Waters Stock Surges on Exceptional Quarterly Performance

Waters Corporation has delivered a stunning third-quarter performance for 2025, shattering market expectations and propelling its shares upward with significantly upgraded guidance. The laboratory equipment specialist's impressive results have investors questioning whether this momentum can be sustained through the coming year.

The company's robust quarterly figures prompted executives to substantially raise their annual projections. Waters now anticipates constant-currency revenue growth between 6.7% and 7.3%, with adjusted earnings per share expected to reach $13.05 to $13.15. This represents projected profit growth of 10% to 11% compared to 2024 levels.

Looking ahead to the final quarter, the company forecasts adjusted earnings in the range of $4.45 to $4.55 per share, indicating additional growth of 9% to 11%.

Exceptional Financial Metrics

Waters posted adjusted earnings of $3.40 per share, exceeding analyst estimates of $3.21 by a substantial 5.9% margin. This result also represents a 16% improvement over the same period last year. Revenue performance proved even more impressive, climbing to $800 million and significantly surpassing the $781 million consensus forecast. On a constant-currency basis, this translates to 8% growth.

Should investors sell immediately? Or is it worth buying Waters?

Pharmaceutical Division Leads Expansion

Across all business segments, Waters demonstrated consistent strength. The pharmaceutical sector emerged as the primary growth engine, expanding by 11% and driving overall performance. The core Waters division advanced by 9% to reach $713.4 million, while the TA instrumentation segment posted a more modest 2% gain.

A particularly encouraging development came from recurring revenue streams, where service and chemistry product sales increased by 9%. This growth was largely fueled by double-digit gains in bioseparations products.

Analyst Sentiment Remains Guarded

Despite the outstanding results, market experts maintain cautious optimism. The average price target currently stands at $381.57 with a "Moderate Buy" rating. While some institutional investors like Bank of Montreal reduced their positions, others demonstrated continued confidence through new purchases. Leerink Partners responded to the strong performance by raising their 2025 earnings estimate to $13.11.

The critical question remains whether Waters can transform its surprising third-quarter strength into sustained upward trajectory. The answer may emerge as early as the next quarterly report.