Waters Corporation
WATFinancial Snapshot
ticker: WAT step: 04 generated: 2026-05-12 source: quick-research
Waters Corporation (WAT) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | $2.97B | $2.96B | $2.96B | flat |
| Gross Margin | ~55% | ~54% | ~55% | |
| Operating Margin | ~27% | ~26% | ~26% | |
| Net Income | ~$680M | ~$650M | ~$640M | |
| EPS (diluted, non-GAAP) | ~$12.02 | ~$11.75 | ~$11.86 | +1% |
Revenue was essentially flat from FY2022–FY2024, reflecting pharma customer destocking cycles, China demand softness, and cautious capital equipment budgets. FY2025 returned to growth at $3.165B (+7% YoY) as pharma capex recovered. Post-BD acquisition, FY2026 revenue guidance is $6.405B–$6.455B (scale roughly doubled).
Cash Flow & Balance Sheet (FY2024, Pre-Acquisition)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$850M |
| Free Cash Flow | ~$700M |
| Capital Expenditures | ~$150M |
| Cash & Equivalents | ~$400M |
| Total Debt | ~$1.6B (pre-BD); ~$10B+ post-acquisition |
Post-BD acquisition ($17.5B deal), Waters took on substantial debt to finance the combination. FY2026 leverage profile is a key investor focus.
Key Ratios (approximate, pre-BD acquisition)
- P/E: ~27x (non-GAAP) | EV/EBITDA: ~18x | FCF Yield: ~3.5%
- Revenue Growth (FY2025): +7% | FCF Margin: ~24% | Recurring Revenue: ~65%+
Growth Profile
Waters' revenue stagnated from FY2022 to FY2024 as pharma customer destocking and China regulatory headwinds (DRG reforms) suppressed instrument demand across the analytical instruments sector. The company's recurring consumables and services base (~65% of revenue) provided stability even as instrument sales slowed. FY2025 marked a recovery inflection (+7%), driven by pharma capex renewal and new product cycles (MaxPeak Premier columns, Xevo TQ-XS mass spectrometers). The BD acquisition in early 2026 transforms Waters into a multi-platform life sciences tools company at approximately twice the previous scale.
Forward Estimates
- FY2025 Revenue: $3.165B (actual, +7% YoY)
- FY2026 Revenue Guidance: $6.405B–$6.455B (includes full BD contribution; the BD assets generated $520M revenue in the quarter after closing)
- FY2026 Adjusted EPS Guidance (raised): $14.40–$14.60 (double-digit growth vs. FY2025)
- Analyst consensus: 16 analysts, average "Buy" rating, average price target ~$390 (~18% upside)
- Synergy targets from BD combination: $55M cost synergies + $50M revenue synergies in near-term
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $WAT.