Waters Corporation has posted a strong performance in the third quarter of 2025, driven by strategic execution and innovative product offerings. The company's impressive financial results highlight its growing market footprint and operational excellence, despite the challenging macroeconomic environment.
Waters Corp Earnings
Waters Corporation reported sales of $800 million for the third quarter of 2025, marking an 8% increase from the $740 million reported in the same quarter of 2024. This growth was achieved on both a reported and constant currency basis, showcasing Waters' resilience and strategic success in its core markets. The earnings per share (EPS) also showed a robust expansion. On a GAAP basis, diluted EPS for the third quarter was $2.50, compared to $2.71 for the previous year. Meanwhile, the non-GAAP EPS demonstrated an impressive 16% growth, rising from $2.93 in the third quarter of 2024 to $3.40 in 2025.
Waters Corp Results
The company has made substantial progress across various financial metrics, exceeding market expectations and internal guidance. The table below summarizes key financial results year-over-year and quarter-over-quarter comparisons:
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|---|---|---|---|
| Sales ($ million) | 800 | 740 | +8% |
| GAAP EPS ($) | 2.50 | 2.71 | -7.75% |
| Non-GAAP EPS ($) | 3.40 | 2.93 | +16% |
Note: EPS is earnings per share.
The decline in GAAP EPS contrasted with the rise in non-GAAP EPS suggests that Waters is effectively managing its operational efficiencies, although specific adjustments—such as one-time charges or benefits—may have impacted GAAP results.
Revenue Breakdown
Waters Corp showed particular strength in its revenue segments, most notably in instruments and recurring revenue. The table below indicates performance across these key segments:
| Segment | Growth in Constant Currency |
|---|---|
| Instruments | +6% |
| Recurring Revenue | +9% |
| Chemistry | Double-digit growth |
| Pharma | +11% |
In-depth Segment Analysis
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Instruments : This segment showed a solid 6% growth in constant currency, mainly propelled by high single-digit growth in Liquid Chromatography (LC) and Mass Spectrometry (MS). The turnaround in the TA Division also contributed positively, pointing toward a well-rounded recovery and growth in market demand.
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Recurring Revenue : Waters exhibited a 9% increase in constant currency, driven by sustained demand for consumables and services. This segment serves as a solid foundation for future financial stability with ongoing customer relationships ensuring continuous revenue streams.
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Chemistry Products : This area saw substantial growth with strong uptake of recent innovations in bioseparations products, indicating Waters' leadership and commitment to cutting-edge chemical analysis technologies.
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Pharmaceutical Segment : Demonstrating a robust 11% year-over-year growth in constant currency, this sector benefited from broad-based expansion across all regions, with noteworthy double-digit growth in the Americas. Waters' new LC-MS and chemistry products have been instrumental in capturing opportunities within the evolving pharmaceutical landscape, particularly with an increasing share of biologics and novel modalities in R&D pipelines.
Key Developments
Waters Corporation continues to expand its high-performance portfolio, underscored by the launch of the Xevo™ Charge Detection Mass Spectrometer. Designed to enhance bioanalytical characterization, this innovative product minimizes sample volume requirements and delivers swift, high-throughput results—reinforcing Waters' status as a pioneer in analytical technology.
Additionally, the company has increased its full-year 2025 guidance, pushing constant currency sales growth expectations to a range between +6.7% to +7.3%. Non-GAAP EPS guidance has likewise been raised, reflecting anticipated year-over-year growth between +10% to +12%.
Comments from Company Officers
Dr. Udit Batra, President & CEO of Waters Corporation, commented on the quarterly results, expressing satisfaction at the company's ability to deliver outstanding outcomes driven by strategic execution and a differentiated product lineup. He emphasized the successful instrument replacement cycle and increased market enthusiasm for LC-MS and chemistry products, particularly in the growing biopharmaceutical and novel modality sectors. Dr. Batra also highlighted the successful reception of recent innovations like the Affinity bioseparation columns, which bolster Waters' robust chemistry portfolio.
Dividends and Share Repurchases
There were no specific updates regarding dividend policies or share repurchase programs in the reported quarter, suggesting a focus on reinvestment into growth and innovation initiatives.
Waters Corp Stock Forecast
Based on Waters Corporation's strong performance in Q3 2025, its forward outlook is positive. The combination of solid financial results, strategic market positioning, and ongoing product innovation underpins a favorable stock forecast. The current market dynamics, backed by robust operational achievements and an increased guidance range, could push the stock price higher.
Stock Price Projections
- High Projection : Assuming continued growth and successful product integration, the stock could reach the high $400s in the next 12 months.
- Low Projection : Amid cautious market conditions, the stock price may moderate to the high $300s.
Overall, Waters Corporation's commitment to innovative products, operational efficiency, and strategic growth positions it to perform well in the upcoming quarters, providing a strong investment proposition for shareholders.
