Waters (WAT) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 and FY 2025 financial performance, with reported revenue up 7% and adjusted/non-GAAP EPS up 11%, both at the high end of guidance.

• Completed acquisition of BD's Biosciences and Diagnostic Solutions, positioning the company for accelerated value creation, synergy realization, and expanded capabilities.

• Innovation and commercial execution, including new product launches and high-growth adjacencies, drove above-market growth.

• Integration planning for the acquisition is complete, with immediate execution of synergy initiatives underway.

• Entering 2026 with strong momentum, a revitalized portfolio, and industry-leading growth guidance.

Financial highlights

• Q4 2025 sales: $932M, up 7% reported and 6% constant currency; adjusted/non-GAAP EPS $4.53 (GAAP EPS $3.77).

• Full-year 2025 sales: $3.165B, up 7% reported and constant currency; adjusted/non-GAAP EPS $13.13 (GAAP EPS $10.76), both up 11% YoY.

• Recurring revenue up 9% in Q4 and 8% for the year, led by chemistry (12% growth).

• Instrument revenue up 3% in Q4 and 5% for the year; LCMS led high single-digit growth.

• Gross margin: 61.1% for Q4, 59.3% for the year; adjusted operating margin: 35.2% for Q4, 30.5% for the year.

Outlook and guidance

• 2026 combined company revenue guidance: $6.405B–$6.455B, including $3B from acquired business and $50M in revenue synergies, implying 5.3% blended YoY growth.

• Adjusted/non-GAAP EPS guidance for 2026: $14.30–$14.50 (8.9%–10.4% growth); adjusted operating margin expected at 28.1%.

• Q1 2026 revenue guidance: $1.198B–$1.211B; adjusted/non-GAAP EPS: $2.25–$2.35.

• Standalone organic constant currency revenue growth for 2026: 5.5%–7%.

• Interest expense for 2026 projected at $179M; tax rate at 16.6%.