Waters Corporation Reports Fourth Quarter and Full-Year 2025 Financial Results
18.03.2026 - 03:34:41 | prnewswire.co.ukFull-Year and First Quarter 2026 Financial Guidance
Full-Year 2026 Financial Guidance
The Company expects full-year 2026 organic constant currency revenue growth to be in the range of +5.5% to +7.0%. Including the positive impact of currency translation, full-year 2026 organic reported revenue is expected to be in the range of $3.355 billion to $3.405 billion.
The Company expects an acquired business contribution in full-year 2026 of approximately $3.000 billion to reported revenue on an owned-period basis.
Including the positive impact of expected revenue synergies, total Company revenue for full-year 2026 is expected to be in the range of $6.405 billion to $6.455 billion on a reported basis.
The Company expects full-year 2026 non-GAAP EPS to be in the range of $14.30 to $14.50, which includes $0.10 cents of accretion versus the Company's standalone non-GAAP EPS profile due to our combination with the Biosciences and Diagnostic Solutions business of Becton, Dickinson & Company. This represents year-over-year non-GAAP EPS growth of approximately +8.9% to +10.4% for full-year 2026.
First Quarter 2026 Financial Guidance
The Company expects first quarter 2026 organic constant currency revenue growth to be in the range of +7.0% to +9.0%. Including the positive impact of currency translation, first quarter 2026 organic reported revenue is expected to be in the range of $718 million to $731 million.
The Company expects an acquired business contribution in the first quarter of 2026 of approximately $480 million to reported revenue on an owned-period basis.
Total Company revenue for the first quarter of 2026 is expected to be in the range of $1.198 billion to $1.211 billion on a reported basis.
The Company expects first quarter 2026 non-GAAP EPS to be in the range of $2.25 to $2.35, which reflects year-over-year growth of approximately +0.0% to +4.4%.
Please refer to the tables below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the full-year and first quarter.
Conference Call Details
Waters Corporation will webcast its fourth quarter 2025 financial results conference call today, February 9, 2026, at 8:30 a.m. Eastern Time. To listen to the call and see the accompanying slide presentation, please visit www.waters.com, select "Investor Relations" under the "About Waters" section, navigate to "Events & Presentations," and click on the "Webcast." A replay will be available through at least March 9, 2026.
About Waters Corporation
Waters Corporation (NYSE:WAT) is a global leader in analytical instruments, separations technologies, and software, serving the life, materials, food, and environmental sciences for over 65 years. Our Company helps ensure the efficacy of medicines, the safety of food and the purity of water, and the quality and sustainability of products used every day. In over 100 countries, our 7,900+ passionate employees collaborate with customers in laboratories, manufacturing sites, and hospitals to accelerate the benefits of pioneering science.
Non-GAAP Financial Measures
This release contains financial measures, such as organic constant currency growth rates, constant currency growth rates and adjusted earnings per diluted share, among others, which are considered "non-GAAP" financial measures under applicable U.S. Securities and Exchange Commission rules and regulations. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP). The Company's definitions of these non-GAAP measures may differ from similarly titled measures used by others. The non-GAAP financial measures used in this release adjust for specified items that can be highly variable or difficult to predict. The Company generally uses these non-GAAP financial measures to facilitate management's financial and operational decision-making, including evaluation of the Company's historical operating results, comparison to competitors' operating results and determination of management incentive compensation. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends affecting the Company's business. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company's reported results of operations, management strongly encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety. Definitions of the non-GAAP financial measures and reconciliations to the most directly comparable GAAP financial measures are included in the tables accompanying this release.
