Waters Corp (WAT)
NYSE:WAT
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Waters
(NYSE:WAT)
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Rating:69Neutral
Price Target:
$420.00
▲(28.14% Upside)
Action:Reiterated
Date:05/23/26
The score is driven primarily by a strong earnings-call setup (beats, raised guidance, and defined synergy targets) and supportive technical trend signals (price above key moving averages with constructive momentum). Offsetting these positives, financial performance is mixed due to sharp margin compression and significantly weaker free-cash-flow trends, while valuation is pressured by a negative P/E and no dividend yield support in the provided data.
Positive Factors
Installed base and recurring revenue
A large installed base with 22,000 instruments primed for replacement underpins durable recurring revenue from consumables, service contracts and attachments. Replacement cycles and higher service attach rates create predictable, higher-margin cash flows that support long-term revenue stability and margin recovery.
Negative Factors
Margin compression and weaker cash generation
Sharp margin erosion and a large decline in free cash flow (FCF) reduce the company's ability to self‑fund R&D, integration and capital expenditures. Lower FCF conversion (≈68% of net income) and compressed margins also depress ROE and limit strategic optionality until margins sustainably recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Installed base and recurring revenue
A large installed base with 22,000 instruments primed for replacement underpins durable recurring revenue from consumables, service contracts and attachments. Replacement cycles and higher service attach rates create predictable, higher-margin cash flows that support long-term revenue stability and margin recovery.
Read all positive factors
Waters Key Performance Indicators (KPIs)
Any
Total Recurring Revenue
Measures the revenue from ongoing customer subscriptions or services, indicating the stability and predictability of the company’s income stream.
Measures the revenue from ongoing customer subscriptions or services, indicating the stability and predictability of the company’s income stream.
Data provided by:
The Fly
The FlyWaters (WAT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.32B
Dividend YieldN/A
Average Volume (3M)1.13M
Price to Earnings (P/E)65.0
Beta (1Y)0.76
Revenue Growth26.39%
EPS Growth-28.79%
CountryUS
Employees7,600
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)7.88
Shares Outstanding98,185,850
10 Day Avg. Volume1,155,056
30 Day Avg. Volume1,134,892
Financial Highlights & Ratios
PEG Ratio75.62
Price to Book (P/B)8.83
Price to Sales (P/S)7.14
P/FCF Ratio41.87
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue7.99
Enterprise Value/Gross Profit14.52
Enterprise Value/Ebitda32.57
Forecast
1Y Price Target
$389.53Price Target Upside18.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)14.52
Revenue Forecast (FY)$6.44B
Waters Business Overview & Revenue Model
Company Description
Waters Corporation is a global leader in specialized measurement, delivering analytical solutions across Asia, the Americas, and Europe. The company operates through two main divisions: Waters and TA. Under its Waters segment, it engineers, manufa...
How the Company Makes Money
Waters makes money primarily by selling analytical instruments and the recurring products and services that support those systems over their operating life. Key revenue streams include: (1) Instrument sales: Revenue from the sale of LC, LC-MS/MS, ...
Waters Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive picture: strong combined‑company Q1 results with double‑digit organic growth in legacy businesses, a meaningful EPS beat (+20%), margin outperformance, an above‑plan start for the acquired BD businesses, and raised full‑year guidance. Management also outlined concrete integration actions (180‑day plan), product/regulatory wins, and synergy targets with clear timelines. Offsetting risks include a $20M respiratory headwind, notable China DRG and export constraints that drove declines in parts of the acquired businesses, Q1 GAAP acquisition‑related charges and modest free cash flow impacted by transaction costs, and prudent conservatism baked into the back‑half guide. Overall the positives—beats, raised guidance, tangible synergy progress and product/regulatory milestones—materially outweigh the near‑term operational and geographic headwinds.Positive Updates
Strong Combined Revenue and Organic Growth
Total reported Q1 revenue $1.267B; organic revenue $747M and grew 13% as reported / 11% constant currency versus Q1 2025; orders outpaced sales.
Negative Updates
Respiratory Testing Headwind
Respiratory testing weakness (weak flu season) created a ~$20M headwind in the quarter; company estimates a ~4.5% respiratory-related drag on divisional pro forma growth in the full quarter for Advanced Diagnostics.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Combined Revenue and Organic Growth
Total reported Q1 revenue $1.267B; organic revenue $747M and grew 13% as reported / 11% constant currency versus Q1 2025; orders outpaced sales.
