Waters Corporation
- Open
- 415.96
- Day high
- 419.40
- Day low
- 407.37
- Prev close
- 412.20
- Volume
- 28K
- Mkt cap
- $40.2B
- P/E (TTM)
- 101.8
- EPS (TTM)
- $4.02
- P/B
- 2.6
- P/S
- 8.7
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$1.4M over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions accumulating (13F)
Waters Corporation (WAT) is a Healthcare company listed on NYSE. The stock is up 41% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4). Drillr has 1 published research article covering WAT.
Waters Corporation (WAT) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 10 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
WAT earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 4, 2026 | $3.01 | $3.05 | +1.3% | $1.6B | +1.4% |
| May 5, 2026 | $2.31 | $2.70 | +16.9% | $1.3B | +5.3% |
| Feb 12, 2025 | $4.03 | $4.10 | +1.7% | $873M | +1.8% |
| Nov 1, 2024 | $2.68 | $2.93 | +9.3% | $740M | +3.8% |
| Jul 31, 2024 | $2.56 | $2.63 | +2.7% | $709M | +1.2% |
| Aug 2, 2023 | $2.59 | $2.80 | +8.1% | $741M | +0.8% |
| Feb 15, 2023 | $3.73 | $3.84 | +2.9% | $859M | +2.6% |
| Nov 1, 2022 | $2.57 | $2.64 | +2.7% | $709M | +4.2% |
| Aug 2, 2022 | $2.66 | $2.75 | +3.4% | $714M | +1.0% |
| May 3, 2022 | $2.32 | $2.80 | +20.7% | $691M | +8.9% |
| Feb 1, 2022 | $3.47 | $3.67 | +5.8% | $836M | +1.9% |
| Nov 2, 2021 | $2.35 | $2.66 | +13.2% | $659M | +0.8% |
WAT insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 7, 2026 | KUEBLER CHRISTOPHER Adirector | Sell | 3,626 | $397.94 |
| Aug 7, 2026 | KUEBLER CHRISTOPHER Adirector | Option | 3,626 | $136.43 |
| Jul 2, 2026 | Knight Heatherdirector | Grant | 63 | — |
| Jul 2, 2026 | Jiang Weidirector | Grant | 67 | — |
| Jun 25, 2026 | Carpio Robert L IIIofficer: SVP Waters Analytical Sciences | Tax | 189 | $369.18 |
| May 14, 2026 | Chaubal Amolofficer: SVP & Chief Financial Officer | Tax | 239 | $352.21 |
| Apr 7, 2026 | Bennett Jianqingofficer: SVP Waters Adv. Diagnostics | Tax | 302 | $304.09 |
| Apr 2, 2026 | Jiang Weidirector | Grant | 64 | — |
| Apr 2, 2026 | Knight Heatherdirector | Grant | 68 | — |
| Mar 10, 2026 | FEARON RICHARD Hdirector | Buy | 1,000 | $306.34 |
| Feb 27, 2026 | Huang Pearl Sdirector | Grant | 23 | — |
| Feb 27, 2026 | Knight Heatherdirector | Grant | 23 | — |
| Feb 27, 2026 | Fraser Clairedirector | Grant | 877 | $319.44 |
| Feb 27, 2026 | Huang Pearl Sdirector | Grant | 57 | $319.44 |
| Feb 27, 2026 | FEARON RICHARD Hdirector | Grant | 23 | — |
Source: WAT SEC Form 4 filings, latest Aug 7, 2026. For informational purposes only — not investment advice.
See the full WAT insider & 13F page →Waters Corporation company profile
Overview
Waters Corporation (NYSE:WAT) is a specialty measurement company founded in 1958 and headquartered in Milford, Massachusetts. The company went public in 1995 and has established itself as a leading provider of analytical workflow solutions serving laboratory applications across pharmaceutical, industrial, academic, and governmental sectors worldwide. Waters operates through two primary segments: Waters (analytical instruments) and TA (thermal analysis), delivering high-performance liquid chromatography, mass spectrometry, and thermal analysis systems to customers in Asia, the Americas, and Europe.
Business
Waters Corporation operates in the analytical instruments industry, which serves as critical infrastructure for scientific research, quality control, and regulatory compliance across multiple sectors. The company's core business revolves around liquid chromatography (LC) and mass spectrometry (MS) technologies - sophisticated analytical tools that separate, identify, and quantify chemical compounds in various samples. Liquid chromatography is a laboratory technique that separates mixtures by passing them through a column filled with specialized materials, allowing different components to travel at different speeds and thus be isolated. Mass spectrometry then identifies these separated compounds by measuring their molecular weights and structural characteristics. Together, these technologies enable scientists to detect trace amounts of substances, analyze drug purity, identify contaminants, and characterize complex biological molecules. The company operates through two main segments: 1. Waters segment (approximately 85-90% of revenue): This segment designs, manufactures, and services high-performance liquid chromatography (HPLC), ultra-performance liquid chromatography (UPLC), and mass spectrometry systems. Key products include the Alliance iS HPLC system, Xevo TQ Absolute mass spectrometer, and ACQUITY UPLC systems. The segment also provides chromatography columns, consumables, and post-warranty service plans. 2. TA segment (approximately 10-15% of revenue): This segment focuses on thermal analysis, rheometry, and calorimetry instruments that measure how materials respond to temperature changes, stress, and other physical conditions. These instruments help predict the stability and suitability of pharmaceuticals, polymers, metals, and other materials. Waters' products serve three primary end markets: pharmaceutical companies (representing the largest portion of revenue), industrial manufacturers, and academic/government institutions. The pharmaceutical segment includes both large molecule biologics testing and traditional small molecule drug analysis, with over one-third of pharma revenues now coming from large molecule applications.