Cautionary Statement
This release contains "forward-looking" statements regarding future results and events. For this purpose, any statements that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words "feels", "believes", "anticipates", "plans", "expects", "intends", "suggests", "appears", "estimates", "projects" and similar expressions, whether in the negative or affirmative, are intended to identify forward-looking statements. Our actual results may differ significantly from the results discussed in the forward-looking statements within this release for a variety of reasons, including and without limitation, risks or uncertainties related to our acquisition of Becton, Dickinson and Company's Biosciences and Diagnostic Solutions business, the impact of this acquisition on the Company's business and future results, including unexpected costs, charges or expenses resulting from this acquisition as well as difficulties and delays in achieving expected revenue and cost synergies related to this acquisition, the increased indebtedness of the Company as a result of this acquisition, our future financial and operational performance, future economic and market conditions, including our expectations about the growth rates of certain markets, our strategic initiatives, including our instrument replacement initiatives, respond and adapt to changing global dynamics, including the potential impacts of tariffs and supply chain challenges, our ability to retain and attract customers in various geographies and market segments, our market size and growth opportunities, our competitive positioning, projected costs, technological capabilities and plans, and objectives of management, and other risk factors detailed from time to time in Waters' reports filed with the Securities and Exchange Commission ("SEC"). Such factors and others are discussed more fully in the sections entitled "Forward-Looking Statements" and "Risk Factors" of the Company's annual report on Form 10-K for the year ended December 31, 2024, as filed with the SEC, which discussions are incorporated by reference in this release, as updated by the Company's subsequent filings with the SEC. The forward-looking statements included in this release represent the Company's estimates or views as of the date of this release and should not be relied upon as representing the Company's estimates or views as of any date subsequent to the date of this release. Except as required by law, the Company does not assume any obligation to update any forward-looking statements.
Waters Corporation and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Net sales
$ 932,362
$ 872,714
$ 3,165,286
$ 2,958,387
Costs and operating expenses:
Cost of sales
362,864
348,516
1,288,822
1,200,201
Selling and administrative expenses
240,007
173,268
830,374
690,148
Research and development expenses
46,898
46,914
195,711
183,027
Purchased intangibles amortization
12,077
11,753
47,791
47,090
Litigation provision
-
-
-
11,568
Operating income
270,516
292,263
802,588
826,353
Other income (expense), net
2,283
(843)
3,061
776
Interest expense, net
(8,618)
(14,437)
(50,771)
(72,261)
Income from operations before income taxes
264,181
276,983
754,878
754,868
Provision for income taxes
38,967
45,585
112,249
117,034
Net income
$ 225,214
$ 231,398
$ 642,629
$ 637,834
Net income per basic common share
$ 3.78
$ 3.90
$ 10.80
$ 10.75
Weighted-average number of basic common shares
59,546
59,386
59,509
59,333
Net income per diluted common share
$ 3.77
$ 3.88
$ 10.76
$ 10.71
Weighted-average number of diluted common shares and equivalents
59,763
59,645
59,706
59,552
Waters Corporation and Subsidiaries
Reconciliation of GAAP to Adjusted Non-GAAP
Net Sales by Operating Segments, Products & Services, Geography and Markets
Three Months Ended December 31, 2025 and December 31, 2024
(In thousands)
Constant
Three Months Ended
Percent
Impact of
Currency
December 31, 2025
December 31, 2024
Change
Currency
Growth Rate (a)
NET SALES - OPERATING SEGMENTS
Waters
$
823,937
$
764,309
8 %
1 %
7 %
TA
108,425
108,405
0 %
0 %
0 %
Total
$
932,362
$
872,714
7 %
1 %
6 %
NET SALES - PRODUCTS & SERVICES
Instruments
$
432,850
$
419,616
3 %
1 %
3 %
Service
329,156
301,844
9 %
1 %
8 %
Chemistry
170,356
151,254
13 %
1 %
12 %
Total Recurring
499,512
453,098
10 %
1 %
9 %
Total
$
932,362
$
872,714
7 %
1 %
6 %
NET SALES - GEOGRAPHY
Asia
$
283,967
$
272,903
4 %
(7 %)
11 %
Americas
332,424
321,005
4 %
0 %
4 %
Europe
315,971
278,806
13 %
9 %
4 %
Total
$
932,362
$
872,714
7 %
1 %
6 %
NET SALES - MARKETS
Pharmaceutical
$
540,567
$
498,807
8 %
1 %
7 %
Industrial
284,465
264,027
8 %
0 %
8 %
Academic & Government
107,330
109,880
(2 %)
1 %
(3 %)
Total
$
932,362
$
872,714
7 %
1 %
6 %
(a)
The Company believes that referring to comparable constant currency growth rates is a useful way to evaluate the underlying performance of Waters Corporation's net sales. Constant currency growth, a non-GAAP financial measure, measures the change in net sales between current and prior year periods, excluding the impact of foreign currency exchange rates during the current period. See description of non-GAAP financial measures contained in this release.
