v3.26.1
Business Segment Information
 6 Months Ended
Jul. 04, 2026
Segment Reporting [Abstract]  
Business Segment Information
13 Business Segment Information
The accounting standards for segment reporting establish standards for reporting information about operating segments in annual financial statements and require selected information for those segments to be presented in interim financial reports of public business enterprises. They also establish standards for related disclosures about products and services, geographic areas and major customers. The Company’s
Chief Executive Officer
is the chief operating decision maker (“CODM”). As a result of the BDS Business Acquisition, the Company reorganized its operating segment structure into four operating segments: Analytical Sciences; Materials Sciences; Biosciences and Advanced Diagnostics, which are evaluated by the CODM. For financial reporting purposes, the Analytical Sciences (formerly the Waters Division, excluding the Waters Clinical business) and Materials Sciences (formerly the TA Division) operating segments have been aggregated into a single reportable segment. Biosciences and Advanced Diagnostics each represent separate reportable segments, resulting in three reportable segments. In connection with this change, prior period information has been recast to conform to the current presentation, including the reclassification of the Waters Clinical business into the Advanced Diagnostics segment.
The Analytical Sciences operating segment is primarily in the business of designing, manufacturing, selling and servicing LC and MS instruments, columns and other precision chemistry consumables that can be integrated and used along with other analytical instruments. The Materials Sciences operating segment is primarily in the business of designing, manufacturing, selling and servicing thermal analysis, rheometry and calorimetry instruments. These two operating segments have similar economic characteristics; product processes; products and services; types and classes of customers; methods of distribution; and regulatory environments. Because of these similarities, the two segments have been aggregated into one reporting segment for financial statement purposes.
The Biosciences business offers a comprehensive portfolio of instruments, software and informatics, reagents, and single cell multiomics solutions, supporting the advanced analysis of cell populations for use in fields such as immunology, oncology, and infectious disease research. Its products are used by a broad range of customers, including academic and government institutions, pharmaceutical and biotechnology companies, and clinical laboratories. In addition to supporting basic research, the business provides essential tools that facilitate drug discovery and development, contributing to advancements in precision medicine, as well as tools for clinical diagnostics. Biosciences operates through a common global commercial infrastructure that includes a specialized sales force, technical application specialists and channel partners dedicated to serving the life sciences market. The Biosciences business represents a reporting segment for financial statement purposes.
The Advanced Diagnostics business provides a broad range of diagnostic instrumentation, assays, consumables, automation, and informatics that support the detection, identification and drug susceptibility testing of infectious disease organisms. Key areas of focus are sepsis, tuberculosis, sexually transmitted infections, healthcare associated infections, women’s health conditions, and cervical cancer screening. The Advanced Diagnostics portfolio employs several technologies and innovations, centered across three key areas, microbiology solutions molecular diagnostics platforms, and diagnostic testing performed near the patient to deliver rapid results that can inform immediate care decisions in decentralized healthcare settings. These technologies serve a global customer base of hospitals, clinical laboratories, public health agencies and integrated delivery networks. The Advanced Diagnostics business plays a central role in improving clinical workflows, enhancing diagnostic accuracy, and supporting timely treatment decisions. The Advanced Diagnostics business represents a reporting segment for financial statement purposes.
 
Revenues for the Company’s products
and
services are as
follows
for the three and six months ended July 4, 2026 and June 28, 2025 (in millions):
 
    
Three Months Ended
     
Six Months Ended
  
    
July 4, 2026
     
June 28, 2025
     
July 4, 2026
     
June 28, 2025
  
Revenues:
            
Instrument systems
    $ 455      $ 308      $ 831      $ 571  
Consumables
      765        165        1,308        303  
Service
      425        298        773        559  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total revenues
    $ 1,645      $ 771      $ 2,912      $ 1,433  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
Revenues are attributable to geographic areas based on the region
of
destination. Geographic revenues information is presented below for the three and six months ended July 4, 2026 and June 28, 2025 (in millions): 
 
    
Three Months Ended
  
    
July 4, 2026
  
    
Analytical &
Materials Sciences
     
Biosciences
     
Advanced
Diagnostics
     
Total
Revenues
  
Revenues:
            
Asia:
            
China
    $ 118      $ 48      $ 40      $ 206  
Asia Other
      156        33        55        244  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total Asia
      274        81        95        450  
Americas:
            
