Waters CorporationWAT
NYSE•Healthcare•Diagnostics & Research
Waters Corporation provides analytical workflow solutions in Asia, the Americas, and Europe. The company operates through two segments, Waters and TA. The company designs, manufactures, sells, and services liquid chromatography, as well as mass spectrometry (MS) technology systems and supports products, including chromatography columns, and other consumable products. It also designs, manufactures, sells, and services thermal analysis, rheometry, and calorimetry instruments for use in predicting the suitability and stability of fine chemicals, pharmaceuticals, water, polymers, metals, and viscous liquids for various industrial, consumer goods, and healthcare products, as well as for life science research; and develops and supplies software-based products that interface with its instruments, as well as other manufacturers' instruments. In addition, the company offers MS technology, which is used in drug discovery and development comprising clinical trial testing, the analysis of proteins in disease processes, nutritional safety analysis, and environmental testing. Its products are used by clinical, pharmaceutical, biochemical, industrial, nutritional safety, environmental, academic, and governmental customers working in research and development, quality assurance, and other laboratory applications. The company was founded in 1958 and is headquartered in Milford, Massachusetts.
Waters Corporation (WAT) reported trailing twelve months revenue of $3.77B as of April 2026, a 26.4% increase year-over-year. Quarterly revenue reached $1.27B, reflecting continued top-line momentum.
Waters Corporation generated $449.25M in TTM net income, with quarterly EBITDA of $-47.00M. The operating margin contracted from 22.9% to -3.7%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (-3.7%) and net margin (-5.7%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 18.3% a year ago, reflecting increased costs or interest expense.
WAT trades at a P/E of 55626.2x (a premium multiple) and a P/S of 6627.6x. The price-to-book ratio of 1634.2x indicates a significant premium over book value.
The company reported negative free cash flow of $-42.00M, indicating cash consumption over the period. The balance sheet shows $24.53B in total assets with $4.86B in long-term debt against $15.29B in stockholders equity for a debt-to-equity ratio of 0.3, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are under pressure, averaging 23.2%. The business may lack pricing power or face rising costs.'
ROE averages 31.5% but has fluctuated — the competitive advantage may be cyclical or emerging.
7 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (7 of 7 quarters up), with ~31.1% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Operating margins dropped 34.0% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.
FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.
D/E ratio is 0.3 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares outstanding increased 138323.3% — significant dilution, likely from stock compensation or capital raises.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation