Upside case
Bull case
$640+79.9%
WAT would need investors to value it at roughly 44x earnings — about 20x more generous than today's 24x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated Jun 18, 2026
Waters Corporation (WAT) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
35
analysts
12 bullish · 3 bearish · 35 covering WAT
Strong Buy
0
Buy
12
Hold
20
Sell
3
Strong Sell
0
Consensus Target
$395
+11.2% vs today
Scenario Range
$306 – $640
Model bear to bull value window
Coverage
35
Published analyst ratings
Valuation Context
24.5x
Forward P/E · Market cap $23.2B
WAT price targets
Three scenarios for where WAT stock could go
Current
~$355
Confidence
55 / 100
Updated
Jun 18, 2026
Where we are now
Current · $355
Bear
$306
Base
$485
Bull
$640
Market caseClosest to today
Base case
$485+36.6%
At 33x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$306-14.0%
If investor confidence fades or macro conditions deteriorate, a 3x multiple contraction could push WAT down roughly 14% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Waters Corporation
WAT · NYSEHealthcareMedical - Diagnostics & ResearchDecember year-end
Waters Corporation is a specialty measurement company that provides analytical workflow solutions — primarily liquid chromatography and mass spectrometry systems — for life sciences, pharmaceutical, and industrial applications. It generates revenue through instrument sales (~60% of revenue), recurring consumables and service contracts (~40%), with its TA segment offering thermal analysis and rheometry instruments. The company's competitive moat lies in its deep expertise in high-performance liquid chromatography and mass spectrometry — critical technologies for drug development and quality control — where it maintains strong customer loyalty through integrated workflow solutions and high switching costs.
Market Cap
$23.2B
Revenue TTM
$3.8B
Net Income TTM
$449M
Net Margin
11.9%
WAT Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
100%Exceptional
12 quarters tracked
Revenue Beat Rate
92%Exceptional
vs consensus estimates
Avg EPS Surprise
+5.5%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$2.95/$2.94
Revenue
$771M/$749M
Q4 2025
EPS
$3.40/$3.21
Revenue
$800M/$781M
Q1 2026
EPS
$4.53/$4.51
Revenue
$932M/$928M
Q2 2026
EPS
$2.70/$2.31
Revenue
$1.3B/$1.2B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $2.95/$2.94 | +0.3% | $771M/$749M | +3.0% |
| Q4 2025 | $3.40/$3.21 | +5.9% | $800M/$781M | +2.4% |
| Q1 2026 | $4.53/$4.51 | +0.4% | $932M/$928M | +0.4% |
| Q2 2026 | $2.70/$2.31 | +16.9% | $1.3B/$1.2B | +5.3% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$4.5B
+18.4% YoY
FY2
$5.5B
+23.3% YoY
EPS Outlook
FY1
$11.50
+110.3% YoY
FY2
$14.69
+27.7% YoY
Trailing FCF (TTM)$264M
FCF Margin: 7.0%
Next Earnings
August 3, 2026
Expected EPS
$3.00
Expected Revenue
$1.6B
WAT beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
WAT Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $3.2B
Product Mix
Latest annual revenue by segment or product family
Waters Instrument Systems
34.8%
+6.7% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Americas
36.7%
+4.1% YoY
Tap, hover, or focus a slice to inspect segment detail.
Waters Instrument Systems is the largest disclosed segment at 34.8% of FY 2025 revenue, up 6.7% YoY.
Americas is the largest reported region at 36.7%, up 4.1% YoY.
WAT Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Cheap versus peers
Fair value est. $622 — implies +75.1% from today's price.
