Waters Corporation Exceeds Expectations in Q2 2025, Raises Full-Year Guidance

Waters Corporation (NYSE: WAT) has reported impressive financial results for the second quarter of 2025, surpassing expectations with strong sales and earnings. The company has also raised its full-year guidance, indicating confidence in continued growth.

Waters Corporation Reports Better-than-Expected Q2 2025 Results

Waters Corporation has reported a robust performance for the second quarter of 2025, with sales reaching $771 million, marking a 9% increase as reported and 8% in constant currency compared to the same period last year. This figure exceeded the company’s guidance range and surpassed market expectations, which had anticipated sales of $748.04 million.

The company’s success was driven by a mid-single-digit growth in instruments, particularly in liquid chromatography (LC) and mass spectrometry (MS), with significant contributions from large pharmaceutical and contract development and manufacturing organization (CDMO) customers.

On the earnings front, Waters Corporation reported a non-GAAP EPS of $2.95, which exceeded the market’s expectation of $2.94. The GAAP EPS was $2.47, slightly higher than the $2.40 reported in the second quarter of 2024.

The company’s strong performance reflects successful execution against its commercial growth initiatives and the rapid uptake of new products. Recurring revenue also showed impressive growth, with an 11% increase in constant currency, supported by 9% service growth and double-digit chemistry growth.

Pharmaceutical sales grew by 11% in constant currency, while industrial sales increased by 6%. The academic and government sector, despite a 3% decline, performed better than anticipated. Overall, the company’s strong quarterly performance underscores its robust business model and effective strategic execution, positioning it well for future growth.

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Waters Corporation Raises Full-Year 2025 Guidance

Looking ahead, Waters Corporation has raised its full-year 2025 guidance, reflecting confidence in its ongoing growth trajectory. The company now expects constant currency sales growth to be in the range of 5.5% to 7.5%, up from previous estimates.

This adjustment is based on the company’s strong year-to-date performance and positive market conditions. Additionally, the reported sales growth is projected to be between 5.0% and 7.0%, considering currency translation impacts.

The company has also increased its full-year non-GAAP EPS guidance to a range of $12.95 to $13.05, representing a year-over-year growth of approximately 9% to 10% on a reported basis and 10% to 11% in constant currency. For the third quarter of 2025, Waters anticipates constant currency sales growth of 5.0% to 7.0% and non-GAAP EPS in the range of $3.15 to $3.25, reflecting an 8% to 11% increase year-over-year.

Strategically, Waters Corporation is focused on leveraging its core business strengths and expanding into high-growth adjacencies. The recent combination with BD Biosciences & Diagnostic Solutions is expected to accelerate the company’s strategy and extend its reach into high-volume markets.

Integration planning is underway, and the company is confident in its ability to drive substantial shareholder value through synergies and operational efficiencies. With a solid foundation and a clear strategic direction, Waters Corporation is well-positioned for continued success in the coming quarters.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.