Waters Corporation (WAT)
Waters Corporation is a specialty measurement company providing analytical workflow solutions. They design, manufacture, and service high-performance liquid chromatography and mass spectrometry systems.
Company Overview
Waters Corporation, with a $22.70B market cap, delivers analytical workflow solutions through chromatography and mass spectrometry. Its high 20.9% profit margin and 59.0% gross margin highlight its strong market position, serving life science, pharmaceutical, and industrial sectors with innovative measurement technologies and services.
Investment Thesis
Waters Corporation presents a compelling investment opportunity due to its strong market position and consistent profitability. With a profit margin of 20.9% and a gross margin of 59.0%, Waters demonstrates efficient operations and premium pricing power. The company's focus on high-growth sectors like pharmaceuticals and life sciences, coupled with its innovative product offerings in chromatography and mass spectrometry, positions it for sustained growth. Key value drivers include increasing demand for analytical instruments in drug discovery and quality control, expansion into emerging markets, and continued innovation in its product portfolio. Upcoming catalysts include new product launches in mass spectrometry and expansion of service offerings, making WAT an attractive investment for long-term growth.
Key Highlights
- Market Cap of $22.70B reflects Waters' significant presence in the analytical instruments market.
- P/E ratio of 34.98 indicates investor confidence in Waters' earnings potential.
- Profit Margin of 20.9% demonstrates strong profitability and efficient cost management.
- Gross Margin of 59.0% highlights Waters' ability to maintain premium pricing and manage production costs effectively.
- Beta of 1.18 suggests that Waters' stock is slightly more volatile than the overall market.
Competitors
Strengths
- Strong brand reputation and customer loyalty.
- Leading market position in chromatography and mass spectrometry.
- High profit margins and efficient operations.
- Extensive service and support network.
Weaknesses
- Dependence on pharmaceutical and life science industries.
- Limited presence in emerging markets compared to some competitors.
- High P/E ratio may indicate overvaluation.
- Lack of dividend may deter some investors.
Catalysts
- Upcoming: Launch of new mass spectrometry platforms with enhanced sensitivity and throughput in Q3 2026.
- Ongoing: Increasing demand for analytical instruments in the biopharmaceutical industry.
- Ongoing: Expansion of service and support offerings to generate recurring revenue.
- Upcoming: Strategic partnerships with leading research institutions to develop innovative solutions in Q2 2026.
Risks
- Potential: Economic slowdown affecting R&D spending in the pharmaceutical and life science industries.
- Potential: Increased competition from other analytical instrument manufacturers.
- Potential: Technological obsolescence due to rapid innovation in the field.
- Ongoing: Regulatory changes impacting the pharmaceutical and life science sectors.
- Ongoing: Fluctuations in currency exchange rates affecting international sales.
Growth Opportunities
- Expansion in Biopharmaceutical Analysis: The biopharmaceutical industry is rapidly growing, driving demand for advanced analytical tools. Waters can capitalize on this trend by developing and marketing specialized solutions for biopharmaceutical analysis, including protein characterization, glycosylation analysis, and impurity testing. This market segment is projected to reach $15 billion by 2028, offering a substantial growth opportunity for Waters. Waters' expertise in mass spectrometry and chromatography positions it favorably to capture a significant share of this market.
- Emerging Markets Penetration: Emerging markets, particularly in Asia, are experiencing rapid growth in the pharmaceutical and biotechnology sectors. Waters can expand its presence in these markets by establishing local sales and service networks, offering customized solutions, and building strategic partnerships. The Asian market for analytical instruments is expected to grow at a CAGR of 8% over the next five years, providing a significant growth avenue for Waters. Focus on China and India will be crucial.
- Service and Support Expansion: Waters can enhance its revenue stream by expanding its service and support offerings. This includes providing comprehensive maintenance contracts, training programs, and consulting services. The market for analytical instrument services is estimated at $10 billion globally, with a growing demand for specialized support. By offering value-added services, Waters can strengthen customer relationships and generate recurring revenue.
