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what it is
Waters sells the machines and supplies labs use to test drugs, chemicals, and materials, then gets paid again to keep them running.
how it gets paid
Last year Waters made $3.2B in revenue.
why it's growing
Revenue grew 239.5% last year. Revenue rose 7% vs. prior year, while EPS came in at $4.53 versus a $4.50 estimate.
what just happened
Waters posted $932M in quarterly revenue and beat EPS estimates by a hair.
At a glance
A balance sheet — strong enough to weather a downturn
90/100 earnings predictability — you can trust these numbers
29.8x trailing p/e — priced about right
25.0% return on capital — every dollar works hard here
xvary composite: 69/100 — average
What they do
Waters sells the machines and supplies labs use to test drugs, chemicals, and materials, then gets paid again to keep them running.
Waters wins because your lab does not swap out core testing equipment on a whim. High switching costs (hard to replace validated workflows) mean leaving is painful once your methods are built around its systems. That stickiness helps support a 25.4% operating margin and 25.0% return on capital.
How they make money
$3.2B
annual revenue · their business grew +239.5% last year
total revenue
$3.2B
+239.5%
The products that matter
analytical instruments and supplies
instruments and consumables
$3.2B revenue · core business today
it is the business you are valuing right now: $3.2B in annual revenue with a 25.5% net margin.
core engine
maintenance, software, and support
services and software
recurring layer on the installed base
the page gives no standalone revenue figure here, but it sits on top of a $3.2B instrument base and helps make results more predictable.
stability layer
expanding into adjacent lab markets
bd biosciences acquisition
pending deal · ~$40B TAM
management says the deal could double the addressable market to around $40B. that is the story the stock is trading on.
the bet
Key numbers
25.0%
return on capital
Return on capital → profit earned on money invested → so what: Waters turns each dollar put into the business into unusually high profits.
25.4%
operating margin
Operating margin → profit after running the business → so what: this company keeps about a quarter of sales before interest and taxes.
$4.0B
2029 revenue est.
That implies a bigger company than today's $3.2B revenue base, but not a radically different one.
29.8x
trailing p/e
Trailing P/E → price divided by last year's earnings → so what: you are paying a premium for steadiness, not chaos.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 3 — safer than 50% of stocks
- price stability 65 / 100
- long-term debt $947M (4% of capital)
- net profit margin 26.4% — keeps 26 cents of every dollar in revenue
- return on equity 34% — $0.34 profit for every $1 investors have put in
A with balance sheet grade and net profit margin standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in WAT 3 years ago → it's now worth $11,720.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Waters posted $932M in quarterly revenue and beat EPS estimates by a hair.
Revenue rose 7% vs. prior year, while EPS came in at $4.53 versus a $4.50 estimate. The stranger part is that the latest verified quarterly EPS figure listed here is $3.77, so your data sources are already arguing.
$932M
revenue
$4.53
eps
n/a
n/a
the number that mattered
7% revenue growth matters more than the 0.67% EPS beat, because it tells you demand still held up while the company heads into a major deal.
-
q4 earnings beat, but the growth rate cooled.Waters posted $3.77 EPS on $932M of revenue. the beat was real. the acceleration was not, because EPS still slipped from a year ago.2025-12-31
-
the bd biosciences close is the whole story now.management expects the deal to close on or before march 31. the market is already treating the transaction like a second business before the paperwork is done.2026-03-31
source: company earnings report, 2026
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What could go wrong
the #1 risk is integrating bd's biosciences unit without breaking waters' margin profile.
med
deal execution
the bull case now runs through a pending acquisition. if closing slips past 2026-03-31, costs run high, or the new business is harder to fold in than expected, the market's patience gets shorter fast.
at 29.8x trailing earnings, investors are paying for smooth integration before they have seen it.
med
margin compression
full-year net margin was 25.5%, but the latest quarter printed 16.0%. one quarter is not a trend. if that gap does not narrow, the quality-multiple argument weakens.
this stock can absorb slow growth better than weak profitability. the valuation says quality is the product.
med
lab spending slowdown
instrument demand depends on pharma, biotech, academic, and industrial lab budgets. when customers delay purchases, new-system sales can slow even if service revenue holds up better.
that matters because this is still a $3.2B hardware-and-workflow business, not a pure software annuity.
med
multiple reset
the stock already trades at 29.8x earnings with a $390.90 share price. if the deal drags or margins do not recover, the market has room to de-rate the stock without changing the business.
that is the quiet part: the stock can look expensive even if the company stays good.
a delayed close, stubbornly lower margins, or softer lab spending would pressure the exact things supporting the stock today: a 25.5% full-year margin, 90/100 predictability, and a 29.8x earnings multiple.
source: institutional data · regulatory filings · risk analysis
Pay attention to
risk
bd acquisition close
the market already cares about the deal as if it is done. watch whether it closes on or before 2026-03-31 and whether management keeps the accretion story intact.
metric
post-close eps guide
the last standalone guide was $13.05–$13.15. if the first combined outlook does not move that earnings story up, investors may ask what they just paid for.
trend
margin recovery
quarterly net margin was 16.0% versus a 25.5% full-year margin. you want that gap closing, not becoming the new normal.
cal
next earnings update
that is where waters needs to show two things at once: the legacy business is still growing around the guided 6.5%–7.5% range, and the acquisition has not muddied the picture.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a normal setup here, not a near-term breakout.
risk profile
average
stability score 3 — this is not especially defensive and not especially fragile. it sits in the middle.
chart momentum
top 20%
technical score 2 — the tape has been better than average even if the fundamental debate is still about the deal.
earnings predictability
90 / 100
management usually gives reliable guidance. that matters more than usual when a pending acquisition is changing the story.
source: institutional data
Institutional activity
321 buyers vs. 387 sellers in 3q2025. total institutional holdings: 57.8M shares.
source: institutional data
Price targets
3-5 year target range
$300
$647
$391
current price
$474
target midpoint · +21% from current · 3-5yr high: $665 (+70% · 14% ann'l return)
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