olivLaw · US equity research
Waters Corporation WAT
Laboratory Analytical Instruments · SIC 3826 · Vertical: Laboratory Analytical Instruments (SIC 3826)
Waters Corporation (WAT) is a global supplier of analytical instruments and software, active in chromatography, mass spectrometry and thermal analysis. After acquiring the BDS Business from Becton, Dickinson and Company, closed on February 9, 2026 for 16.8 billion USD, the company became a four-division entity with a much larger revenue base. In the second quarter of 2026, reported revenue reached 1.645 billion USD, and organic revenue grew 7% as reported and 9% in constant currency, to 828 million USD.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Waters Corporation (WAT) stock was 467.60 USD (+1.67% on the day), with market capitalisation 45.9 bn USD, P/E 116.6 on diluted EPS of 4.01 USD over the last 12 months, beta 0.99, 52-week range 283.32–480.07 USD. Latest reported quarter (Q2 2026): revenue of 1.6 bn USD (+113.3% YoY), net income of -136.0 m USD (−192.5% YoY), diluted EPS -1.39 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 60.0
- strong (55–70)
- Bollinger (20, 2)
- 419.33 – 481.36
- in the upper half of the band · %B 0.78 · band width 13.8%
- SMA 50 / 200
- 433.01 / 370.57
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 9.89 / 9.77
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +6.2% | −1.1% | +7.3 pp | — |
| 3 months | +16.9% | −0.5% | +17.4 pp | — |
| 6 months | +33.8% | +4.4% | +29.4 pp | — |
| Year to date | +23.1% | +12.3% | +10.8 pp | — |
| 1 year | +27.3% | +13.5% | +13.8 pp | +14.4% |
| 3 years | +79.5% | +76.4% | +3.1 pp | −8.6% |
| 5 years | +36.3% | +63.7% | −27.4 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 04 Jul 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 740.3 m | 872.7 m | 661.7 m | 771.3 m | 799.9 m | 932.4 m | 1.3 bn | 1.6 bn |
| Cost of revenue | 301.7 m | 348.5 m | 276.7 m | 321.4 m | 327.8 m | 362.9 m | — | — |
| Research & development | 45.3 m | 46.9 m | 46.6 m | 48.5 m | 53.6 m | 46.9 m | 96.0 m | 122.0 m |
| SG&A | 169.1 m | 173.3 m | 174.9 m | 201.3 m | 214.2 m | 240.0 m | 387.0 m | 405.0 m |
| Operating income | 211.1 m | 292.3 m | 151.7 m | 188.2 m | 192.1 m | 270.5 m | -47.0 m | -86.0 m |
| Interest expense | 21.4 m | 19.0 m | 14.3 m | 14.4 m | 26.6 m | 14.3 m | 48.0 m | 60.0 m |
| Pre-tax income | 193.6 m | 277.0 m | 142.9 m | 177.7 m | 170.1 m | 264.2 m | -88.0 m | -141.0 m |
| Income tax | 32.1 m | 45.6 m | 21.5 m | 30.6 m | 21.2 m | 39.0 m | -16.0 m | -5.0 m |
| Net income | 161.5 m | 231.4 m | 121.0 m | 147.0 m | 148.9 m | 225.2 m | -72.0 m | -136.0 m |
| Diluted EPS | 2.71 | 3.88 | 2.03 | 2.47 | 2.50 | 3.77 | -0.87 | -1.39 |
| Operating cash flow | 204.6 m ≈ | 240.1 m | 260.0 m | 41.0 m ≈ | 187.0 m ≈ | 164.6 m | -3.0 m | 201.0 m ≈ |
| Capex | — | — | 26.0 m | 23.0 m ≈ | — | — | 39.0 m | 48.0 m ≈ |
| Share repurchases | 141.0 k ≈ | 66.0 k | 14.0 m | 0 ≈ | 523.0 k ≈ | 144.0 k | 12.0 m | 2.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 91 percentile of its own 43-quarter history (min 21.0, median 28.8, max 1,016.8; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.4 bn | 2.4 bn | 2.4 bn | 2.8 bn | 3.0 bn | 3.0 bn | 3.0 bn | 3.2 bn |
