WAT · Earnings call · 2026Q2T · Full report
Gross Margin Drivers
WATERS CORP /DE/ · 2026-08-04 · Importance 26 · Surprise 24
Total-company adjusted gross margin was 54% in the second quarter. Management said the margin was in line with expectations and reflected a sequential step-down as ownership of the acquired businesses normalized from a partial quarter to a full quarter. Foreign-exchange translation adversely affected results after the U.S. dollar strengthened. Pricing actions in acquired businesses generated 90 basis points of net price realization during the quarter and are targeted to reach 150 basis points.
Key facts
- Q2 2026 total company adjusted gross margin: 54%
- Q2 2026 adjusted gross margin step down anticipated as ownership of acquired businesses normalized to a full quarter versus a partial quarter