.51. Management expects full-year revenue of between $6.415 billion and $6.476 billion. The midpoint of $6.446 billion is broadly in line with market expectations of approximately $6.44 billion. For the third quarter, Waters expects adjusted earnings per share of between $3.95 and $4.05, with the midpoint of $4.00 closely matching the analyst consensus. Revenue is forecast to range from $1.745 billion to $1.762 billion, with the midpoint of $1.754 billion also broadly aligned with market estimates. The company reported a GAAP loss of $1.39 per share for the quarter, compared with earnings of $2.47 per share a year earlier, reflecting acquisition-related expenses, including the amortisation of acquired intangible assets and inventory step-up costs. Waters Corporation stock price

This article first appeared on GuruFocus. Total Company Revenue: $1.645 billion as reported for Q2 2026. Organic Revenue: $828 million, growing 7% as reported and 9% in constant currency. Acquired Businesses Revenue (Biosciences and Diagnostic Solutions): $817 million, growing 4% on a reported basis versus the prior year comparable period. Adjusted EPS: $3.05, growing 3% and landing at the high end of guidance. Adjusted Gross Margin: 54%. Adjusted Operating Margin: 25%. Free Cash Flow: $202 million for the quarter. Analytical Sciences Division Revenue: $669 million, up 7% as reported and 9% in constant currency. Biosciences Division Revenue: $368 million, representing 3% reported growth. Advanced Diagnostics Division Revenue: $521 million, representing 7% reported growth. Materials Science Division Revenue: $87 million, up 6% as reported and 8% in constant currency. Full Year 2026 Organic Revenue Growth Guidance: Raised to 7% to 9% in constant currency. Full Year 2026 Adjusted EPS Guidance: Raised to $14.45 to $14.65. Warning! GuruFocus has detected 7 Warning Signs with WAT. Is WAT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Waters Corp (NYSE:WAT) delivered excellent Q2 2026 results, with organic revenue growing 9% in constant currency, exceeding guidance by 100 basis points. The acquired Biosciences and Diagnostic Solutions businesses accelerated to mid-single-digit growth, a 400 basis point improvement from Q1, driven by the successful 180-day plan. Strong innovation momentum with new product launches, including the cyclic IMS 20 and Xevo MRTP 10 mass specs, and the BACTEC FXI blood culture system, which received FDA clearance. Cost actions are ahead of schedule, with $200 million in expected run-rate savings, supporting margin expansion and mid-teens adjusted EPS growth. End-market recovery is broadening, with double-digit growth in pharma and academic/government, and China returning to accretive growth for the legacy business. Revenue synergies are building, with $50 million expected in 2026, and early cross-selling in pharma DMPK and diagnostics contributing to results. The company raised full-year 2026 guidance for organic revenue, acquired business revenue, and adjusted EPS, reflecting strong momentum. Pricing initiatives in the acquired businesses are gaining traction, with 90 basis points of net price realization in Q2, on track to reach 150 basis points. The BACTEC FXI replacement opportunity is substantial, with over 12,000 aged systems past due, positioning it as a multiyear growth engine. The launch of the FACSDiscover A7 spectral cell analyzer is set for September 15, filling a portfolio gap and targeting a strengthening biotech/academic market. Foreign exchange translation is a headwind, with a stronger US dollar expected to reduce full-year revenue by approximately 60 basis points and EPS by $0.25. China remains a drag on the acquired businesses, with Flow Clinical declining 20% and microbiology declining 13% due to DRG headwinds and portfolio localization issues. The Flow Research business declined 2% in Q2, with lingering headwinds from China and a gap in the instrument portfolio until the A7 launch. The company's guidance for Q4 implies a conservative 4% constant currency growth, below recent momentum, due to fewer working days and prudent assumptions. The acquired businesses face a 3% growth headwind in Q3 due to the unwinding of BD's trade inventory build, impacting quarterly comparisons. Industrial end market growth was soft at 1%, with weakness in chemical analysis due to lumpy ordering patterns and macro sensitivity. The reagent rental compliance issue in diagnostics is ongoing, with 700 US contracts identified as out of compliance, requiring mediation and operational changes. The company's adjusted EPS growth of 10-12% is below the mid-teens target, partly due to FX and the phasing of cost benefits. The full-year adjusted EBIT margin guidance of 28.2% is unchanged, as FX offsets the $20 million overachievement from cost actions. The company faces execution risks in integrating the acquired businesses, including leadership changes and the need to sustain momentum in a competitive market. Q: BD Life Sciences likely grew north of 5% constant currency, well above the deal model, despite China headwinds and before new product contributions. How should we think about BDLS in the medium term? Is this now a north of 6% asset?A: Udit Batra (CEO): We are ecstatic about the A+ execution from the teams. We expect to exit the year with 6% or better growth for the acquired businesses, setting us up well for 2027. This will be enabled by leadership changes, strengthened execution, pricing, instrument replacement, and digital commerce. Key catalysts include the FACSDiscover A7 launch on September 15, localized flow cytometry portfolio in China in Q4, and the BACTEC FXI launch in the US following 510(k) clearance, with roughly 4,500 instruments in the US alone waiting for replacement. Q: Organic revenues and cost action estimates were raised, but the EPS increase of $0.05 just reflects the second quarter beat being carried forward. Are we being conservative on EPS fall-through, and are any tariff refund assumptions baked in?A: Amol Chaubal (CFO): Between the organic sales raise and higher cost actions, we get about $0.03 of EPS, but about $0.25 of EPS is eaten up by the stronger US dollar, resulting in the $0.05 EPS raise. The implied Q4 guidance for organic business is a prudent ~4% constant currency growth, partly due to three fewer working days (a 1%-1.5% headwind). On tariff refunds, since we neutralized tariffs in our P&L by early October last year, any refunds will be offset by going back on some customer surcharges, making it net neutral. Q: How much of the guidance raise in the acquired business is related to pricing, and how quickly can you ramp to the 150 basis points goal?A: Amol Chaubal (CFO): In Q2, we achieved 0.9% price realization versus the traditional 0.5% embedded in our guide. We are increasing the assumption to 0.9% for the remainder of the year, with the goal to get as quickly as possible to 150 basis points. Udit Batra (CEO) added that on reagent rental compliance, we have profiled 700 accounts in the US and hired an expert to renegotiate contracts, which should help improve pricing and accelerate new product uptake. Q: How much of the reshoring opportunity is incremental versus shifting geographies, and what is the timing of the flow-through?A: Udit Batra (CEO): It is incremental in the short to medium term (2027 to 2030). We have incredible visibility on customers who have broken ground, with roughly 70% of the tracked sites being existing Waters accounts. As they shift from one geography to another, we expect to maintain or gain share. We won't quantify the benefit at this stage, but we are very happy with the visibility and position we have. Q: On flow cytometry, how much of the research side pressure is lingering headwinds versus other factors, and what are the initiatives to turn it around?A: Udit Batra (CEO): The headwinds are largely on the instrument side, with the bulk from China. The US actually saw growth on the instrument side in Biosciences, benefiting from an improving academic and biotech market. In China, we will have a broader flow cytometry portfolio available starting Q4, and we have put Ching Lee in charge, who has driven outsized growth in China for the Analytical Science business. Amol Chaubal (CFO) added that the S8 and A8 are doing fantastic, and the launch of A7 will address any remaining ex-China headwinds. Q: You're raising BD by more than the beat. How much is bioscience versus microbio versus molecular? And on margins, is 100 basis points still on the table for 2027?A: Amol Chaubal (CFO): The BD raise is relatively evenly spread between Flow and Diagnostic Solutions, with a little more lopsided to clinical versus research on the biosciences side. On margins, the $20 million of additional cost actions brought in 30 basis points of better margin, but the stronger US dollar took away 30 basis points, returning to 28.2%. We are still ahead of our underwriting on margin, and our outlook remains 100 basis points a year. Q: You've implemented a change in how discounting is managed at BD. Where are you in the process, and is there a risk you become less nimble relative to competitors?A: Udit Batra (CEO): We've implemented a deal desk model across every region with clear escalation protocols, which reduces bureaucracy and is faster. We've already seen 90 basis points in Q2, up from the historical 50 basis points, and we are well on our way to 150 basis points. You should expect faster approvals, not slower. Q: A competitor adjusted their outlook for China microbiology. What are your latest thoughts on growth potential in that market?A: Udit Batra (CEO): China on the Diagnostics side is mostly microbiology, and it came in better than predicted, declining low teens as opposed to the 30% we had modeled. We are localizing our FX