### At a Glance WATERS CORP Q2 2026 Results Beat Estimates; Management Raises Full-Year Guidance
Management reported that the quarter's results exceeded expectations across the board, with organic business continuing to grow at high single digits. The newly acquired BD Life Sciences business achieved accelerated growth in its first full quarter, and the 180-day plan execution showed significant results.
Key Data: Organic revenue grew 9% year-over-year (constant currency), exceeding the high end of guidance by approximately 100 basis points. Acquired business revenue grew 4% year-over-year, a 400-basis-point improvement from the prior quarter. Adjusted earnings per share were $3.05, at the high end of guidance.
Business Progress: The core Analytical Science segment delivered double-digit growth in the pharmaceutical and academic/government markets for the second consecutive quarter, with GLP-1 testing business growing over 40%. Within the BD Life Sciences business, flow cytometry clinical grew 8%, microbiology grew 4%, and molecular diagnostics and POCT grew 9%. The company launched several innovative products, including the BACTEC FXI blood culture system (FDA 510(k) cleared) and the FACSDiscover A7 flow cytometer. Cost actions have achieved cumulative savings of $75 million, with full-year run-rate savings expected to reach $200 million.
Guidance & Outlook: Management raised full-year organic revenue growth guidance to 7%-9% (constant currency), raised acquired business revenue guidance to approximately $3.045 billion, and raised full-year adjusted EPS guidance to $14.45-$14.65 (10%-12% year-over-year growth). Q3 organic revenue growth guidance is 8%-10%.
Risk/Highlight Signals: Management emphasized that China's business has returned to a growth trajectory, and pharmaceutical reshoring provides incremental opportunities for 2027-2030. However, a stronger U.S. dollar is expected to create an EPS headwind of approximately $0.25.