Waters Corporation

Observed: gross margin near 59% and adjusted operating margin ~31% guided for 2025 indicate healthy economics. Recurring chemistry and service typically support mid‑single‑digit annual list increases; instruments capture price through performance, uptime, and regulatory validation.

New launches (Xevo TQ Absolute XR, Xevo CDMS, BioAccord) target high‑value applications like PFAS detection and complex biologics where value‑based pricing is feasible. Untapped potential: deeper software integration (Empower, waters_connect) and higher service plan attachment can lift mix.

Constraints: competitive intensity from Agilent, Thermo Fisher, Shimadzu; tenders in academia and in China limit pricing. Net: solid pricing power today, with upside in bioanalytical characterization and diagnostics post‑combination if integration succeeds.