WAT Management Meetings: Notes From the Road

Research evidence excerpt

WAT Management Meetings: Notes From the Road

DIAGNOSTICS & LIFE SCIENCES TOOLS

WATERS CORPORATION May 11, 2026

Guidance & 2026 Outlook

Context: WAT beat consensus revenue by ~$50M in 1Q26 and adjusted EPS by ~$0.40. They raised constant currency revenue•

guidance to 6.5-8.0% from 5.5-7.0% and BD revenue contribution by $35M. Synergies include $15M in organic revenue ($5M already

achieved) and $35M for BD (instrument replacement, service plan attach, and e-commerce).

The reasoning behind this current guide is to limit any doubts for the 2H outlook. Management noted WAT wanted• Guide Philosophy:

to avoid any questions around an achievable outlook with 2H ramp. WAT noted there is nothing in the funnel to indicate a slow-down

(the opposite given today is better than 3 months ago), no concrete reasoning to guide WAT organic growth down meaningfully, and the

only other slow-down in 2H would be the 4-day sales impact (~1%). WAT believes 2Q26 is reasonable and based on the opportunities

available today, with a bit of room "in the back pocket." BD has a modest ramp, and WAT made an effort to fully derisk any associated

headwinds with the acquired businesses (ex. guiding respiratory contribution based on ~30% of 5-year average levels).

• Upsides to the Guide:

(1) Chemistry is assumed to grow MSD%, which is prudent for 2H and is expected to likely perform better. There may be a slight •

comp headwind in 2Q26 from pull forward in 2025 making chemistry in the MSD% range for the quarter, but nothing else noted

by WAT for 2H.

(2) BD pricing is set at 50 bps for the remainder of the year. WAT believes they can achieve 150 bps in 5-6 quarters, with some •

of that done this year. Tariffs from BD (~$40M) have also not yet been neutralized and management can cover a lot of ground