Core Viewpoint - Waters Corporation reported strong first-quarter 2025 results, with non-GAAP earnings and net sales exceeding expectations, driven by robust demand across key sectors and regions [1][2][10]. Financial Performance - Non-GAAP earnings for Q1 2025 were $2.25 per share, surpassing the Zacks Consensus Estimate by 1.35% and increasing 1.8% year over year [1]. - Net sales reached $662 million, exceeding the Zacks Consensus Estimate by 1.08%, with a reported increase of 4% and a 7% increase on a constant currency basis year over year [1][11]. Segment Performance - The Waters segment accounted for 88.8% of net sales, generating $587.3 million, up 4.5% year over year and 8% at constant currency [3]. - The TA segment contributed $74.4 million (11.2% of net sales), reflecting a slight decline of 0.7% year over year but a 1% increase at constant currency [3]. Product and Service Breakdown - Instruments sales (39.7% of net sales) were $262.9 million, increasing 8.7% year over year and 11% at constant currency [4]. - Services sales (39.5% of net sales) totaled $261.2 million, with a modest increase of 0.2% year over year and 3% at constant currency [4]. - Chemistry sales (20.8% of net sales) reached $137.6 million, growing 2.6% year over year and 5% at constant currency [4]. Market Analysis - The Pharmaceutical market (59.1% of net sales) generated $391.1 million, up 4.5% year over year and 8% at constant currency [5]. - The Industrial market (27.5% of net sales) saw sales of $203.4 million, increasing 4.1% year over year and 6% at constant currency [5]. - The Government & Academic market (10.2% of net sales) generated $67.3 million, remaining flat year over year but increasing 3% at constant currency [6]. Geographic Performance - Asia (33.4% of net sales) generated $220.8 million, up 6.4% year over year and 13% at constant currency [6]. - Sales in the Americas (38.6% of net sales) were $255.5 million, increasing 6% year over year and at constant currency [6]. - Europe (28% of net sales) generated $185.4 million, decreasing 1.4% year over year but increasing 1% at constant currency [7]. Operating Details - Non-GAAP selling and administrative expenses were $170.1 million, up 6% year over year, expanding 50 basis points as a percentage of net sales [8]. - Research and development spending was $46 million, increasing 7.7% year over year, with a 20 basis point expansion as a percentage of net sales [8]. - The adjusted operating margin was 25.5%, contracting 150 basis points year over year [8]. Balance Sheet and Cash Flow - As of March 29, 2025, cash and cash equivalents were $382.9 million, up from $325.4 million as of December 31, 2024 [9]. - Cash generated from operations was $259.6 million, down from $262.9 million in the year-ago quarter [9]. - Free cash flow for Q1 2025 was $233.8 million [9]. Guidance - For Q2 2025, Waters expects non-GAAP earnings of $2.88-$2.98 per share, with a Zacks Consensus Estimate of $2.93 per share, indicating 11.4% growth year over year [10]. - Total sales growth is anticipated to be in the range of 4-6% on a reported basis, with constant currency sales growth expected to be between 5% and 7% [11][12].