Q1 Results Show Net Loss and Negative Operating Cash Flow Post-$13B Acquisition
WAT sits 28% above its 52-week low of $275.05.
Summary
Waters Corp reported a net loss and negative operating cash flow in Q1 2026, driven by significant acquisition-related costs and increased debt following its $13 billion BDS acquisition.
Key Events · Earnings and Guidance · WAT
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Net Loss Reported
The company reported a net loss of $72 million, or $(0.87) diluted EPS, for Q1 2026, a significant decline from a net income of $121 million, or $2.03 diluted EPS, in Q1 2025.
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Revenue Growth Driven by Acquisition
Total revenues increased 91% to $1.27 billion in Q1 2026, primarily due to $520 million in revenue contributed by the newly acquired BDS Business since the February 9, 2026 closing date.
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Operating Income Turns Negative
Operating income shifted to a loss of $47 million in Q1 2026, down from a $152 million operating income in Q1 2025, largely due to acquisition-related amortization, fair value step-ups, and integration costs.
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Negative Operating Cash Flow
Net cash used in operating activities was $3 million in Q1 2026, compared to $260 million provided by operating activities in Q1 2025, impacted by acquisition transaction costs and a net receivable from BD.
Analysis · WAT · Industrial Applications And Services
Waters Corp's first quarter results reflect the significant impact of the $13 billion Biosciences & Diagnostic Solutions (BDS) acquisition, which closed on February 9, 2026. While total revenues nearly doubled to $1.27 billion, the company reported a net loss of $72 million and negative operating cash flow of $3 million. This shift from profitability is primarily due to substantial acquisition-related expenses, including $140 million in purchased intangibles amortization, $99 million in inventory and fixed asset fair value step-ups, and $83 million in transaction and integration costs. Additionally, interest expense increased significantly due to the $3.5 billion in new Senior Notes issued to finance the acquisition. The filing provides the first detailed financial picture of the combined entity, highlighting the immediate, albeit expected, dilutive and cost-intensive phase of integrating the large acquisition.
At the time of this filing, WAT was trading at $352.21 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $34.6B. The 52-week trading range was $275.05 to $414.15. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.