Detailed financial statements for Waters Corporation (WAT): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Waters Corporation is a global leader in specialized measurement, delivering analytical solutions across Asia, the Americas, and Europe. The company operates through two main divisions: Waters and TA. Under its Waters segment, it engineers, manufactures, sells, and provides support for high and ultra-performance liquid chromatography and mass spectrometry (MS) systems.
Analysis Summary
Waters Corporation reported revenue of $3.17B in the most recent fiscal year, growing at a 5-year CAGR of 6.0%. Net income reached $642.6M, with a 4.3% 5-year CAGR.
Trailing-twelve-month margins: gross margin 57.8%, operating margin 28.2%, net margin 20.3%. Free cash flow grew at -2.7% CAGR over 5 years.
At the current price of $440.12, WAT trades at a P/E of 106.04 and an ROE of 25.09%. Market capitalisation stands at $43.2B, placing it among large-cap names.
Balance sheet quality for WAT: current ratio of 1.7, net debt of $903.3M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is decent: free cash flow of $539.8M represents 84% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $2.17B | $2.31B | $2.42B | $2.41B | $2.37B | $2.79B | $2.97B | $2.96B | $2.96B | $3.17B |
| Cost of Revenue | $891.5M | $947.1M | $992.6M | $1.01B | $1.01B | $1.16B | $1.25B | $1.20B | $1.20B | $1.34B |
| Gross Profit | $1.28B | $1.36B | $1.43B | $1.40B | $1.36B | $1.63B | $1.72B | $1.76B | $1.76B | $1.83B |
| Research & Development | $125.2M | $132.6M | $143.4M | $143.0M | $140.8M | $168.4M | $176.2M | $174.9M | $183.0M | $195.2M |
| Selling, General & Admin | $512.3M | $544.4M | $536.9M | $534.8M | $553.7M | $627.0M | $658.0M | $736.0M | $690.1M | $740.3M |
| Operating Expenses | $650.9M | $699.8M | $687.6M | $687.4M | $713.2M | $807.6M | $850.4M | $943.5M | $931.8M | $935.5M |
| Operating Income | $625.0M | $662.2M | $739.8M | $708.5M | $645.5M | $821.7M | $873.4M | $817.7M | $826.4M | $893.2M |
| EBITDA | $741.5M | $803.9M | $839.2M | $832.2M | $785.3M | $982.8M | $1.02B | $1.00B | $1.04B | $1.01B |
| Interest Expense | $44.9M | $56.8M | $48.6M | $48.7M | $49.1M | $44.9M | $48.8M | $98.9M | $89.7M | $69.5M |
| Pre-tax Income | $600.1M | $641.1M | $682.1M | $678.2M | $610.9M | $806.2M | $837.8M | $736.2M | $754.9M | $754.9M |
| Income Tax | $78.6M | $620.8M | $88.4M | $86.0M | $89.3M | $113.3M | $130.1M | $94.0M | $117.0M | $112.2M |
| Net Income | $521.5M | $20.3M | $593.8M | $592.2M | $521.6M | $692.8M | $707.8M | $642.2M | $637.8M | $642.6M |
| EPS | $6.46 | $0.25 | $7.71 | $8.76 | $8.40 | $11.25 | $11.80 | $10.87 | $10.75 | $10.80 |
| EPS (Diluted) | $6.41 | $0.25 | $7.65 | $8.69 | $8.36 | $11.17 | $11.73 | $10.84 | $10.71 | $10.76 |
| Shares Outstanding (Diluted) | $81.4M | $80.6M | $77.6M | $68.2M | $62.4M | $62.0M | $60.3M | $59.3M | $59.6M | $59.7M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Revenue | $799.9M | $932.4M | $1.27B | $1.65B |
| Gross Profit | $472.1M | $557.4M | $595.0M | $734.0M |
| Operating Income | $192.1M | $310.6M | -$47.0M | -$86.0M |
| EBITDA | $249.4M | $325.3M | $106.0M | $215.0M |
| Net Income | $148.9M | $225.2M | -$72.0M | -$136.0M |
| EPS | $2.50 | $3.78 | $-0.87 | $-1.39 |
| EPS (Diluted) | $2.50 | $3.77 | $-0.87 | $-1.39 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $505.6M | $642.3M | $796.3M | $335.7M | $436.7M | $501.2M | $480.5M | $395.1M | $324.4M | $587.8M |