United States
      226        149        195        570  
Americas Other
      47        26        47        120  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total Americas
      273        175        242        690  
Europe
      209        112        184        505  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total net revenues
    $ 756      $ 368      $ 521      $ 1,645  
  
 
 
     
 
 
     
 
 
     
 
 
  
    
Three Months Ended
  
    
June 28, 2025
  
    
Analytical &
Materials Sciences
     
Biosciences
     
Advanced
Diagnostics
     
Total
Revenues
  
Revenues:
            
Asia:
            
China
    $ 107      $ —       $ 10      $ 117  
Asia Other
      145        —         4        149  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total Asia
      252        —         14        266  
Americas:
            
United States
      210        —         19        229  
Americas Other
      45        —         6        51  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total Americas
      255        —         25        280  
Europe
      202        —         23        225  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total net revenues
    $ 709      $ —       $ 62      $ 771  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
    
Six Months Ended
  
    
July 4, 2026
  
    
Analytical &
Materials Sciences
     
Biosciences
     
Advanced
Diagnostics
     
Total
Revenues
  
Revenues:
            
Asia:
            
China
    $ 218      $ 75      $ 66      $ 359  
Asia Other
      289        57        95        441  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total Asia
      507        132        161        800  
Americas:
            
United States
      430        239        316        985  
Americas Other
      89        44        77        210  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total Americas
      519        283        393        1,195  
Europe
      416        185        316        917  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total net revenues
    $ 1,442      $ 600      $ 870      $ 2,912  
  
 
 
     
 
 
     
 
 
     
 
 
  
    
Six Months Ended
  
    
June 28, 2025
  
    
Analytical &
Materials Sciences
     
Biosciences
     
Advanced
Diagnostics
     
Total
Revenues
  
Revenues:
            
Asia:
            
China
    $ 188      $ —       $ 20      $ 208  
Asia Other
      270        —         9        279  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total Asia
      458        —         29        487  
Americas:
            
United States
      410        —         35        445  
Americas Other
      82        —         9        91  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total Americas
      492        —         44        536  
Europe
      368        —         42        410  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total net revenues
    $ 1,318      $ —       $ 115      $ 1,433  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
Revenues for the Company recognized at a point in time versus over time are as
follows
for the three and six months ended July 4, 2026 and June 28, 2025 (in millions): 
 
    
Three Months Ended
     
Six Months Ended
  
    
July 4, 2026
     
June 28, 2025
     
July 4, 2026
     
June 28, 2025
  
Net revenues recognized at a point in time:
            
Instrument systems
    $ 455      $ 308      $ 831      $ 571  
Consumables
      765        165        1,308        303  
Service revenues recognized at a point in time (time & materials)
      120        100        221        181  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total net revenues recognized at a point in time
      1,340        573        2,360        1,055  
Net revenues recognized over time:
            
Service and software maintenance revenues recognized over time (contracts)
      305        198        552        378  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total net revenues
    $ 1,645      $ 771      $ 2,912      $ 1,433  
  
 
 
     
 
 
     
 
 
     
 
 
  
The Company’s segment performance measure is operating income excluding certain corporate expenses and other adjustments that are not considered part of ordinary operations, which is used by the Company’s CODM when assessing performance and allocating capital and resources to its business. These amounts are included in the reconciliation of segment operating income below. Prior period segment expense amounts have been recast to conform to the current year presentation. The CODM does not receive any asset information by business segment and, as such, Waters does not report asset information by business segment.
Significant segment expenses are presented in the Company’s consolidated statements of operations. Additional disaggregated significant segment expenses, that are not separately presented on the Company’s consolidated statements of operations, are presented below. Certain significant segment expenses were recast as a result of the Company’s segment reorganization.
 
