Waters : First Quarter 2026 Non-GAAP Addendum

Published: 2026-05-05 06:08:11 ET WAT

Published on 05/05/2026 at 06:08 am EDT

April 4, 2026 (b)

March 29, 2025

Growth

REVENUE - OPERATING SEGMENT

Analytical Sciences Division (ASD)

607

534

14%

Biosciences Division (WBD)

232

Advanced Diagnostics Division (ADx)

349

560%

Materials Sciences Division (MSD)

Total Revenue

1,267

662

91%

REVENUE - PRODUCT & SERVICE

Product

919

401

129%

Service

348

261

33%

Total Revenue

1,267

662

91%

REVENUE - GEOGRAPHY

Asia

350

221

58%

Americas

505

256

98%

Europe

412

185

122%

Total Revenue

1,267

662

91%

Reconciliation of Organic Revenue Growth

Total Reported Revenue (GAAP)

1,267

662

91%

Acquired Business Contribution

520

Total Organic Reported Revenue

747

Organic Reported Revenue Growth

13%

Currency Translation Impact

Organic Constant Currency Revenue Growth (a)

11%

Reconciliation of Pro Forma Acquired Company Revenue for Period Owned (c)

Prior Year Full Quarter Revenue

792

Less: Revenue Adjustments for Pre-Owned Period

307

Pro Forma Comparable Revenue

520

485

**Percentage not meaningful

The Company believes that referring to comparable organic constant currency growth rates is a useful way to evaluate the underlying performance of Waters Corporation's net revenue. Organic constant currency growth, a non-GAAP financial measure, measures the change in net revenue between current and prior year periods, excluding the impact of foreign currency exchange rates during the current period and excluding the impact of acquisitions made within twelve months of the acquisition close date. See description of non-GAAP financial measures contained in this release.

Waters Corporation revenue for the three months ended April 4, 2026 includes the results of the BDS Business acquisition from date of acquisition February 9, 2026 through April 4, 2026.

The Company believes that referring to pro forma comparable revenue is a useful way to evaluate the underlying performance of the business. Pro forma comparable revenue reflects acquired company (Biosciences & Diagnostic Solutions) revenue where growth rates are presented on an as reported basis, covering revenue for the owned period portion of the quarter from February 9, 2026, the transaction close date, through the end of the quarter, with growth compared against the pro forma comparable revenue estimate for the prior year equivalent partial quarter period that predates Waters' ownership.

Revenue Expenses(a) Expenses Income Percentage Net Taxes Taxes Income per Share

Three Months Ended April 4, 2026

GAAP

Adjustments:

Purchased intangibles and acquisition step-up amortization (b)

$ 672 $

(99)

546 $

(152)

$ (47)

251

(3.7%) $

19.8%

(42) $

(88) $

251

(16) $

(72) $

210

(0.87)

2.55

Restructuring costs and certain other items (c)

(4)

0.3%

0.04

ERP implementation and transformation costs (d)

(9)

0.7%

0.09

Acquisition related costs (e)

(82)

(1)

6.5%

0.84

Financing costs (g)

0.04

Adjusted Non-GAAP $ 573 $ 299 $ 95 $ 300 23.6% $ (38) $ 263 $ 41 $ 222 $ 2.70

Three Months Ended March 29, 2025

GAAP

$ 277

$ 187 $

$ 151

22.9% $

(10) $

143

$ 22

$ 121

$ 2.03

Adjustments:

Purchased intangibles amortization (b)

(12)

1.8%

0.15

Restructuring costs and certain other items (c)

(1)

0.1%

0.01

ERP implementation and transformation costs (d)

(2)

0.3%

0.03

Retention bonus obligation (f)

(2)

(1)

0.4%

0.03

Selling & administrative expenses include purchased intangibles amortization.

The amortization of purchased intangibles and acquisition-related inventory and fixed asset fair value step-up, which are non-cash expenses, were excluded to be consistent with how management evaluates the performance of its core business against historical operating results and the operating results of competitors over periods of time.

Restructuring costs and certain other items were excluded as the Company believes that the cost to consolidate operations, reduce overhead, and certain other income or expense items are not normal and do not represent future ongoing business expenses

of a specific function or geographic location of the Company.

