Waters Corporation (NYSE: WAT) saw its stock price surge 5.03% in pre-market trading on Tuesday following the release of its third-quarter financial results and an upward revision of its annual profit forecast. The lab equipment maker reported strong performance driven by increased demand from biotech clients for its tools used in drug development and research.

The company reported third-quarter adjusted earnings of $3.40 per share, significantly beating analysts' expectations of $3.20 per share. Revenue for the quarter rose 8% to $800 million, surpassing the consensus estimate of $781 million. Waters attributed this growth to robust performance across its business segments, with pharmaceutical sector sales growing 11% in constant currency, including double-digit growth in the Americas.

In light of the strong results, Waters raised its annual adjusted profit forecast to a range of $13.05 to $13.15 per share, up from its previous guidance of $12.95 to $13.05. The company also narrowed its full-year constant currency sales growth guidance to 6.7%-7.3%, reflecting increased confidence in its business outlook. This positive momentum, coupled with the company's recent strategic moves such as its deal to acquire a bioscience and diagnostics unit from Becton Dickinson, has bolstered investor confidence in Waters' growth prospects.