Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
In Q2 FY2026, Waters Corporation’s revenue more than doubled, driven by exceptional growth in its Advanced Diagnostics segment, while operating expenses surged even faster, turning a prior-year profit into an operating loss. The balance sheet expanded dramatically, with assets and equity both rising over fourfold, following what appears to be a major acquisition that also significantly increased long-term debt. While top-line momentum is strong, profitability remains under pressure from elevated spending, and the sustainability of current growth rates is uncertain.
Revenue
$1.65B
+113.36% YoY
EPS (Diluted)
-$1.39
-156.28% YoY
Operating Income
-$86M
-145.74% YoY
Source: SEC XBRL
Waters (WAT) reported Q2 FY2026 revenue of $1.65B, up 113.4% year over year. Operating margin was -5.2%, against 24.4% a year earlier. WAT's fiscal Q2 FY2026 corresponds to calendar Q3 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.05 | 3.04 | Beat +0.4% |
| Mar 2026 | 2.70 | 2.36 | Beat +14.4% |
| Dec 2025 | 4.53 | 4.55 | Miss -0.5% |
| Sep 2025 | 3.40 | 3.24 | Beat +5.1% |
3 reported segments · SEC XBRL
Segment revenue totals $1.65B, which is the $1.65B of consolidated revenue on the income statement.
Compiled by AI from this SEC filing
The Advanced Diagnostics segment revenue surged 740.3% year-over-year, contributing $521 million and becoming the second-largest segment, indicating strong demand or a recent acquisition in this area.
Source: 10-Q Segment Data (XBRL)
SG&A expenses doubled to $405 million (+104.5%) and R&D expenses more than tripled to $122 million (+149.0%), far exceeding revenue growth and resulting in an operating loss of $86 million.
Source: 10-Q Income Statement (XBRL)
Total assets grew 424.6% to $24.75 billion and stockholders’ equity rose 603.5% to $15.20 billion, while long-term debt increased 308.2% to $4.89 billion, consistent with a major acquisition.
Source: 10-Q Balance Sheet (XBRL)
Year-to-date operating cash flow fell 34.2% to $198 million, reflecting the net loss, while financing cash outflows widened to $337 million likely due to debt management.
Source: 10-Q Cash Flow Statement (XBRL)
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
SG&A and R&D expenses grew at triple-digit rates, far exceeding revenue growth, leading to an operating loss. If these expenses continue to outpace revenue, the company may face sustained losses.
Source: 10-Q Income Statement (XBRL)
The Advanced Diagnostics segment was the primary driver of revenue growth, expanding 740.3%. A slowdown in this segment could significantly impact overall results.
Source: 10-Q Segment Data (XBRL)
Long-term debt more than tripled to $4.89 billion, while stockholders' equity rose sharply, suggesting recent acquisition financing. High leverage increases financial risk, especially if earnings do not recover.
Source: 10-Q Balance Sheet (XBRL)
Operating cash flow declined 34.2% year-to-date, indicating weakening cash generation relative to prior periods. Continued net losses could further pressure liquidity.
Source: 10-Q Cash Flow Statement (XBRL)
The significant jump in assets and debt suggests a major acquisition. Integration challenges, including absorbing operations and realizing synergies, could disrupt the business and impact profitability.
Source: 10-Q Balance Sheet (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.65 $B | 0.77 $B | +113.36% |
Operating Income $M | -86.00 $M | 188.00 $M | -145.74% |
Net Income $M | -136.00 $M | 147.00 $M | -192.52% |
EPS (Basic) $ | -1.39 $ | 2.47 $ | -156.28% |
EPS (Diluted) $ | -1.39 $ | 2.47 $ | -156.28% |
R&D Expense $M | 122.00 $M | 49.00 $M | +148.98% |
SG&A Expense $M | 405.00 $M | 198.00 $M | +104.55% |
Answers draw on this SEC filing and the data on this page
WAT (Waters Corporation) reported a dramatic revenue surge of +91.4% YoY to $1.267B in Q2 2026, driven largely by a major acquisition that also inflated costs, flipping operating income to a -$47M loss and net income to -$72M compared to strong profitability in the prior year period.
Waters Corporation (WAT) delivered 7.0% revenue growth to $3.17B in FY2025, but operating income declined 2.9% due to a sharp 20.3% surge in SG&A expenses, while net income edged up just 0.8% to $642.6M.
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