Waters Corporation Reports Second Quarter 2025 Financial Results

Waters Corporation, a global leader in analytical instruments, separations technologies, and software, has released its financial results for the second quarter of 2025. The company reported strong performance across various financial metrics, reflecting robust growth and strategic execution.

Financial Highlights

For the second quarter of 2025, Waters Corporation reported sales of $771 million, marking a 9% increase as reported and an 8% increase in constant currency compared to the same period in 2024. The company's GAAP diluted earnings per share (EPS) stood at $2.47, while non-GAAP EPS was $2.95, both exceeding the mid-point of the guidance range.

Key financial metrics include:

• Sales of $771 million, up 9% as reported and 8% in constant currency.
• GAAP EPS of $2.47 and non-GAAP EPS of $2.95.
• Recurring revenue grew 11% in constant currency, with 9% service growth and double-digit chemistry growth.
• Pharma segment grew 11% in constant currency, while Industrial grew 6%.

Business and Operational Highlights

Waters Corporation experienced mid-single-digit growth in instruments in constant currency, driven by high-single-digit growth in liquid chromatography (LC) and mass spectrometry (MS). The company saw continued strength in instrument replacement, particularly among large pharmaceutical and contract development and manufacturing organization (CDMO) customers.

Recurring revenue showed significant growth, with service revenue increasing by 9% and chemistry revenue achieving double-digit growth. Geographically, the company reported a 12% increase in sales in Asia, a 2% increase in the Americas, and a 14% increase in Europe.

Strategic Initiatives and Corporate Developments

Waters Corporation raised its full-year 2025 constant currency sales growth guidance to a range of 5.5% to 7.5% and its non-GAAP EPS guidance to $12.95 to $13.05. The company also highlighted its combination with BD Biosciences & Diagnostic Solutions, which is expected to accelerate its strategy into multiple high-growth adjacencies and extend its execution model into resilient, high-volume end markets.

Integration planning for the combination is underway, with Chris Ross, SVP of Global Operations, leading the effort. The company anticipates substantial value creation for shareholders through synergies that create immediate impact.

Management's Perspective

Dr. Udit Batra, President & CEO of Waters Corporation, commented on the company's performance, stating, "Our team continues to execute extremely well, and we delivered excellent results again this quarter, driven by robust instrument replacement trends—particularly among large pharma and CDMO customers. Our performance reflects strong execution against our commercial growth initiatives, rapid uptake of our new products, and contribution from incremental growth vectors such as GLP-1s, PFAS, and generics. As a result, we are raising our full-year sales and earnings guidance."

Future Outlook

Looking ahead, Waters Corporation expects third quarter 2025 constant currency sales growth in the range of 5.0% to 7.0%, with reported sales growth expected in the range of 4.5% to 6.5%. The company also projects third quarter 2025 non-GAAP EPS to be in the range of $3.15 to $3.25, reflecting year-over-year growth of approximately 8% to 11%.

SEC Filing: WATERS CORP /DE/ [ WAT ] - 8-K - Aug. 04, 2025