Shares of Waters Corp (NYSE:WAT) advanced sharply on Tuesday, climbing 11.1% to $335.39 after the lab equipment manufacturer released first-quarter results that topped consensus and prompted an upward revision to its full-year outlook.
For the quarter, Waters reported revenue of $1.27 billion, ahead of the $1.20 billion consensus compiled by LSEG. Company commentary attributed the top-line gain to robust organic performance and to contributions from the business it acquired from Becton Dickinson (NYSE:BDX).
On a per-share basis, adjusted earnings were $2.70 for the quarter, a 20% increase from the prior year and above the $2.34 per-share estimate from analysts. The stronger profit performance and the revenue beat combined to drive the sizable intraday move in Waters stock.
Following the quarterly results, management raised its 2026 outlook for organic constant-currency revenue growth to a range of 6.5% to 8.0%. The company also lifted its full-year adjusted profit forecast to $14.40 to $14.60 per share, up from the prior range of $14.30 to $14.50. Analysts had been modeling adjusted EPS of $14.38 for the year.
Market commentary highlighted the report as a confirmation point for Waters' recent strategic moves. Jefferies analyst Tycho Peterson said, "We view Q1 results as a solid proof point and likely major clearing event for those still skeptical on the deal." That remark emphasized the role the acquisition-related business is already playing in the company’s results.
Despite the rally on Tuesday, Waters shares remain roughly 11% below where they started the year. The stock’s year-to-date decline indicates that, even after a strong quarter and a raised outlook, investor sentiment toward the company has not fully reversed.
What the results make clear is that Waters reported a quarter of both top-line and adjusted-profit outperformance, and that management has moved guidance higher on the back of that performance and acquisition contributions. The company balanced a notable earnings beat with an upgraded revenue-growth target and a modest increase to full-year profit expectations.