{
  "url": "https://struct.news/briefs/waters-doubled-revenue-but-non-cash-bds-marks-turned-profit-into-an-86m-loss",
  "title": "Waters doubled revenue, but non-cash BDS marks turned profit into an $86M loss",
  "summary": "A $253M non-cash acquisition-accounting charge helped push six-month operating income from $188M to negative $86M, even as sales reached $1.6B.",
  "published_at": "2026-08-11T20:24:13.970991+00:00",
  "publisher": "Struct",
  "usage": "Figures are as reported by the company. Quote with attribution to the source filing.",
  "company": {
    "name": "Waters Corporation",
    "ticker": "WAT",
    "cik": "1193125",
    "sector": "Healthcare",
    "industry": "Diagnostics & Research"
  },
  "source_filing": {
    "form": "10-Q",
    "filed": "2026-08-11",
    "accession": "0001193125-26-344691",
    "url": "https://www.sec.gov/Archives/edgar/data/1000697/000119312526344691/d170082d10q.htm"
  },
  "comparison_filing": {
    "form": "10-Q",
    "filed": "2025-08-04",
    "url": "https://www.sec.gov/Archives/edgar/data/1000697/000119312525172087/d885407d10q.htm"
  },
  "reported_figures": [
    {
      "group": "Waters at the latest close",
      "label": "P/E",
      "value": 38.28035479257861,
      "display": "38.3x",
      "unit": "multiple",
      "period": "2025-12-31",
      "detail": null,
      "source": {
        "kind": "jodie_calculation",
        "label": "Calculated from filed company results",
        "form": "10-Q",
        "accession": "0001193125-26-344691",
        "filing_date": "2026-08-11"
      }
    },
    {
      "group": "Waters at the latest close",
      "label": "EV / sales",
      "value": 7.885442301264404,
      "display": "7.9x",
      "unit": "multiple",
      "period": "2025-12-31",
      "detail": null,
      "source": {
        "kind": "jodie_calculation",
        "label": "Calculated from filed company results",
        "form": "10-Q",
        "accession": "0001193125-26-344691",
        "filing_date": "2026-08-11"
      }
    },
    {
      "group": "Waters at the latest close",
      "label": "Earnings yield",
      "value": 2.6123059867613074,
      "display": "+2.6%",
      "unit": "percent",
      "period": "2025-12-31",
      "detail": null,
      "source": {
        "kind": "jodie_calculation",
        "label": "Calculated from filed company results",
        "form": "10-Q",
        "accession": "0001193125-26-344691",
        "filing_date": "2026-08-11"
      }
    },
    {
      "group": "Waters at the latest close",
      "label": "Cash-flow yield",
      "value": 2.652655471805699,
      "display": "+2.7%",
      "unit": "percent",
      "period": "2025-12-31",
      "detail": null,
      "source": {
        "kind": "jodie_calculation",
        "label": "Calculated from filed company results",
        "form": "10-Q",
        "accession": "0001193125-26-344691",
        "filing_date": "2026-08-11"
      }
    }
  ],
  "watch_next": [
    {
      "type": "m_and_a",
      "statement": "BDS purchase accounting is compressing reported profit through fair-value step-up expense and purchased-intangible amortization.",
      "importance": "medium",
      "evidence": "These decreases were primarily due to the impact of the higher sales volume from the legacy business and the BDS Business revenue since the Closing Date, being offset by $253 million of acquisition-related inventory and fixed asset fair value step-up expense in the first half of 2026 and $232 million and $372 million of purchased intangibles amortization related to the BDS Business in the second quarter and first half of 2026, respectively.",
      "source_date": "2026-08-11"
    },
    {
      "type": "working_capital",
      "statement": "Receivables rose 172.2% and inventory rose 154.6%, both faster than revenue, with Waters linking receivables to sales volume and settlement timing.",
      "importance": "medium",
      "evidence": "Inventory built faster than revenue: Inventory growth exceeded revenue growth and inventory intensity increased.",
      "source_date": "2026-08-11"
    },
    {
      "type": "product_pipeline",
      "statement": "Additional new-product development costs, alongside foreign exchange, sales mix, and merit costs, reduced segment operating-margin performance.",
      "importance": "medium",
      "evidence": "The Analytical & Materials Sciences segment operating income as a percentage of revenues decreased in the second quarter and first half of 2026 as compared to the second quarter and first half of 2025 as a result of the higher sales volumes being offset by the impact of foreign currency translation, sales mix, merit compensation costs and additional new product development costs.",
      "source_date": "2026-08-11"
    },
    {
      "type": "interest_rates",
      "statement": "Waters has disclosed lower net interest expense from financing agreements, making credit conditions relevant to reported earnings.",
      "importance": "medium",
      "evidence": "As a result of entering into these agreements, the Company lowered net interest expense by approximately $8 million and $5 million in first half of 2026 and 2025, respectively.",
      "source_date": "2026-08-11"
    }
  ],
  "related_tickers": [
    "WAT"
  ],
  "disclaimer": "Descriptive reporting of filed results. Not investment advice, and contains no forecast or recommendation."
}