Waters (WAT) 44th Annual J.P. Morgan Healthcare Conference summary

Transformation and Business Model Evolution

• Five-year transformation increased commercial strength, innovation, and entry into high-growth adjacencies, enabling the acquisition of BD's Bioscience and Diagnostics business.

• Business model centers on complex instrumentation, regulated software, chemistry/consumables, and a high-performing service team, applied in volume-driven, regulated markets.

• Outlined a simple, repeatable business model focused on chromatography, mass spectrometry, and informatics, with a strong installed base and high customer satisfaction.

• Five execution initiatives (instrument replacement, service attach, e-commerce, contract orgs, R&D) drove commercial momentum and innovation, with significant annual improvements.

• Innovation highlights include Alliance iS (LC), Xevo TQ Absolute (mass spec), and MaxPeak Premier columns, all showing strong growth and industry leadership.

Market Positioning and Growth Opportunities

• Expansion from core markets (pharma QAQC, food/environmental safety) into biologics, specialty diagnostics, and battery testing, growing total addressable market to $19–$20 billion.

• Built new vectors of core growth accretion, with organic expansion into bioanalytical characterization and bioseparations, and strong contributions from GLP-1s, PFAS, and generics.

• Commercial execution KPIs show rising instrument replacement, service plan attachment, and eCommerce adoption, with robust product launch momentum.

• New growth vectors include bioanalytical characterization, bioseparations, and LC-MS in diagnostics, with strong organic and inorganic portfolio expansion.

• Acquisitions (Halo Labs, Wyatt Labs) and idiosyncratic drivers (GLP-1, PFAS, generics in India) add over 250 basis points to growth, exceeding prior targets.

Financial Performance and Outlook

• Achieved best-in-class financials: $3.1B TTM revenue, 8% organic constant-currency growth, 30.4% adjusted operating margin, and 12% adjusted EPS growth.

• Industry-leading financial profile: 8% growth (vs. 5% peer), 180 bps higher operating margin, and double-digit EPS growth.

• Five-year guidance: 7% revenue CAGR, 500 bps margin expansion, and mid-teen EPS growth, outpacing peers.

• Expects continued strong instrument replacement and incremental growth from idiosyncratic drivers (GLP-1s, PFAS, generics, biologics, informatics) contributing 200bps+ annual core growth from 2026–2030.

• Maintains a high proportion of recurring revenue and industry-leading gross and operating margins.