Waters Q2 Earnings Call Highlights

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. 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. 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. 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. 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 i...