Waters Corporation Reports Strong 2025 Financial Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5h ago
0mins
Should l Buy WAT?
Source: PRnewswire
- Significant Sales Growth: Waters Corporation reported fourth-quarter sales of $932 million for 2025, reflecting a 7% increase year-over-year and a 6% rise in constant currency, indicating strong market performance that is expected to drive future revenue growth.
- Improved Profitability: The non-GAAP EPS for Q4 2025 was $4.53, up 10% year-over-year, while GAAP EPS was $3.77, slightly down from the previous year, yet overall profitability remains robust, showcasing effective cost control and operational efficiency.
- Diverse Market Performance: In 2025, sales in the pharmaceutical market grew by 9%, while the industrial market saw a 6% increase, and the academic and government market remained flat, highlighting strong demand in pharmaceuticals and industrial sectors, with a focus on these high-growth areas moving forward.
- Optimistic Outlook: The company anticipates organic revenue growth of 5.5% to 7.0% for 2026, with an expected contribution of approximately $3 billion from the acquisition of BD Biosciences and Diagnostic Solutions, demonstrating significant market expansion potential.
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Analyst Views on WAT
Wall Street analysts forecast WAT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WAT is 419.78 USD with a low forecast of 360.00 USD and a high forecast of 480.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
4 Buy
6 Hold
0 Sell
Moderate Buy
Current: 381.290
Low
360.00
Averages
419.78
High
480.00
Current: 381.290
Low
360.00
Averages
419.78
High
480.00
About WAT
Waters Corporation offers analytical instruments, separations technologies, and software, serving the life, materials, food, and environmental sciences. The Company's segments include Waters and TA. The Company primarily designs, manufactures, sells and services high-performance liquid chromatography (HPLC), ultra-performance liquid chromatography (UPLC and together with HPLC, referred to as LC) and mass spectrometry (MS) technology systems and support products, including chromatography columns, other consumable products and comprehensive post-warranty service plans. The Company designs, manufactures, sells and services thermal analysis, rheometry and calorimetry instruments through its TA Instruments (TA) product line. The Company is also a developer and supplier of advanced software-based products that interface with the Company’s instruments, as well as other manufacturers’ instruments. It operates directly in over 35 countries and has products available in more than 100 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Waters Corporation Reports Strong 2025 Financial Results
- Significant Sales Growth: Waters Corporation reported fourth-quarter sales of $932 million for 2025, reflecting a 7% increase year-over-year and a 6% rise in constant currency, indicating strong market performance that is expected to drive future revenue growth.
- Improved Profitability: The non-GAAP EPS for Q4 2025 was $4.53, up 10% year-over-year, while GAAP EPS was $3.77, slightly down from the previous year, yet overall profitability remains robust, showcasing effective cost control and operational efficiency.
- Diverse Market Performance: In 2025, sales in the pharmaceutical market grew by 9%, while the industrial market saw a 6% increase, and the academic and government market remained flat, highlighting strong demand in pharmaceuticals and industrial sectors, with a focus on these high-growth areas moving forward.
- Optimistic Outlook: The company anticipates organic revenue growth of 5.5% to 7.0% for 2026, with an expected contribution of approximately $3 billion from the acquisition of BD Biosciences and Diagnostic Solutions, demonstrating significant market expansion potential.
See More
Waters Corporation Shares Drop 11% on Disappointing Outlook Despite Strong Q4 Results
- Strong Earnings Report: Waters Corporation reported an adjusted EPS of $4.53 and revenue of $932 million for Q4 2025, exceeding market expectations by $0.02 and $3.28 million respectively, driven by robust performance from pharmaceutical and industrial clients.
- Disappointing Outlook: Despite the strong Q4 results, Waters projected an adjusted EPS of $2.25 to $2.35 for Q1 2026, falling short of the consensus estimate of $2.51, with revenue expectations of $1.198 billion to $1.211 billion slightly above analysts' forecast of $712.8 million.
- Merger Completion: The company has completed its merger with BD's Biosciences & Diagnostic Solutions, valued at nearly $17.5 billion, which is expected to contribute nearly $3 billion in revenue benefits in the future, enhancing growth prospects.
- Board Expansion: Following the merger, Waters expanded its board to 11 members, adding Claire Fraser, a genome scientist and former director of the Institute for Genome Sciences at the University of Maryland, which is anticipated to bring new strategic insights to the company.
See More
Waters Corporation Q4 2025 Earnings Call Highlights
- Performance Growth: Waters Corporation reported Q4 2025 sales of $932 million, reflecting a 7% increase year-over-year, with adjusted EPS at $4.53, demonstrating strong market performance despite challenges from the BD acquisition integration.
- Acquisition Integration: The completion of the acquisition of BD's Biosciences and Diagnostic Solutions business has been finalized, with integration planning complete and execution underway, expected to enhance market competitiveness through the unification of world-class expertise.
