Why Waters? — A Strong, Repeatable Operating Model

Waters operates a strong, repeatable operating model built around instruments, informatics, consumables, and services.

  • Deep understanding of customer unmet needs

    • R&D investment of approximately 10% of product revenues1

  • Instruments

    • Installed base of 170K+ systems4
    • Growth driven by new applications and instrument replacement
      • Product portfolio includes:
        • Liquid Chromatography
        • Mass Spectrometry
        • Thermal Analysis
        • Light Scattering

  • Informatics

    • Informatics led by Empower, the #1 chromatography data system
      • Approximately 80% of novel drugs submitted to the FDA, EMA, and China NMPA use Empower3

  • Consumables

    • Consumables are uniquely designed and manufactured in-house
      • Innovation leader in large-molecule separations

  • Service

    • Dedicated service team with more than 50% of installed base under service plans
      • Ranked #1 by customers 2
Footnotes
  1. Total R&D spending as a percentage of non-service total company revenue for the trailing twelve-month (TTM) period ended September 27, 2025.
  2. According to SDi 2024 Analytical & Life Science Instrumentation Service Market (2021–2024 End User Perspectives), Waters has the highest service satisfaction score among all instrument vendors.
  3. According to internal analysis, approximately 80% of drugs filed with the FDA, EMA, and China National Medical Products Administration (NMPA) in 2023 were done using Waters’ Empower software.
  4. Installed base data are estimates based on internal analysis as of December 31, 2024 and include Wyatt.

Back to Why Waters?

Why Waters? — Serving Attractive, Secular End-Markets

Waters serves high-volume testing markets driven by non-discretionary spending in regulated settings, where consumables are specified.

End-Markets & Demand Drivers

  • Pharma QA/QC (MSD–HSD)

    • Quality testing of pharmaceuticals
    • End-points in late-stage pharma trials
    • Number of biologic medicines

  • Food & Environment (MSD+)

    • Expanding testing requirements, including PFAS

  • Microbiology (MSD–HSD)

    • Hospital-based infections
    • Antimicrobial resistance challenges

  • Molecular Diagnostics (MSD–HSD)

    • Disease burden among aging populations
    • Expanding test menus for disease detection

  • Estimated ~$40B total addressable market with 5–7% market growth

  • Supports truly recurring revenue and a strong financial profile

Note: Waters = ~$19B TAM, growing MSD+; BD Biosciences and Diagnostic Solutions business = ~$22B TAM, growing MSD+. TAMs are based on internal management estimates. Growth rates are estimates based on internal analysis of historical, long-term market trend data. Source: Internal data and estimates, consulting data, industry reports, and market research. MSD = mid single-digit; HSD = high single-digit.

Back to Why Waters?

Why Waters? — With an Innovative Portfolio

Overview / operating model

Waters offers a portfolio across four segments, supported by premium instruments, consumables, service, and informatics. The portfolio unites scientific expertise across Chemistry, Physics, and Biology, anchored by a shared operating model with category-defining products and a culture of innovation.

CY 2025 GAAP Revenue: $6.4B (total)

Segment revenue breakdown:

  • Analytical Sciences: $2.533B

  • Biosciences: $1.424B

  • Advanced Diagnostics: $2.082B

  • Materials Sciences: $0.352B


Analytical Sciences — $2.533B

Core areas

  • Liquid Chromatography (LC)
  • Mass Spectrometry (MS)
  • Multi-Angle Light Scattering (MALS)
  • Chemistry (including bioseparations)

Examples shown on the slide

  • Instrument platforms (examples): Alliance iS (LC), Xevo (MS), DAWN (MALS)
  • Columns / chemistry consumables (examples): MaxPeak Premier, XBridge, BioResolve, GTxResolve
  • Informatics platform: Empower

Biosciences — $1.424B

Core areas

  • Flow Cytometry
  • Single-Cell
  • Fluorescent dyes & reagents

Examples shown on the slide

  • Flow cytometry / single-cell instruments (examples): FACSDIscover, FACSLyric, Rhapsody
  • Reagents (example): Horizon RealDyes
  • Informatics platform: FlowJo

Advanced Diagnostics — $2.082B

Core areas

  • Specialty diagnostics in regulated settings
    • Microbiology
    • Molecular diagnostics
  • Sample prep, media & consumables

Examples shown on the slide

    • Microbiology systems (examples): BACTEC, Phoenix, Kiestra
    • Molecular / point-of-care platforms (examples): MAX, COR, Veritor (and Xevo shown within the molecular set)
    • Consumables (examples): blood culture media, PCR cartridge, reagent sets
  • Informatics platform: SynapSys

Materials Sciences — $0.352B

Core areas

  • Materials characterization
    • Thermal analysis
    • Rheology
    • Differential scanning calorimetry (DSC)

Examples shown on the slide

  • Instruments for thermal analysis, rheology, and DSC (examples pictured)
  • Serving life science applications (including batteries, electronics, pharma, and MedTech)
  • Consumables (example): Smart-Seal pans
  • Informatics platform: TRIOS


Back to Why Waters?