| Revenue YoY | +4.8% | −0.6% | −1.7% | +17.8% | +6.7% | −0.5% | +0.1% | +7.0% |
| Net income | 593.8 m | 592.2 m | 521.6 m | 692.8 m | 707.8 m | 642.2 m | 637.8 m | 642.6 m |
| Net income YoY | +2,823.5% | −0.3% | −11.9% | +32.8% | +2.2% | −9.3% | −0.7% | +0.8% |
| Diluted EPS | 7.65 | 8.69 | 8.36 | 11.17 | 11.73 | 10.84 | 10.71 | 10.76 |
| Diluted EPS YoY | +2,960.0% | +13.6% | −3.8% | +33.6% | +5.0% | −7.6% | −1.2% | +0.5% |
| net % | 24.5% | 24.6% | 22.1% | 24.9% | 23.8% | 21.7% | 21.6% | 20.3% |
| Free cash flow | unavailable | unavailable | unavailable | unavailable | unavailable | 442.2 m | 619.6 m | 539.8 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 588.0 m USD
- Financial debt
- 947.0 m USD
- Net debt
- 359.0 m USD
- Equity
- 2.6 bn USD
- Total assets
- 5.1 bn USD
- Debt / equity
- 0.37x
- Current ratio
- 1.73x
- ROE
- 29.3%
- ROA
- 13.3%
- FCF margin
- 17.1%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 2.4 bn | 2.8 bn | 3.0 bn | 3.0 bn | 3.0 bn | 3.2 bn | SEC (XBRL)· 23 Feb 2026verified |
| Cost of revenue | 1.0 bn | 1.2 bn | 1.2 bn | 1.2 bn | 1.2 bn | 1.3 bn | SEC (XBRL)· 23 Feb 2026verified |
| Gross profit | 1.4 bn ≈ | 1.6 bn ≈ | 1.7 bn ≈ | 1.8 bn ≈ | 1.8 bn ≈ | 1.9 bn ≈ | SEC (XBRL)· 23 Feb 2026derived |
| Research & development | 140.8 m | 168.4 m | 176.2 m | 174.9 m | 183.0 m | 195.7 m | SEC (XBRL)· 23 Feb 2026verified |
| SG&A | 553.7 m | 627.0 m | 658.0 m | 736.0 m | 690.1 m | 830.4 m | SEC (XBRL)· 23 Feb 2026verified |
| Operating income | 645.5 m | 821.7 m | 873.4 m | 817.7 m | 826.4 m | 802.6 m | SEC (XBRL)· 23 Feb 2026verified |
| Interest expense | 49.1 m | 44.9 m | 48.8 m | 98.9 m | 89.7 m | 69.5 m | SEC (XBRL)· 23 Feb 2026verified |
| Pre-tax income | 610.9 m | 806.2 m | 837.8 m | 736.2 m | 754.9 m | 754.9 m | SEC (XBRL)· 23 Feb 2026verified |
| Income tax | 89.3 m | 113.4 m | 130.1 m | 94.0 m | 117.0 m | 112.2 m | SEC (XBRL)· 23 Feb 2026verified |
| Net income | 521.6 m | 692.8 m | 707.8 m | 642.2 m | 637.8 m | 642.6 m | SEC (XBRL)· 23 Feb 2026verified |
| Diluted EPS | 8.36 | 11.17 | 11.73 | 10.84 | 10.71 | 10.76 | SEC (XBRL)· 23 Feb 2026verified |
| Weighted average diluted shares | 62.4 m | 62.0 m | 60.3 m | 59.3 m | 59.6 m | 59.7 m | SEC (XBRL)· 23 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 436.7 m | 501.2 m | 480.5 m | 395.1 m | 325.4 m | 588.0 m | SEC (XBRL)· 12 May 2026verified |
| Receivables | 573.3 m | 612.6 m | 722.9 m | 702.2 m | 733.4 m | 829.0 m | SEC (XBRL)· 12 May 2026verified |
| Inventories | 304.3 m | 356.1 m | 455.7 m | 516.2 m | 477.3 m | 572.0 m | SEC (XBRL)· 12 May 2026verified |
| Current assets | 1.4 bn | 1.6 bn | 1.8 bn | 1.8 bn | 1.7 bn | 2.1 bn | SEC (XBRL)· 12 May 2026verified |
| Property, plant & equipment, net | 494.0 m | 547.9 m | 582.2 m | 639.1 m | 651.2 m | 642.0 m | SEC (XBRL)· 12 May 2026verified |
| Goodwill | 444.4 m | 437.9 m | 430.3 m | 1.3 bn | 1.3 bn | 1.3 bn | SEC (XBRL)· 12 May 2026verified |
| Intangibles (excl. goodwill) | 258.6 m | 242.4 m | 227.4 m | 629.2 m | 567.9 m | 558.0 m | SEC (XBRL)· 12 May 2026verified |
