Waters Q3 Earnings Surpass Estimates, Revenue Increase Y/Y

Waters Corporation WAT reported third-quarter 2025 non-GAAP earnings of $3.40 per share, beating the Zacks Consensus Estimate by 5.92% and increasing 16% year over year. Net sales of $800 million topped the Zacks Consensus Estimate by 2.59%. The figure increased by 8% both on a reported basis and on a constant currency (cc) basis year over year.Waters’ Q3 Top Line in DetailWAT operates under two organized segments: Waters and TA. The Waters segment generated sales worth $713.4 million, up 9% both on a reported and cc basis, year over year. Sales in the TA segment were $86.5 million, reflecting year-over-year growth of 2% both on a reported and cc basis.Products & Services: The division comprises three segments: Instruments, Services, and Chemistry. Instruments sales were $341.5 million, increased 6% on a reported and cc basis, year over year. Services sales were $299.9 million, which increased 8% year over year on a reported basis and 7% at cc. Chemistry sales were $158.5 million, which grew 14% on a reported basis and 13% at cc, year over year. The Services and Chemistry segments jointly generated recurring revenues of $458.4 million, up 10% on a reported basis and 9% at cc, year over year. Waters Corporation Price, Consensus and EPS Surprise Waters Corporation price-consensus-eps-surprise-chart | Waters Corporation Quote Waters serves three end markets: Pharmaceutical, Industrial, and Governmental & Academic. The Pharmaceutical market generated sales of $479.8 million, which increased 12% on a year-over-year basis, reportedly and 11% at cc. Industrial sales were $235.7 million, up 3% reportedly and 4% at cc, on a year-over-year basis. Government & Academic sales increased 2% reportedly and 1% at cc to $84.4 million.Waters’ operating regions include Asia, the Americas and Europe. Asia generated sales of $269.7 million, up 7% and 13% on a reported and cc basis, respectively. Americas sales were $292.8 million, which increased 5% in both reported and cc terms. Europe generated sales of $237.4 million, which increased 13% reportedly and 5% at cc.WAT’s Q3 Operating DetailsIn the third quarter of 2025, non-GAAP selling and administrative expenses were $179.7 million, up 8.3% year over year. As a percentage of net sales, the figure was flat on a year-over-year basis.Research and development expenses of $49.9 million increased 11.7% year over year. As a percentage of net sales, the figure increased 20 bps year over year.The adjusted operating margin was 30.3%, which contracted 50 bps year over year.Waters Balance Sheet & Cash FlowAs of Sept. 27, 2025, cash and cash equivalents were $459.1 million, up from $367.2 million as of June 28.Waters generated cash from operations of $187.3 million in the reported quarter. The company reported a free cash flow of $159.6 million.WAT Raises 2025 GuidanceWaters raises 2025 cc sales growth guidance between 6.7% and 7.3%. Sales growth on a reported basis is expected in the 6.5%-7.1% range. Waters is raising 2025 non-GAAP earnings in the $13.05 to $13.15 per share range. This reflectsyear-over-year growth of approximately more than 10% to more than 11% and more than 11% to more than 12% on a cc basis.For the fourth quarter of 2025, Waters expects cc sales growth between 5% and 7%. Sales growth on a reported basis is expected in the 5.2%-7.2% range. Waters expects non-GAAP earnings in the $4.45 to $4.55 per share range. This reflects year-over-year growth of approximately more than 9% to more than 11%.Zacks Rank & Upcoming Earnings to ConsiderCurrently, Waters carries a Zacks Rank #3 (Hold).ACADIA Pharmaceuticals ACAD, ANI Pharmaceuticals ANIP and Alcon ALC are some better-ranked stocks that investors can consider in the broader Zacks Medical sector.ACADIA Pharmaceuticals shares have appreciated 19.1% year to date. This Zacks Rank #2 (Buy) company is scheduled to release third-quarter 2025 results on Nov. 5. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.ANI Pharmaceuticals shares have returned 71% year to date. ANI Pharmaceuticals is scheduled to release third-quarter 2025 results on Nov. 7. ANI Pharmaceuticals has a Zacks Rank #2.   Alcon shares have dropped 12.6% year to date. Alcon is set to report its third-quarter 2025 results on Nov. 12. Alcon currently has a Zacks Rank #2.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Waters Corporation (WAT): Free Stock Analysis Report Alcon (ALC): Free Stock Analysis Report ANI Pharmaceuticals, Inc. (ANIP): Free Stock Analysis Report ACADIA Pharmaceuticals Inc. (ACAD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks