Total Revenue

+4% " "

Solid overall performance driven by strong demand in core product lines and regional growth in Asia and Europe, partially offset by foreign currency headwinds and mixed pharma market conditions. This aligns with prior period improvements in recurring revenues.

Chemistry Consumables

+8% " "

Robust demand in pharmaceutical and industrial segments, bolstered by application-specific testing kits and ongoing e-commerce adoption. This reflects higher growth than in previous periods, when currency impacts and cautious spending were moderating consumables momentum.

Service

+6% " "

Higher service attachment rates and expanding installed base contributed to recurring revenue growth. Compared to prior quarters, increased service contract renewals and steady post-installation support have carried forward into this period, boosting service revenue streams.

Asia

+6% " "

Recovery in Chinese pharma demand and steady industrial investment lifted regional performance. While cautious capital spending weighed on previous quarters, improved market sentiment and ongoing customer projects supported this year-over-year increase in Asia.

Japan

+8% " "

Continued strength in instrument upgrades and solid pharma collaborations drove growth, offsetting prior slower quarters impacted by capital spending delays. The rebound in funding and stable product pipeline led to year-over-year improvement.

Europe

+6% " "

Broad-based expansion across industrial and academic/government end markets, aided by new product launches. Despite some FX volatility dampening prior quarters, the region maintained healthy instrument demand and recurring revenue growth, resulting in a net positive effect.

Operating Income (EBIT)

+18% " "

Enhanced operating leverage stemming from higher revenue, cost discipline, and favorable product mix increased profitability. This contrasts with prior periods in which acquisition costs and higher selling expenses muted EBIT margins.

Net Income

+20% " "

Strong top-line growth combined with cost efficiencies and better margin realization drove net income higher. In earlier quarters, incremental integration expenses and R&D investments tempered earnings, but these factors have moderated to support higher net income this period.

EPS (Basic)

+20% " " "

Improvement in net income and ongoing share repurchases propelled earnings per share growth beyond the prior year’s rate. Before this period, increased amortization and foreign currency impacts had constrained EPS expansion, now more than offset by heightened profitability.

Organic Constant Currency Sales Growth

FY 2024

-2% to -0.5% " "

-0.9% to -0.3% " "

raised

Reported Sales Growth

FY 2024

-2.2% to -0.7% "

-0.8% to -0.2% "

raised

Gross Margin

FY 2024

59.8% "

59.8% "

no change

Adjusted Operating Margin

FY 2024

31% " "

31% "

no change

Adjusted EPS

FY 2024

$11.55 to $11.65 " "

$11.67 to $11.87 " " "

raised

Net Interest Expense

FY 2024

$77 million "

$71 million "

lowered

Tax Rate

FY 2024

16.3% "

16.5% "

raised

Average Diluted Share Count

FY 2024

59.4 million "

59.5 million "

raised

Recurring revenue stability

Historically grew mid- to high-single digits each quarter: Q2 up 5%, Q1 low single digits, Q4 mid-single digits. " " "

Recurring revenues grew 7% with consumables up 8%, maintaining mid- to high-single-digit growth. " " "

Steady focus on stable recurring growth; sentiment remains positive.

China market conditions

Q2 declined 10%, Q1 ~30% decline, Q4 over 20% decline with repeated stimulus discussions. " " " "

Sales declined 5% YoY but improved vs. prior quarters; stimulus timing remains uncertain. " " "

Slightly better outlook but still cautious.

Margin expansion through pricing and cost

Cost optimization and pricing have consistently delivered margin gains: Q2 margin 59.3%, Q1 58.9%, Q4 ~59.6%. " " " " "

Gross margin at 59.3%, up 20bps YoY, driven by pricing and spend discipline. "

Stable improvement, aided by pricing and productivity.

PFAS testing opportunities

Each quarter cited PFAS as a strong tailwind, with TQ Absolute driving share gains. " " " " "

PFAS revenues grew over 40%, aided by Xevo TQ Absolute; total market ~$300–350M at 20% CAGR. " " "

Ongoing rapid growth, with expanding applications.

GLP-1 applications

Mentioned in Q2 as part of HPLC to UPLC transition; Q4 projected 30bps annual growth through 2030; no Q1 mention. " "

Contribute 30–40bps growth; Waters is principal QA/QC vendor for major GLP-1 manufacturers and sees potential in generics. " "

Increasing relevance as volumes rise, positive momentum.

Generics market potential

Q2 noted improving generics in China; Q1 highlighted branded generics replacement; Q4 saw cyclical China challenges. " " "

Drives strong growth in India and Eastern Europe; boosted by aging global population and patent expirations. " " "

Remains bullish, especially in India and Eastern Europe.

New product portfolio (Alliance iS, Xevo TQ…)

Discussed each quarter: Q2 showcased Alliance iS QC benefits and MRT launch at ASMS; Q1 introduced iS Bio and TQ Absolute for PFAS; Q4 emphasized broad portfolio traction. " " " "

Alliance iS, Xevo TQ Absolute, and Xevo MRT seeing strong adoption; TQ Absolute unit sales grew 70% YoY. " " " "

Consistent rollouts driving share gains and portfolio refresh.

Wyatt acquisition synergies

Q2 cited ahead-of-target synergy and EPS accretion; Q1 noted cross-selling progress; Q4 saw on-target M&A contribution. " " " " " "

No specific mention in Q3.

Previously positive; no current update.

E-commerce expansion

Q4 2023 indicated e-commerce rose from ~20% to 35%, targeting ~40% by end of 2024; no mention in Q2 or Q1. "

Cited as a continued growth factor for recurring revenues, though details were limited. "

Ongoing but with less Q3 detail.

Service attachment rate increases

Q2 added 100bps, aiming another 50–100bps; Q4 reported a 500bps gain over three years, with 100bps more planned for 2024. " "

Mentioned as increasing, fueling stable recurring revenues. "

Continuously climbing, supporting recurring revenues.

Dependence on second-half ramp or budget flush

Q2 remained cautious on second-half flush; Q1 projected 45–55 H1/H2 split; Q4 2023 had a muted budget flush. " " " " "

Q3 guidance assumes mid-teen revenue ramp from Q3 to Q4, described as prudent with no pull-forward. " " "

Ongoing caution around year-end budget patterns.

Tax rate changes & global min tax

Q2 indicated a ~16.3% full-year rate; Q4 call detailed 150–200bps rise due to R&D capitalization and potential Singapore/Ireland changes. " " " "

No mention in Q3.

No update this period; prior calls highlighted rising rates.

Large molecule therapies & QA/QC processes

Q2 integrated MALS with Empower; Q1 launched iS Bio for biologics QA/QC; Q4 aimed to simplify large molecule QA/QC. " " "

Large molecules now ~50% of pipeline; ~40% of pharma chemistry revenue. QA/QC expansions remain central. " " "

Accelerating focus on biologics, big potential for future growth.

Growth in India & Eastern Europe

Q2 cited >20% growth in India; no mention in Q1 or Q4. "

Strong gains in generics; India ~5–8% of total sales, Eastern Europe also seeing good uptake. " " "

Sustained improvement, India especially driving momentum.

Competitive pricing pressures

Q2 noted pricing discipline without explicit reference to pressures; no mention in Q1 or Q4. " " "

Aggressive environment, yet Waters achieves +100bps vs. historic pricing, aiding margin expansion. "

Holding firm on pricing strategy despite competition.