| Total assets | 2.8 bn | 3.1 bn | 3.3 bn | 4.6 bn | 4.6 bn | 5.1 bn | SEC (XBRL)· 12 May 2026verified |
| Accounts payable | 72.2 m | 96.8 m | 93.3 m | 84.7 m | 99.9 m | 104.0 m | SEC (XBRL)· 12 May 2026verified |
| Short-term debt | 150.0 m | 0 | — | — | — | — | SEC (XBRL)· 24 Feb 2022verified |
| Long-term debt | 1.2 bn | 1.5 bn | 1.5 bn | 2.3 bn | 1.6 bn | 947.0 m | SEC (XBRL)· 12 May 2026verified |
| Current liabilities | 805.0 m | 680.5 m | 785.7 m | 789.6 m | 789.8 m | 1.2 bn | SEC (XBRL)· 12 May 2026verified |
| Total liabilities | 2.6 bn | 2.7 bn | 2.8 bn | 3.5 bn | 2.7 bn | 2.5 bn | SEC (XBRL)· 12 May 2026verified |
| Equity | 232.1 m † | 367.6 m † | 504.5 m † | 1.2 bn † | 1.8 bn † | 2.6 bn † | SEC (XBRL)· 12 May 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 790.5 m | 747.3 m | 611.7 m | 602.8 m | 762.1 m | 652.6 m | SEC (XBRL)· 23 Feb 2026verified |
| Capex | — | — | — | 160.6 m | 142.5 m | 112.7 m | SEC (XBRL)· 23 Feb 2026verified |
| Free cash flow | — | — | — | 442.2 m ≈ | 619.6 m ≈ | 539.8 m ≈ | SEC (XBRL)· 23 Feb 2026derived |
| Investing cash flow | -264.1 m | -231.6 m | -108.0 m | -1.4 bn | -143.1 m | -152.3 m | SEC (XBRL)· 23 Feb 2026verified |
| Financing cash flow | -440.5 m | -438.3 m | -509.6 m | 755.0 m | -696.7 m | -237.2 m | SEC (XBRL)· 23 Feb 2026verified |
| Share repurchases | 196.4 m | 648.9 m | 626.1 m | 70.3 m | 13.5 m | 14.7 m | SEC (XBRL)· 23 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 33 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 45.9 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet42
- Growth9
- Quality78
- Returns0
- Valuation5
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 25.11 – 155.60 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)25.11 – 64.08 (Mid 40.04)WACC 8.9% · starting FCFF 519.3 m USD · terminal value share of EV 74%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E136.59 – 155.60 (Mid 147.80)4 companies used · median multiple 36.9x · quartiles 34.1x – 38.8xA, AVTR, ILMN, MTD
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 33/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 2.4% | 71 (vs peers) | 14% |
| Net margin · Quality | 3.6% | 68 (vs peers) | 8% |
| FCF conversion · Quality | 240.0% | 100 (on a fixed band) | 8% |
| Revenue CAGR 3Y · Growth | 2.1% | 18 (on a fixed band) | 11% |
| EPS CAGR 3Y · Growth | -2.8% | 0 (on a fixed band) | 11% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 2.2x | 11 (on a fixed band) | 8% |
| Current ratio · Balance sheet | 1.9x | 88 (on a fixed band) | 6% |
| P/E (TTM) · Valuation | 116.6x | 0 (vs peers) | 14% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 0.9% | 11 (on a fixed band) | 11% |
| Shareholder yield (distributions) · Returns | 0.0% | 0 (on a fixed band) | 8% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet42/100 · 2/3 factors with a value
- Growth9/100 · 2/2 factors with a value
- Quality78/100 · 3/3 factors with a value
- Returns· partial0/100 · 1/2 factors with a value
- Valuation5/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Waters Corporation (WAT). Latest full fiscal year: 2025; data up to 2026-07-04.