The following table includes the significant segment expenses that are regularly provided to the CODM and a reconciliation of segment operating income for the three and six months ended July 4, 2026 and June 28, 2025 (in millions):
 
 
  
Three Months Ended
 
 
  
July 4, 2026
 
 
  
Analytical &
Materials
Sciences
 
 
Biosciences
 
 
Advanced
Diagnostics
 
 
Total
 
Total revenues, net
    $ 756     $ 368     $ 521     $ 1,645  
Less:
         
Labor costs within selling and administrative and research and development expenses
      (147 )      (62 )      (84 )      (293 ) 
Material purchases
      (123 )     (54 )     (59 )     (236 )
Labor costs within product and service cost of revenues
      (71 )     (46 )     (85 )     (202 )
Other segment expenses
      (149 )     (80 )     (174 )     (403 )
Corporate and other expenses:
         
Corporate expenses
            (173 )
Purchased intangibles amortization and purchase accounting fair value
step-up
expenses
            (399 )
Stock-based compensation
            (25 )
  
 
 
    
 
 
    
 
 
    
 
 
  
Total operating income
    $ 266     $ 126     $ 119     $ (86 )
  
 
 
    
 
 
    
 
 
    
 
 
  
Operating income %
      35.2 %      34.2 %      22.8 %      (5.2 %) 
 
 
 
  
Three Months Ended

June 28, 2025
 
 
  
Analytical &
Materials
Sciences
 
 
Biosciences
 
  
Advanced
Diagnostics
 
 
Total
 
Total revenues, net
    $ 709     $ —       $ 62     $ 771  
Less:
          
Labor costs within selling and administrative and research and development expenses
      (111 )      —         (8 )     (119 ) 
Material purchases
      (98 )     —         (17 )     (115 )
Labor costs within product and service cost of revenues
      (75 )     —         (2 )     (77 )
Other segment expenses
      (146 )     —         (13 )     (159 )
Corporate and other expenses:
          
Corporate expenses
             (88 )
Purchased intangibles amortization and purchase accounting fair value
step-up
expenses
             (12 )
Stock-based compensation
             (13 )
  
 
 
    
 
 
     
 
 
    
 
 
  
Total operating income
    $ 279     $ —       $ 22     $ 188  
  
 
 
    
 
 
     
 
 
    
 
 
  
Operating Income %
      39.4 %      —         35.2 %      24.4 % 
 
  
Six Months Ended

July 4, 2026
 
 
  
Analytical &
Materials
Sciences
 
 
Biosciences
 
 
Advanced
Diagnostics
 
 
Total
 
Total revenues, net
    $ 1,442     $ 600     $ 870     $ 2,912  
Less:
         
Labor costs within selling and administrative and research and development expenses
      (306 )     (96 )     (134 )     (536 )
Material purchases
     (269 )      (90 )      (111 )      (470 )
Labor costs within product and service cost of revenues
      (172 )     (71 )     (130 )     (373 )
Other segment expenses
      (193 )     (134 )     (306 )     (633 )
Corporate and other expenses:
         
Corporate expenses
            (339 )
Purchased intangibles amortization and purchase accounting fair value
step-up
expenses
            (650 )
Stock-based compensation
            (45 )
  
 
 
    
 
 
    
 
 
    
 
 
  
Total operating income
    $ 502     $ 209     $ 189     $ (134 )
  
 
 
    
 
 
    
 
 
    
 
 
  
Operating income %
      34.8 %      34.8 %      21.7 %      (4.6 %) 
 
 
 
  
Six Months Ended

June 28, 2025
 
 
  
Analytical &
Materials
Sciences
 
 
Biosciences
 
  
Advanced
Diagnostics
 
 
Total
 
Total revenues, net
    $ 1,318     $ —       $ 115     $ 1,433  
Less:
          
Labor costs within selling and administrative and research and development expenses
      (187 )     —         (15 )     (202 )
Material purchases
     (186 )     —         (32 )     (218 )
Labor costs within product and service cost of revenues
      (159 )     —         (3 )     (162 )
Other segment expenses
      (290 )     —         (25 )     (315 )
Corporate and other expenses:
          
Corporate expenses
             (146 )
Purchased intangibles amortization and purchase accounting fair value
step-up
expenses
             (24 )
Stock-based compensation
             (26 )
  
 
 
    
 
 
     
 
 
    
 
 
  
Total operating income
    $ 496     $ —       $ 40     $ 340  
  
 
 
    
 
 
     
 
 
    
 
 
  
Operating Income %
  
 
37.6
% 
 
 
—
 
 
  
 
34.6
% 
 
 
23.7
% 
The other segment expenses include ERP implementation costs, transaction costs, depreciation and amortization expenses, facilities and information technology costs, travel, freight, professional fees and all other costs.