$WAT · WATERS CORP /DE/
Waters filed its 10-Q for the quarter ended October 3, 2026. Total net revenue rose 120.9% to $1.767B from $800M, driven by the BDS Business Acquisition, which added Biosciences and Advanced Diagnostics segments. Net income fell to $81M from $149M, with diluted EPS of $0.82 versus $2.50. Operating margin compressed to 7.2% from 24% a year ago, weighed by $244M in purchased intangibles amortization and $12M in restructuring charges. The balance sheet expanded dramatically: total assets rose to $24.1B from $5.1B, with goodwill of $9.4B and intangibles, funded by $12.8B in stock issuance and $4.0B in assumed debt.
- Revenue rose 120.9% to $1.767B, up from $800M a year earlier.
- Diluted EPS fell to $0.82 from $2.50, with net income down to $81M from $149M.
- Operating margin compressed to 7.2% from 24% on $244M intangibles amortization.
- Total assets jumped to $24.1B from $5.1B, with $9.4B goodwill and intangibles.
- Nine-month net loss of $127M versus $417M profit a year ago.
Markets closed — no regular-session reaction yet; extended-hours move not captured here.
A transformative acquisition doubled revenue but halved profitability, testing whether Waters can integrate BDS without eroding shareholder value.
The BDS acquisition transforms Waters from a chromatography/mass-spec pure-play into a diversified life-sciences diagnostics company, adding flow cytometry and infectious-disease diagnostics.
Integration risk from the BDS acquisition is substantial: $244M quarterly intangibles amortization and $12M restructuring charges are compressing margins, while long-term debt rose to $4.5B from $947M.