- Technological Innovation in Mass Spectrometry: Continued innovation in mass spectrometry technology is crucial for maintaining a competitive edge. Waters can invest in developing more sensitive, faster, and user-friendly mass spectrometers to meet the evolving needs of its customers. The market for mass spectrometry is projected to reach $8 billion by 2027, driven by advancements in proteomics, metabolomics, and drug discovery. Waters' focus on innovation will enable it to capture a larger share of this market.
- Software and Data Analytics Solutions: The increasing volume of data generated by analytical instruments creates a growing demand for software and data analytics solutions. Waters can develop and market software platforms that enable customers to efficiently manage, analyze, and interpret their data. This includes offering cloud-based solutions, data visualization tools, and advanced algorithms for data mining and pattern recognition. The market for analytical instrument software is expected to grow at a CAGR of 10% over the next five years, presenting a significant growth opportunity for Waters.
Opportunities
- Expansion into emerging markets with growing pharmaceutical industries.
- Development of new analytical solutions for biopharmaceutical analysis.
- Growth in the market for analytical instrument services.
- Innovation in mass spectrometry technology.
Threats
- Intense competition from other analytical instrument manufacturers.
- Technological obsolescence due to rapid innovation.
- Economic downturns affecting R&D spending in key industries.
- Regulatory changes impacting the pharmaceutical and life science sectors.
Competitive Advantages
- Technological Expertise: Waters has a long history of innovation in chromatography and mass spectrometry, creating a strong technological advantage.
- Installed Base: A large installed base of instruments generates recurring revenue through service contracts and consumable sales.
- Brand Reputation: Waters has a strong brand reputation for quality and reliability, built over decades of serving the analytical instruments market.
- Customer Relationships: Long-standing relationships with key customers in the pharmaceutical, life science, and industrial sectors provide a competitive edge.
About
Waters Corporation, established in 1958 and headquartered in Milford, Massachusetts, is a prominent specialty measurement company focused on providing advanced analytical workflow solutions. The company operates through two segments: Waters and TA. Waters designs, manufactures, sells, and services high and ultra-performance liquid chromatography (HPLC and UPLC) and mass spectrometry (MS) technology systems. These systems are complemented by a range of support products, including chromatography columns, consumable products, and comprehensive post-warranty service plans. The TA segment focuses on designing, manufacturing, selling, and servicing thermal analysis, rheometry, and calorimetry instruments. Waters also develops and supplies software-based products that interface with its instruments and those of other manufacturers. Waters' MS technology instruments are critical in drug discovery and development, clinical trial testing, protein analysis in disease processes, nutritional safety analysis, and environmental testing. The company's thermal analysis, rheometry, and calorimetry instruments are used to predict the suitability and stability of various materials, including fine chemicals, pharmaceuticals, polymers, and metals. Waters serves a diverse customer base, including life science, pharmaceutical, biochemical, industrial, nutritional safety, environmental, academic, and governmental organizations engaged in research and development, quality assurance, and laboratory applications across Asia, the Americas, and Europe.
What They Do
- Designs, manufactures, and sells high-performance liquid chromatography (HPLC) systems.
- Offers ultra-performance liquid chromatography (UPLC) systems for advanced analytical separations.
- Produces and services mass spectrometry (MS) technology systems for molecular analysis.
- Provides chromatography columns and other consumable products for analytical workflows.
- Offers post-warranty service plans for its instruments.
- Designs, manufactures, and services thermal analysis, rheometry, and calorimetry instruments.
- Develops software for instrument control, data acquisition, and data analysis.
- Provides analytical solutions for life science, pharmaceutical, and industrial applications.
Business Model
- Sells analytical instruments, including HPLC, UPLC, and mass spectrometry systems.
- Generates revenue from the sale of consumable products, such as chromatography columns and reagents.
