On this page of StockholderLetter.com we present the latest annual shareholder letter from WATERS CORP /DE/ — ticker symbol WAT. Reading current and past WAT letters to shareholders can bring important insights into the investment thesis.

 •  4/9/2026 Letter Continued (Full PDF)
 •  4/13/2023 WAT Stockholder Letter
 •  4/12/2024 WAT Stockholder Letter
 •  4/9/2025 WAT Stockholder Letter
 •  More "Biotechnology" Category Stockholder Letters
 •  WAT Benford's Law Stock Score = 67

WAT Shareholder/Stockholder Letter Transcript:

2025 Annual Report
Accelerating the Benefits of Pioneering Science

Our Work Touches
Millions of Lives

Dear Shareholders, Customers, and Colleagues,
2025 was an eventful year at Waters, marked by continued industry-leading financial
performance and our advancement into a pivotal new chapter in our evolution as a company
with the announced acquisition of BD   s Biosciences and Diagnostic Solutions businesses.
In 2025, full-year revenue grew 7% on both a reported
In 2025, we continued to demonstrate the strength
and constant-currency basis, and adjusted earnings
of this transformation as we executed with discipline,
per share grew 11%. Growth was broad-based across
accelerated innovation, and strengthened our
our geographies, with each delivering mid-single-digit
foundation for sustained long-term growth.
growth or better     led by 9% growth in pharma. These
results reflect the strength of our execution, the vitality
Strong Execution
of our innovation engine, and the durability of our
We are executing well, while benefiting from a
business model in high-volume, regulated markets,
multi-year instrument replacement cycle and driving
at a time when the majority of companies in our
strong growth in GLP-1 testing, PFAS testing and
subsector are growing in the low single-digits.
Generics testing, especially in India. These drivers
added several hundred basis points to our 2025
Over the past five years, we have transformed Waters into
revenue. Meanwhile, we expanded service plan
a company with more resilient and sustainable growth.
attachment of our large installed base of instruments
At the same time, we have delivered total shareholder
by ~400 basis points, and eCommerce penetration
returns that have outperformed peer averages on a
grew to approximately 45% of chemistry revenue.
trailing 1, 3, and 5-year basis, resulting in a 54% 5-year
TSR (on a calendar year basis as of 12/31/25).
Unless otherwise noted, all figures discussed are as of or for the year ended December 31, 2025. Certain measures, such as constant currency sales growth percentages, adjusted
operating income margin percentages, and adjusted earnings per share (EPS) are presented on a Non-GAAP basis; the GAAP to Non-GAAP reconciliations for these measures are
available on the Investor Relations pages of the Company   s website. We are unable to provide reconciliations of forward-looking presentations of Adjusted EBITDA (in connection
with expected realizations of cost synergies) to their most comparable GAAP measures without unreasonable effort due to the inherent difficulty and unpredictability of quantifying
certain amounts necessary for such reconciliations.
2025 Annual Report |
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Revitalized Innovation
BD   s Biosciences and Diagnostic Solutions businesses
New product innovation remains a powerful driver of
in a bold transaction that unites world-class capabilities
our performance. Flagship platforms such as Alliance    iS
across chemistry, biology, and physics to create a
HPLC more than doubled in sales year over year, while
differentiated life sciences and diagnostics leader
Xevo    TQ Absolute Mass Spectrometers grew over
with category-defining brands.
30%. Our chemistry consumables business grew
double-digits for the year, led by MaxPeak    Premier
The transaction closed ahead of schedule in February
Chemistry, which grew over 35%.
of this year, and we could not be more excited. We
are now moving quickly to begin delivering on the
Expanding into High-Growth Areas
significant value-creation opportunity the transaction
We also made significant progress developing our
presents, starting with our application of the same
portfolio in high-growth adjacencies, including
operating discipline and proven execution playbook
bioseparations and bioanalytical characterization,
that have driven Waters    transformation success over
where new technologies are enabling customers
the last five years.
to analyze larger, more complex molecules with
greater confidence and efficiency.
Our Purpose
At Waters, we accelerate the benefits of pioneering
With our core portfolio in excellent shape and the
science. Every day, we work alongside customers to
investments we have made in our high-growth
solve complex challenges, supporting the development
adjacencies clearly delivering strong value across
and manufacturing of life-saving therapies, advancing
bioseparations, bioanalytical characterization,
food and environmental safety, enabling earlier and
and LC-MS into Diagnostics, we seized a unique
more precise diagnostics, and ensuring the reliability
opportunity to accelerate our long-term growth
of next-generation materials.
strategy with significant commercial scale. In July
2025, we announced our intended acquisition of
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| 2025 Annual Report
Thank you for being a part of our journey.

2025 Annual Report |
5

4/9/2026 Letter Continued (Full PDF)

 

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