Waters (WAZ) AI Stock Analysis

Company Guidance

Waters raised every component of its 2026 outlook: organic constant‑currency revenue is now guided to +7% to +9% (FX now a ~60 bps headwind, implying organic reported revenue of $3.370B–$3.431B), Biosciences & Diagnostic Solutions are expected to generate ~$3.045B of reported revenue (a $10M raise, net of ~$15M FX headwind), and total company reported revenue is targeted at ~$6.415B–$6.476B based on current FX. Full‑year adjusted EBIT margin is expected at 28.2% (Amol noted a $20M overachievement from 2026 cost actions), net interest expense about $190M, tax rate ~15.5%, and adjusted EPS $14.45–$14.65 (up 10%–12% YoY, 12%–14% in CC). For Q3, organic constant‑currency growth is guided to 8%–10% (organic reported $850M–$867M), Biosciences & Diagnostic Solutions revenue ≈ $895M, total reported revenue $1.745B–$1.762B, and adjusted EPS $3.95–$4.05 (≈16%–19% growth). Management said the midpoint implies a 3.6% Q2→Q3 quarter‑over‑quarter step‑up (and a 12.8% Q3→Q4 step‑up), both conservatively below recent seasonality, and that cost actions will contribute ~$25M of adjusted operating income in Q3 and ~$50M in Q4 (≈$75M combined in 2H), with ~$75M cumulative savings expected in 2026 and roughly $200M of expected run‑rate savings.