Waters Corporation and Subsidiaries
Reconciliation of GAAP to Adjusted Non-GAAP
Net Sales by Operating Segments, Products & Services, Geography and Markets
Twelve Months Ended December 31, 2025 and December 31, 2024
(In thousands)
Constant
Twelve Months Ended
Percent
Impact of
Currency
December 31, 2025
December 31, 2024
Change
Currency
Growth Rate (a)
NET SALES - OPERATING SEGMENTS
Waters
$
2,813,446
$
2,604,421
8 %
0 %
8 %
TA
351,840
353,966
(1 %)
0 %
(1 %)
Total
$
3,165,286
$
2,958,387
7 %
0 %
7 %
NET SALES - PRODUCTS & SERVICES
Instruments
$
1,345,642
$
1,278,695
5 %
0 %
5 %
Service
1,188,186
1,114,211
7 %
0 %
7 %
Chemistry
631,458
565,481
12 %
0 %
12 %
Total Recurring
1,819,644
1,679,692
8 %
0 %
8 %
Total
$
3,165,286
$
2,958,387
7 %
0 %
7 %
NET SALES - GEOGRAPHY
Asia
$
1,040,397
$
969,222
7 %
(5 %)
13 %
Americas
1,161,513
1,115,780
4 %
0 %
4 %
Europe
963,376
873,385
10 %
6 %
5 %
Total
$
3,165,286
$
2,958,387
7 %
0 %
7 %
NET SALES - MARKETS
Pharmaceutical
$
1,873,362
$
1,718,899
9 %
0 %
9 %
Industrial
961,154
908,486
6 %
0 %
6 %
Academic & Government
330,770
331,002
0 %
1 %
(1 %)
Total
$
3,165,286
$
2,958,387
7 %
0 %
7 %
(a)
The Company believes that referring to comparable constant currency growth rates is a useful way to evaluate the underlying performance of Waters Corporation's net sales. Constant currency growth, a non-GAAP financial measure, measures the change in net sales between current and prior year periods, excluding the impact of foreign currency exchange rates during the current period. See description of non-GAAP financial measures contained in this release.
Waters Corporation and Subsidiaries
Reconciliation of GAAP to Adjusted Non-GAAP Financials
Three and Twelve Months Ended December 31, 2025 and December 31, 2024
(In thousands, except per share data)
Income from
Operations
Selling &
Research &
Operating
Other
Interest
before
Provision for
Diluted
Administrative
Development
Operating
Income
Income
Expense,
Income
Income
Net
Earnings
Expenses(a)
Expenses
Income
Percentage
(Expense)
Net
Taxes
Taxes
Income
per Share
Three Months Ended December 31, 2025
GAAP
$
252,084
$
46,898
$
270,516
29.0 %
$
2,283
$
(8,618)
$
264,181
$
38,967
$
225,214
$
3.77
Adjustments:
Purchased intangibles amortization (b)
(12,077)
-
12,077
1.3 %
-
-
12,077
2,930
9,147
0.15
Restructuring costs and certain other items (c)
(3,290)
-
3,290
0.4 %
(2,398)
-
892
216
676
0.01
ERP implementation and transformation costs (d)
(5,777)
-
5,777
0.6 %
-
-
5,777
1,386
4,391
0.07
Acquisition related costs (e)
(39,975)
3,204
36,771
3.9 %
-
-
36,771
6,589
30,182
0.51
Financing Costs (h)
-
-
-
-
-
1,518
1,518
364
1,154
0.02
Adjusted Non-GAAP
$
190,965
$
50,102
$
328,431
35.2 %
$
(115)
$
(7,100)
$
321,216
$
50,452
$
270,764
$
4.53
Three Months Ended December 31, 2024
GAAP
$
185,021
$
46,914
$
292,263
33.5 %
$
(843)
$
(14,437)
$
276,983
$
45,585
$
231,398
$
3.88
Adjustments:
Purchased intangibles amortization (b)
(11,753)
-
11,753
1.3 %
-
-
11,753
2,813
8,940
0.15
Restructuring costs and certain other items (c)
(1,480)
-
1,480
0.2 %
-
-
1,480
354
1,126
0.02
ERP implementation and transformation costs (d)
(1,346)
-
1,346
0.2 %
-
-
1,346
337
1,009
0.02
Retention bonus obligation (g)
(1,911)
(636)
2,547
0.3 %
-
-
2,547
612
1,935
0.03
Adjusted Non-GAAP
$
168,531
$
46,278
$
309,389
35.5 %
$
(843)
$
(14,437)
$
294,109
$
49,701
$
244,408
$
4.10
Twelve Months Ended December 31, 2025
GAAP
$
878,165
$
195,711
$
802,588
25.4 %
$
3,061
$
(50,771)
$
754,878
$
112,249
$
642,629
$
10.76
Adjustments:
Purchased intangibles amortization (b)
(47,791)
-
47,791
1.5 %
-
-
47,791
11,476
36,315
0.61
