WAT · 8-K · 20260804PR331413

Operating Margin Drivers

WATERS CORP /DE/ · 2026-08-04 · Importance 88 · Surprise 82 · No source text

GAAP operating income was a loss of $86 million, compared with income of $188 million in the prior-year quarter, producing a negative 5.2% operating margin versus 24.4%. The primary acquisition-related charges were $155 million of inventory and fixed-asset fair-value step-ups and $244 million of purchased-intangible amortization. Restructuring and other costs added $51 million, ERP implementation costs added $9 million, and acquisition-related costs added $37 million. On an adjusted basis, operating income was $411 million, or 25.0%, compared with $225 million, or 29.1%, in the prior-year quarter.

Key facts

• Operating (loss) income GAAP for three months ended July 4, 2026: ($86) million; operating (loss) income for three months ended June 28, 2025: $188 million. source
• Adjusted Non-GAAP operating income for three months ended July 4, 2026: $411 million and operating margin 24.2% after adjustments. source
• Adjusted Non-GAAP operating income for six months ended July 4, 2026: $710 million and operating margin 22.3% after purchased intangibles and step-ups excluded (650 adjustment shown). source
• The Company believes the purchased intangibles amortization and acquisition-related inventory and fixed asset fair value step-ups are non-cash and were excluded from adjusted measures. source

Impact estimates