Trade Policy & Tariffs - The US administration is considering tariffs on goods with embedded chips, potentially impacting $300 billion of imports [6] - Transshipped goods, starting August 7, face a 40% tariff, but the implementation and tracking methods lack clarity [8] - Defining the target of transshipment policies is crucial, whether it's customs enforcement or addressing Chinese factories in other countries [9][10][11] - Trade deficit narrowed by 16% in June, reaching the tightest level since September 2023, slightly above $60 billion, but further data is needed to confirm the trend [11] Industry & Manufacturing - Reshoring chips or pharmaceuticals to the US is very challenging and may not offer a cost advantage [5] - Building chip foundries and relocating manufacturing facilities in the US is time-consuming and expensive, requiring FDA approval for pharmaceuticals [2][4] - The EU supplies a significant portion of drugs to the US, and the impact of tariffs on this trade is a concern [1] Geopolitical & Trade Deals - The administration is cautious about disrupting trade negotiations with China, especially regarding rare earth actions [19] - Potential secondary sanctions on Russia could impact trade deals with China and India [18][20] - Trade deficits with specific countries depend on the composition of their exports to the US, such as energy from Canada [16][17]

Q1 2025 Financial Performance - Q1 2025 revenue reached $662 million, reflecting a 7% growth in constant currency[6] - Recurring revenue experienced an 11% growth in constant currency[6] - Instrument sales increased by 4% as reported and 11% in constant currency[6] - Non-GAAP EPS for Q1 2025 was $2.25, a 2% increase, with a 7% growth in constant currency[6] Growth Drivers and Market Segmentation - Instrument sales showed strong growth, with Pharma up 14%, Industrial up 10%, and Academic & Government up 7% in constant currency[9] - Asia showed the strongest geographic growth at 13%, followed by the Americas at 6%, and Europe at 1% in constant currency[19] - Waters segment grew 8% while TA segment grew 1%[19] Innovation and Idiosyncratic Growth - Next-Gen Flagship HPLC sales grew over 3 times year-over-year, representing approximately 20% of HPLC sales[14] - Waters Xevo TQ Absolute sales grew 56% year-over-year[14] - QA/QC testing of GLP-1 drugs is expected to contribute an average 30bps growth annually from 2024 to 2030[15] - PFAS testing is a $400 million global market, estimated to grow approximately 20%[15] FY & Q2 2025 Guidance - The company projects constant currency revenue growth of +5% to +7% for FY 2025 and Q2 2025[21] - The company projects Non-GAAP EPS of $12.75 to $13.05 for FY 2025 and $2.88 to $2.98 for Q2 2025[21]