Waters (WAT) Is Up 6.9% After Raising Full-Year Sales Guidance on Strong Q2 Results

• Waters Corporation recently reported increased second-quarter and first-half 2025 results, with revenue rising to US$771.33 million and US$1.43 billion, respectively, and net income also improving year over year.
• This growth led Waters to raise its full-year and third-quarter 2025 sales guidance, reflecting management’s confidence in continued operational momentum and market demand.
• We’ll now examine how Waters’ raised full-year sales growth guidance could influence the company’s investment outlook and analyst expectations.

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Waters Investment Narrative Recap

To be a Waters shareholder, you need to believe in the company's ability to capitalize on growing pharmaceutical R&D and expanding analytical needs, while managing integration risks from its planned acquisition of BD's Biosciences and Diagnostic Solutions. The recent upgrade in full-year and quarterly sales guidance confirms solid operational momentum, which directly supports the main near-term catalyst, top-line growth. However, persistent challenges in academic and pharma drug discovery funding remain the biggest headwind to watch; the latest news does little to reduce this risk.

Among recent announcements, Waters' decision to raise its full-year 2025 reported sales growth guidance to 5.0–7.0% stands out. This update is closely tied to the upgraded earnings results and operational performance, strengthening the company’s outlook and serving as a key anchor for short-term investment sentiment, especially as analysts track whether Waters can sustain this pace against underlying market uncertainties.

By contrast, investors should still be mindful of funding pressures in pharma and academic segments, as these ongoing headwinds could…

Read the full narrative on Waters (it's free!)

Waters' narrative projects $3.7 billion revenue and $918.8 million earnings by 2028. This requires 6.3% yearly revenue growth and a $257.4 million earnings increase from $661.4 million.

Uncover how Waters' forecasts yield a $350.24 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Fair value opinions from the Simply Wall St Community range widely from US$350.24 to US$440.32 across two estimates. While several participants focus on Waters' raised sales guidance and earnings quality, many also recognize that ongoing funding uncertainties may influence future revenue and broader sentiment, consider multiple viewpoints before making any investment decisions.

Explore 2 other fair value estimates on Waters - why the stock might be worth as much as 48% more than the current price!

Build Your Own Waters Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Waters research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Waters research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Waters' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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