Waters Corporation (NYSE:WAT) stock is trading lower on Monday after the company released fourth-quarter 2025 financial results and issued fiscal 2026 guidance.

Fourth Quarter Earnings Snapshot

The company reported quarterly sales of $932.36 million, an increase of 7% as reported and 6% in constant currency, beating the consensus of $928.09 million.

Sales into the academic and government market decreased 2% as reported and 3% in constant currency.

The analytical instruments provider reported adjusted earnings of $4.53 per share, beating the consensus of $4.51.

During the quarter, instrument system sales increased 3% as reported and in constant currency. Recurring revenues, which represent the combination of service and precision chemistries, increased 10% as reported and 9% in constant currency.

Geographically, sales in Asia during the quarter increased 4% as reported and 11% in constant currency. Sales in the Americas increased 4% as reported and in constant currency. Sales in Europe increased 13% as reported and 4% in constant currency.

Fiscal 2026 Guidance

“We expect this momentum to continue into 2026, driven by strong execution of the multi-year instrument replacement cycle, continued contribution from pioneering innovation, and our Waters-specific idiosyncratic growth drivers,” said Udit Batra, President & CEO, Waters Corporation.

“Within the P&L, we also expect to make decisive progress towards realizing our stated cost synergies in the months ahead. Our starting 2026 guidance calls for an attractive 5.3% combined company sales growth at mid-point, with opportunity for outperformance as the year progresses,” Batra commented on Monday.

Waters expects adjusted earnings of $2.25-$2.35 per share in the first quarter of 2026, compared to the consensus of $2.52, with sales between $1.198-$1.211 billion.

The company expects fiscal 2026 adjusted earnings of $14.30-$14.50 per share versus the consensus of $14.29, with sales of $6.41 billion-$6.46 billion.

Analyst View

William Blair, in an investor note on Monday, wrote, “Waters’ leadership position in the QA/QC market benefits from multiple sector-level and idiosyncratic tailwinds, and the company is in the early to middle innings of a long-overdue replacement cycle.”

Analyst Matt Larew added that the acquisition of BD Bio/Dx meaningfully expands the company’s TAM with conservative cost synergies and achievable revenue synergies that will drive upside to numbers in the near, medium, and long term.

“New Waters” should continue to have above-group growth, margins, and ROIC—thus, we expect the company to maintain a premium multiple,” analyst Larew added.

WAT Price Action: Waters shares were down 9.61% at $344.66 at the time of publication on Monday, according to Benzinga Pro data.

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