WAT · 8-K · 20260804PR331413
Operating Expense Trends
WATERS CORP /DE/ · 2026-08-04 · Importance 78 · Surprise 64 · No source text
Second-quarter selling and administrative expenses were $405 million on the consolidated statement of operations and $698 million in the GAAP-to-adjusted reconciliation, which includes purchased-intangible amortization and restructuring charges. Research and development expense was $122 million, compared with $49 million in the prior-year quarter, an increase of approximately 149%. Six-month R&D expense was $218 million, compared with $95 million, while six-month selling and administrative expense was $1.237 billion, compared with $400 million. Acquisition-related amortization, restructuring, ERP implementation, and integration costs materially increased reported operating expenses after the BDS acquisition.
Key facts
- GAAP cost of revenue for three months ended July 4, 2026: $911 million; for three months ended June 28, 2025: $321 million. source
- Purchase accounting adjustments: cost of revenue includes $155 million (three months) and $253 million (six months) related to fair value inventory and fixed asset step up from the BDS acquisition. source
- Purchased intangibles amortization included $244 million (three months) and $396 million (six months) of purchase accounting adjustments related to amortization of BDS acquisition purchased intangibles. source
- Inventories at July 4, 2026: $1,377 million; inventories at December 31, 2025: $572 million. source
- Selling and administrative expenses for three months ended July 4, 2026: $405 million (GAAP). source
- Research and development expenses for three months ended July 4, 2026: $122 million (GAAP). source
- Change in operating assets and liabilities and other, net for three months ended July 4, 2026: $(144) million; for six months ended July 4, 2026: $(401) million. source
- Company disclosed ERP implementation and transformation costs as one-time, non-recurring costs that were non-capitalizable and excluded from adjusted measures. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -35.9% | GAAP cost of revenue for three months ended July 4, 2026: $911 million; for three months ended June 28, 2025: $321 million. |
| operating_income | negative | realized | -22.6% | Purchased intangibles amortization included $244 million (three months) and $396 million (six months) of purchase accounting adjustments… |
| operating_income | negative | realized | -15.4% | Purchase accounting adjustments: cost of revenue includes $155 million (three months) and $253 million (six months) related to fair value… |
| assets | positive | realized | +3.3% | Inventories at July 4, 2026: $1,377 million; inventories at December 31, 2025: $572 million. |
| operating_income | negative | realized | — | Selling and administrative expenses for three months ended July 4, 2026: $405 million (GAAP). |
| operating_income | negative | realized | — | Research and development expenses for three months ended July 4, 2026: $122 million (GAAP). |