Waters (NYSE:WAT) Announces Earnings Results, Beats Expectations By $0.10 EPS

Waters (NYSE:WAT) issued its quarterly earnings results on Tuesday. The medical instruments supplier reported $4.10 EPS for the quarter, topping the consensus estimate of $4.00 by $0.10, Zacks reports. Waters had a net margin of 1.75% and a return on equity of 9.91%. The firm had revenue of $1.77 billion during the quarter, compared to analyst estimates of $1.75 billion. During the same quarter in the prior year, the business posted $3.40 earnings per share. Waters’s revenue for the quarter was up 120.9% compared to the same quarter last year.

Here are the key takeaways from Waters’ conference call:

• Strong third-quarter performance included 10% organic constant-currency revenue growth, a 21% increase in adjusted EPS to $4.10, and operating margin of 30.1%. Orders exceeded sales by approximately $20 million.
• Waters raised its 2026 revenue guidance by $43 million at the midpoint and now expects adjusted EPS of $14.60–$14.70. Fourth-quarter guidance calls for double-digit growth on a days-adjusted basis across both legacy Waters and acquired businesses.
• The acquired Biosciences and Diagnostic Solutions businesses are showing improving execution, with pricing realization reaching 120 basis points, China Biosciences returning to growth, and new products such as the FACSDiscover A7, BACTEC FXi, and BD COR gaining traction.
• Management outlined a 2027 framework of high-single-digit growth for legacy Waters, mid-single-digit growth for legacy BD, 100 basis points of adjusted operating-margin expansion to 29.2%, and low-teens adjusted EPS growth. Potential upside drivers include revenue synergies, reshoring, China recovery, semiconductor demand, and AI-enabled workflows.
• Free cash flow remains pressured by integration costs, working-capital requirements, approximately $150 million in receivables tied to BD transition services, and elevated inventory levels. Management expects these factors to improve over the next several years rather than immediately.

Waters Trading Down 1.8%

WAT traded down $8.44 during trading on Thursday, hitting $459.16. 309,923 shares of the company’s stock were exchanged, compared to its average volume of 967,094. The company has a current ratio of 0.66, a quick ratio of 1.29 and a debt-to-equity ratio of 0.32. Waters has a 1 year low of $282.77 and a 1 year high of $482.28. The stock has a 50 day moving average price of $433.18 and a 200 day moving average price of $371.53. The firm has a market cap of $45.11 billion, a P/E ratio of 197.07, a price-to-earnings-growth ratio of 2.67 and a beta of 1.16.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the stock. Leerink Partners lifted their price target on shares of Waters from $420.00 to $450.00 and gave the company an “outperform” rating in a report on Wednesday, August 5th. Morgan Stanley set a $430.00 price objective on Waters in a report on Wednesday, August 5th. Wells Fargo & Company increased their target price on Waters from $370.00 to $400.00 and gave the stock an “equal weight” rating in a research report on Wednesday, August 5th. Robert W. Baird lifted their target price on Waters from $456.00 to $495.00 and gave the company an “outperform” rating in a report on Thursday, October 8th. Finally, Jefferies Financial Group boosted their price target on Waters from $450.00 to $455.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, Waters currently has a consensus rating of “Moderate Buy” and an average price target of $475.48.

Waters News Roundup

Here are the key news stories impacting Waters this week:

• Positive Sentiment: Q3 results and outlook beat expectations. Waters reported adjusted EPS of $4.10 versus the $4.00 consensus and revenue of $1.77 billion versus $1.75 billion. The company raised its 2026 revenue and earnings outlook, citing acquisition contributions alongside organic growth. Zacks Q3 results and guidance
• Positive Sentiment: Analysts raised price targets after the update. Citigroup lifted its target to $536 and kept a Buy rating; RBC raised its target to $525 with Outperform; TD Cowen and Barclays set $530 targets with bullish ratings, while KeyCorp raised its target to $500. These revisions signal confidence in further upside. Citigroup rating information RBC target increase
• Positive Sentiment: Management sees growth opportunities ahead. Coverage of the earnings call points to a 2027 framework targeting high-single-digit growth and a 29.2% adjusted operating margin. The CEO also said AI-related demand from drug developers is supporting demand for lab instruments, and the company’s MOBILion Systems acquisition adds to its growth strategy. Waters 2027 framework AI and lab demand
• Neutral Sentiment: JPMorgan raised its target to $470 but maintained a Neutral rating, indicating a more cautious view than the other target revisions. JPMorgan rating information
• Negative Sentiment: Some investors may question whether the strong outlook is already reflected in the share price. A recent valuation-focused analysis frames Waters as potentially fully priced, which could limit enthusiasm despite the earnings beat. Waters valuation analysis

Waters Company Profile

Waters Corporation (NYSE:WAT) develops and manufactures analytical technologies used to measure, identify and characterize chemical and biological substances. Its customers include pharmaceutical and biotechnology companies, industrial manufacturers, academic and government laboratories, and organizations involved in food, environmental and clinical testing.

The company’s product portfolio includes high-performance liquid chromatography and ultra-performance liquid chromatography systems, mass spectrometers, chromatography columns and consumables, and laboratory software for data management and analysis.