Waters Corporation Reports Strong Q2 Results, Revises Financial Guidance for 2025
Waters Corporation (NYSE: WAT) has unveiled its financial performance for the second quarter of 2025, showcasing notable achievements in sales and earnings. The quarter ended June 28, 2025, witnessed a revenue of $771 million, marking a remarkable 9% increase compared to the previous year, or an 8% rise when adjusting for constant currency. This success has led the company to exceed its previously set guidance range, reflecting strong underlying growth dynamics.
In terms of earnings, the diluted earnings per share (EPS) for the second quarter reached $2.47, which represents an increase from $2.40 in the equivalent quarter of 2024. Furthermore, the non-GAAP EPS surged to $2.95, up from $2.63 the previous year, growing by an impressive 12%. This performance underscores effective execution by the Waters team, aimed at capitalizing on market opportunities. According to Dr. Udit Batra, President and CEO of Waters Corporation, the ongoing trend of instrument replacements, particularly among large pharmaceutical companies and contract development and manufacturing organizations (CDMOs), significantly contributed to this positive result.
Breaking down the success further, the recurring revenue grew robustly at 11% in constant currency, driven by a 9% increase from services and a notable expansion in chemistry sales. The Pharma segment experienced a solid growth of 11%, while the Industrial sector followed closely with a 6% rise. Conversely, the Academic and Government sectors declined by 3%, although this performance surpassed expectations.
Given the strong quarterly results, Waters has upgraded its full-year financial projections for 2025. The constant currency sales growth guidance has been raised to between 5.5% and 7.5%, while the non-GAAP EPS guidance is now set at $12.95 to $13.05, reflecting an anticipated year-over-year growth of approximately 9% to 10%.
The company aims to leverage its robust core business as a platform for further expansion. The collaboration with BD Biosciences will accelerate their strategy across various high-growth adjacent markets, extending their influence into resilient end-markets. Preparation for integration is underway, showcasing the leadership capabilities of Chris Ross, who will spearhead this effort. This collaboration is expected to foster significant value creation for shareholders by realizing synergies promptly.
Waters Corporation hosted a webcast detailing these results and discussing future strategies on August 4, 2025, allowing stakeholders to gain insights directly. This transparency is a reflection of the company’s commitment to maintaining investor relations and providing essential updates on their business performance. The anticipated third quarter of 2025 is projected to see constant currency sales growth between 5% and 7%, with reported growth expected in the range of 4.5% to 6.5%. As the market dynamics evolve and Waters continues to innovate, investors remain optimistic about the company's trajectory amidst global challenges.
In conclusion, Waters Corporation's second quarter performance has not only outstripped prior expectations but has also painted an optimistic picture for the remainder of the fiscal year. With strategic initiatives geared towards future growth, the company stands to reinforce its position as a leader in the analytical instruments industry. For more information, stakeholders can explore the full financial reports and guidance available on the Waters Corporation corporate website.
Financial Highlights
In terms of earnings, the diluted earnings per share (EPS) for the second quarter reached $2.47, which represents an increase from $2.40 in the equivalent quarter of 2024. Furthermore, the non-GAAP EPS surged to $2.95, up from $2.63 the previous year, growing by an impressive 12%. This performance underscores effective execution by the Waters team, aimed at capitalizing on market opportunities. According to Dr. Udit Batra, President and CEO of Waters Corporation, the ongoing trend of instrument replacements, particularly among large pharmaceutical companies and contract development and manufacturing organizations (CDMOs), significantly contributed to this positive result.
Segment Performance
Breaking down the success further, the recurring revenue grew robustly at 11% in constant currency, driven by a 9% increase from services and a notable expansion in chemistry sales. The Pharma segment experienced a solid growth of 11%, while the Industrial sector followed closely with a 6% rise. Conversely, the Academic and Government sectors declined by 3%, although this performance surpassed expectations.
Revised Projections
Given the strong quarterly results, Waters has upgraded its full-year financial projections for 2025. The constant currency sales growth guidance has been raised to between 5.5% and 7.5%, while the non-GAAP EPS guidance is now set at $12.95 to $13.05, reflecting an anticipated year-over-year growth of approximately 9% to 10%.
Growth Strategy
The company aims to leverage its robust core business as a platform for further expansion. The collaboration with BD Biosciences will accelerate their strategy across various high-growth adjacent markets, extending their influence into resilient end-markets. Preparation for integration is underway, showcasing the leadership capabilities of Chris Ross, who will spearhead this effort. This collaboration is expected to foster significant value creation for shareholders by realizing synergies promptly.
Conference Call and Future Outlook
Waters Corporation hosted a webcast detailing these results and discussing future strategies on August 4, 2025, allowing stakeholders to gain insights directly. This transparency is a reflection of the company’s commitment to maintaining investor relations and providing essential updates on their business performance. The anticipated third quarter of 2025 is projected to see constant currency sales growth between 5% and 7%, with reported growth expected in the range of 4.5% to 6.5%. As the market dynamics evolve and Waters continues to innovate, investors remain optimistic about the company's trajectory amidst global challenges.
In conclusion, Waters Corporation's second quarter performance has not only outstripped prior expectations but has also painted an optimistic picture for the remainder of the fiscal year. With strategic initiatives geared towards future growth, the company stands to reinforce its position as a leader in the analytical instruments industry. For more information, stakeholders can explore the full financial reports and guidance available on the Waters Corporation corporate website.
Topics Financial Services & Investing）
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