Shares of Waters Corp. decline following Q4 earnings report. Reasons explained.

The Milford-based specialty-measurement products maker, Waters Corp., experienced a significant decline in its shares by almost 14% following the release of its fourth-quarter and full-year 2025 earnings report on Monday, Feb. 9. The company, known for its headquarters at 34 Maple St., announced a net income of $225.2 million, equivalent to $3.77 per diluted share, in the three-month period concluding on Dec. 31. This figure is lower compared to the net income of $231.4 million ($3.88 per diluted share) reported for the same period in the previous year. However, when excluding one-time items, earnings stood at $4.53 per share. The quarterly revenues rose to $932.4 million, demonstrating a 6.8% increase from the $872.7 million recorded during the same time frame a year before.

Despite surpassing analysts’ expectations that forecasted earnings at $4.50 per share on revenues of $927.3 million, Waters Corp.’s stocks, traded on the New York Stock Exchange, closed at $328.14 on Monday, marking a significant drop of $53.15 (13.9%). This negative shift can likely be attributed to the company’s outlook for the first quarter, which estimates earnings between $2.25 and $2.35 per share for the period ending April 4, falling short of analysts’ predictions of $2.51 per share.

Waters Corp.’s CEO, Udit Batra, expressed optimism regarding the company’s future performance, affirming that the momentum achieved in 2025 is expected to continue into 2026. Batra highlighted that Waters Corp. achieved high single-digit revenue growth and double-digit adjusted EPS growth in 2025. Furthermore, he attributed this success to the strong execution of the multi-year instrument replacement cycle, ongoing contributions from innovative initiatives, and the distinctive growth parameters unique to Waters. For the entirety of 2025, the company announced a notable 11% increase in earnings per share, climbing from $11.86 in 2024 to $13.13 the following year. Revenues also exhibited growth, rising by 7% from $2.96 billion in 2024 to $3.17 billion in 2025.

Separately, Waters Corp. disclosed a merger with Becton, Dickinson’s Biosciences & Diagnostic Solutions business that had been previously approved by its shareholders. This consolidation emphasizes Waters Corp.’s dedication to delivering chromatography, mass spectrometry, and thermal analysis innovations for various sectors including life sciences, materials, and food sciences. The company operates with approximately 7,600 employees globally and distributes its products in over 100 countries.