Q2 Results: Strong Topline, Margins Mixed

Research evidence excerpt

Q2 Results: Strong Topline, Margins Mixed

Update

August 4, 2026 11:18 AM GMT

Morgan Stanley & Co. LLCMWaters Corporation | North America Kallum L Titchmarsh

Equity Analyst

Q2 Results: Strong Topline, Kallum.Titchmarsh@morganstanley.comJakob Dodd +1 212 761-2351

Research Associate

Jakob.Dodd@morganstanley.com +1 212 761-0797

Margins Mixed Jason Lai

Jason.Lai@morganstanley.com +1 212 761-4848

AlphaSignals Earnings Reaction

Waters Corporation (WAT.N, WAT UN)

Unchanged Modest upside Modest revision higher

Life Science Tools & Diagnostics | United States of

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS America

Source: Company data, Morgan Stanley Research Stock Rating Equal-weight

Industry View In-Line

Price target $390.00

Enough to please high expectations? Investor expectations were high for WAT Shr price, close (Aug 3, 2026) $374.74

heading into Q2, on the back of a standout Q1 + strong initial Q2 prints from tools Mkt cap, curr (mm) $36,828

52-Week Range $414.12-275.23

peers. For organic growth, we'd heard a buyside bar creeping into the low 8's, so the

+9% delivered should be fine in our view, driven by strength in ASD (incl. double-

digits in chemistry consumables). Consistent with peers, WAT called out solid

demand in pharma during Q2, and interestingly double-digit growth in A/G (similar

to what was delivered in Q1 and notably stronger than peers). For the newly

acquired BDX assets, reported growth of just over +4% came in ahead of investor

expectations, though it's challenging to interpret without disclosure around

currency impact. At first glance, margins for the quarter look a little light relative to

the topline performance, seemingly stemming from FX headwinds, and we think