WAT US S&P 500Russell 1000 Earnings call · transcribed from the recording
Waters Corporation (WAT) · Q3 2026 results and valuation
Share price: $470.90 · 2026-11-11
Waters Corporation provides analytical instruments and software for chromatography, mass spectrometry, laboratory informatics, and rheometry. The company serves the life sciences, materials, and food industries. Source: Wikipedia
Results Q3 2026 vs Q2 2026 · previous quarter · published 3 Nov 2026 and 4 Aug 2026
Management sounded very upbeat, though noticeably less so answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
—
Figures not yet filed
Outlook given
2 · How management spoke
Very upbeat
More upbeat than 92% of company calls
Answers to analysts: typical, but clearly less so than the script.
Similar to last call.
3 · What stood out
Guidance
For the fourth quarter of 2026, Waters expects organic constant currency revenue growth to be in the range of 7% to 9%.
Valuation
Is Waters Corporation undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 2.1% growth a year (3-year revenue growth), the model's fair value is $28.83 a share — the stock trades 1533% above it. Today's price assumes 29.0% growth a year.
Current price
$470.90
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+29.0% for 10 yrs
Fair value / share
$28.83
Buy below
$21.62
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Management expects
Revenue +8% · from the Q3 2026 report: “For the fourth quarter of 2026, we expect organic constant currency revenue growth to be in the range of 7% to 9%.”
A guidance figure for revenue, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Key theme
Growth was strong in every region led by over 20% growth in China, mid-teens in India, high single digits in the US and mid single digits…
Source quote
“growth was strong in every region led by over 20% growth in China, mid-teens in India, high single digits in the US and mid single digits... Pharma grew double digits with broad-based strength across ethical pharma, genetics, CROs, CDMOs, and biotech, all before reshoring has begun to contribute. Non-pharma grew mid single digits with broad demand across industrial, food and environmental testing.”
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Figure
Adjusted EPS grew 21% to $4.10, driven by strong top-line momentum, operational excellence, and the cost actions Waters announced last quarter...
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 94% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“Turning to legacy waters, a strategy across commercial execution, new product innovation, and deliberate expansion into faster growing adjacencies continues to play out successfully, delivering the high single digit growth...”
“Flow research grew 1%, led by RUO reagents, which grew high single digits on strong execution, pricing, and improving customer activity trends.”
“In flow reagents, reported growth accelerated 400 basis points to 8% as research reagents grew high single digits, up from low single digits last quarter on stronger commercial execution, improving...”
Full figures
Q3 2026 figures are not available yet: the company files its quarterly report (10-Q) a few weeks after the call. This page compares what management said; the figures are added when the report is filed.
Topics
Most discussed now
- The advanced diagnostics division grew 2% on a reported basis.
- Waters does not intend to update its guidance, predictions, or projections, except as part of a regularly scheduled earnings...
- In its acquired businesses, Waters is well ahead of its expected pace of transformation and integration with underlying growth building...
- Adjusted gross margin was 55.8%, and adjusted operating margin was 30.1%, driven by strong top-line momentum, operational excellence, and…
- Diagnostics Solutions delivered $500 million of reported revenue flat year over year.
Faded since Q2 2026
- Fading Waters will provide guidance regarding possible future results and commentary on potential market and business conditions that may impact…
- Fading Reconciliations to the most directly comparable GAAP measures are attached to Waters' earnings release and in the appendix of the...
- Fading Waters sustained industry-leading results at its legacy businesses, fueled by strong commercial performance and pioneering innovation in…
- Fading Waters delivered an excellent second quarter, executing ahead of guidance across all 4 divisions as a powerful new era of...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Director or officer change; Other events · SEC 8-K
Robert L. Carpio III resigned as Senior Vice President of the Waters Analytical Sciences Division on August 20, 2026, and Tina Wu assumed the role.
- Results of operations · SEC 8-K
Waters Corporation reported total revenue of $1.645 billion for the second quarter of 2026, with organic revenue of $828 million, up 7% from $771 million in the second quarter of 2025.
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
Waters Corporation reported first-quarter 2026 revenue of $1.267 billion, with organic revenue of $747 million up 13% from $662 million in the first quarter of 2025.
- Material agreement; New financial obligation; Other events · SEC 8-K
The company entered into an underwriting agreement on March 17, 2026, for the sale of senior notes with interest rates of 4.321%, 4.398%, and 4.656%.
- Other events · SEC 8-K
- Material agreement; Acquisition or disposal; New financial obligation; Director or officer change; Regulation FD disclosure · SEC 8-K
Waters completed the acquisition of BD's Biosciences & Diagnostic Solutions businesses and appointed Claire M. Fraser to the Board, increasing its size from 10 to 11 members.
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-11.
Cash & runway
Cash & equivalents
$539.0M
2026-07-04
Short-term investments
$934.0K
Long-term investments
$3.0M
total liquidity $542.9M
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: +164907.1% YoY, +19.6% QoQ.
| Quarter | Shares |
|---|---|
| Q2 2025 | 59.5M |
| Q3 2025 | 59.5M |
| Q3 2025 | 59.5M |
| Q4 2025 | 59.5M |
| Q2 2026 | 82.14B |
| Q3 2026 | 98.20B |
Shares outstanding: 98.2M (2026-08-07)
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. 43 filings parsed.
Sold by insiders
3.6K shares
$1.4M · 1 transactions
Bought by insiders
1.5K shares
$451.1K · 2 transactions
Net direction
net selling
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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over the next 3 to 5 years
instrument outfitting to drive a revenue tailwind for our Analytical Sciences division
Source quote
“Weighing the focus, modality and analytical intensity of each site, we expect instrument outfitting to drive a revenue tailwind for our Analytical Sciences division over the next 3 to 5 years.”
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fourth quarter
localized manufacturing program for flow instruments expected to begin contributing to growth
Source quote
“Meanwhile, our localized manufacturing program for flow instruments is well underway and expected to begin contributing to growth in the fourth quarter.”
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Septem
launch of the FACSDiscover A7 Cell Analyzer
Source quote
“Across our geographies, we also have an attractive share recapture and instrument replacement opportunity in flow cytometry with the FACSDiscover A7 Cell Analyzer, which we unveiled at CYTO and is set to launch on Septem”
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2026
completion of planned cost actions
Source quote
“We have completed our planned cost actions for 2026 as our teams flawlessly implemented our restructuring plan with speed and discipline.”
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2026
cumulative cost savings
Source quote
“Together, these actions reflect $75 million in cumulative cost savings expected in 2026 supporting solid margin progression in the second half of the year.”