- Provides service and support contracts for its installed base of instruments.
- Offers software solutions for data analysis and instrument control.
Industry Context
Waters Corporation operates in the medical diagnostics and research industry, which is experiencing steady growth driven by increasing demand for advanced analytical instruments and solutions. The market is characterized by technological innovation, stringent regulatory requirements, and a growing focus on personalized medicine. Waters competes with companies like Danaher (DGX), Illumina (ILMN), and Dexcom (DXCM), focusing on specific niches within the broader analytical instruments market. The industry is expected to continue growing, fueled by increasing R&D spending in pharmaceuticals and biotechnology, as well as the growing need for quality control in various industries.
Key Customers
- Life science companies engaged in drug discovery and development.
- Pharmaceutical companies focused on quality control and manufacturing.
- Biochemical companies involved in research and production.
- Industrial companies requiring analytical testing for product development and quality assurance.
- Academic and governmental research institutions.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q4 2025 | $932M | $225M | $3.77 |
| Q3 2025 | $800M | $149M | $2.50 |
| Q2 2025 | $771M | $147M | $2.47 |
| Q1 2025 | $662M | $121M | $2.03 |
Source: Company filings
Chart & Info
Price Chart
Waters Corporation (WAT) stock price: $0.00 (+0.00, +0.00%)
Why Bull
- •Recent insider buying suggests confidence in Waters Corporation's future, indicating that executives believe the stock is undervalued.
- •Community sentiment has turned more positive, with discussions highlighting the company's strong position in the analytical instrument market.
- •Recent product launches and innovations have sparked excitement among users, reinforcing the brand's reputation for quality and reliability.
- •Analysts are increasingly optimistic about the company's growth prospects, especially in emerging markets and new applications for their technologies.
Why Bear
- •Concerns about potential supply chain disruptions have been prevalent, which could impact production and delivery timelines.
- •Some community members express skepticism about the sustainability of recent growth trends, fearing they may not hold in a competitive landscape.
- •Recent earnings reports have shown mixed results, leading to questions about the company's ability to maintain momentum in the coming quarters.
- •The overall market sentiment has been cautious, with macroeconomic factors creating uncertainty that could affect investor confidence in the sector.
Latest News
-
US Equity Indexes Rise as Technology, Materials Lead Broad-Based Gains; Dollar Slumps
MT Newswires · Feb 9, 2026
-
Software Stocks Rebound, Silver Rallies 6% To $82: What's Moving Markets Monday?
benzinga · Feb 9, 2026
-
BD Stock Dips in Pre-Market Despite Q1 Earnings Beat, Margins Up
Zacks · Feb 9, 2026
-
Waters (WAT) Beats Q4 Earnings and Revenue Estimates
Zacks · Feb 9, 2026
Technical Analysis
Rationale
AI-generated technical analysis for WAT including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for WAT.
Make a Prediction
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Current price: $0.00
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for WAT.
Price Targets
Wall Street price target analysis for WAT.
Insider Flow (30d)
MoonshotScore
Score Factors
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Revenue Growth 4/100
Revenue grew only 7.0% YoY, suggesting the company is in a slower growth phase.
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Gross Margin 8/100
Gross margin at 59.3% indicates good unit economics and healthy profitability per sale.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 8/100
Strong cash reserves of $588M provide a solid financial cushion for growth investments and market downturns.
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R&D Intensity 5/100
R&D spending at 6.2% of revenue is moderate, balancing current profitability with future development.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 10/100
Daily turnover of 2.46% indicates healthy liquidity with smooth entry/exit for investors.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates WAT's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
US Equity Indexes Rise as Technology, Materials Lead Broad-Based Gains; Dollar Slumps
Software Stocks Rebound, Silver Rallies 6% To $82: What's Moving Markets Monday?
BD Stock Dips in Pre-Market Despite Q1 Earnings Beat, Margins Up
Waters (WAT) Beats Q4 Earnings and Revenue Estimates
Frequently Asked Questions
What does Waters Corporation do?