Restructuring costs and certain other items (c)
(9,036)
-
9,036
0.3 %
(2,398)
-
6,638
1,560
5,078
0.09
ERP implementation and transformation costs (d)
(19,588)
-
19,588
0.6 %
-
-
19,588
4,701
14,887
0.25
Acquisition related costs (e)
(81,068)
(531)
81,599
2.6 %
-
-
81,599
11,318
70,281
1.18
Retention bonus obligation (g)
(2,864)
(954)
3,818
0.1 %
-
-
3,818
916
2,902
0.05
Financing Costs (h)
-
-
-
-
-
15,578
15,578
3,738
11,840
0.20
Adjusted Non-GAAP
$
717,818
$
194,226
$
964,420
30.5 %
$
663
$
(35,193)
$
929,890
$
145,958
$
783,932
$
13.13
Twelve Months Ended December 31, 2024
GAAP
$
748,806
$
183,027
$
826,353
27.9 %
$
776
$
(72,261)
$
754,868
$
117,034
$
637,834
$
10.71
Adjustments:
Purchased intangibles amortization (b)
(47,090)
-
47,090
1.6 %
-
-
47,090
11,269
35,821
0.60
Restructuring costs and certain other items (c)
(12,160)
-
12,160
0.4 %
-
-
12,160
2,971
9,189
0.15
ERP implementation and transformation costs (d)
(1,346)
-
1,346
0.0 %
-
-
1,346
337
1,009
0.02
Litigation provision and settlement (f)
(11,568)
-
11,568
0.4 %
-
-
11,568
2,776
8,792
0.15
Retention bonus obligation (g)
(13,362)
(4,453)
17,815
0.6 %
-
-
17,815
4,276
13,539
0.23
Adjusted Non-GAAP
$
663,280
$
178,574
$
916,332
31.0 %
$
776
$
(72,261)
$
844,847
$
138,663
$
706,184
$
11.86
(a)
Selling & administrative expenses include purchased intangibles amortization and litigation provisions and settlements.
(b)
The purchased intangibles amortization, a non-cash expense, was excluded to be consistent with how management evaluates the performance of its core business against historical operating results and the operating results of competitors over periods of time.
(c)
Restructuring costs and certain other items were excluded as the Company believes that the cost to consolidate operations, reduce overhead, and certain other income or expense items are not normal and do not represent future ongoing business expenses of a specific function or geographic location of the Company.
(d)
ERP implementation and transformation costs represent costs related to the Company's initiative to transition from its legacy enterprise resource planning (ERP) system to a new global ERP solution with a cloud-based infrastructure. These costs, which do not represent normal or future ongoing business expenses, are one-time, non-recurring costs related to the establishment of our new global ERP solution that were determined to be non-capitalizable in accordance with accounting standards.
(e)
Acquisition related costs include all incremental costs incurred to effect the business combination, such as advisory, legal, accounting, tax, valuation, other professional fees, and integration costs. The Company believes that these costs are not normal and do not represent future ongoing business expenses.
(f)
Litigation provisions and settlement gains were excluded as these items are isolated, unpredictable and not expected to recur regularly.
(g)
In connection with the Wyatt acquisition, the Company recognized a two-year retention bonus obligation that is contingent upon the employee's providing future service and continued employment with Waters. The Company believes that these costs are not normal and do not represent future ongoing business expenses.
(h)
Financing costs relate to certain financing fees incurred by the Company to secure access to certain debt facilities in connection with the agreement Waters entered into to acquire the Biosciences and Diagnostics Solutions business of Becton, Dickinson & Company. The Company believes that these costs are not normal and do not represent future ongoing business expenses.