Upside to Fair Value
75.1%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
WAT
33.0x
vs
S&P 500
24.4x
+35% premium
vs Healthcare Trailing P/E
WAT
33.0x
vs
Healthcare
22.1x
+49% premium
vs WAT 5Y Avg P/E
Today
33.0x
vs
5Y Average
32.6x
In line with benchmark
Forward PE
24.5x
S&P 500
18.8x
+30%
Healthcare
18.3x
+34%
5Y Avg
—
—
Trailing PE
33.0x
S&P 500
24.4x
+35%
Healthcare
22.1x
+49%
5Y Avg
32.6x
+1%
PEG Ratio
6.38x
S&P 500
1.66x
+284%
Healthcare
1.59x
+301%
5Y Avg
—
—
EV/EBITDA
21.8x
S&P 500
15.2x
+43%
Healthcare
14.2x
+53%
5Y Avg
22.7x
-4%
Price/FCF
42.9x
S&P 500
20.7x
+107%
Healthcare
18.5x
+131%
5Y Avg
42.0x
+2%
Price/Sales
7.3x
S&P 500
3.1x
+137%
Healthcare
2.6x
+178%
5Y Avg
7.3x
+0%
Dividend Yield
—
S&P 500
1.91%
—
Healthcare
1.50%
—
5Y Avg
—
—
| Metric | WAT | S&P 500 | Healthcare | 5Y Avg WAT |
|---|---|---|---|---|
| Forward PE | 24.5x | 18.8x+30% | 18.3x+34% | — |
| Trailing PE | 33.0x | 24.4x+35% | 22.1x+49% | 32.6x |
| PEG Ratio | 6.38x | 1.66x+284% | 1.59x+301% | — |
| EV/EBITDA | 21.8x | 15.2x+43% | 14.2x+53% | 22.7x |
| Price/FCF | 42.9x | 20.7x+107% | 18.5x+131% | 42.0x |
| Price/Sales | 7.3x | 3.1x+137% | 2.6x+178% | 7.3x |
| Dividend Yield | — | 1.91% | 1.50% | — |
WAT trades above S&P 500 benchmarks on 6 of 6 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolWAT Financial Health
Verdict
Strong
WAT 20.3% ROIC signals a durable competitive advantage.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$3.8B
Revenue Growth
TTM vs prior year
+26.4%
Gross Margin
Gross profit as a share of revenue
55.0%
Operating Margin
Operating income divided by revenue
17.1%
Net Margin
Net income divided by revenue
11.9%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$5.47
Free Cash Flow (TTM)
Cash generation after capex
$264M
FCF Margin
FCF as share of revenue — the primary cash quality signal
7.0%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
20.3%
ROA
Return on assets, trailing twelve months
4.6%
Cash & Equivalents
Liquid assets on the balance sheet
$588M
Net Debt
Total debt minus cash
$820M
Debt Serviceability
Net debt as a multiple of annual free cash flow
3.1× FCF
~3.1 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
8.0%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
0.1%
Dividend
—
Buyback
0.1%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$15M
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Declining as buybacks retire shares
65M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageWAT Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
High Risk
Valuation de-rating
Waters' current P/E of 81.05x is significantly above the Fair Ratio of 30.36x, indicating the stock is overvalued on this metric.
Medium
End-market demand softness
Softer end-market demand could compress multiples and leave the stock near the low end of consensus estimates.
Medium
Guidance-driven re-rating
Weaker guidance or further analyst downgrades may lead to a re-rating of the stock, concentrating downside risk.
Lower
Consensus upside limited
With a consensus price target implying only +11.1% upside, the stock's near-term potential appears modest.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why WAT Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
Product portfolio expansion
Waters Corporation expanded its analytical portfolio with high-performance launches, including new BioResolve and GTxResolve columns and next-generation mass spectrometers, strengthening its position in biologics and structural omics.
Strong financial metrics
Waters Corporation's trailing and forward P/E ratios of 34.48 and 26.39 respectively indicate strong earnings potential and investor confidence in future growth.
