Waters Financials
This page shows Waters (WAT) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 19 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Stable gross margins and shrinking leverage show a business whose products stayed lucrative while overhead absorbed FY2025 growth.
FY2025 revenue rose to$3.17B , but operating cash flow fell to$653M as receivables and inventory both expanded, so more sales tied up cash instead of releasing it. At the same time, lower interest expense and debt reduction helped keep net income near$643M even as operating margin slipped by 2.5 points.
The core economics look structurally strong: gross margin stayed near
The balance sheet is moving from heavier leverage toward a more self-funded posture: long-term debt fell from
Financial Health Signals
Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Waters's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Waters has an operating margin of 25.4%, meaning the company retains $25 of operating profit per $100 of revenue. This strong profitability earns a score of 81/100, reflecting efficient cost management and pricing power. This is down from 27.9% the prior year.
Waters's revenue grew 7.0% year-over-year to $3.2B, a solid pace of expansion. This earns a growth score of 39/100.
Waters carries a low D/E ratio of 0.37, meaning only $0.37 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 94/100, indicating a strong balance sheet with room for future borrowing.
Waters's current ratio of 1.73 indicates adequate short-term liquidity, earning a score of 31/100. The company can meet its near-term obligations, though with limited headroom.
Waters converts 17.1% of revenue into free cash flow ($539.8M). This strong cash generation earns a score of 70/100.
Waters earns a strong 25.1% return on equity (ROE), meaning it generates $25 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 87/100. This is down from 34.9% the prior year.
Waters scores 12.22, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($33.5B) relative to total liabilities ($2.5B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Waters passes 4 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, Waters generates $1.02 in operating cash flow ($652.6M OCF vs $642.6M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Waters earns $11.5 in operating income for every $1 of interest expense ($802.6M vs $69.5M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Waters generated $3.2B in revenue in fiscal year 2025. This represents an increase of 7.0% from the prior year.
Waters's EBITDA was $1.0B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 0.9% from the prior year.
Waters reported $642.6M in net income in fiscal year 2025. This represents an increase of 0.8% from the prior year.
Waters earned $10.76 per diluted share (EPS) in fiscal year 2025. This represents an increase of 0.5% from the prior year.
Cash & Balance Sheet
Waters generated $539.8M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 12.9% from the prior year.
Waters held $588.0M in cash against $947.0M in long-term debt as of fiscal year 2025.
Waters had 60M shares outstanding in fiscal year 2025. This represents an increase of 0.3% from the prior year.
Margins & Returns
Waters's gross margin was 59.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 0.2 percentage points from the prior year.
Waters's operating margin was 25.4% in fiscal year 2025, reflecting core business profitability. This is down 2.6 percentage points from the prior year.
Waters's net profit margin was 20.3% in fiscal year 2025, showing the share of revenue converted to profit. This is down 1.3 percentage points from the prior year.
Waters's ROE was 25.1% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 9.8 percentage points from the prior year.
Capital Allocation
Waters invested $195.7M in research and development in fiscal year 2025. This represents an increase of 6.9% from the prior year.
Waters spent $14.7M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 8.3% from the prior year.
Waters invested $112.7M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 20.9% from the prior year.
