Waters Corporation (WAT)
NYSEHealth CareMedical - Diagnostics & ResearchSnapshot 2026-09-04
$409.38-1.01%
Close 2026-09-04 · 1-day change
NYSEHealth CareMedical - Diagnostics & ResearchSnapshot 2026-09-04
Intact: The reason to own it still holds.
Waters Corporation grows revenue over 50% year on year, driven by acquisitions. The company raised full-year 2026 revenue guidance to about $6.42 billion. Adjusted EPS guidance is strong at about $14.5 per share. The acquisition of Becton, Dickinson assets adds $520 million revenue in Q1, boosting growth.
Growth may slow if integration of acquisitions falters. Profit margins could weaken if costs rise. The stock trades expensive with a PE of 27.6, risking valuation pressure if growth disappoints.
The price is about 13% above our fair value near $334 and 16% below the Street median target of $400. Analysts expect 53% revenue growth, which is reflected in the valuation. Our view aligns with this growth but is more conservative than the Street.
Breaks if: Adjusted EPS falls below $13.5 per share
Breaks if: BD asset revenue falls below $480 million in any quarter
Full-year revenue falls below $6.0 billion
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
WAT represents a durable compounder in the healthcare sector. The current thesis state is intact, supported by strong recent financial performance and consistent management priorities.
The market appears to have priced WAT at a premium compared to peers, indicating expectations for continued strong performance. The valuation is considered expensive relative to its industry, with a slight expectations gap.
Management is on track to increase revenue and EPS guidance for 2026, reflecting strong operational execution. Recent financial performance has been robust, although there is a low probability of missing estimates, which could introduce some near-term risk.
The thesis hinges on management's ability to maintain or raise guidance in upcoming calls and the overall health of the healthcare sector. Key forward scenarios include the impact of broader economic conditions and performance from sector bellwethers.
The most important moves since the prior daily snapshot.
Signal changed from 'mild_favorable' to 'mixed'.
Yes, our read has strengthened. The latest earnings beat supports a positive outlook. Additionally, the company raised its full-year 2026 revenue guidance, reinforcing growth expectations. There are no new threats to the thesis at this time.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Overall, WAT's fundamentals are strong, but the valuation is high. Not investment advice.