Read all positive updates
Company Guidance
Guidance: Waters raised full‑year 2026 organic constant‑currency revenue growth to 6.5%–8% (embedding $15M of mass‑spec cross‑sell revenue synergies), expects the acquired Biosciences and Diagnostic Solutions to generate ~ $3.035B of reported 2026 revenue (including $35M of revenue synergies), and sees total 2026 reported revenue of ~$6.405B–$6.455B; adjusted EPS guidance was nudged up $0.10 to $14.40–$14.60 (implying 10%–11% EPS growth), adjusted EBIT margin is expected to be 28.2% for 2026, net interest expense ~ $186M, and an ongoing tax rate of ~16%; near‑term targets include $55M of cost synergies in 2026 and ~$50M of revenue synergies this year (split into the $35M and $15M noted above). For Q2, Waters expects organic constant‑currency growth of 6%–8% (FX ≈ 0.5% headwind) -> organic reported revenue $814M–$829M, Biosciences & Diagnostic Solutions revenue ~ $802M, total reported Q2 revenue $1.616B–$1.631B, and Q2 adjusted EPS of $2.95–$3.05.Waters Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
68
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.77B | 3.17B | 2.96B | 2.96B | 2.97B | 2.79B |
| Gross Profit | 2.07B | 1.83B | 1.76B | 1.76B | 1.72B | 1.63B |
| EBITDA | 924.47M | 1.01B | 1.04B | 1.00B | 1.02B | 982.81M |
| Net Income | 449.25M | 642.63M | 637.83M | 642.23M | 707.75M | 692.84M |
Balance Sheet | ||||||
| Total Assets | 24.53B | 5.08B | 4.55B | 4.63B | 3.28B | 3.09B |
| Cash, Cash Equivalents and Short-Term Investments | 462.00M | 587.83M | 325.36M | 395.97M | 481.39M | 569.28M |
| Total Debt | 5.57B | 1.49B | 1.70B | 2.44B | 1.66B | 1.60B |
| Total Liabilities | 9.24B | 2.52B | 2.73B | 3.48B | 2.78B | 2.73B |
| Stockholders Equity | 15.29B | 2.56B | 1.83B | 1.15B | 504.49M | 367.55M |
Cash Flow | ||||||
| Free Cash Flow | 264.00M | 539.81M | 619.64M | 442.18M | 428.20M | 579.01M |
| Operating Cash Flow | 390.00M | 652.55M | 762.12M | 602.81M | 611.66M | 747.27M |
| Investing Cash Flow | -31.00M | -152.25M | -144.02M | -1.44B | -107.97M | -231.63M |
| Financing Cash Flow | -276.96M | -237.21M | -696.67M | 754.95M | -509.63M | -438.27M |
Waters Technical Analysis
Positive
327.77
Price Trends
336.78
Positive
332.92
Positive
343.61
Positive
Market Momentum
8.43
Positive
51.39
Neutral
7.49
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WAT, the sentiment is Positive. The current price of 327.77 is below the 20-day moving average (MA) of 356.75, below the 50-day MA of 336.78, and below the 200-day MA of 343.61, indicating a neutral trend. The MACD of 8.43 indicates Positive momentum. The RSI at 51.39 is Neutral, neither overbought nor oversold. The STOCH value of 7.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WAT.
Waters Risk Analysis
Waters disclosed 2 risk factors in its most recent earnings report. Waters reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Waters Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $44.01B | 41.02 | 70.87% | ― | 13.08% | 25.40% | |
71 Outperform | $36.59B | 25.99 | 20.84% | 0.72% | 9.11% | 22.77% | |
69 Neutral | $35.32B | 65.00 | 8.04% | ― | 26.39% | -28.79% | |
69 Neutral | $127.96B | 34.56 | 7.06% | 0.53% | 4.02% | 0.05% | |
67 Neutral | $176.77B | 25.45 | 13.26% | 0.30% | 5.36% | 6.54% | |
64 Neutral | $23.06B | 26.23 | -610.32% | ― | 6.78% | 6.19% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
WAT
Waters
355.53
7.72
2.22%
A
Agilent
129.84
11.79
9.99%
DHR
Danaher
180.10
-19.63
-9.83%
IDXX
Idexx Laboratories
560.88
32.11
6.07%
MTD
Mettler-Toledo
1,131.49
-51.36
-4.34%
TMO
Thermo Fisher
469.34
65.33
16.17%
Waters Corporate Events
Executive/Board ChangesShareholder Meetings
Waters Shareholders Reelect Board and Ratify Auditor
Positive
May 22, 2026
At its annual meeting of stockholders held on May 21, 2026, Waters Corporation reported that approximately 90.7 million shares, or 92.4% of shares entitled to vote, were present or represented by proxy, indicating strong shareholder participation....
Business Operations and StrategyPrivate Placements and Financing
Waters Subsidiary Completes $3.5 Billion Senior Notes Offering
Positive
Mar 23, 2026
On March 23, 2026, Augusta SpinCo Corporation, a subsidiary of Waters Corporation, completed a $3.5 billion public offering of senior unsecured notes across multiple maturities, all fully and unconditionally guaranteed by Waters and certain of its...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Waters Details Financial Impact of Recent SpinCo Acquisition
Positive
Mar 16, 2026
Waters Corporation has filed a current report in connection with an upcoming Form S-3 shelf registration and has furnished detailed historical and pro forma financial information related to Becton, Dickinson and Company’s former Biosciences ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.