Upside case
Bull case
$509+48.6%
WAT would need investors to value it at roughly 35x earnings — about 12x more generous than today's 24x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated May 1, 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
34
analysts
10 bullish · 3 bearish · 34 covering WAT
Strong Buy
0
Buy
10
Hold
21
Sell
3
Strong Sell
0
Consensus Target
$403
+17.5% vs today
Scenario Range
$308 – $509
Model bear to bull value window
Coverage
34
Published analyst ratings
Valuation Context
23.8x
Forward P/E · Market cap $20.4B
WAT price targets
Three scenarios for where WAT stock could go
Current
~$343
Confidence
66 / 100
Updated
May 1, 2026
Where we are now
Current · $343
Bear
$308
Base
$421
Bull
$509
Market caseClosest to today
Base case
$421+22.9%
At 29x 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
$308-9.9%
If investor confidence fades or macro conditions deteriorate, a 2x multiple contraction could push WAT down roughly 10% 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
$20.4B
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
$4.6B
+45.4% YoY
FY2
$4.6B
-0.4% YoY
EPS Outlook
FY1
$12.57
+16.9% YoY
FY2
$13.16
+4.7% YoY
Trailing FCF (TTM)$264M
FCF Margin: 7.0%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
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
Slightly Undervalued
Fair value est. $326 — implies +6.0% from today's price.
Upside to Fair Value
6.0%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
WAT
31.8x
vs
S&P 500
25.1x
+27% premium
vs Healthcare Trailing P/E
WAT
31.8x
vs
Healthcare
22.2x
+43% premium
vs WAT 5Y Avg P/E
Today
31.8x
vs
5Y Average
32.6x
In line with benchmark
Forward PE
23.8x
S&P 500
19.1x
+25%
Healthcare
18.8x
+26%
5Y Avg
—
—
Trailing PE
31.8x
S&P 500
25.1x
+27%
Healthcare
22.2x
+43%
5Y Avg
32.6x
-2%
PEG Ratio
6.15x
S&P 500
1.72x
+258%
Healthcare
1.53x
+302%
5Y Avg
—
—
EV/EBITDA
19.3x
S&P 500
15.2x
+27%
Healthcare
14.0x
+38%
5Y Avg
22.7x
-15%
Price/FCF
37.8x
S&P 500
21.1x
+79%
Healthcare
18.6x
+104%
5Y Avg
42.0x
-10%
Price/Sales
6.4x
S&P 500
3.1x
+106%
Healthcare
2.8x
+130%
5Y Avg
7.3x
-12%
Dividend Yield
—
S&P 500
1.87%
—
Healthcare
1.42%
—
5Y Avg
—
—
| Metric | WAT | S&P 500 | Healthcare | 5Y Avg WAT |
|---|---|---|---|---|
| Forward PE | 23.8x | 19.1x+25% | 18.8x+26% | — |
| Trailing PE | 31.8x | 25.1x+27% | 22.2x+43% | 32.6x |
| PEG Ratio | 6.15x | 1.72x+258% | 1.53x+302% | — |
| EV/EBITDA | 19.3x | 15.2x+27% | 14.0x+38% | 22.7x-15% |
| Price/FCF | 37.8x | 21.1x+79% | 18.6x+104% | 42.0x-10% |
| Price/Sales | 6.4x | 3.1x+106% | 2.8x+130% | 7.3x-12% |
| Dividend Yield | — | 1.87% | 1.42% | — |
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
60M
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 April 29, 2026
High Risk
Profitability and Margins
Waters Corporation has experienced a significant decline in adjusted operating margins despite revenue growth, raising concerns about expense management. Additionally, the company's return on invested capital has decreased, indicating fewer profitable expansion opportunities.
High Risk
Integration Risk
The acquisition of BD Life Sciences introduces integration and execution risks that could amplify stock volatility. These risks may hinder the company's ability to realize anticipated synergies and operational efficiencies.
Medium
Product Performance
The lackluster performance of newly launched products has led to organic revenue declines, creating a challenging environment for Waters Corporation. This underperformance raises questions about the company's innovation pipeline and market competitiveness.
Medium
Geographic Concentration
A substantial decrease in sales from China has negatively impacted various segments of Waters Corporation's business. This geographic concentration poses risks related to economic fluctuations and regulatory changes in the region.
Medium
Regulatory Approval Timelines
While Waters has received FDA clearance for its at-home cervical cancer screening kit, there are concerns about how quickly these new diagnostics will translate into meaningful revenue. The market is focused on execution risks and adoption timelines, tempering enthusiasm despite positive regulatory milestones.
