Waters forecasts first-quarter profit below Wall Street estimates, shares slide

• Waters expects Q1 2026 earnings of $2.25-$2.35 per share, missing analyst estimates of $2.46 per share
• Full-year 2026 profit forecast of $14.30-$14.50 per share exceeded consensus estimate of $14.15 per share, with projected 5.3% combined company sales growth
• The acquired Becton Dickinson unit is expected to add approximately $3 billion to 2026 revenue, but Q4 sales of $766 million fell significantly short of the $1.3 billion estimate, suggesting operational improvement challenges

Waters Corp. Shares Slide on Weak Q1 Forecast Despite Strong Full-Year Outlook

Waters Corporation announced Monday that its first-quarter 2026 profit will fall short of Wall Street expectations, causing shares to decline. The company projects Q1 earnings of $2.25 to $2.35 per share, below the analyst consensus of $2.53.

Despite the near-term weakness, Waters issued an optimistic full-year forecast, projecting adjusted profit of $14.30 to $14.50 per share for 2026, exceeding the $14.20 analyst estimate. The company expects 5.3% combined sales growth at the midpoint, with full-year organic revenue of $3.35 billion to $3.40 billion (versus estimates of $3.36 billion).

Key Acquisition Impact

The improved full-year outlook reflects Waters' acquisition of Becton Dickinson's bioscience and diagnostics business, expected to add approximately $3 billion to 2026 reported revenue. However, concerns emerged about the acquired unit's performance. The business generated $766 million in Q4 sales, significantly below the $1.3 billion analyst estimate. Becton Dickinson also reported an 8.7% revenue decline in its life sciences segment for the December-ended quarter.

Morningstar analyst Julie Utterback noted the acquisition "may be a heavier lift to improve operations in that business than previously expected," given the lighter-than-anticipated revenue.

Company Overview

Waters supplies laboratory equipment and technology globally, with most revenue derived from biopharma customers using its tools for research and drug development. The company reported Q4 adjusted earnings of $4.53 per share, matching analyst expectations.

The market reaction reflects investor concern about near-term execution challenges, particularly regarding integrating and improving the performance of the newly acquired Becton Dickinson business unit.