WAT Income Statement
| Metric | Q2'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.3B+35.9% | $932.4M+16.6% | $799.9M+3.7% | $771.3M+16.5% | $662.0M-24.1% | $872.7M+17.9% | $740.3M+4.5% | $708.5M |
| Cost of Revenue | $524.0M+44.4% | $362.9M+10.7% | $327.8M+2.0% | $321.4M+16.1% | $276.7M-20.6% | $348.5M+15.5% | $301.7M+4.7% | $288.2M |
| Gross Profit | $395.0M-30.6% | $569.5M+20.6% | $472.1M+4.9% | $449.9M+16.8% | $385.3M-26.5% | $524.2M+19.5% | $438.6M+4.4% | $420.3M |
| R&D Expenses | $96.0M+104.7% | $46.9M-12.6% | $53.6M+10.5% | $48.5M+4.1% | $46.6M-0.6% | $46.9M+3.5% | $45.3M-1.8% | $46.2M |
| SG&A Expenses | $387.0M+61.2% | $240.0M+12.0% | $214.2M+6.4% | $201.3M+15.1% | $174.9M+0.9% | $173.3M+2.5% | $169.1M-2.4% | $173.2M |
| Operating Income | -$47.0M-117.4% | $270.5M+40.8% | $192.1M+2.1% | $188.2M+24.0% | $151.7M-48.1% | $292.3M+38.4% | $211.1M+11.6% | $189.1M |
| Interest Expense | $48.0M+236.0% | $14.3M-46.4% | $26.6M+85.6% | $14.4M+0.6% | $14.3M-24.9% | $19.0M-11.4% | $21.4M-9.7% | $23.7M |
| Income Tax | -$16.0M-141.1% | $39.0M+83.8% | $21.2M-30.7% | $30.6M+42.2% | $21.5M-52.8% | $45.6M+41.9% | $32.1M+20.4% | $26.7M |
| Net Income | -$72.0M-132.0% | $225.2M+51.2% | $148.9M+1.2% | $147.1M+21.6% | $121.0M-47.7% | $231.4M+43.3% | $161.5M+13.1% | $142.7M |
| EPS (Diluted) | $-0.87-123.1% | $3.77+50.8% | $2.50+1.2% | $2.47+21.7% | $2.03-47.7% | $3.88+43.2% | $2.71+12.9% | $2.40 |
WAT Balance Sheet
| Metric | Q2'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $24.5B+383.2% | $5.1B+4.4% | $4.9B+3.1% | $4.7B+2.8% | $4.6B+0.8% | $4.6B+0.9% | $4.5B+1.4% | $4.4B |
| Current Assets | $4.1B+89.2% | $2.1B+11.9% | $1.9B+7.7% | $1.8B+2.4% | $1.7B+4.2% | $1.7B+1.3% | $1.6B+2.7% | $1.6B |
| Cash & Equivalents | $462.0M-21.4% | $588.0M+28.1% | $459.1M+25.0% | $367.2M-4.1% | $382.9M+17.7% | $325.4M-1.6% | $330.5M+1.3% | $326.4M |
| Inventory | $1.5B+161.5% | $572.0M-0.2% | $572.9M+6.0% | $540.8M+5.7% | $511.5M+7.2% | $477.3M-8.0% | $519.0M-0.8% | $522.9M |
| Accounts Receivable | $1.8B+111.5% | $829.0M+10.8% | $748.5M+2.5% | $730.1M+2.4% | $713.3M-2.7% | $733.4M+9.5% | $669.5M+9.7% | $610.1M |
| Goodwill | $9.3B+595.3% | $1.3B+0.1% | $1.3B0.0% | $1.3B+2.9% | $1.3B+0.3% | $1.3B-0.8% | $1.3B+0.7% | $1.3B |
| Total Liabilities | $9.2B+267.4% | $2.5B-0.7% | $2.5B-1.0% | $2.6B-2.7% | $2.6B-3.5% | $2.7B-6.3% | $2.9B-4.2% | $3.0B |
| Current Liabilities | $2.3B+83.5% | $1.2B-1.0% | $1.3B+23.1% | $1.0B+5.7% | $961.0M+21.7% | $789.8M-3.2% | $816.0M+7.0% | $762.5M |
| Long-Term Debt | $4.9B+412.7% | $947.0M0.0% | $947.2M-20.9% | $1.2B-11.8% | $1.4B-16.6% | $1.6B-10.9% | $1.8B-9.0% | $2.0B |
| Total Equity | $15.3B+496.9% | $2.6B+9.9% | $2.3B+7.9% | $2.2B+10.1% | $2.0B+7.3% | $1.8B+14.1% | $1.6B+13.5% | $1.4B |
| Retained Earnings | $10.4B-0.7% | $10.4B+2.2% | $10.2B+1.5% | $10.1B+1.5% | $9.9B+1.2% | $9.8B+2.4% | $9.6B+1.7% | $9.4B |
WAT Cash Flow Statement
| Metric | Q2'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$3.0M-101.8% | $164.6M-12.1% | $187.3M+360.3% | $40.7M-84.3% | $260.0M+8.3% | $240.1M+17.4% | $204.6M+275.1% | $54.5M |
| Capital Expenditures | $39.0M | N/A | N/A | N/A | $26.0M | N/A | N/A | N/A |
| Free Cash Flow | -$42.0M | N/A | N/A | N/A | $234.0M | N/A | N/A | N/A |
| Investing Cash Flow | $95.0M+325.5% | -$42.1M-65.1% | -$25.5M+56.5% | -$58.6M-125.4% | -$26.0M+49.2% | -$51.2M-96.5% | -$26.1M+27.9% | -$36.1M |
| Financing Cash Flow | -$213.0M-6484.9% | $3.3M+105.0% | -$66.3M-5097.3% | -$1.3M+99.3% | -$173.0M+10.6% | -$193.6M-9.4% | -$176.9M-419.7% | -$34.0M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $12.0M+8233.3% | $144K-32.7% | $214K-30.7% | $309K-97.8% | $14.0M+21112.1% | $66K-53.2% | $141K-42.4% | $245K |
WAT Financial Ratios
