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Waters
S&P 500
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$24.6B
Market Cap
35.3
P/E
3.19
PEG
20.5%
ROCE
29.3%
ROE
0.57
D/E
25.4%
OPM
-1.3%
% from 52W High
79
α RS
🔍 WAT is showing a high-conviction setup because it matches 13 of 37 tracked screener presets, Sector RRG has Health Care in the Leading quadrant with the trail still strengthening, and RS Rating is 79. Net: Broad signal stack, not a recommendation. ? Conviction RRG RS Rating
Sources
Conviction 13/37 · Health Care in Leading quadrant · RS Rating 79
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🌏 Global Investor Returns
Currency-adjusted total returns for WAT including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Waters Corporation provides analytical workflow solutions in Asia, the Americas, and Europe.

Key Ratios Snapshot
📈 Growth Pattern
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⭐ Superinvestors Holding WAT
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Manager Shares Value % of Fund Period
Andreas Halvorsen Viking Global Investors 1.26M $374.2M 1.05% Mar 2026
Steve Cohen Point72 Asset Management 354.4K $105.5M 0.14% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$1.645B
Organic +9% CC; acquired +4% vs prior-year comp
Adjusted EPS
$3.05
+3% YoY
Adjusted Operating Margin
25.0%
In line with expectations
Organic Revenue
$828M
+9% CC / +7% reported
What Went Right
  • Organic constant-currency growth of 9% beat the high end of guidance by ~100bps, with orders outpacing sales.
  • Acquired Biosciences & Diagnostic Solutions revenue beat guidance by $15M and accelerated 400bps to 4% reported growth.
  • GLP-1 testing grew over 40% in the quarter, broad-based across geographies including Americas, Europe and India.
What to Watch
  • Forex headwind: stronger USD was ~150bps adverse in Q2 and ~$0.25 dilutive to full-year EPS.
  • China remains a drag: flow clinical China declined 20%, flow research China improved to mid-single-digit decline from -30%, and DRG headwinds persist in diagnostics.
  • Reagent rental noncompliance: ~700 U.S. Diagnostic Solutions contracts were out of compliance; remediation is ongoing.
Management Guidance
  • Q3 2026: organic CC growth 8%-10%; organic reported revenue $850M-$867M; acquired business revenue ~$895M; total revenue $1.745B-$1.762B; adjusted EPS $3.95-$4.05 (16%-19% growth).
  • FY2026 raised: organic CC growth 7%-9%; organic reported revenue $3.370B-$3.431B; acquired business reported revenue ~$3.045B; total revenue $6.415B-$6.476B; adjusted EPS $14.45-$14.65 (10%-12% growth).
  • FY2026 adjusted EBIT margin expected at 28.2%, supported by $75M of 2026 cost benefits and ~$200M run-rate savings.
Investor Lens
The thesis is clearly stronger after this call: legacy Waters is delivering durable high-single-digit organic growth, while the acquired BD businesses accelerated faster than planned and remain on track for a 6%-plus exit rate. Cost synergies are running ahead of schedule, and the second-half product launches — FACSDiscover A7, BACTEC FXI and localized China flow portfolio — add further catalysts. The main offsets are FX and lingering China diagnostics/flow research headwinds, but management's confident execution and raised guidance support the multi-year margin and EPS algorithm.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG STRONG: total revenue $1.645B, organic CC +9%, adjusted EPS $3.05.
Revenue
Total reported revenue was $1.645B, consisting of $828M organic revenue and $817M from the acquired Biosciences and Diagnostic Solutions businesses. Organic revenue grew 7% as reported and 9% in constant currency, while acquired businesses grew 4% on a prior-year comparable basis and accelerated 400bps versus Q1's full-quarter trend.
Profitability
Adjusted EPS grew 3% to $3.05, at the high end of guidance despite a 150bps FX headwind. GAAP diluted EPS was a loss of $1.39 due to acquisition-related purchase accounting charges, including amortization of acquired intangibles and inventory step-up.
Margins
Adjusted gross margin was 54% and adjusted operating margin was 25%, both in line with expectations. Cost actions are expected to contribute $25M in Q3, $50M in Q4, and a cumulative $75M in 2026, with a $200M run-rate ahead of schedule.
Balance Sheet
Quarterly free cash flow was $202M after $21M of severance and $27M of integration cash payments. Net interest expense was $55M in Q2, and full-year net interest is now expected to be approximately $190M; at June 30, the net cash settlement due from BD was $157M.
Key Risks
Management flagged a stronger U.S. dollar as a 150bps Q2 translation headwind and ~$0.25 EPS drag for the year. China remains a pressure point in flow clinical (-20%), flow research (mid-single-digit decline) and diagnostics DRG headwinds, though management says China DRG hits the baseline in Q4. Q4 organic constant-currency guidance implies a deliberate ~4% growth rate due to three fewer working days.
Outlook
Q3 guidance calls for total reported revenue of $1.745B-$1.762B and adjusted EPS of $3.95-$4.05, representing 16%-19% growth. Full-year 2026 guidance was raised across the board: organic constant-currency growth of 7%-9%, acquired business revenue around $3.045B, and adjusted EPS of $14.45-$14.65.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-04
Q2 results exceeded guidance with strong growth across all divisions, especially in pharma, academic/government, and acquired BD businesses. Full-year guidance was raised, with robust margin expansion and cost savings expected. New product launches and strategic partnerships further strengthen growth prospects.
Q1 2026 Q1 2026 2026-05-05
Strong Q1 performance with double-digit organic growth, robust execution in acquired businesses, and 20% adjusted EPS growth led to raised 2026 revenue and EPS guidance. Integration and synergy realization are ahead of plan, with new product launches and China localization supporting future growth.
Q4 2025 Q4 2025 2026-02-09
Delivered strong Q4 and full-year growth, completed BD acquisition, and set 2026 guidance for 5.3% blended revenue growth and 8.9–10.4% adjusted EPS growth. Integration and synergy initiatives are underway, with robust momentum in pharma, chemistry, and recurring revenue.
Q3 2025 Q3 2025 2025-11-04
Q3 sales and earnings exceeded guidance, with 8% revenue growth and 16% adjusted EPS growth. Pharma and Chemistry segments led performance, and the outlook for 2025 and 2026 remains strong, supported by innovation, new product launches, and the pending BD combination.
Q2 2025 Q2 2025 2025-08-04
Q2 sales and EPS exceeded guidance, driven by strong pharma and recurring revenue growth. Full-year 2025 sales and EPS guidance were raised, with robust demand in pharma, CDMOs, and China. The pending BD combination is expected to deliver significant synergies and long-term growth.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
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Information Sources:
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