Waters Corporation reported higher third-quarter revenue and adjusted earnings, with organic sales growth and contributions from businesses it has acquired. The company also raised its 2026 revenue and earnings outlook, citing improving demand and progress integrating those businesses.
For the quarter ended October 3, revenue was $1.767 billion. Adjusted earnings per share rose 21% to $4.10, while GAAP earnings per share fell to $0.82 from $2.50 a year earlier, reflecting acquisition-related accounting charges and costs, as well as restructuring expenses.
Key details
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Organic revenue increased 9% to $871 million, or 10% in constant currency, from $800 million a year earlier. Revenue from acquired Biosciences and Diagnostic Solutions businesses was $896 million, compared with $885 million on a comparable basis.
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Analytical Sciences Division revenue was $703 million, up from $649 million. The division grew 8% as reported and 9% in constant currency, with double-digit growth in instruments and chemistry. Waters cited stronger instrument replacement demand, new products and customer testing activity. LC-MS instrument growth was double-digit in constant currency.
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Biosciences Division revenue was $396 million, versus $387 million in the comparable period. Reagent sales grew at a high-single-digit rate, an acceleration of 400 basis points from the prior year, with research and clinical reagents both growing at that pace.
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Advanced Diagnostics Division revenue was $575 million: $500 million from Diagnostic Solutions, compared with $498 million a year earlier, and $75 million from the Clinical Business Unit, up from $64 million. Microbiology sales grew at a mid-single-digit rate on a comparable basis.
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Materials Sciences Division revenue was $93 million, up from $87 million.
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Waters raised its full-year 2026 outlook across all components. It now expects organic revenue growth of 9.1% to 9.7% in constant currency. Including currency effects, organic reported revenue is expected to be $3.429 billion to $3.447 billion.
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The company expects about $3.050 billion of reported revenue from acquired businesses for the portion of the year they are included in its results. Total 2026 reported revenue is projected at $6.479 billion to $6.497 billion. The company said the increase to the full-year revenue midpoint was $43 million.
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Full-year adjusted EPS guidance is now $14.60 to $14.70, representing expected growth of 11% to 12% from 2025.
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For the fourth quarter, Waters said it expects double-digit growth in both organic and acquired businesses on a days-adjusted basis. It also plans to provide a growth framework beginning in 2027 during its earnings call.
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Waters said it is ahead of schedule on integration and synergy commitments for its acquired businesses.
What changes for investors
Acquired businesses contributed slightly more than half of third-quarter revenue, while organic sales also grew at a solid pace. The gap between GAAP and adjusted EPS reflects significant acquisition-related and restructuring charges in the quarter; the company’s raised full-year EPS outlook is stated on an adjusted basis.