Waters raises annual profit forecast as biosciences unit drives growth

Becton Dickinson and Co

05/05/2026 12:13

May 5 (Reuters) - Lab equipment maker Waters WAT.N raised its annual profit forecast on Tuesday after beating quarterly estimates, driven by robust demand for drug development tools and the strong performance of its biosciences and diagnostics unit, acquired last year.

Shares of the company were up 7.7% at $325 in premarket trading.

Waters supplies lab equipment and technology across the world, with the majority of its revenue coming from biopharma clients who use its tools for research and drug development.

The company reported first-quarter revenue of $1.27 billion, beating estimates of $1.20 billion, according to data compiled by LSEG. This reflects $520 million in revenue from the biosciences and diagnostic solutions unit it bought from Becton Dickinson BDX.N last year.

The acquisition helped broaden Waters' reach in clinical and diagnostic applications, as the unit manufactures products that help detect infectious diseases and cancer.

The Milford, Massachusetts-based company raised its 2026 adjusted profit per share forecast to a range of $14.40 to $14.60, compared with $14.30 to $14.50 per share previously. Analysts, on average, were expecting a profit of $14.38 per share, as per LSEG-compiled data.

"As we look ahead, we are raising our guidance to reflect the increased momentum we are seeing across our businesses," said CEO Udit Batra, underscoring strength in the biosciences and advanced diagnostics division.

Waters also raised its full-year organic revenue forecast to a range of $3.37 billion to $3.42 billion, up from its previous projection of $3.36 billion to $3.41 billion, with the acquired Becton unit adding about $3.04 billion to its estimated annual revenue.

It reported quarterly profit of $2.70 per share, beating analysts' average estimate of $2.34 per share.

 (Reporting by Puyaan Singh and Sneha S K in Bengaluru; Editing by Diti Pujara)

 ((Puyaan.Singh@thomsonreuters.com;))