| Short-term Investments | $2.31B | $2.75B | $938.9M | $1.4M | $6.5M | $68.1M | $862,000 | $898,000 | $934,000 | 0 |
| Receivables | $489.3M | $533.8M | $568.3M | $587.7M | $573.3M | $612.6M | $722.9M | $702.2M | $733.4M | $828.8M |
| Inventory | $262.7M | $270.3M | $291.6M | $320.6M | $304.3M | $356.1M | $455.7M | $516.2M | $477.3M | $572.4M |
| Total Current Assets | $3.64B | $4.27B | $2.66B | $1.31B | $1.40B | $1.63B | $1.76B | $1.75B | $1.67B | $2.15B |
| Property, Plant & Equipment | $337.1M | $349.3M | $343.1M | $510.7M | $587.3M | $632.6M | $668.7M | $723.7M | $725.4M | $722.8M |
| Goodwill | $352.1M | $359.8M | $355.6M | $356.1M | $444.4M | $437.9M | $430.3M | $1.31B | $1.30B | $1.34B |
| Intangible Assets | $207.1M | $228.4M | $246.9M | $240.2M | $258.6M | $242.4M | $227.4M | $629.2M | $567.9M | $558.2M |
| Total Assets | $4.66B | $5.34B | $3.73B | $2.56B | $2.84B | $3.09B | $3.28B | $4.63B | $4.55B | $5.08B |
| Accounts Payable | $67.7M | $64.5M | $68.2M | $49.0M | $72.2M | $96.8M | $93.3M | $84.7M | $99.9M | $103.8M |
| Short-term Debt | $125.3M | $100.3M | $178,000 | $100.4M | $150.0M | 0 | $50.0M | $50.0M | 0 | $460.0M |
| Total Current Liabilities | $520.3M | $606.2M | $448.9M | $591.3M | $805.0M | $680.5M | $785.7M | $789.6M | $789.8M | $1.24B |
| Long-term Debt | $1.70B | $1.90B | $1.15B | $1.58B | $1.21B | $1.51B | $1.52B | $2.31B | $1.63B | $947.4M |
| Total Liabilities | $2.36B | $3.11B | $2.16B | $2.77B | $2.61B | $2.73B | $2.78B | $3.48B | $2.73B | $2.52B |
| Retained Earnings | $5.39B | $5.41B | $6.00B | $6.59B | $7.11B | $7.80B | $8.51B | $9.15B | $9.79B | $10.43B |
| Total Equity | $2.30B | $2.23B | $1.57B | -$216.3M | $232.1M | $367.6M | $504.5M | $1.15B | $1.83B | $2.56B |
| Total Debt | $1.83B | $2.00B | $1.15B | $1.78B | $1.45B | $1.60B | $1.66B | $2.44B | $1.70B | $1.49B |
| Net Debt | -$985.8M | -$1.40B | -$586.9M | $1.44B | $1.01B | $1.03B | $1.18B | $2.05B | $1.38B | $903.3M |
| Working Capital | $3.12B | $3.66B | $2.21B | $721.2M | $596.0M | $948.4M | $978.2M | $963.3M | $879.4M | $908.1M |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Cash & Equivalents | $459.1M | $587.8M | $462.0M | $539.0M |
| Total Assets | $4.86B | $5.08B | $24.53B | $24.75B |
| Total Liabilities | $2.53B | $2.52B | $9.24B | $9.56B |
| Total Equity | $2.33B | $2.56B | $15.29B | $15.20B |
| Total Debt | $1.49B | $1.49B | $5.57B | $5.25B |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $521.5M | $20.3M | $593.8M | $592.2M | $521.6M | $692.8M | $707.8M | $642.2M | $637.8M | $642.6M |
| Depreciation & Amortization | $96.4M | $106.0M | $108.4M | $105.3M | $135.4M | $131.7M | $130.4M | $165.9M | $191.8M | $206.2M |
| Stock-based Compensation | $41.0M | $39.4M | $37.5M | $38.6M | $36.9M | $29.9M | $42.6M | $36.9M | $44.7M | $54.1M |
| Change in Working Capital | -$31.9M | $531.9M | -$135.3M | -$93.0M | $96.7M | -$107.2M | -$269.1M | -$240.3M | -$111.4M | -$233.4M |
| Operating Cash Flow | $629.1M | $697.6M | $604.4M | $643.1M | $790.5M | $747.3M | $611.7M | $602.8M | $762.1M | $652.6M |
| Capital Expenditure | -$95.0M | -$90.5M | -$127.6M | -$163.8M | -$172.4M | -$168.3M | -$183.5M | -$160.6M | -$142.5M | -$112.7M |
| Acquisitions | -$5.6M | -$2.52B | -$31.5M | $8.8M | -$86.7M | $7.0M | -$1.4M | -$1.28B | -$1.5M | -$35.1M |
| Stock Repurchased | -$325.8M | -$332.5M | -$1.32B | -$2.47B | -$196.4M | -$648.9M | -$626.1M | -$70.3M | -$13.5M | -$14.7M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | $534.1M | $607.2M | $476.9M | $479.3M | $618.1M | $579.0M | $428.2M | $442.2M | $619.6M | $539.8M |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Operating Cash Flow | $187.3M | $164.6M | -$3.0M | $201.0M |
