Waters posts 13% organic growth

Waters Corporation reported first-quarter 2026 results on May 5 that marked its first earnings release since closing its combination with Becton, Dickinson and Company’s Biosciences and Diagnostic Solutions businesses on Feb. 9. The Milford, Massachusetts-based company said total reported revenue was $1.267 billion, including $747 million of organic revenue and $520 million from the acquired operations. Adjusted earnings per share rose 20% to $2.70, while GAAP diluted EPS was a loss of $0.87 because of acquisition-related accounting charges. Waters also raised its full-year outlook for organic constant-currency revenue growth and adjusted EPS. ### How much of the quarter came from Waters’ legacy business? Waters said organic revenue in the quarter was $747 million, up from $662 million a year earlier. The company said that amounted to 13% growth as reported and 11% in constant currency. Udit Batra, Waters’ president and chief executive officer, said in the company’s release that the quarter showed “double-digit organic growth in our legacy businesses” alongside better-than-expected revenue from the newly acquired operations. (ir.waters.com) The company said the Analytical Sciences Division was led by high-single-digit instrument growth and mid-teens chemistry growth. ### What changed after the BD transaction closed? Feb. 9 was the closing date for the combination of BD’s Biosciences and Diagnostic Solutions business with Waters, according to statements from both companies. Waters said the acquired businesses contributed $520 million of revenue on an owned-period basis in the first quarter, compared with $485 million on an estimated prior-year equivalent basis. (ir.waters.com) BD said on the closing date that the transaction completed the previously announced spin-off and combination of those businesses with Waters. Waters said the deal created four divisions: Analytical Sciences, Biosciences, Advanced Diagnostics and Materials Sciences. (ir.waters.com) ### Why did GAAP earnings turn into a loss? Waters said GAAP diluted EPS was a loss of $0.87 in the quarter, compared with diluted EPS of $2.03 a year earlier. The company attributed the swing to acquisition-related purchase accounting charges, including amortization of acquired intangibles and inventory step-up. (ir.waters.com) Adjusted EPS, which excludes those items, rose to $2.70 from $2.25 a year earlier. Waters said the increase was driven by better-than-expected revenue and margin performance. ### What did management say about demand and execution? Waters said total reported revenue exceeded the high end of its guidance range by $56 million. (ir.waters.com) The company also said revenue from Biosciences and Diagnostic Solutions came in $40 million above guidance, citing commercial execution and operational improvement initiatives launched during the quarter. Batra said in the earnings release that the company delivered “an excellent first quarter as a combined company.” He said the results reflected execution in both the legacy business and the newly acquired units. ### What did Waters change in its 2026 forecast? Waters said it raised full-year 2026 organic constant-currency revenue growth guidance to 6.5% to 8.0%. (ir.waters.com) The company also said it now expects the acquired businesses to generate $3.035 billion of reported revenue in 2026. The company raised full-year adjusted EPS guidance to $14.40 to $14.60. Waters said it could not reasonably reconcile that forward-looking adjusted EPS guidance to a GAAP measure because of the acquisition-related items. ### What comes next for investors tracking the integration? (ir.waters.com) May 5 is the date Waters scheduled its first-quarter 2026 financial results conference call and webcast for 8:30 a.m. Eastern Time. Investors will also be watching the company’s full-year targets, including the $3.035 billion revenue expectation for the acquired businesses and adjusted EPS guidance of $14.40 to $14.60. (prnewswire.com) (ir.waters.com)