Figures computed from the financial statements: revenue 3.2 bn USD in 2025; YoY growth 7.0%; net margin 3.6%; ROE 1.9%.
The estimated value range is 80.85–109.84 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 93.92 USD, the price of 467.60 USD leaves a potential of -79.9% (value / price − 1) and a margin of safety of -397.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 33/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 2.4%
- FCF conversion: 240.0%
- Current ratio: 1.9x
What contradicts it
- Revenue CAGR 3Y: 2.1%
- EPS CAGR 3Y: -2.8%
- Interest coverage: 2.2x
- P/E (TTM): 116.6x
- FCF yield: 0.9%
- Shareholder yield (distributions): 0.0%
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, EV/EBITDA, Payout ratio (FCF).
Versus the vertical median
Laboratory Analytical Instruments (SIC 3826) · same industry (4-digit SIC) · compared with 20 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| AAgilent Technologies, Inc. | 49.9 bn | 34.9 | 21.0% | 19.5% | +6.7% | +15% / +39% |
| WATWaters Corporation | 45.9 bn | 116.6 | 1.9% | 3.6% | +7.0% | +27% / +80% |
| MTDMettler-Toledo International Inc. | 34.5 bn | 38.8 | — | 21.9% | +4.0% | +17% / +58% |
| ILMNIllumina, Inc. | 34.3 bn | 38.8 | 32.4% | 19.7% | −0.7% | +72% / +128% |
| RVTYRevvity, Inc | 17.8 bn | 76.0 | 3.2% | 8.2% | +3.7% | +53% / +79% |
| AVTRAvantor, Inc. | 10.6 bn | 31.5 | 5.9% | 5.1% | −3.4% | +33% / −26% |
| BRKRBruker Corporation | 9.7 bn | — | -3.4% | -2.0% | +2.1% | +31% / −2% |
| TXG10x Genomics, Inc. | 8.6 bn | — | -9.4% | -12.2% | +5.2% | +259% / +55% |
| PACBPacific Biosciences of California, Inc. | 792.6 m | — | -929.3% | -82.5% | +3.9% | +10% / −70% |
| CTKBCytek Biosciences, Inc. | 769.0 m | — | -23.2% | -39.1% | +0.5% | +4% / −15% |
| MASS908 Devices Inc. | 457.6 m | — | -25.2% | -57.0% | +17.7% | +74% / +39% |
| NAUTNautilus Biotechnology, Inc. | 291.7 m | — | -41.0% | — | unavailable | +2% / −17% |
| QTRXQuanterix Corporation | 143.8 m | — | -46.5% | -80.2% | +1.1% | −58% / −87% |
| SEERSeer, Inc. | 94.1 m | — | -26.4% | -478.0% | +17.0% | −11% / +6% |
| HBIOHarvard Bioscience, Inc. | 39.2 m | — | -89.9% | -11.9% | −8.1% | +13% / −80% |
| PRPOPrecipio, Inc. | 35.0 m | — | -9.0% | -4.5% | +29.8% | −20% / +187% |
| EYPTEyePoint, Inc. | 34.1 m | — | -148.7% | -10,994.7% | −27.5% | −97% / −94% |
| BNGOBionano Genomics, Inc. | 14.0 m | — | -83.6% | -106.6% | −7.4% | −36% / −99% |
| ASTCAstrotech Corporation | 9.1 m | — | -75.4% | -1,580.2% | −8.7% | +41% / −44% |
| BIOBio-Rad Laboratories, Inc. | — | 10.0 | 14.3% | 39.5% | +0.7% | +17% / +25% |
| RPIDRapid Micro Biosystems, Inc. | — | — | -141.6% | -145.6% | +19.7% | −84% / −42% |
1- and 3-year price returns: for WAT from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 113.77 Total return -76% · Per year -76% | 201.37 Total return -57% · Per year -57% | 303.64 Total return -35% · Per year -35% |
| 3 years | 105.20 Total return -78% · Per year -39% | 210.01 Total return -55% · Per year -23% | 348.44 Total return -25% · Per year -9% |
| 5 years | 97.28 Total return -79% · Per year -27% | 219.02 Total return -53% · Per year -14% | 399.85 Total return -14% · Per year -3% |
- Exit P/E± 52.50
- Net margin± 36.75
- Annual revenue growth± 30.87
- Annual dilution± 3.09
