Q1 Results Show Net Loss and Negative Operating Cash Flow Post-$13B Acquisition

summarizeSummary

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.

check_boxKey Events

• 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.

• 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.

• 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.

• 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.

auto_awesomeAnalysis

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.