Waters

Waters Corporation (Waters) makes analytical instruments, chemistry consumables, software and service. Its main products are liquid chromatography and mass spectrometry systems that labs use to test medicines, food, water and chemicals. Its customers are pharmaceutical companies, industrial labs, and academic and government labs. On February 9, 2026, Waters completed the acquisition of the Biosciences and Diagnostic Solutions (BDS) business of Becton, Dickinson and Company (BD).

The deal was a Reverse Morris Trust. Waters issued 38.5 million shares to BD shareholders, who then owned about 39.2% of Waters, and the value of the consideration at closing was $13 billion. Waters now has four divisions: Analytical Sciences (ASD), Biosciences (WBD), Advanced Diagnostics (ADx) and Materials Sciences (MSD). Revenue in Q3 2026 was $1,767 million, of which $871 million was organic and $896 million came from the acquired businesses.

Service was $433 million of that revenue. About 15,000 people work at Waters, which is based in Milford, Massachusetts. Its shares trade on the New York Stock Exchange. Udit Batra is President and Chief Executive Officer.

Waters trades above its intrinsic value because investors pay for its lab instrument and consumables growth and its high margin, even though it bought a business about as large as itself and has not yet shown what the combined company earns. Since February 9, 2026, purchase accounting has pushed GAAP results to a loss for nine months. In Q3, GAAP diluted EPS was $0.82 and adjusted EPS was $4.10, and most of the difference is $243 million of amortization and step-up charges. Debt rose from about $1.4 billion at the end of 2025 to $5.1 billion to pay for the deal.

For the price to hold, three things must be true. First, Analytical Sciences must keep growing near the 8% of Q3, with instrument replacement and consumables growth holding. Second, the acquired businesses must keep growing at mid-single digits. They grew 4% in Q2 and 1% in Q3 on a prior-year comparable basis ($896 million against $885 million), and Waters guides Q4 to double-digit growth in both parts on a days-adjusted basis.

Third, cost savings must lift the adjusted operating margin, which was 30.1% in Q3, while debt falls from $5.1 billion. The Q4 2026 report with 2027 guidance, expected in February 2027, is the next test.

1. Nov 3, 2026Passed

   Q3 2026 results: adjusted EPS and guidanceAdjusted EPS above the guidance range and a raise to the 2026 outlook passes; a cut to the outlook fails.Outcome: Adjusted EPS was $4.10 and Waters raised every part of its 2026 guidance.
2. Feb 8, 2027 · est.Pending

   Q4 2026 results: acquired business growth and 2027 guidanceAcquired business revenue near $817 million, adjusted EPS of $4.58 to $4.68 and 2027 guidance that grows adjusted EPS pass; a miss on Q4 or flat 2027 guidance fails.
3. May 2027 · est.Pending

   Q1 2027 results: margin and debtAn adjusted operating margin of 30% or more with debt below $5.1 billion passes; a lower margin or higher debt fails.

Every passed and failed checkpoint across all picks

• November 10, 2026Waters filed its Form 10-Q for Q3 2026. It shows total debt of $5.1 billion: $3.5 billion of Senior Notes, $0.4 billion under the SpinCo term loan, $0.5 billion under the revolving credit facility and $0.7 billion of senior unsecured notes. The weighted average interest rate was 4.55%. Waters made no open-market share repurchases in 2026. It had 98,285,634 shares outstanding at November 6, 2026.
• November 3, 2026Waters reported Q3 2026 results. Revenue was $1,767 million: $871 million of organic revenue, up 9% as reported and 10% in constant currency, and $896 million from the acquired businesses, which grew 1% on a prior-year comparable basis. GAAP diluted EPS was $0.82 and adjusted EPS was $4.10, up 21%. Analytical Sciences revenue rose 8% to $703 million, with instrument revenue up 9% and chemistry consumables revenue up 10%. Adjusted free cash flow was $68 million.
• November 3, 2026Waters raised every part of its 2026 guidance. It now expects adjusted EPS of $14.60 to $14.70, reported revenue of $6.479 billion to $6.497 billion, and Q4 adjusted EPS of $4.58 to $4.68. The release said that management would give its starting 2027 growth framework on the earnings call.

Last earnings

November 3, 2026 (8-K on sec.gov)

Next earnings

Expected about February 8, 2027. The company has not confirmed the date.

• 10-QQuarterly report for the period ended Oct 3, 2026Filed November 10, 2026 · Read it on sec.gov
• 8-KEarnings releaseFiled November 3, 2026 · Press release and exhibits
• 8-KChange of directors or officers and Other company newsFiled August 21, 2026 · Read it on sec.gov
• 10-QQuarterly report for the period ended Jul 4, 2026Filed August 11, 2026 · Read it on sec.gov
• 8-KEarnings releaseFiled August 4, 2026 · Press release and exhibits
• 8-KShareholder vote resultsFiled May 22, 2026 · Read it on sec.gov
• 10-QQuarterly report for the period ended Apr 4, 2026Filed May 12, 2026 · Read it on sec.gov
• 8-KEarnings releaseFiled May 5, 2026 · Press release and exhibits
• 8-KNew material agreement and New debt or financial obligationFiled March 23, 2026 · Read it on sec.gov
• 8-KOther company newsFiled March 16, 2026 · Read it on sec.gov

Every filing on SEC EDGAR (CIK 1000697)

• Integration of the acquired businesses must deliver. Their revenue grew 1% on a comparable basis in Q3, and the case for the deal depends on mid-single-digit growth and on cost savings. Waters cut about 3% of its workforce in 2026 and booked $64 million of severance in nine months.
• Debt is $5.1 billion, up from $1.4 billion at the end of 2025. The revolving credit facility, which runs to May 2030, limits leverage to 3.50 times, and Waters may raise the limit to 4.25 times for a quarter in which it closes a large acquisition. A weaker market would slow debt repayment. About $650 million of Senior Notes are due in 2027, and the term loan is due in February 2028.
• Tariffs and China add cost and risk. Tariffs raised material costs and Waters built safety stock. The Chinese government restricts procurement by government-funded customers. The legal transfer of some BDS assets in China and Italy had not finished at closing.
• Demand may slow. Waters said that growth came from an instrument replacement cycle and from a recovery that broadened across pharmaceutical and industrial customers. A fall in drug-company or academic spending would cut instrument sales first.
• Management changed in one division in August 2026. The head of Analytical Sciences, the largest division, left, and a leader who joined Waters in June 2026 took over.

Waters reported cash of $593 million and notes payable and debt of $5,133 million at October 3, 2026, so net debt was about $4.5 billion. Debt principal was $5.1 billion: $3.5 billion of Senior Notes due from 2027 to 2036 (including $650 million due in 2027), $425 million under the SpinCo term loan due February 2028, $0.5 billion drawn on the $1.8 billion revolving credit facility and $0.7 billion of senior unsecured notes. Read more

Waters does not pay a dividend.

Source: company filings and market data, read on November 13, 2026.