Waters Corporation (NYSE: WAT) 2025 Annual Report: Detailed Analysis for Investors

Waters Corporation, a leading manufacturer in laboratory analytical instruments, has filed its 2025 Annual Report (Form 10-K) for the fiscal year ended December 31, 2025. The company, headquartered in Milford, MA, continues to be a significant player in the analytical instruments sector, trading on the New York Stock Exchange under the symbol WAT.

Key Financial and Corporate Highlights

• Market Capitalization: As of June 28, 2025, Waters’ aggregate market value of publicly held common stock was approximately \$20.97 billion.
• Shares Outstanding: As of February 19, 2026, Waters had 98,101,871 shares of common stock outstanding.
• Stock Trading: The company’s common stock is listed on the New York Stock Exchange (NYSE) under the ticker WAT.
• SEC Reporting Status: Waters is a well-known seasoned issuer and a large accelerated filer, meeting all required reporting criteria.
• ICFR Attestation: The company’s internal controls over financial reporting have been attested to by its independent registered public accounting firm, as required under Section 404(b) of Sarbanes-Oxley.

Business Overview and Segmentation

• Core Business: Waters operates globally in the laboratory analytical instruments sector, serving pharmaceutical, biotechnology, industrial, academic, and government customers.
• Geographic Reach: The company reports business across key markets, including the United States, Europe, China, Asia-Pacific, Singapore, United Kingdom, and Ireland.
• Product and Service Revenue: Revenue categorization includes products (instruments, software, consumables) and services (maintenance, support, consulting).

Potentially Price-Sensitive and Shareholder-Relevant Disclosures

• Valuation Allowance and Tax Impact: The report highlights notable changes in valuation allowances in recent years, primarily driven by foreign currency translation effects and increases in foreign net operating losses. These changes have affected the income tax provision and may impact net income volatility.
• Derivative and Hedging Activities: Waters uses cross-currency and interest rate swap agreements for risk management. Unrealized gains and losses on these contracts have fluctuated year-over-year due to foreign exchange rate changes, directly affecting comprehensive income and potentially impacting reported earnings.
• Geographic Revenue and Risk: The company’s exposure to various global regions, including China and Europe, is significant. Any macroeconomic or regulatory developments in these regions could materially affect financial performance.
• Shareholder Equity: The balance sheet reflects movements in key equity components, such as accumulated other comprehensive income, foreign currency translation adjustments, and unrealized gains/losses on derivatives. These may impact book value and investor perception of financial stability.
• Internal Controls and Audit: Confirmation of strong internal controls over financial reporting provides assurance but also means any future control failures or restatements could be highly price sensitive.
• Legal and Regulatory Disclosures: Investors are advised to review sections related to legal proceedings, cybersecurity, and unresolved staff comments, as any adverse developments in these areas may present material risks.

Other Shareholder Considerations

• Share Repurchase and Stock-Based Compensation: The company has active programs related to share buybacks and stock-based compensation, with detailed disclosures on exercise price ranges for options and performance stock units, potentially affecting dilution and shareholder returns.
• Retirement and Benefit Plan Liabilities: Waters maintains both domestic and foreign retirement plans. Any changes in actuarial assumptions or asset performance could impact reported liabilities and earnings.
• Emerging Growth and Small Business Status: Waters is not classified as an emerging growth or small reporting company, but investors should monitor for any regulatory shifts that might alter the company’s reporting obligations or cost structure.

Summary for Investors

Waters Corporation’s 2025 Annual Report reveals a financially solid company with a robust global footprint and active risk management strategies. However, the following factors should be closely monitored as they could materially affect share value:

• Foreign currency and tax impacts on earnings
• Volatility from derivative and hedging activities
• Exposure to macroeconomic and regulatory trends in key international markets
• Developments in legal, cybersecurity, and staff comment matters
• Movements in shareholder equity and potential dilution from equity-based compensation

Investors should read the full Annual Report and monitor SEC filings for any subsequent disclosures or developments that could affect Waters’ financial outlook or share price.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence or consult a financial advisor before making investment decisions. The author is not responsible for any investment actions taken based on this summary.

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