Company Reports

Waters' second-quarter results included 9% revenue growth on an organic, constant-currency basis and adjusted earnings per share growth of 3%. Management raised its 2026 guidance for revenue growth from its legacy and acquired assets as well as adjusted EPS growth.

Historically, Waters has helped clients perform scientific research by providing analytical instruments, services, and supplies. The company specializes in liquid chromatography and mass spectrometry products (nearly 90% of legacy company sales), which are used primarily by biopharmaceutical firms to analyze a molecule’s structure during the drug discovery, development, and production processes. These tools can also be used in food and environmental quality testing as well as other industrial applications. Waters helps scientists examine the physical properties of various materials through its thermal analysis tools (low-double-digit percentage of sales).

On May 5, Waters reported first-quarter results that included 11% organic revenue growth in constant currency, higher than management's prior guidance by 200 basis points, and 20% adjusted earnings per share growth to $2.70, versus guidance of $2.25-$2.35. Management raised its 2026 outlook, too.

Life science stocks have been under pressure since late 2022, but with profits expected to rebound in the high single digits in 2026 on average and potentially accelerate even further in 2027-30 due to upcoming catalysts, we see growing momentum in the industry’s profit growth trajectory.

Historically, Waters has helped clients perform scientific research by providing analytical instruments, services, and supplies. The company specializes in liquid chromatography and mass spectrometry products (nearly 90% of legacy company sales), which are used primarily by biopharmaceutical firms to analyze a molecule’s structure during the drug discovery, development, and production processes. These tools can also be used in food and environmental quality testing as well as other industrial applications. Waters helps scientists examine the physical properties of various materials through its thermal analysis tools (low-double-digit percentage of sales).

On Feb. 9, Waters reported fourth-quarter results, closed the Becton Dickinson biosciences and diagnostics merger, and gave 2026 guidance. That guidance reflected lower than previously anticipated trends in the acquired BD assets in late 2025. Shares fell 12% in early trading on this news.

Waters turned in third-quarter results that exceeded its previous guidance, including 8% revenue growth, or higher than 5% to 7% prior outlook, and 16% adjusted EPS growth to $3.40, or higher than the $3.15-$3.25 prior outlook. Management also raised its full-year guidance for 2025.

Historically, Waters has helped clients perform scientific research by providing analytical instruments, services, and supplies. The company specializes in liquid chromatography and mass spectrometry products (nearly 90% of legacy company sales), which are used primarily by biopharmaceutical firms to analyze a molecule’s structure during the drug discovery, development, and production processes. These tools can also be used in food and environmental quality testing as well as other industrial applications. And Waters helps scientists examine the physical properties of various materials through its thermal analysis tools (low-double digits percentage of sales).

In the second quarter, Waters generated 8% constant currency sales growth, or above management's prior outlook of 5% to 7%, and adjusted EPS of $2.95, which was on the high end of its previous guidance range of $2.88-$2.98. Management also raised its 2025 outlook slightly in response to this news.

Waters and BD have agreed to combine BD's biosciences and diagnostics unit with Waters. BD will receive $4 billion in cash and a 39.2% stake in the combination. The deal is scheduled to close in the first quarter of 2026. In early trading, Waters shares were down 11% and BD's were down 1%.

Historically, Waters has helped clients perform scientific research by providing analytical instruments, services, and supplies. The company specializes in liquid chromatography and mass spectrometry products (nearly 90% of legacy company sales), which are used primarily by biopharmaceutical firms to analyze a molecule’s structure during the drug discovery, development, and production processes. These tools can also be used in food and environmental quality testing as well as other industrial applications. And Waters helps scientists examine the physical properties of various materials through its thermal analysis tools (low-double digits percentage of sales).

Waters helps clients perform scientific research by providing analytical instruments, services, and supplies. The company specializes in liquid chromatography and mass spectrometry products (nearly 90% of sales), which are used primarily by biopharmaceutical firms to analyze a molecule’s structure during the drug discovery, development, and production processes. These tools can also be used in food and environmental quality testing as well as other industrial applications. And Waters helps scientists examine the physical properties of various materials through its thermal analysis tools (low-double digits percentage of sales).

In the quarter, Waters delivered sales growth (7% in constant currency) and adjusted EPS ($2.25) on the high end of its previous guidance ranges. Considering those strong trends and including mild new tariff headwinds, management raised its 2025 adjusted EPS outlook to $12.75-$13.05.

Over the past week, life science shares have experienced significant volatility related to a deepening trade war with China and as broader US tariffs were implemented and then paused for 90 days to allow time for negotiations. A pharmaceutical-specific tariff is also being considered.

Waters turned in solid fourth-quarter results that reflected an ongoing turnaround in its key end markets after the tough 2023-24 reset period following the Covid pandemic. In the quarter, sales grew 8% in constant currency while adjusted EPS grew 13% including higher margins.

Waters helps clients perform scientific research by providing analytical instruments, services, and supplies. The company specializes in liquid chromatography and mass spectrometry products (nearly 90% of sales), which are used primarily by biopharmaceutical firms to analyze a molecule’s structure during the drug discovery, development, and production processes. These tools can also be used in food and environmental quality testing as well as other industrial applications. And Waters helps scientists examine the physical properties of various materials through its thermal analysis tools (low-double digits percentage).

Wide-moat Waters delivered strong third-quarter results that included a return on demand in the instruments business and in Asia, two areas that had been weak in the 2023-24 reset period. As a result of this strength, management increased their 2024 guidance, including ending the year on a more normalized growth trajectory. After tinkering with our near-term expectations and accounting for recent cash flows, we boost our fair value estimate 5% to $340 per share. Shares remain about fairly valued.

Waters helps clients perform scientific research by providing analytical instruments, services, and supplies. The company specializes in liquid chromatography and mass spectrometry products (nearly 90% of sales), which are used primarily by biopharmaceutical firms to analyze a molecule’s structure during the drug discovery, development, and production processes. These tools can also be used in food and environmental quality testing as well as other industrial applications. And Waters helps scientists examine the physical properties of various materials through its thermal analysis tools (low-double digits percentage).

Wide-moat Waters delivered strong second-quarter results, but management reduced its guidance for 2024 on a more cautious second-half recovery trajectory than previously anticipated. Even after tinkering with our near-term expectations, though, we are keeping our $323 fair value estimate intact, and Waters' shares look about fairly valued, in our opinion.

Wide-moat Waters turned in a strong start to the year, but management merely maintained its guidance for 2024. At first glance, we are keeping our $323 fair value estimate intact. Waters' shares remain about fairly valued, in our opinion.