How does Waters Corporation (WAT) make money?

Waters Corporation (WAT) generates revenue primarily from Waters Instrument Systems, which accounted for 35.5% of total revenue in TTM through Q2 2026. The company reported $3.77B in revenue and converted 11.9% of it into net profit, equivalent to roughly $449.25M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Waters Corporation (WAT)?

Waters Corporation (WAT) reported a gross profit margin of 55% in TTM through Q2 2026, equivalent to $2.07B in gross profit on $3.77B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Waters Corporation (WAT)?

Waters Corporation (WAT) reported an operating profit margin of 17.1% in TTM through Q2 2026, equivalent to $643.90M in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Waters Corporation (WAT)?

Waters Corporation (WAT) reported a net profit margin of 11.9% in TTM through Q2 2026, equivalent to $449.25M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Waters Corporation (WAT) profitable?

Yes. Waters Corporation (WAT) reported $449.25M in net income for TTM through Q2 2026, with a net profit margin of 11.9%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Waters Corporation (WAT) invest in research and development?

Waters Corporation (WAT) invested $248.29M in research and development during TTM through Q2 2026, roughly 6.6% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

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

Waters Corporation (WAT) spent $126.00M on capital expenditures (CapEx) during TTM through Q2 2026, roughly 3.3% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Waters Corporation (WAT) generate?

Waters Corporation (WAT) generated $264.00M in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 7.0%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Waters Corporation (WAT)?

Waters Corporation (WAT) had an effective tax rate of 14.3% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Waters Corporation (WAT)?

Waters Corporation (WAT) reports revenue across 5 reportable product segments, led by Waters Instrument Systems at 35.5% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does Waters Corporation (WAT) generate most of its revenue?

Americas is the largest geographic market for Waters Corporation (WAT), accounting for 42% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How Waters Corporation Makes Money: 2026 Visual Revenue Map

Waters Corporation (WAT) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending April 4, 2026 (reported May 12, 2026).

Waters Corporation (WAT) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Waters Corporation (WAT) in TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Waters Instrument Systems	$1.34B	35.5%
Waters Service	$1.27B	33.7%
Chemistry Consumables	$743.73M	19.7%
Ta Instrument Systems	$291.15M	7.7%
Ta Service	$126.68M	3.4%
Total	$3.77B	100%

Waters Instrument Systems$1.34B
Waters Service$1.27B
Chemistry Consumables$743.73M
Ta Instrument Systems$291.15M
Ta Service$126.68M
Total$3.77B

Waters Corporation (WAT) Revenue by Geography — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for Waters Corporation (WAT), TTM through Q2 2026
Region	Revenue (USD)	% of total
Americas	$1.41B	42%
Asia Pacific	$1.17B	34.8%
Europe	$777.98M	23.2%
Total	$3.36B	100%

Americas
Asia Pacific
Europe
Total

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, Waters Corporation (WAT) reports revenue across 5 operating segments; the largest segment was Waters Instrument Systems at 35.5%, followed by Waters Service (33.7%) and Chemistry Consumables (19.7%). Separately, by end-market geography, Americas accounted for 42% of revenue, followed by Asia Pacific (34.8%) and Europe (23.2%).

Frequently asked questions

Data & methodology

Waters Corporation (WAT) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation