Waters Raises Full-Year Outlook as Acquisition Boosts Revenue
The company reported total revenue of $1.645 billion for the second quarter, a 113% increase over the prior year.
Waters (WAT), the specialty measurement company, reported a significant increase in total revenue for the second quarter ended July 4, 2026. The result followed the integration of Biosciences and Diagnostic Solutions (BDS), which contributed $817 million to the quarter's top line.
Total reported revenue grew 113% year-over-year to $1.645 billion, compared with $771 million in the same period last year. However, organic constant currency revenue growth slowed to 9% in the second quarter, down from 11% in the first quarter.
Adjusted earnings per share rose 3% year-over-year to $3.05. This represented a deceleration from the 20% year-over-year growth of $2.70 reported in the first quarter. GAAP net income shifted from a profit of $147 million in the second quarter of 2025 to a net loss of $136 million in the second quarter of 2026, due to acquisition-related purchase accounting charges, including inventory step-ups and the amortization of intangibles.
Growth in the Analytical Sciences Division instrument segment reached 8% in constant currency for the quarter, an increase from the high-single-digit growth seen in the first quarter. Revenue from the Biosciences and Diagnostic Solutions segment grew 4% on a prior-year comparable basis, reflecting acceleration toward mid-single-digit growth under a 180-day revitalization plan.
Adjusted operating margin for the second quarter was 25.0%. While this was a slight expansion from the 24.4% margin recorded for the six-month period ending July 4, 2026, it was a compression from the 29.1% adjusted operating margin reported in the second quarter of 2025.
Waters raised its full-year 2026 organic constant currency revenue growth guidance to a range of 7.0%-9.0%, up from the 6.5%-8.0% range provided in the first quarter. The company also increased its full-year adjusted EPS guidance to $14.45-$14.65, compared with the previous range of $14.40-$14.60.
Expectations for reported revenue from acquired businesses were raised to approximately $3.045 billion for the full year, up from the $3.035 billion forecast provided in the first quarter.