Waters Corporation (WAT) stock rose Tuesday after the life sciences and diagnostics company reported better-than-expected third-quarter results, raised its full-year outlook and announced an acquisition.
Strong demand for laboratory instruments and consumables, along with growth in GLP-1 drug testing, fueled the gains.
Waters reported adjusted earnings of $4.10 per share, beating Wall Street's estimate of $4 and its previous forecast of $3.95 to $4.05.
Revenue reached $1.767 billion, topping the analyst estimate of $1.754 billion. Organic revenue grew 9%, or 10% in constant currency.
GLP-1 Demand and China Recovery Drive Growth
CEO Udit Batra credited strong consumables sales, new products and rising customer testing volumes for the quarter's performance.
Liquid chromatography-mass spectrometry (LC-MS) instrument sales grew by double digits in constant currency.
Demand for GLP-1 drugs, PFAS testing and generic pharmaceuticals in India supported growth. Strong instrument replacement trends also boosted sales.
During the earnings call, Batra said artificial intelligence is already driving demand for Waters' laboratory instruments and consumables as drugmakers accelerate research.
AI is helping pharmaceutical companies generate more drug candidates and conduct more experiments, increasing demand for testing equipment and chromatography columns.
Batra said Waters' instruments are used in AI-enabled laboratories at eight of the world's 10 largest pharmaceutical companies, where experimental volumes are rising.
He also said Waters' Biosciences business in China returned to growth for the first time in 10 quarters.
Waters ended the third quarter with $593 million in cash and cash equivalents, up from $588 million at the end of 2025.
Raises 2026 Earnings and Sales Outlook
Waters raised its full-year adjusted earnings forecast to $14.60-$14.70 per share from $14.45-$14.65. Analysts expected $14.58.
The company also increased its revenue forecast to $6.479 billion-$6.497 billion from $6.415 billion-$6.476 billion. Wall Street expected $6.456 billion.
For the fourth quarter, Waters expects adjusted earnings of $4.58-$4.68 per share, compared with the $4.67 consensus.
The company forecasts revenue of $1.801 billion-$1.819 billion, above the analyst estimate of $1.789 billion.
MOBILion Acquisition Expands Proteomics Business
Waters also announced Tuesday that it acquired MOBILion Systems Inc., a developer of advanced molecular separation technology. The company did not disclose financial terms.
The deal strengthens Waters' position in proteomics, the study of proteins.
MOBILion's technology will complement Waters' Xevo MRT mass spectrometry platform, helping researchers analyze complex proteins with greater precision.
WAT Price Action: Waters shares were up 3.86% at $466.89 at the time of publication on Tuesday, according to market data.