Waters Corporation and Subsidiaries
Preliminary Condensed Unclassified Consolidated Balance Sheets
(In thousands and unaudited)
December 31, 2025
December 31, 2024
Cash and cash equivalents
$ 587,831
$ 325,355
Accounts receivable
828,844
733,365
Inventories
572,371
477,261
Property, plant and equipment, net
642,046
651,200
Intangible assets, net
558,179
567,906
Goodwill
1,340,081
1,295,720
Other assets
554,625
502,988
Total assets
$ 5,083,977
$ 4,553,795
Notes payable and debt
$ 1,407,445
$ 1,626,488
Other liabilities
1,115,290
1,098,800
Total liabilities
2,522,735
2,725,288
Total stockholders' equity
2,561,242
1,828,507
Total liabilities and stockholders' equity
$ 5,083,977
$ 4,553,795
Waters Corporation and Subsidiaries
Preliminary Condensed Consolidated Statements of Cash Flows
Three and Twelve Months Ended December 31, 2025 and December 31, 2024
(In thousands and unaudited)
Three Months Ended
Twelve Months Ended
December 31, 2025
December 31, 2024
December 31, 2025
December 31, 2024
Cash flows from operating activities:
Net income
$ 225,214
$ 231,398
$ 642,629
$ 637,834
Adjustments to reconcile net income to net
cash provided by operating activities:
Stock-based compensation
14,502
11,716
54,127
44,709
Depreciation and amortization
52,541
48,575
206,237
191,825
Change in operating assets and liabilities and other, net
(127,704)
(51,550)
(250,438)
(112,245)
Net cash provided by operating activities
164,553
240,139
652,555
762,123
Cash flows from investing activities:
Additions to property, plant, equipment
and software capitalization
(38,973)
(52,104)
(112,745)
(142,481)
Business acquisitions, net of cash acquired
-
-
(35,053)
-
Investments in unaffiliated companies
(6,000)
-
(7,295)
(1,489)
Net change in investments
-
(9)
-
(53)
Other cash flow from investing activities, net
2,840
-
2,840
Net cash used in investing activities
(42,133)
(52,113)
(152,253)
(144,023)
Cash flows from financing activities:
Net change in debt
(335)
(200,000)
(243,321)
(730,000)
Proceeds from stock plans
5,169
5,293
20,790
30,366
Purchases of treasury shares
(144)
(66)
(14,667)
(13,541)
Other cash flow from financing activities, net
(1,354)
1,195
(7)
16,500
Net cash provided by (used in) financing activities
3,336
(193,578)
(237,205)
(696,675)
Effect of exchange rate changes on cash and cash equivalents
2,957
(541)
(621)
7,920
Increase (decrease) in cash and cash equivalents
128,713
(6,093)
262,476
(70,655)
Cash and cash equivalents at beginning of period
459,118
330,514
325,355
395,076
Cash and cash equivalents at end of period
$ 587,831
$ 324,421
$ 587,831
$ 324,421
Reconciliation of GAAP Cash Flows from Operating Activities to Free Cash Flow (a)
Net cash provided by operating activities - GAAP
$ 164,553
$ 240,139
$ 652,555
$ 762,123
Adjustments:
Additions to property, plant, equipment
and software capitalization
(38,973)
(52,104)
(112,745)
(142,481)
Tax reform payments
-
-
120,006
95,645
Litigation settlements (received) paid, net
(375)
-
(2,625)
9,250
Payment of Wyatt retention bonus obligation (b)
-
-
20,127
19,770
Free Cash Flow - Adjusted Non-GAAP
$ 125,205
$ 188,035
$ 677,318
$ 744,307
(a)
The Company defines free cash flow as net cash flow from operations accounted for under GAAP less capital expenditures and software capitalizations plus or minus any unusual and non recurring items. Free cash flow is not a GAAP measurement and may not be comparable to free cash flow reported by other companies.
(b)
During the twelve months ended December 31, 2025 and 2024, the Company made retention payments under the Wyatt retention bonus program. The Company believes that these payments are not normal and do not represent future ongoing business expenses.
Waters Corporation and Subsidiaries
Reconciliation of Projected GAAP to Adjusted Non-GAAP Financial Outlook
(In millions, except per share data)
Twelve Months Ended
Three Months Ended
December 31, 2026
April 4, 2026
Range
Range
Projected revenue
Reported revenue
$ 6,405
-
$ 6,455
$ 1,198
-
$ 1,211
Impact of:
Acquired business contribution
$ 3,000
-
$ 3,000
$ 480
-
$ 480
Revenue synergies
$ 50
-
$ 50
$ -
-
$ -
Organic reported revenue
$ 3,355
-
$ 3,405
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