portfolio, which should be available in Q4, and have made leadership and execution changes on the ground. With the availability of locally made FX and FXI, we feel pretty good about China going forward. Q: How much contribution did you see from GLP-1s in the quarter, and how should we think about that trajectory going forward?A: Udit Batra (CEO): GLP-1 testing grew over 40% this quarter, broad-based across virtually every geography. Americas grew over 30%, Europe over 36%, and India almost doubled. There are no signs of slowing down, with a very good pipeline and funnel on both instruments and chemistry. Amol Chaubal (CFO) added that GLP-1s are running well ahead of the 30 basis points contribution originally planned. Q: With the 180-day plan run its course, which initiatives are more permanent run rate versus one-timers, and how should we think about the annualized revenue contribution in 2027?A: Udit Batra (CEO): These are systemic improvements. The first is commercial execution, now embedded in the organization. The second is pricing and reagent compliance For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Delivered 9% organic constant currency growth, driven by double-digit performance in pharma and academic end markets as market conditions broadened beyond previous laggards. Achieved a 400 basis point growth acceleration in the newly acquired Biosciences and Diagnostic Solutions businesses during their first full quarter of Waters leadership. Successfully implemented a 180-day growth revitalization plan for acquired assets, focusing on commercial discipline, KPI transparency, and pricing excellence. Revitalized China operations, with legacy pharma growing double digits and China Flow Research narrowed its decline by 25 percentage points through improved export license efficiency. Advanced the instrument replacement cycle, noting that organic instrument revenue remains below historical CAGRs, suggesting significant runway for future demand. Identified a multi-year revenue tailwind from U.S. pharma reshoring, tracking 76 expansion sites with approximately $100 billion in committed capital expenditure. Executed a comprehensive restructuring plan, achieving $75 million in 2026 savings and reaching a $200 million run-rate ahead of the original schedule. Raised full-year 2026 organic constant currency revenue guidance to 7-9%, reflecting sustained momentum in legacy businesses and faster-than-expected integration of acquired assets. Expects the acquired Biosciences and Diagnostic Solutions businesses to exit 2026 with a growth rate of 6% or better, supported by new product launches and pricing actions. Anticipates $50 million in total revenue synergies for 2026, driven by cross-selling mass spec into pharma DMPK settings and clinical IVD expansion. Guidance assumes a 12.8% sequential step-up in the fourth quarter, which management describes as a prudent estimate below recent seasonal patterns. Projecting mid-teens adjusted EPS growth over the next several years, underpinned by a target of 100 basis points of annual margin expansion. Foreign exchange translation remains a significant headwind, with the strengthening U.S. dollar offsetting approximately $0.25 of EPS gains from operational overperformance. China's Diagnostic Solutions business faces ongoing DRG (Diagnosis-Related Group) headwinds, though these are expected to roll into the baseline by the fourth quarter. Identified approximately 700 U.S. diagnostic contracts as out of compliance regarding reagent rentals, initiating a remediation program to recover value and drive instrument upgrades. Localized manufacturing for flow instruments in China is underway, with expected growth contributions beginning in the fourth quarter of 2026. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects to exit the year at 6% or better growth for the acquired businesses, up from a flat-to-negative trajectory under previous ownership. Growth will be sustained by the launch of the FACSDiscover A7 in a strengthening biotech environment and the replacement of 12,000 aged BACTEC systems. Management clarified that any potential tariff refunds would be net-neutral to the P&L. The company previously implemented surcharges to neutralize tariff impacts, which would be rolled back in tandem with any refunds received. Waters achieved 90 basis points of net price realization in the acquired businesses this quarter, nearly doubling the historical 50 basis point trend. A new 'deal desk' model has been implemented to standardize discounting approvals, which management claims is faster and more disciplined than previous processes. Reshoring is viewed as a concrete incremental opportunity from 2027 to 2030 as sites move from construction to equipment outfitting. Waters holds a high market share at 70% of the tracked expansion sites, positioning the company to capture a disproportionate share of new instrument demand.