Waters Corporation Reports 113% Revenue Growth but $136 Million Net Loss in Latest Quarter

Waters Corporation reported significant financial changes in its latest 10-Q filing for the quarter ending July 4, 2026, primarily driven by the acquisition of the Biosciences and Diagnostic Solutions business from Becton, Dickinson and Company (BD). The company recorded total net revenues of $1.645 billion for the quarter, a 113% increase compared to $771 million in the same period last year. For the first half of 2026, revenues reached $2.912 billion, up 103% from $1.433 billion in the first half of 2025. The substantial growth was largely attributed to $817 million and $1.3 billion in revenue from the newly acquired BDS Business for the respective periods.

Despite the revenue surge, Waters Corporation reported a net loss of $136 million for the second quarter, compared to a net income of $147 million in the prior year. The loss for the first half of 2026 was $208 million, down from a profit of $268 million in the same period of 2025. The decline in profitability was influenced by increased costs associated with the BDS acquisition, including $560 million in cost of revenue and $232 million in amortization of purchased intangibles. Additionally, the company incurred $49 million in restructuring charges due to a workforce reduction affecting approximately 3% of its employees.

In terms of operational metrics, Waters Corporation's total assets surged to $24.751 billion as of July 4, 2026, compared to $5.077 billion at the end of 2025. This increase was primarily due to the acquisition, which added significant goodwill and intangible assets to the balance sheet. The company also reported a notable rise in accounts receivable, which reached $1.987 billion, reflecting the higher sales volume. The workforce reduction is expected to yield annual salary-related cost savings of approximately $120 million, with an estimated $67 million in savings anticipated for 2026.

Geographically, Waters Corporation experienced broad-based growth across all regions, with the Americas contributing $690 million in revenue for the second quarter, a 146% increase year-over-year. The company also reported strong performance in Asia, particularly in China, where revenues reached $206 million, up 76% from the previous year. The BDS Business's contribution to revenue was significant, with $161 million in the second quarter and $266 million in the first half of 2026 coming from this segment.

Looking ahead, Waters Corporation anticipates continued growth driven by the integration of the BDS Business and ongoing demand for its analytical instruments and services. However, the company remains cautious about potential impacts from global economic conditions, including fluctuations in foreign currency exchange rates and ongoing regulatory changes. The management emphasized the importance of executing its integration strategy effectively to realize the anticipated benefits from the acquisition while navigating the challenges posed by the current market environment.