| Capital Expenditure | -$25.4M | -$39.0M | -$39.0M | -$48.0M |
| Free Cash Flow | $161.9M | $125.6M | -$42.0M | $153.0M |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Stock-based Compensation | $13.7M | $14.5M | $20.0M | $25.0M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +6.5% | +4.8% | -0.6% | -1.7% | +17.8% | +6.7% | -0.5% | +0.1% | +7.0% | |
| Net Income Growth (YoY) | -96.1% | +2,823.5% | -0.3% | -11.9% | +32.8% | +2.2% | -9.3% | -0.7% | +0.8% | |
| EPS Growth (YoY) | -96.1% | +2,984.0% | +13.6% | -4.1% | +33.9% | +4.9% | -7.9% | -1.1% | +0.5% | |
| Shares Change (YoY) | -1.0% | -3.7% | -12.2% | -8.4% | -0.6% | -2.7% | -1.8% | +0.5% | +0.3% | |
| FCF Growth (YoY) | +13.7% | -21.5% | +0.5% | +29.0% | -6.3% | -26.0% | +3.3% | +40.1% | -12.9% | |
| Gross Margin | 58.9% | 59.0% | 59.0% | 58.0% | 57.4% | 58.5% | 58.0% | 59.6% | 59.4% | 57.8% |
| Operating Margin | 28.8% | 28.7% | 30.6% | 29.4% | 27.3% | 29.5% | 29.4% | 27.7% | 27.9% | 28.2% |
| EBITDA Margin | 34.2% | 34.8% | 34.7% | 34.6% | 33.2% | 35.3% | 34.2% | 33.9% | 35.0% | 32.0% |
| Net Margin | 24.1% | 0.9% | 24.5% | 24.6% | 22.1% | 24.9% | 23.8% | 21.7% | 21.6% | 20.3% |
| FCF Margin | 24.6% | 26.3% | 19.7% | 19.9% | 26.1% | 20.8% | 14.4% | 15.0% | 20.9% | 17.1% |
| Effective Tax Rate | 13.1% | 96.8% | 13.0% | 12.7% | 14.6% | 14.1% | 15.5% | 12.8% | 15.5% | 14.9% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $6.56 | $7.53 | $6.14 | $7.03 | $9.90 | $9.33 | $7.10 | $7.46 | $10.41 | $9.04 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | $80.8M | $79.8M | $77.0M | $67.6M | $62.1M | $61.6M | $60.0M | $59.1M | $59.3M | $59.5M |
What to look at in Healthcare / Pharma
The R&D pipeline is the invisible asset. Patents expiring = revenues evaporating. Look at innovation and cash flow.
- R&D / Revenue — Shows investment in future pipeline. Serious pharma reinvests 15-20%
- 5y EPS growth — After patent expirations, are they still growing?
- Gross margin — Branded pharma >70%. Generics much lower — defines the business type
- FCF / Net Income — Earnings quality — big pharma should convert >90%
- ROIC — Capital reinvested efficiently — key in pharma due to long R&D cycles
- Net debt / EBITDA — Pharma acquisitions pile up debt — watch the post-M&A picture
- P/E vs own 10y history — The best comparison is with its own history, not with peers
Profitability
| Return on Equity | 25.09% |
| Return on Invested Capital | 17.57% |
| Return on Assets | 12.66% |
| Gross Margin | 57.77% |
| Operating Margin | 28.22% |
| Net Margin | 20.30% |
Financial Health
| Debt / Equity | 0.58 |
| Current Ratio | 1.73 |
| Piotroski F-Score | 5 |
| Altman Z-Score | 9.69 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 20.80 | 772.76 | 24.47 | 26.67 | 29.45 | 33.12 | 29.03 | 30.29 | 34.51 | 35.17 |
| P/B | 4.72 | 6.90 | 9.27 | -73.06 | 66.18 | 62.42 | 40.73 | 16.91 | 12.04 | 8.83 |
| P/S | 5.01 | 6.68 | 6.00 | 6.57 | 6.50 | 8.24 | 6.91 | 6.58 | 7.44 | 7.14 |
| Gross Margin | 58.9% | 59.0% | 59.0% | 58.0% | 57.4% | 58.5% | 58.0% | 59.6% | 59.4% | 57.8% |
| Operating Margin | 28.8% | 28.7% | 30.6% | 29.4% | 27.3% | 29.5% | 29.4% | 27.7% | 27.9% | 28.2% |
| Net Margin | 24.1% | 0.9% | 24.5% | 24.6% | 22.1% | 24.9% | 23.8% | 21.7% | 21.6% | 20.3% |
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