ERP implementation and transformation costs represent costs related to the Company's initiative to transition from its legacy enterprise resource planning (ERP) system to a new global ERP solution with a cloud-based infrastructure. These costs, which do not represent normal or future ongoing business expenses, are one-time, non-recurring costs related to the establishment of our new global ERP solution that were determined to be non-capitalizable in accordance with accounting standards.

Acquisition related costs include all incremental costs incurred to effect the business combination, such as advisory, legal, accounting, tax, valuation, other professional fees, and integration costs. The Company believes that these costs are not normal

and do not represent future ongoing business expenses.

In connection with the Wyatt acquisition, the Company recognized a two-year retention bonus obligation that is contingent upon the employee's providing future service and continued employment with Waters. The Company believes that these costs are not normal and do not represent future ongoing business expenses.

Financing costs relate to certain financing fees incurred by the Company to secure access to certain debt facilities in connection with the agreement Waters entered into to acquire the Biosciences and Diagnostics Solutions business of Becton, Dickinson

& Company. The Company believes that these costs are not normal and do not represent future ongoing business expenses.

Three Months Ended

April 4, 2026

March 29, 2025

Cash flows from operating activities:

Net (loss) income

$ (72)

$ 121

Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:

Stock-based compensation

Depreciation and amortization

207

Amortization of acquisition-related inventory and fixed asset step-up

Change in operating assets and liabilities and other, net (b)

(257)

Net cash (used in) provided by operating activities

(3)

260

Cash flows from investing activities:

Additions to property, plant, equipment, and software capitalization

(39)

(26)

Cash acquired in business acquisition

144

Investments in unaffiliated companies

(10)

Net cash provided by (used in) investing activities

(26)

Cash flows from financing activities:

Proceeds from debt issuances

3,530

Payments on debt

(3,700)

(170)

Payments of debt issuance costs

(25)

Proceeds from stock plans

Purchases of treasury shares

(12)

(14)

Other cash flow from financing activities, net

(9)

Net cash used in financing activities

(213)

(173)

Effect of exchange rate changes on cash and cash equivalents

(5)

(3)

(Decrease) increase in cash and cash equivalents

(126)

Cash and cash equivalents at beginning of period

588

325

Cash and cash equivalents at end of period

$ 462

$ 383

$ (3) $

260

Additions to property, plant, equipment, and software capitalization (39) (26)

Free Cash Flow - Adjusted Non-GAAP

$ (42)

$ 234

The Company defines free cash flow as net cash flow from operations accounted for under GAAP less capital expenditures and software capitalizations plus or minus any unusual and non recurring items. Free cash flow is not a GAAP measurement and may not be comparable to free cash flow reported by other companies.

Includes a net $140 million receivable due from the BDS acquisition TSA provider relating to the initial net cash settlement for activity since the acquisition date.

Projected Revenue

Reported revenue

$ 6,405

- $ 6,455

$ 1,616

- $ 1,631

Acquired business contribution

$ 3,035

- $ 3,035

$ 802

- $ 802

Organic reported revenue

$ 3,370

- $ 3,420

$ 814

- $ 829

Organic reported revenue growth

6.5%

- 8.0%

5.5%

- 7.5%

Currency translation impact

0.0%

- 0.0%

(0.5%)

- (0.5%)

Organic constant currency revenue growth (a) 6.5% - 8.0% 6.0% - 8.0%

Projected Earnings Per Diluted Share

Adjusted earnings per share

$ 14.40 - $

14.60

$ 2.95 - $

3.05

Organic constant currency growth rates are a non-GAAP financial measure that measures the change in net revenue between current and prior year periods, excluding the impact of foreign currency exchange rates during the current period and excluding the impact of acquisitions made within twelve months of the acquisition close date. These amounts are estimated at the current foreign currency exchange rates and based on the forecasted geographical revenue in local currency, as well as an assessment of market conditions as of the date of this press release, and may differ significantly from actual results.

These forward-looking adjustment estimates do not reflect future gains and charges that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance.

Disclaimer

Waters Corporation published this content on May 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 05, 2026 at 10:07 UTC.