- Future Outlook: Waters anticipates 2026 reported revenue between $6.405 billion and $6.455 billion, with a year-over-year growth rate of approximately 5.3%, and aims for an adjusted operating margin of 28.1%, indicating confidence in future growth.
- Innovation Drive: The transition to the Empower subscription model is expected to enhance economic benefits, while the launch of a new wave of innovative products will further solidify its leadership position in the scientific instruments market.
See More
US Stocks Dip Slightly as Tech Shares Retreat
- Tech Stock Retreat: Technology stocks are broadly down today, contributing to a 0.03% decline in the S&P 500, a 0.34% drop in the Dow Jones, and a 0.17% decrease in the Nasdaq 100, reflecting a cautious investor sentiment following last Friday's sharp gains.
- Bond Yield Pressure: Rising US bond yields, with the 10-year T-note yield up 2 basis points to 4.22%, are exacerbated by Chinese regulators instructing banks to reduce their US debt holdings, reviving concerns over the haven status of US assets and potentially impacting investor confidence.
- Earnings Season Insights: More than half of S&P 500 companies have reported earnings, with 79% exceeding expectations, and Q4 earnings growth is projected at 8.4%, marking the tenth consecutive quarter of year-over-year growth, indicating resilience in corporate earnings and potential market support.
- Economic Data Focus: The market is set to focus on upcoming economic data, including a projected 0.8% increase in the employment cost index on Tuesday and a 2.5% year-over-year rise in the consumer price index on Friday, which will provide guidance on future economic trends.
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- Kyndryl Stock Plunge: Kyndryl Holdings' shares tumbled 55% following the disclosure of an audit committee review of cash management practices, which not only undermines investor confidence but may also pose greater challenges for future financing and operations.
- Executive Departures Impact: The immediate departure of CFO David Wyshner and General Counsel Edward Sebold indicates potential internal management issues, which could exacerbate market concerns regarding the company's governance structure.
- Cleveland-Cliffs Poor Performance: Cleveland-Cliffs reported a wider-than-expected adjusted EBITDA loss of $21 million, primarily due to weakness in the auto and Canadian markets; although the company anticipates improvements by 2026, it still faces short-term market challenges.
- Valaris Acquisition News: Valaris shares surged 28% after agreeing to be acquired by Transocean for $5.8 billion, with Valaris shareholders set to receive 15.235 shares of Transocean stock for each Valaris share held, reflecting strong demand in the offshore drilling services market.
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Waters Expects Q1 Profit to Fall Below Estimates Amid Revenue Decline
- Q1 Profit Forecast: Waters anticipates Q1 earnings per share between $2.25 and $2.35, falling short of analysts' average estimate of $2.51, which has led to a nearly 12% drop in premarket trading, indicating investor concerns about future performance.
- Acquisition Impact: Despite the disappointing Q1 outlook, Waters expects its $17.5 billion acquisition of Becton Dickinson's bioscience and diagnostics business to drive overall profit growth in 2026, projecting a 5.3% sales increase, highlighting the strategic importance of the acquisition.
- Becton Dickinson Performance: Becton Dickinson reported an 8.3% year-over-year revenue decline in its life sciences segment for the quarter ending December 31, with sales of $766 million, significantly below analysts' expectations of $1.3 billion, indicating challenges in the integration process.
- Full-Year Revenue Outlook: Waters forecasts organic revenue for 2026 to be between $3.35 billion and $3.40 billion, slightly above the market estimate of $3.36 billion, with the acquired Becton Dickinson unit expected to contribute approximately $3 billion to reported revenue, further strengthening the company's market position.
See More
Waters Corporation Reports Strong 2025 Financial Results
- Significant Sales Growth: Waters Corporation reported fourth-quarter sales of $932 million for 2025, reflecting a 7% increase year-over-year and a 6% rise in constant currency, indicating strong market performance that is expected to drive future revenue growth.
- Improved Profitability: The non-GAAP EPS for Q4 2025 was $4.53, up 10% year-over-year, while GAAP EPS was $3.77, slightly down from the previous year, yet overall profitability remains robust, showcasing effective cost control and operational efficiency.
- Diverse Market Performance: In 2025, sales in the pharmaceutical market grew by 9%, while the industrial market saw a 6% increase, and the academic and government market remained flat, highlighting strong demand in pharmaceuticals and industrial sectors, with a focus on these high-growth areas moving forward.
- Optimistic Outlook: The company anticipates organic revenue growth of 5.5% to 7.0% for 2026, with an expected contribution of approximately $3 billion from the acquisition of BD Biosciences and Diagnostic Solutions, demonstrating significant market expansion potential.
See More
Waters Corporation Shares Drop 11% on Disappointing Outlook Despite Strong Q4 Results
- Strong Earnings Report: Waters Corporation reported an adjusted EPS of $4.53 and revenue of $932 million for Q4 2025, exceeding market expectations by $0.02 and $3.28 million respectively, driven by robust performance from pharmaceutical and industrial clients.