| Metric | Q2'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 43.0%-18.1pp | 61.1%+2.1pp | 59.0%+0.7pp | 58.3%+0.1pp | 58.2%-1.9pp | 60.1%+0.8pp | 59.3%-0.1pp | 59.3% |
| Operating Margin | -3.7%-32.7pp | 29.0%+5.0pp | 24.0%-0.4pp | 24.4%+1.5pp | 22.9%-10.6pp | 33.5%+5.0pp | 28.5%+1.8pp | 26.7% |
| Net Margin | -5.7%-29.8pp | 24.2%+5.5pp | 18.6%-0.5pp | 19.1%+0.8pp | 18.3%-8.2pp | 26.5%+4.7pp | 21.8%+1.7pp | 20.2% |
| Return on Equity | -0.5%-9.3pp | 8.8%+2.4pp | 6.4%-0.4pp | 6.8%+0.6pp | 6.2%-6.5pp | 12.7%+2.6pp | 10.1%-0.0pp | 10.1% |
| Return on Assets | -0.3%-4.7pp | 4.4%+1.4pp | 3.1%-0.1pp | 3.1%+0.5pp | 2.6%-2.4pp | 5.1%+1.5pp | 3.6%+0.4pp | 3.2% |
| Current Ratio | 1.79+0.1 | 1.73+0.2 | 1.53-0.2 | 1.75-0.1 | 1.81-0.3 | 2.11+0.1 | 2.02-0.1 | 2.10 |
| Debt-to-Equity | 0.32-0.1 | 0.37-0.0 | 0.41-0.1 | 0.55-0.1 | 0.69-0.2 | 0.89-0.2 | 1.14-0.3 | 1.42 |
| FCF Margin | -3.3% | N/A | N/A | N/A | 35.4% | N/A | N/A | N/A |
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Frequently Asked Questions
What is Waters's annual revenue?
Waters (WAT) reported $3.2B in total revenue for fiscal year 2025. This represents a 7.0% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Waters's revenue growing?
Waters (WAT) revenue grew by 7% year-over-year, from $3.0B to $3.2B in fiscal year 2025.
Is Waters profitable?
Yes, Waters (WAT) reported a net income of $642.6M in fiscal year 2025, with a net profit margin of 20.3%.
What is Waters's EBITDA?
Waters (WAT) had EBITDA of $1.0B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Waters have?
As of fiscal year 2025, Waters (WAT) had $588.0M in cash and equivalents against $947.0M in long-term debt.
What is Waters's gross margin?
Waters (WAT) had a gross margin of 59.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Waters's operating margin?
Waters (WAT) had an operating margin of 25.4% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Waters's net profit margin?
Waters (WAT) had a net profit margin of 20.3% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Waters's return on equity (ROE)?
Waters (WAT) has a return on equity of 25.1% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Waters's free cash flow?
Waters (WAT) generated $539.8M in free cash flow during fiscal year 2025. This represents a -12.9% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Waters's operating cash flow?
Waters (WAT) generated $652.6M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Waters's total assets?
Waters (WAT) had $5.1B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Waters's capital expenditures?
Waters (WAT) invested $112.7M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Waters spend on research and development?
Waters (WAT) invested $195.7M in research and development during fiscal year 2025.
What is Waters's current ratio?
Waters (WAT) had a current ratio of 1.73 as of fiscal year 2025, which is generally considered healthy.
What is Waters's debt-to-equity ratio?
Waters (WAT) had a debt-to-equity ratio of 0.37 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Waters's return on assets (ROA)?
Waters (WAT) had a return on assets of 12.7% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Waters's Altman Z-Score?
Waters (WAT) has an Altman Z-Score of 12.22, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Waters's Piotroski F-Score?
Waters (WAT) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Waters's earnings high quality?
Waters (WAT) has an earnings quality ratio of 1.02x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Waters cover its interest payments?
Waters (WAT) has an interest coverage ratio of 11.5x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Waters?
Waters (WAT) scores 67 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.