Waters (WAT) makes laboratory analytical instruments used across pharmaceutical, biotech and industrial labs. Listed on the NYSE with a market cap near $41.4 billion, the company sits in the Life Science Tools & CDMO theme where instrument and service providers compete for recurring lab spend and capital equipment budgets.
Revenue growth was modest and variable across 2024–2025, with quarter-to-quarter gains mostly in the low single digits, but the trend flipped sharply in 2026. GAAP revenue jumped to $1.267 billion in CY2026Q1, up about 91% year-over-year, then to $1.645 billion in CY2026Q2, up about 113% year-over-year; the profile on trailing quarters shows revenue accelerating. GAAP diluted EPS, however, weakened into negative territory in CY2026Q1 (-$0.87) and CY2026Q2 (-$1.39), and EPS momentum is not accelerating.
The revenue inflection lines up with market-level leadership signals. Price broke above a 168-session Stage 1 base on 2026-08-10 with demand-volume confirmation (demand-to-prior-30-day ratio 2.82) and reclaimed the 200-day moving average on 2026-05-27. Technical screening assigns a leadership score of 75 and flags excess relative strength versus the S&P 500, while institutional reports show broad ownership (1.02% of shares held across 1,618 reporting institutions). Together those factors place Waters as a timely candidate within the Life Science Tools & CDMO group, conditional on earnings and revenue sustainability.
Why now
Two consecutive quarters of very large year-over-year revenue gains, together with a verified Stage 1→2 breakout and strong demand-volume confirmation, create a clear catalyst for follow-through; the stock is trading near the verified pivot after reclaiming its 200-day moving average, so short-term technical and fundamental momentum are aligning.
The setup
Last close was $421.26 (as of 2026-08-27), above the pivot at $408.67 and inside the actionable breakout range of $400.50–$429.10, with the 9- and 21-day EMAs about 2.1% and 4.1% below price. The chart shows 6 of 7 trend checks passed, RSI 64.9, price at a 52-week high (pctFrom52wHigh = 0), and 13 sessions since the fresh breakout, following a 168-session base that produced clear demand-volume confirmation.
Revenue trajectory
Full-year revenue with year-over-year growth. Solid bars are calendar-year actuals from SEC EDGAR filings (XBRL); dashed bars are analyst consensus via Yahoo Finance (23 analysts), which is published two fiscal years out.Earnings trajectory
Solid bars are quarterly GAAP diluted EPS from SEC EDGAR filings. Dashed bars are analyst consensus, which is typically adjusted (non-GAAP). The two are measured differently, so a step between the last actual and the first estimate usually reflects that change in basis rather than a change in the business.Analyst full-year EPS consensus (typically adjusted): FY'26E $14.58 (+11%) · FY'27E $16.55 (+14%) — 23 analysts
Risks
GAAP diluted EPS turned negative in CY2026Q1 and CY2026Q2, which could signal one-time charges or ongoing margin pressure and leaves earnings recovery uncertain; the recent revenue jump may be lumpy or driven by non-recurring items, so growth could reverse if the company cannot sustain end-market demand; and the breakout is fresh—failure to hold the pivot or a broad slowdown in lab capital spending would create downside pressure on the technical setup.
Framework fit
CANSLIM
5/7- CCurrent quarterly GAAP EPS growth ≥ 25%-156%✕
- AAnnual GAAP EPS growth ≥ 25%+0%✕
- NNew highs — within 15% of 52-week high0%✓
- SSupply/demand — up-day volume leads1.11x✓
- LLeader — outperforming the S&P 500+19% 6m✓
- IInstitutional sponsorshipmodel score 8/10✓
- MMarket in a confirmed uptrendConfirmed uptrend✓
Minervini Trend Template
6/7Stage 2 confirmation checklist: price versus rising long-term moving averages and the 52-week range.
Weinstein Stage
Broke above a 168-session base on 2026-08-10. Breakout volume was 0.89x its prior 30-day average. Strongest qualifying base demand was 2.82x on 2026-05-29.