Revenue model
Waters Corporation operates a diversified revenue model combining equipment sales with recurring revenue streams. The company generates income through several channels: Instrument Sales: Waters sells high-value analytical instruments ranging from tens of thousands to hundreds of thousands of dollars per system. These capital equipment sales are typically project-based and subject to customer budget cycles, with pharmaceutical companies, industrial manufacturers, and research institutions as primary purchasers. Recurring Revenue Streams (approximately 60% of total revenue): This includes consumables like chromatography columns and chemicals, plus service contracts. The consumables business benefits from the installed base of instruments requiring ongoing supplies, while service contracts provide maintenance, calibration, and technical support. Service contract penetration exceeds 50% of the installed base, with the company targeting 55% penetration. Software and Workflow Solutions: Waters develops proprietary software that interfaces with both its own instruments and third-party equipment, creating additional revenue opportunities and customer stickiness. Several factors influence Waters' profitability margins. Positive margin drivers include the company's focus on high-value applications like PFAS testing and GLP-1 drug analysis, pricing power in specialized markets, operational leverage from volume growth, and the high-margin nature of consumables and service revenues. The company has demonstrated ability to expand margins through productivity initiatives and pricing strategies that have yielded above-historical contributions. Margin pressures come from competitive dynamics in commodity testing applications, foreign exchange fluctuations, supply chain cost inflation, and tariff impacts. The company recently faced a gross tariff impact of $45 million but implemented mitigation strategies to limit the net impact to $10 million on operating margins. Economic downturns also affect instrument replacement cycles, as customers defer capital equipment purchases during uncertain periods.
Competitive moat
Waters Corporation maintains a moderate to strong competitive moat built on several defensive characteristics. The company's primary moat stems from its installed base and switching costs - once laboratories implement Waters' systems, the cost and complexity of switching to competitors is substantial due to method validation requirements, staff training, and regulatory compliance considerations. This creates significant customer stickiness, particularly in heavily regulated pharmaceutical applications. Technical expertise and innovation represent another moat component. Waters has developed specialized applications in high-growth areas like PFAS testing (growing 90% in Q1 2025), GLP-1 drug analysis, and large molecule characterization. The company's deep application knowledge and ability to provide complete workflow solutions rather than just instruments creates differentiation from competitors. The service and support infrastructure provides additional competitive advantages, particularly as Waters expands globally. The company's service organization enables rapid response to customer needs, which is critical for laboratories running continuous operations. However, Waters faces meaningful competitive threats that limit the strength of its moat. Large competitors like Thermo Fisher Scientific, Agilent Technologies, and Shimadzu possess substantial resources and broad product portfolios. The analytical instruments market is mature with established players, making market share gains challenging. Technology disruption poses a longer-term risk, as alternative analytical techniques or automation could potentially reduce demand for traditional LC-MS systems. Additionally, the company's dependence on pharmaceutical industry spending creates vulnerability to sector-specific downturns or regulatory changes that could affect testing requirements. Overall, Waters operates in a defensible niche with meaningful barriers to entry, but the moat is not insurmountable and requires continuous innovation and customer relationship management to maintain.
Risks & safety
Waters Corporation demonstrates solid financial stability with manageable debt levels and strong cash generation, though valuation metrics suggest limited margin of safety at current prices. Liquidity and Solvency: • Cash and short-term investments: $383 million (Q1 2025) • Current ratio: 1.81x indicating adequate short-term liquidity • Debt-to-equity ratio: 0.78x, representing moderate leverage • Free cash flow: $234 million in Q1 2025, demonstrating strong cash generation • Operating cash flow consistently positive across reporting periods Valuation Metrics: • Price-to-earnings ratio: 44.3x (Q1 2025) - significantly elevated • EV/EBITDA: 37.4x - indicating expensive valuation • Price-to-book ratio: 11.0x - well above historical norms • Graham number suggests intrinsic value around $39, well below current trading price Other Considerations: • Revenue stability supported by 60% recurring revenue base • Strong market position in specialized applications provides some downside protection • Exposure to cyclical instrument replacement cycles creates earnings volatility • Geographic diversification reduces single-market dependency risk
Recent development
Over the past few years, Waters Corporation has executed several strategic initiatives to strengthen its market position and drive growth. The company completed a significant acquisition of Wyatt Technology for $1.36 billion in 2022, adding light scattering technology capabilities and expanding its presence in large molecule applications. This acquisition was expected to contribute 60+ basis points to annual growth and generate $70 million in revenue synergies by year five. Product innovation has been a key focus, with successful launches including the Alliance iS next-generation HPLC platform (now representing 20% of HPLC revenue), the Xevo TQ Absolute mass spectrometer (achieving 50% of tandem quad revenue), and MaxPeak Premier columns. These new products have gained strong market traction and contributed to the company's return to instrument growth after seven quarters of decline. Waters has strategically positioned itself in high-growth application areas including PFAS testing (growing 40-90% across recent quarters), GLP-1 drug analysis, and generics manufacturing in emerging markets like India. The company has also expanded its capabilities in large molecule characterization, with over one-third of pharmaceutical revenues now coming from biologics applications. The company has demonstrated operational resilience through challenging market conditions, maintaining strong margins through productivity initiatives, pricing strategies, and cost management. Management has successfully navigated supply chain disruptions, tariff impacts, and geographic market weakness, particularly in China, while preparing for the anticipated instrument replacement cycle recovery. Service expansion has been another strategic priority, with service contract penetration exceeding 50% of the installed base and targeting 55%. This focus on recurring revenue streams provides stability and higher margins while strengthening customer relationships.
WAT company profile · for informational purposes only — not investment advice.
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