Waters Corporation Q1 FY2026 earnings call

• Delivered excellent first quarter as combined company, achieved double-digit organic growth in legacy businesses, better than expected revenue for acquired businesses, and adjusted EPS grew 20%. - Launched 180-day plan to reinvigorate growth, including instilling focus and accountability, increasing commercial activity, and implementing pricing discipline. - Took actions to localize manufacturing in China for flow instruments, improve reagent availability, and launched new products like next-generation microflow LC chemistry columns and Bactec FXI. - On cost synergies, on track to deliver $55 million target for 2026, with organizational optimization and procurement savings. On revenue synergies, already ahead of plan with cross-selling and actions in instrument replacement, service plan attachment, and e-commerce.

Analytical Sciences Division: Organic revenue grew 12% in constant currency, with instruments up 8%, chemistry up 13%, and service up 14%. Pharma grew mid-teens, academic and government grew high teens, industrial grew low single digits. Biosciences Division: Delivered $230 million revenue, estimated 7% growth on as-reported basis from acquisition closing date, flow research and flow clinical both grew 7%, reagents grew low double digits. Advanced Diagnostics Division: Diagnostics Solutions delivered $288 million revenue, estimated 8% growth, microbiology grew 10%, advanced diagnostics grew 3% on full quarter pro forma basis. Material Sciences Division: Delivered as-reported revenue of $79 million, up 6% as reported, 2% in constant currency.

Raised full year 2026 organic constant currency revenue guidance to 6.5% - 8%, embedding $15 million revenue synergies from cross-selling. Expected biosciences and diagnostic solutions to generate ~$3.035 billion revenue in 2026, total reported revenue ~$6.405 billion - $6.455 billion. Raised full year adjusted EPS guidance to $14.40 - $14.60 per share, reflecting 10% - 11% growth. Second quarter 2026 organic constant currency revenue guidance 6% - 8%, total reported revenue $1.616 billion - $1.631 billion, adjusted EPS $2.95 - $3.05.

Risks and uncertainties associated with forward-looking statements, including market and business conditions impact. Potential challenges in localizing portfolio in China, managing export restrictions and supply chain issues. Competition responses and impact on pricing and market share.

Q: About revenue synergies and pricing from Tycho Peterson with Jefferies, A: Revenue synergies from instrument replacement, service plan attachment, e-commerce and pricing actions.

Q: On microbiology from Tycho Peterson with Jefferies, A: Confidence in turning around microbiology business with new product launch and commercial execution.

Q: On core business and BD performance from Patrick Donnelly with Citi, A: Execution improvement and transition from 4Q to 1Q performance.

Q: On BD performance delta from Vijay Kumar with Evercore ISI, A: Impact of 180-day plan and de-risking second half guide.

Q: On competition and product areas from Doug Schenkel with Wolf, A: Focus on high volume regulated settings and competitive response.

Q: On core business chemistry growth from Evie Kozlowski with Goldman Sachs, A: Durability of chemistry growth and updated guide.

Q: On localizing manufacturing in China and market drivers from Evie Kozlowski with Goldman Sachs, A: Localization plan and market growth drivers.

Q: On pricing and LC-MS replacement cycle from Puneet Souda with Lyric, A: Pricing opportunities and status of LC-MS replacement cycle.