How does Waters Corporation (WAT) make money?

Waters Corporation (WAT) primarily makes money through Waters Instrument Systems, which accounts for 34.8% of total revenue. For TTM through Q4 2025, Waters Corporation generated $3.17B in total revenue with a net profit margin of 20.3%.

What is Waters Corporation (WAT) gross profit margin?

Waters Corporation (WAT) reported a gross profit margin of 58.9% for TTM through Q4 2025, equivalent to $1.86B in gross profit. This means Waters Corporation retains 58.9% of each revenue unit after direct costs of production.

What is Waters Corporation (WAT) operating profit margin?

Waters Corporation (WAT) reported an operating profit margin of 26.6% for TTM through Q4 2025, equivalent to $842.65M in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.

What is Waters Corporation (WAT) net profit margin?

Waters Corporation (WAT) reported a net profit margin of 20.3% for TTM through Q4 2025, equivalent to $642.63M in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.

How much does Waters Corporation (WAT) invest in R&D?

Waters Corporation (WAT) invested $198.91M in research and development in TTM through Q4 2025 (6.3% of total revenue). R&D spending reflects investment in future products, services, and technologies.

How much does Waters Corporation (WAT) spend on capital expenditures?

Waters Corporation (WAT) spent $112.75M on capital expenditures in TTM through Q4 2025 (3.6% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.

What is Waters Corporation (WAT) free cash flow?

Waters Corporation (WAT) generated $539.81M in free cash flow for TTM through Q4 2025 (17.1% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

What is Waters Corporation (WAT) effective tax rate?

Waters Corporation (WAT) had an effective tax rate of 14.9% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.

How Waters Corporation (WAT) Makes Money: A Visual Guide

Waters Corporation (WAT) generated $3.17B in revenue, earning $642.63M in net profit (20.3% margin). Its largest revenue source is Waters Instrument Systems (34.8% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.

Waters Corporation (WAT) Income Statement Flow — TTM through Q4 2025

Calculated from the four most recent reported quarters, ending December 31, 2025 (reported February 23, 2026).

Frequently asked questions

How does Waters Corporation (WAT) make money?: Waters Corporation (WAT) primarily makes money through Waters Instrument Systems, which accounts for 34.8% of total revenue. For TTM through Q4 2025, Waters Corporation generated $3.17B in total revenue with a net profit margin of 20.3%.
What is Waters Corporation (WAT) gross profit margin?: Waters Corporation (WAT) reported a gross profit margin of 58.9% for TTM through Q4 2025, equivalent to $1.86B in gross profit. This means Waters Corporation retains 58.9% of each revenue unit after direct costs of production.
What is Waters Corporation (WAT) operating profit margin?: Waters Corporation (WAT) reported an operating profit margin of 26.6% for TTM through Q4 2025, equivalent to $842.65M in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Waters Corporation (WAT) net profit margin?: Waters Corporation (WAT) reported a net profit margin of 20.3% for TTM through Q4 2025, equivalent to $642.63M in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Waters Corporation (WAT) invest in R&D?: Waters Corporation (WAT) invested $198.91M in research and development in TTM through Q4 2025 (6.3% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does Waters Corporation (WAT) spend on capital expenditures?: Waters Corporation (WAT) spent $112.75M on capital expenditures in TTM through Q4 2025 (3.6% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Waters Corporation (WAT) free cash flow?: Waters Corporation (WAT) generated $539.81M in free cash flow for TTM through Q4 2025 (17.1% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Waters Corporation (WAT) effective tax rate?: Waters Corporation (WAT) had an effective tax rate of 14.9% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.

Data & methodology

What is a Sankey diagram?: A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?: We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
When was this data last updated?: Based on company filings through TTM through Q4 2025.