Bullish analyst coverage
A bullish thesis on Waters Corporation was highlighted by The Wealth Dynasty Report, suggesting positive sentiment and potential upside from analyst perspectives.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
WAT Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$355.44
52W Range Position
58%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$275.05
+29.2% from the low
52-Week High
$414.15
-14.2% from the high
1 Month
+7.00%
3 Month
+20.47%
YTD
-6.9%
1 Year
+4.7%
3Y CAGR
+10.5%
5Y CAGR
+0.7%
10Y CAGR
+10.0%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
WAT vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
24.5x
vs 24.0x median
+2% above peer median
Revenue Growth
+18.4%
vs +6.1% median
+205% above peer median
Net Margin
11.9%
vs 15.2% median
-21% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
WAT WAT Waters Corporation | $23.2B | 24.5x | +18.4% | 11.9% | Hold | +11.2% |
A A Agilent Technologies, Inc. | $35.9B | 21.0x | +2.7% | 19.6% | Buy | +21.8% |
BRK BRKR Bruker Corporation | $8.7B | 27.0x | +8.8% | -0.3% | Buy | -16.7% |
MTS MTSI MACOM Technology Solutions Holdings, Inc. | $29.9B | 77.9x | +18.8% | 16.5% | Buy | -7.8% |
SHI SHIM Shimmick Corporation Common Stock | $134M | — | +1.0% | -4.4% | Hold | +63.9% |
TMO TMO Thermo Fisher Scientific Inc. | $172.7B | 18.7x | +6.1% | 15.2% | Buy | +29.1% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
WAT Dividend and Capital Return
WAT does not currently return meaningful capital to shareholders.
Dividend UnknownFCF Unknown
Total Shareholder Yield
0.1%
Dividend + buyback return per year
Buyback Yield
0.1%
Dividend Yield
—
Payout Ratio
—
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.00
Growth Streak
Consecutive years of dividend increases
0Y
3Y Div CAGR
—
5Y Div CAGR
—
Ex-Dividend Date
—
Payment Cadence
—
0 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$15M
Estimated Shares Retired
41.3K
Approx. Share Reduction
0.1%
Shares Outstanding
Current diluted share count from the screening snapshot
65M
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 1996 | $0.04 | — | 0.0% | 0.0% |
FAQ
7 questionsWAT Investor Questions
Common questions answered from live analyst data and company financials.
01Is Waters Corporation (WAT) stock a buy or sell in 2026?
Waters Corporation (WAT) is rated Hold by Wall Street analysts as of 2026. Of 35 analysts covering the stock, 12 rate it Buy or Strong Buy, 20 rate it Hold, and 3 rate it Sell or Strong Sell. The consensus 12-month price target is $395, implying +11.2% from the current price of $355. The bear case scenario is $306 and the bull case is $640.
02What is the WAT stock price target for 2026?
The Wall Street consensus price target for WAT is $395 based on 35 analyst estimates. The high-end target is $440 (+23.8% from today), and the low-end target is $350 (-1.5%). The base case model target is $485.
03Is Waters Corporation (WAT) stock overvalued in 2026?
WAT trades at 24.5x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals cheap versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Waters Corporation (WAT) stock in 2026?
The primary risks for WAT in 2026 are: (1) Valuation de-rating — Waters' current P/E of 81. (2) End-market demand softness — Softer end-market demand could compress multiples and leave the stock near the low end of consensus estimates. (3) Guidance-driven re-rating — Weaker guidance or further analyst downgrades may lead to a re-rating of the stock, concentrating downside risk. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Waters Corporation's revenue and earnings forecast?
Analyst consensus estimates WAT will report consensus revenue of $4.5B (+18.4% year-over-year) and EPS of $11.50 (+110.3% year-over-year) for the upcoming fiscal year. The following year, analysts project $5.5B in revenue.
06When does Waters Corporation (WAT) report its next earnings?
Waters Corporation is expected to report its next earnings on approximately 2026-08-03. Consensus expects EPS of $3.00 and revenue of $1.6B. Over recent quarters, WAT has beaten EPS estimates 100% of the time.
07How much free cash flow does Waters Corporation generate?
Waters Corporation (WAT) generated $264M in free cash flow over the trailing twelve months — a free cash flow margin of 7.0%. WAT returns capital to shareholders through and share repurchases ($15M TTM).