Lower
Competition
Waters Corporation operates in a competitive landscape with both traditional and non-traditional competitors. This competition may pressure pricing and market share, impacting overall profitability.
Lower
Economic Conditions
Changes in national and local economies can affect Waters Corporation's business performance. Economic downturns may lead to reduced spending on healthcare and laboratory services, impacting revenue.
Lower
Technological Changes
Rapid technological advancements can complicate operations and increase costs for Waters Corporation. The need to continuously innovate and adapt to new technologies may strain resources and profitability.
Lower
Supply Chain Disruptions
Supply chain disruptions pose a risk to Waters Corporation's operations, potentially leading to delays and increased costs. These disruptions can arise from various factors, including geopolitical tensions and global trade issues.
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 April 29, 2026
Recent FDA Approval
The FDA's approval of Waters' at-home cervical cancer screening kit is a significant development. This is expected to enhance early detection rates and expand the company's market share in the healthcare sector.
Strong Market Position
Waters holds a strong position in essential industries, with a diversified portfolio that supports a recurring revenue model. This foundation is expected to drive long-term growth.
Commitment to Innovation
The company's focus on innovation in critical industries positions it favorably for sustained success. This strategic emphasis is likely to enhance its competitive edge.
Product Adoption Growth
Strong adoption of mass spectrometry products, particularly the Xevo TQ Absolute, is driven by demand in applications such as PFAS and pharmaceutical quality assurance. This trend is a positive indicator for future revenue.
Insider Confidence and Undervaluation
Insider buying signals confidence in the company's future, while analyses suggest that WAT is undervalued, with a GF Value™ indicating a potential upside of 34.8%.
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
$342.53
52W Range Position
49%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$275.05
+24.5% from the low
52-Week High
$414.15
-17.3% from the high
1 Month
+12.64%
3 Month
-9.12%
YTD
-10.3%
1 Year
-1.7%
3Y CAGR
+4.9%
5Y CAGR
+2.1%
10Y CAGR
+10.1%
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
23.8x
vs 19.2x median
+24% above peer median
Revenue Growth
+45.4%
vs +4.6% median
+879% 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 | $20.4B | 23.8x | +45.4% | 11.9% | Hold | +17.5% |
A A Agilent Technologies, Inc. | $33.3B | 19.7x | +4.6% | 18.3% | Buy | +41.2% |
BRK BRKR Bruker Corporation | $5.8B | 18.0x | +10.4% | -0.3% | Buy | +37.1% |
MTS MTSI MACOM Technology Solutions Holdings, Inc. | $22.8B | 67.8x | +19.8% | 15.9% | Buy | -16.3% |
SHI SHIM Shimmick Corporation Common Stock | $189M | — | -1.3% | -5.2% | Hold | +14.3% |
TMO TMO Thermo Fisher Scientific Inc. | $173.5B | 18.8x | +4.1% | 15.2% | Buy | +40.3% |
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
1Y
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
42.8K
Approx. Share Reduction
0.1%
Shares Outstanding
Current diluted share count from the screening snapshot
60M
| 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 34 analysts covering the stock, 10 rate it Buy or Strong Buy, 21 rate it Hold, and 3 rate it Sell or Strong Sell. The consensus 12-month price target is $403, implying +17.5% from the current price of $343. The bear case scenario is $308 and the bull case is $509.
02What is the WAT stock price target for 2026?
The Wall Street consensus price target for WAT is $403 based on 34 analyst estimates. The high-end target is $480 (+40.1% from today), and the low-end target is $350 (+2.2%). The base case model target is $421.
03Is Waters Corporation (WAT) stock overvalued in 2026?
WAT trades at 23.8x 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 slightly undervalued. 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) Profitability and Margins — Waters Corporation has experienced a significant decline in adjusted operating margins despite revenue growth, raising concerns about expense management. (2) Integration Risk — The acquisition of BD Life Sciences introduces integration and execution risks that could amplify stock volatility. (3) Product Performance — The lackluster performance of newly launched products has led to organic revenue declines, creating a challenging environment for Waters Corporation. 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 $4.6B (+45.4% year-over-year) and EPS of $12.57 (+16.9% year-over-year) for the upcoming fiscal year. The following year, analysts project $4.6B in revenue.
06When does Waters Corporation (WAT) report its next earnings?
A confirmed upcoming earnings date for WAT is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
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).