- Disappointing Outlook: Despite the strong Q4 results, Waters projected an adjusted EPS of $2.25 to $2.35 for Q1 2026, falling short of the consensus estimate of $2.51, with revenue expectations of $1.198 billion to $1.211 billion slightly above analysts' forecast of $712.8 million.
- Merger Completion: The company has completed its merger with BD's Biosciences & Diagnostic Solutions, valued at nearly $17.5 billion, which is expected to contribute nearly $3 billion in revenue benefits in the future, enhancing growth prospects.
- Board Expansion: Following the merger, Waters expanded its board to 11 members, adding Claire Fraser, a genome scientist and former director of the Institute for Genome Sciences at the University of Maryland, which is anticipated to bring new strategic insights to the company.
See More
Waters Corporation Q4 2025 Earnings Call Highlights
- Performance Growth: Waters Corporation reported Q4 2025 sales of $932 million, reflecting a 7% increase year-over-year, with adjusted EPS at $4.53, demonstrating strong market performance despite challenges from the BD acquisition integration.
- Acquisition Integration: The completion of the acquisition of BD's Biosciences and Diagnostic Solutions business has been finalized, with integration planning complete and execution underway, expected to enhance market competitiveness through the unification of world-class expertise.
- Future Outlook: Waters anticipates 2026 reported revenue between $6.405 billion and $6.455 billion, with a year-over-year growth rate of approximately 5.3%, and aims for an adjusted operating margin of 28.1%, indicating confidence in future growth.
- Innovation Drive: The transition to the Empower subscription model is expected to enhance economic benefits, while the launch of a new wave of innovative products will further solidify its leadership position in the scientific instruments market.
See More
US Stocks Dip Slightly as Tech Shares Retreat
- Tech Stock Retreat: Technology stocks are broadly down today, contributing to a 0.03% decline in the S&P 500, a 0.34% drop in the Dow Jones, and a 0.17% decrease in the Nasdaq 100, reflecting a cautious investor sentiment following last Friday's sharp gains.
- Bond Yield Pressure: Rising US bond yields, with the 10-year T-note yield up 2 basis points to 4.22%, are exacerbated by Chinese regulators instructing banks to reduce their US debt holdings, reviving concerns over the haven status of US assets and potentially impacting investor confidence.
- Earnings Season Insights: More than half of S&P 500 companies have reported earnings, with 79% exceeding expectations, and Q4 earnings growth is projected at 8.4%, marking the tenth consecutive quarter of year-over-year growth, indicating resilience in corporate earnings and potential market support.
- Economic Data Focus: The market is set to focus on upcoming economic data, including a projected 0.8% increase in the employment cost index on Tuesday and a 2.5% year-over-year rise in the consumer price index on Friday, which will provide guidance on future economic trends.
See More
Kyndryl Shares Plunge 55% Amid Audit Review and Executive Departures
- Kyndryl Stock Plunge: Kyndryl Holdings' shares tumbled 55% following the disclosure of an audit committee review of cash management practices, which not only undermines investor confidence but may also pose greater challenges for future financing and operations.
- Executive Departures Impact: The immediate departure of CFO David Wyshner and General Counsel Edward Sebold indicates potential internal management issues, which could exacerbate market concerns regarding the company's governance structure.
- Cleveland-Cliffs Poor Performance: Cleveland-Cliffs reported a wider-than-expected adjusted EBITDA loss of $21 million, primarily due to weakness in the auto and Canadian markets; although the company anticipates improvements by 2026, it still faces short-term market challenges.
- Valaris Acquisition News: Valaris shares surged 28% after agreeing to be acquired by Transocean for $5.8 billion, with Valaris shareholders set to receive 15.235 shares of Transocean stock for each Valaris share held, reflecting strong demand in the offshore drilling services market.
See More
Waters Expects Q1 Profit to Fall Below Estimates Amid Revenue Decline
- Q1 Profit Forecast: Waters anticipates Q1 earnings per share between $2.25 and $2.35, falling short of analysts' average estimate of $2.51, which has led to a nearly 12% drop in premarket trading, indicating investor concerns about future performance.
- Acquisition Impact: Despite the disappointing Q1 outlook, Waters expects its $17.5 billion acquisition of Becton Dickinson's bioscience and diagnostics business to drive overall profit growth in 2026, projecting a 5.3% sales increase, highlighting the strategic importance of the acquisition.
- Becton Dickinson Performance: Becton Dickinson reported an 8.3% year-over-year revenue decline in its life sciences segment for the quarter ending December 31, with sales of $766 million, significantly below analysts' expectations of $1.3 billion, indicating challenges in the integration process.
- Full-Year Revenue Outlook: Waters forecasts organic revenue for 2026 to be between $3.35 billion and $3.40 billion, slightly above the market estimate of $3.36 billion, with the acquired Becton Dickinson unit expected to contribute approximately $3 billion to reported revenue, further strengthening the company's market position.
See More
