Waters Corp Shares Drop Over 10% After EPS Beat and Weak Q1 Guidance
Waters Corporation shares tumbled 10.5% after reporting Q4 revenue of $932.4 million, up 7% year-over-year, and adjusted EPS of $4.53 that marginally beat estimates. Management forecast fiscal Q1 EPS of $2.25–$2.35 versus $2.52 expected, and fiscal-year sales growth of 5.3%, weighing on the stock.
1. Q4 Financial Results
Waters Corporation reported Q4 sales of $932.36 million, a 7% increase year-over-year, beating the $928.09 million consensus. Adjusted EPS rose to $4.53, exceeding estimates by $0.02, while recurring revenues climbed 10% and instrument system sales grew 3%.
2. Fiscal 2026 Guidance
For fiscal 2026, management guided Q1 adjusted EPS of $2.25–$2.35 versus the $2.52 consensus and forecast sales of $1.198–$1.211 billion. Full-year guidance called for combined sales growth of 5.3% at midpoint and adjusted EPS of $14.30–$14.50, offering limited upside visibility.
3. Market Reaction
Shares fell over 10% in response to the below-consensus Q1 EPS outlook, offsetting the solid quarterly beat. The stock’s decline marked one of the steepest among analytical instrument peers during the session.
4. Strategic Outlook
Leadership cited a multi-year instrument replacement cycle and targeted cost synergies from the BD Bio/Dx acquisition as key growth drivers. Analysts pointed to an expanded total addressable market and recurring revenue tailwinds as potential catalysts for upside.