Waters Corporation is a specialty measurement company that provides analytical workflow solutions, primarily through high-performance liquid chromatography (HPLC), ultra-performance liquid chromatography (UPLC), and mass spectrometry (MS) systems. These systems are used by a diverse customer base, including life science, pharmaceutical, biochemical, industrial, academic, and governmental organizations. Waters also offers a range of support products, including chromatography columns, consumable products, and post-warranty service plans, as well as thermal analysis, rheometry, and calorimetry instruments. Their products are essential for research and development, quality assurance, and other laboratory applications.
Is WAT stock a good buy?
WAT stock presents a mixed investment profile. The company's strong market position, high profit margins (20.9%), and gross margins (59.0%) suggest financial stability and efficient operations. The increasing demand for analytical instruments in the biopharmaceutical industry and Waters' expansion into emerging markets are positive growth catalysts. However, the high P/E ratio of 34.98 may indicate overvaluation. Investors should consider the company's growth potential, competitive landscape, and potential risks before making an investment decision. A balanced approach considering both growth and valuation is warranted.
What are the main risks for WAT?
Waters Corporation faces several risks, including potential economic slowdowns affecting R&D spending in the pharmaceutical and life science industries, which are key customer segments. Increased competition from other analytical instrument manufacturers and the threat of technological obsolescence due to rapid innovation also pose challenges. Regulatory changes impacting the pharmaceutical and life science sectors could affect demand for Waters' products. Additionally, fluctuations in currency exchange rates could impact international sales, as the company operates globally. These factors could impact Waters' revenue and profitability.
Is WAT a good stock to buy?
Whether WAT is a good investment depends on your financial goals, risk tolerance, and investment horizon. Review the Investment Thesis, SWOT analysis, and Risk sections on this page. Always do your own research and consult a financial advisor before investing.
What is the WAT MoonshotScore?
MoonshotScore is our proprietary AI-powered rating system that evaluates stocks based on growth potential, financial health, market momentum, and risk factors. It helps investors quickly identify high-potential opportunities. Check the MoonshotScore badge on this page for the current rating.
How often is WAT data updated?
Stock prices are updated in real-time during market hours (9:30 AM - 4:00 PM ET). Company fundamentals, analyst ratings, and AI insights are refreshed daily. News is updated continuously throughout the day.
What are the growth catalysts for WAT?
Growth catalysts vary by company and may include new product launches, market expansion, earnings surprises, partnerships, or industry tailwinds. Check the Catalysts section on this page for specific drivers relevant to Waters Corporation.
Who are WAT's main competitors?
Waters Corporation's competitors depend on its industry and market segments. Check the Competitors section on this page for a list of direct competitors and how WAT compares.
What do analysts say about WAT?
Analyst ratings and price targets for WAT are aggregated from multiple sources. Check the Analyst Consensus tab for buy/hold/sell ratings and the current consensus price target.
What is WAT's market cap?
Market capitalization reflects the total market value of WAT's outstanding shares. Check the Key Statistics section at the top of this page for the current market cap and other key financial metrics.
How has WAT stock performed recently?
Check the Chart & Info tab for WAT's recent price action, including daily, weekly, and monthly performance charts with technical indicators.
What are the risks of investing in WAT?
Every stock carries risk. Check the Risks and Weaknesses sections on this page for WAT-specific risk factors. Consider macroeconomic conditions, industry trends, and company-specific challenges.
Are insiders buying or selling WAT?
Insider activity can signal management confidence. Check the Insider Flow tab for recent insider buys, sells, and exercise transactions for WAT.
Is WAT a good stock for beginners?
Waters Corporation (WAT) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is WAT for first-time investors?
Every stock carries risk, including Waters Corporation (WAT). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like WAT.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Stock data pending update.
- Financial metrics based on the most recent available data.