WAT · Earnings call · 2026Q2T · Full report
China Market Recovery
WATERS CORP /DE/ · 2026-08-04 · Importance 42 · Surprise 40 · In source text
Waters’ Chinese pharma customers returned to double-digit growth in the first half, compared with 6% growth in the prior year. The recovery reflects increased biotech, CDMO and CRO activity as Chinese companies attract investment and reinvest in R&D after commercial success and out-licensing. China became accretive to Analytical Sciences growth, with molecules developed on Waters platforms transferring into Western development and regulatory pathways. China remained a headwind in Biosciences and Diagnostics because of DRG constraints, but management expects localization and improved execution to support recovery.
Key facts
- China Flow Research declined 30% in the full first quarter and improved to a mid-single-digit decline in the second quarter, a swing of ~25 percentage points
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | realized | — | China Flow Research declined 30% in the full first quarter and improved to a mid-single-digit decline in the second quarter, a swing of… |