Waters Corporation (NYSE:WAT) saw its stock rise 2.99% in pre-market trading Monday after reporting second-quarter results that exceeded expectations, driven by solid instrument replacement activity among pharmaceutical clients and notable growth in recurring revenue.
The analytical instruments company posted adjusted earnings of $2.95 per share for the quarter, slightly surpassing the analyst estimate of $2.94. Revenue rose 9% to $771 million, well above the consensus forecast of $748.04 million, with sales up 8% year-over-year on a constant currency basis.
Pharmaceutical sales proved especially strong, increasing 11% in constant currency, while the industrial segment grew by 6%. Recurring revenue—which includes service and chemistry products—climbed 11%, 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.
Following this solid performance, Waters raised its full-year 2025 guidance, now forecasting constant currency sales growth between 5.5% and 7.5%, up from prior estimates. The company also boosted its full-year adjusted EPS outlook to a range of $12.95 to $13.05, compared to the consensus estimate of $12.96.
For Q3, Waters anticipates constant currency sales growth of 5.0% to 7.0% and adjusted earnings per share between $3.15 and $3.25.
The company’s results underscore sustained momentum in its core operations as it prepares to merge with BD’s Biosciences & Diagnostic Solutions business, a move Waters expects will accelerate its expansion into high-growth adjacent markets.
Waters Corporation stock price
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