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MILFORD, Mass. - On Monday, Waters Corporation (NYSE:WAT) reported second-quarter results that exceeded expectations, driven by robust instrument replacement trends among pharmaceutical customers and strong recurring revenue growth.
The analytical instruments maker’s shares jumped 2.99% in pre-market trading after the earnings release.
The company reported second-quarter adjusted earnings of $2.95 per share, slightly above analyst estimates of $2.94, while revenue climbed 9% to $771 million, significantly outpacing the consensus forecast of $748.04 million. On a constant currency basis, sales grew 8% YoY.
Waters saw particular strength in its pharmaceutical segment, which grew 11% in constant currency, while industrial sales increased 6%. The company’s recurring revenue, which includes service and chemistry products, rose 11% in constant currency, with chemistry revenue jumping 16%.
"Our team continues to execute extremely well and we delivered excellent results again this quarter, driven by robust instrument replacement trends–particularly among large pharma and CDMO customers," said Dr. Udit Batra, President & CEO of Waters Corporation.
The strong performance led Waters to raise its full-year 2025 outlook, now expecting constant currency sales growth of 5.5% to 7.5%, up from previous guidance. The company also increased its full-year adjusted EPS forecast to $12.95-$13.05, compared to the consensus estimate of $12.96.
For the third quarter, Waters projects constant currency sales growth of 5.0% to 7.0% and adjusted EPS between $3.15 and $3.25.
The company’s performance reflects continued momentum in its core business as it prepares for its upcoming combination with BD’s Biosciences & Diagnostic Solutions business, which Waters expects will accelerate its growth strategy into high-growth adjacent markets.
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