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 11 Aug 2026; since then the company filed 8-K (03 Nov 2026 · results).
In brief
Waters Corporation (WAT) is a global supplier of analytical instruments and software, active in chromatography, mass spectrometry and thermal analysis. After acquiring the BDS Business from Becton, Dickinson and Company, closed on February 9, 2026 for 16.8 billion USD, the company became a four-division entity with a much larger revenue base 12. In the second quarter of 2026, reported revenue reached 1.645 billion USD, and organic revenue grew 7% as reported and 9% in constant currency, to 828 million USD 3.
SWOT
Strengths
- The company holds a recognized leadership position in chromatography and mass spectrometry, with an extensive installed base and recurring consumables revenue 1.
- The broader portfolio after the BDS acquisition includes diagnostics, flow cytometry and reagents, diversifying revenue beyond traditional instruments 23.
- Organic growth in the second quarter of 2026 exceeded guidance, which points to solid operational execution in existing divisions 3.
Weaknesses
- The debt assumed in the acquisition is substantial and can limit operational flexibility and raise financing costs 1.
- The GAAP net result in the second quarter of 2026 was negative because of amortization and acquisition-related charges, making GAAP profitability more volatile 23.
- The company depends on a complex integration process, and losing key personnel or disrupting operations could affect results 1.
Opportunities
- Estimated revenue and cost synergies could raise margins if integration follows the plan 1.
- A recovery in pharmaceutical and academic demand could extend organic growth in the coming years 3.
- Solutions for gene therapy, bioprocessing and infectious disease diagnostics offer growth directions in newer segments 12.
Threats
- Trade tariffs and retaliation between countries could raise costs and disrupt the supply chain 12.
- Lower research budgets or reduced government funding could weaken demand for laboratory instruments 1.
- Competitors may launch more effective or cheaper products, which could reduce the company's market share 1.
Risks
- Integration of the BDS businesshigh
Integrating multiple systems, products and teams could delay synergies or raise unexpected costs, and losing customers or staff could affect results 1.
- Assumed debthigh
Debt taken on through the acquisition could limit financial flexibility and raise refinancing costs if market conditions worsen 12.
- Tariff policymedium
Uncertainty about tariffs and refunds can affect cost structure and supply chain planning 2.
- Dependence on research fundingmedium
Reduced research budgets or government funding could lower demand for the company's products 1.
- Goodwill and intangible impairmentlow
If the performance of acquired businesses declines, the company could be required to record impairment of goodwill and intangible assets 1.
Investment thesis
What would need to be true (bull case)
- If integration follows the plan and organic growth holds, the company could turn the acquisition into a broader growth platform across several segments 13.
- A recovery in pharmaceutical and academic demand, combined with the raised guidance, could support revenue growth in 2026 3.
