Waters Charts a New Course Following Major Diagnostic Acquisition

Waters Corporation has formally launched a significantly restructured organization, following the successful completion of its merger with Becton Dickinson's diagnostics unit. The closing of this transformative deal, announced alongside the company's fourth-quarter 2025 financial results, sets the stage for a near doubling of the company's revenue scale.

The newly combined entity has outlined ambitious targets for the current fiscal year. Management forecasts total revenue for 2026 to reach between $6.405 billion and $6.455 billion. A key performance indicator will be the achievement of an operating margin target of 28.1% in this first year of integration. On an adjusted basis, earnings per share are projected to fall in the range of $14.30 to $14.50.

Robust Quarterly Performance Provides Foundation

The company concluded its 2025 fiscal year with a strong final quarter, demonstrating resilient demand across its core pharmaceutical and industrial end markets. Fourth-quarter revenue reached $932 million, representing a 7% year-over-year increase. Notably, the chemicals business segment showed particular strength, with bioseparation products posting a 12% currency-adjusted gain. Adjusted earnings per share for Q4 2025 came in at $4.53, a 10% improvement from the prior-year period. For the full year 2025, Waters generated total revenue of $3.165 billion.

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New Corporate Structure and Governance

The transaction was executed as a "Reverse Morris Trust." As part of the closing, Waters issued approximately 38.5 million new common shares to Becton Dickinson stockholders, who now hold an estimated 39.2% stake in the combined company. Operational management will now be conducted through four newly established, specialized divisions: Analytical Sciences, Biosciences, Advanced Diagnostics, and Materials Sciences.

To bolster expertise in a key strategic area, Claire M. Fraser has joined the expanded, eleven-member Board of Directors. Her background in genomics and molecular diagnostics will support the company's sharpened focus.

Strategic Shift and Integration Priorities

With the integration complete, Waters' strategic emphasis has distinctly shifted toward a broader portfolio of diagnostic solutions. The primary focus for the coming quarters will be the realization of synergies across the four new operating divisions. The operating margin will serve as the central metric for evaluating the success of the new corporate architecture.