Waters Corporation (WAT) AI Stock Analysis

Waters Corporation operates through two segments, Waters and TA, specializing in the design, manufacture, sale, and service of high and ultra-performance liquid chromatography systems and mass spectrometry technology. Its portfolio includes chromatography columns, consumables, post-warranty service plans, and software solutions that interface with analytical instruments. Waters' mass spectrometry technology is used in drug discovery, clinical trial testing, protein analysis, nutritional safety assessment, and environmental testing. The company also provides thermal analysis, rheometry, and calorimetry instruments to evaluate fine chemicals, pharmaceuticals, polymers, and liquids across healthcare, industrial, and life sciences research sectors.

Waters Corporation achieved a 5-year revenue CAGR of 6.0% from FY2020 to FY2025. Annual revenue expanded from $2.79B in FY2021 to $2.97B in FY2022, remained at $2.96B in both FY2023 and FY2024, and rose 7.0% to $3.17B in FY2025. Diluted EPS grew from $11.22 in FY2021 to $13.13 in FY2025, with net margin moving from 24.9% to 20.3%. Over the trailing twelve months, revenue reached $4.64B with an operating margin of 9.4% and EPS of $3.95. For the latest quarter ended June 30, 2026, quarterly revenue grew 113.4% year-over-year, while quarterly earnings declined 3.1%.

As of June 30, 2026, Waters Corporation held $539.0M in cash and short-term investments against total debt of $5.25B, resulting in net debt of $4.71B. The company recorded a current ratio of 1.86 and a debt-to-equity ratio of 0.35, supported by shareholders' equity of $15.20B and total assets of $24.75B. Operating cash flow stood at $652.6M in FY2025, generating free cash flow of $539.8M. Capital deployment in FY2025 included capital expenditures of $112.7M and share buybacks of $14.7M.

At a last close price of $436.95 on October 16, 2026, Waters Corporation traded at a trailing P/E of 110.6x and a forward P/E of 24.8x, compared to the median of its S&P 500 Healthcare peers of 27.2x and 16.5x, respectively. Its enterprise value of $46.21B represents an EV to EBITDA multiple of 47.8x, above the peer median of 15.0x, alongside a price-to-sales multiple of 9.2x versus the peer median of 3.4x. Over the past year, WAT returned 30.5%, outperforming the S&P 500 (SPY) return of 16.8%, while its 5-year return of 26.8% trailed the index return of 83.0%.

Wall Street coverage consists of 15 Strong Buy, 3 Buy, and 6 Hold ratings, with 0 Sell or Strong Sell recommendations. The mean price target of $464.30 implies an upside of 6.3% over the last close of $436.95. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $6.46B and EPS of $14.58, representing EPS growth of 11.0%. The company has beaten EPS expectations in each of the last 4 quarters, and its next earnings date is scheduled for November 3, 2026.

This page is an AI-written research summary of Waters Corporation (WAT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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