Waters (WAT) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 and FY 2025 financial performance, with reported revenue up 7% and non-GAAP EPS up 10% in Q4 and 11% for the year, both at the high end of guidance.

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

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

• Integration planning is complete, with execution of synergy initiatives underway to support sustainable, industry-leading growth.

Financial highlights

• Q4 2025 sales reached $932M, up 7% reported (6% constant currency); non-GAAP EPS was $4.53 (up 10%), GAAP EPS $3.77.

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

• Recurring revenue grew 9% in Q4 and 8% for the year; chemistry product line up 12% for the year.

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

• Free cash flow was $125M in Q4 and $677M for the year; cash and cash equivalents at year-end were $588M.

Outlook and guidance

• 2026 organic constant currency revenue growth expected at 5.5%-7%; total reported revenue (including acquired business) guided to $6.405B-$6.455B.

• 2026 non-GAAP EPS guidance: $14.30-$14.50, up 8.9%-10.4%; adjusted operating margin expected at 28.1%.

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

• Net interest expense for 2026 expected at $179M; tax rate at 16.6%; average diluted shares 94.3M.