- A portfolio of recurring consumables provides steadier revenue, which can reduce reliance on instrument sales 12.
What would break the thesis
- The large debt assumed in the acquisition could limit the company's flexibility if interest rates stay high or integration is delayed 1.
- The net loss in the second quarter of 2026 shows that acquisition accounting effects could persist and obscure operating performance 23.
- Tariffs, retaliatory trade measures and lower research budgets could together weigh on demand and costs 12.
What to watch
- Quarterly results and BDS integration progress, including synergy deliveryQ3 2026
- Updated 2026 guidance for revenue and adjusted EPSQ3 2026
- Refinancing of assumed debt and interest cost trends2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 11 Aug 2026; since then the company filed 8-K (03 Nov 2026 · results).
The business
After the February 2026 closing, Waters reorganized its activities into four segments: Analytical Sciences, Biosciences, Advanced Diagnostics and Materials Sciences 23. This structure reflects the integration of flow cytometry, reagents and diagnostics from former BD units alongside the company's traditional laboratory instruments 12.
Market context
Management describes a recovery in end-market demand that has now broadened to more customer segments, including pharmaceutical and academic and government customers 3. Full-year 2026 guidance for organic constant currency growth of 7% to 9% could strengthen the company's position in these markets if sustained 3.
Trends
- Recovery in end-market demandtailwind
Organic revenue growth in the second quarter of 2026 was supported by instruments and consumables, and pharmaceutical and academic segments returned to growth 3. If this trend continues it could support the updated 2026 guidance 3.
- Tariffs and trade uncertaintyheadwind
U.S. tariffs and retaliatory measures by other countries can affect the cost structure and supply chain, and the Supreme Court ruling on IEEPA tariffs introduced uncertainty about refunds and future trade policy 12. The company says its actions could offset part of the impact, but it cannot guarantee the effect will be limited 2.
- Integration of the BDS acquisitionmixed
Integrating the BDS business brings expected cost and revenue synergies, but also restructuring costs and the risk of losing customers or key staff 1. If integration proceeds as planned it could support medium-term margins, and if not it could affect results 13.
- Amortization and interest costsheadwind
Amortization of acquired intangibles and interest on assumed debt rose sharply after the acquisition, contributing to a net loss in the second quarter of 2026 23. Higher financing costs can reduce operating flexibility, especially if the debt is refinanced on less favorable terms 1.
Competitive position
The analytical instruments market is competitive, and rivals may introduce more effective or less expensive products, which could reduce the company's sales 1. Consolidation and ownership changes among competitors could also reshape the competitive landscape 1.
In diagnostics and flow cytometry, the company competes with suppliers holding significant market share, and integrating the former BD units could change its relative position against them 12. A key risk is that some customers choose other suppliers during the integration period 1.
- Agilent TechnologiesA
Analytical instrument supplier, included among competitors in chromatography and mass spectrometry laboratories 1.
- Thermo Fisher ScientificTMO
Competitor in laboratory instruments and diagnostics, referenced in the context of competition in the analytical sector 1.
- Bruker CorporationBRKR
Supplier of spectrometry and analytical instruments, a competitor in the company's scientific segments 1.
- Shimadzu Corporation
Japanese maker of chromatography and spectrometry instruments, a global competitor of the company 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report03 Nov 2026Results of operations · Financial statements and exhibits
- Current report21 Aug 2026Departure or appointment of officers · Other events
- Quarterly report11 Aug 2026
- Current report04 Aug 2026Results of operations · Financial statements and exhibits
- Current report22 May 2026Shareholder vote
- Quarterly report12 May 2026
- Current report05 May 2026Results of operations · Financial statements and exhibits
- Proxy statement09 Apr 2026
- Current report23 Mar 2026Material agreement · Creation of a direct financial obligation · Other events · Financial statements and exhibits
- Current report16 Mar 2026Other events · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Waters Corporation · 23 Feb 2026
- [2] Form 10-Q, quarter ended 2026-07-04 · SEC / Waters Corporation · 11 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Waters Corporation · 04 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.