Waters Corporation (NYSE:WAT) posted third-quarter earnings above expectations on Tuesday, supported by solid growth in its core pharmaceutical segment, which continues to drive the company’s strong overall performance.
The analytical instruments manufacturer reported adjusted earnings of $3.40 per share, surpassing the analyst consensus of $3.21. Revenue rose to $800 million, also topping forecasts of $781.01 million, marking 8% growth both on a reported and constant currency basis compared with the prior year.
“Our team yet again delivered outstanding results, driven by strong execution and our differentiated product portfolio,” said Dr. Udit Batra, President & CEO of Waters Corporation.
“Pharma grew double digits as the instrument replacement cycle entered its second year, and new LC-MS and chemistry products captured opportunities from the growing share of biologics and novel modalities in the pharma pipeline.”
Revenue from the pharmaceutical segment, Waters’ largest division, climbed 11% in constant currency, with particularly strong demand in the Americas region.
Instrument sales advanced 6% in constant currency, led by high single-digit growth in liquid chromatography (LC) and mass spectrometry (MS). The company’s recurring revenue, which includes services and consumables, also performed well—up 9% in constant currency, driven by double-digit chemistry product growth.
Following its strong results, Waters raised its full-year 2025 outlook, now expecting constant currency sales growth of 6.7% to 7.3%, higher than prior guidance. The company also increased its adjusted EPS forecast to $13.05–$13.15, reflecting 10–11% year-over-year growth.
For the fourth quarter, Waters projects constant currency sales growth of 5.0% to 7.0% and adjusted earnings per share of $4.45 to $4.55, signaling continued momentum heading into year-end.