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Waters Corporation: Core Growth, Biosciences Integration & Margin Upside—What’s The Real Story Behind The Numbers?

Waters Corporation reported a strong finish to fiscal year 2025, highlighted by 7% reported revenue growth and low double-digit adjusted earnings per share (EPS) growth in the fourth quarter. Full-year revenue increased 7% on both reported and constant currency bases, supported by high single-digit growth in both pharmaceutical and industrial end markets. Adjusted EPS for the year rose 11% to $13.13, driven by operational excellence, top-line strength, and tariff mitigation. GAAP EPS was $10.76 for the full year. The company attributed growth drivers to innovation, expanding high-volume testing opportunities (such as GLP-1s, PFAS, and India generics), instrument replacement momentum, and strategic shifts like transitioning their Empower informatics platform to a subscription model. Recurring revenue grew 8% for the year, with chemistry-related products showing 12% growth. Instrument revenue expanded 5%, chiefly driven by LC-MS platforms demonstrating consistent high-single-digit growth.