WAT · Earnings call · 2026Q2T · Full report

China Regulatory and Export Constraints

WATERS CORP /DE/ · 2026-08-04 · Importance 46 · Surprise 56

China remained a material headwind for Biosciences and Diagnostics because of diagnostic-related-group reimbursement constraints and export-license restrictions. Waters said the number of China export-license approvals for Flow Research doubled in the second quarter versus the first full quarter, improving China Flow Research from a 30% decline in Q1 to a mid-single-digit decline in Q2. Diagnostic Solutions expects China DRG headwinds to enter the baseline in the fourth quarter, while localized flow and microbiology portfolios are expected to be available in China in Q4.