Waters WAT · USD

17 Business Segment Information The accounting standards for segment reporting establish standards for reporting information about operating segments in annual financial statements and require selected information for those segments to be presented in interim financial reports of public business enterprises. They also establish standards for related disclosures about products and services, geographic areas and major customers. The Company’s Chief Executive Officer is the CODM. The CODM evaluates the business based on our two operating segments: Waters and TA. The Waters operating segment is primarily in the business of designing, manufacturing, selling and servicing LC and MS instruments, columns and other precision chemistry consumables that can be integrated and used along with other analytical instruments. The TA operating segment is primarily in the business of designing, manufacturing, selling and servicing thermal analysis, rheometry and calorimetry instruments. The Company’s two operating segments have similar economic characteristics; product processes; products and services; types and classes of customers; methods of distribution; and regulatory environments. Because of these similarities, the two segments have been aggregated into one reporting segment for financial statement purposes. Please refer to the consolidated balance sheets and consolidated statements of operations for financial information regarding the one reportable segment of the Company. Net sales for the Company’s products and services are as follows for the years ended December 31, 2025, 2024 and 2023 (in thousands): 2025 2024 2023 Product net sales: Waters instrument systems $ 1,101,826 $ 1,032,493 $ 1,108,702 Chemistry consumables 631,458 565,481 541,469 TA instrument systems 243,816 246,202 252,879 Total product sales 1,977,100 1,844,176 1,903,050 Service net sales: Waters service 1,080,162 1,006,447 951,419 TA service 108,024 107,764 101,947 Total service sales 1,188,186 1,114,211 1,053,366 Total net sales $ 3,165,286 $ 2,958,387 $ 2,956,416 Net sales are attributable to geographic areas based on the region of destination.

3 Revenue Recognition The Company’s deferred revenue liabilities in the consolidated balance sheets consist of the obligation on instrument service contracts and customer payments received in advance, prior to transfer of control of the instrument. The Company records deferred revenue primarily related to its service contracts, where consideration is billable at the beginning of the service period. The following is a summary of the activity of the Company’s deferred revenue and customer advances for the twelve months ended December 31, 2025, 2024 and 2023 (in thousands): December 31, 2025 2024 2023 Balance at the beginning of the period $ 320,046 $ 323,516 $ 285,175 Recognition of revenue included in balance at beginning of the period (275,549 ) (265,167 ) (240,808 ) Revenue deferred during the period, net of revenue recognized 300,224 261,697 279,149 Balance at the end of the period $ 344,721 $ 320,046 $ 323,516 The Company classified $78 million and $69 million of deferred revenue and customer advances in other long-term liabilities at December 31, 2025 and 2024, respectively.

12 Other Commitments and Contingencies The Company licenses certain technology and software from third parties in the ordinary course of business. The Company reviews its third party license and software arrangements in accordance with the accounting standards for internal-use software and hosting arrangements, including identifying service contracts and capitalizing certain implementation costs. Future minimum fees payable under existing technology and software license agreements as of December 31, 2025 are $74 million for the years ended December 31, 2025 and thereafter. The software license agreements are long-term contracts and are not cancellable by the Company until the expiration of their initial term. The amounts owed under these contracts are included in both other assets and other long-term liabilities on the Company’s consolidated balance sheet as of December 31, 2025. In December 2024, the Company’s Board of Directors approved the implementation of a new worldwide enterprise resource planning system (“ERP”). The Company anticipates spending approximately $130 million on the ERP implementation, of which $52 million has been spent through the end of 2025. The Company expects to use existing cash and its credit facility to fund the ERP implementation. For the twelve months ended December 31, 2025, the Company has incurred $32 million of capitalized costs included in other assets and $20 million of operating costs included in the consolidated statement of operations for the ERP system implementation. The Company enters into standard indemnification agreements in its ordinary course of business. Pursuant to these agreements, the Company indemnifies, holds harmless and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally the Company’s business partners or customers, in connection with patent, copyright or other intellectual property infringement claims by any third party with respect to its current products, as well as claims relating to property damage or personal injury resulting from the performance of services by the Company or its subcontractors. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited.

8 Debt The Company has a credit agreement with an aggregate borrowing capacity of $1.8 billion. As of December 31, 2025, the Company had a total of $1.4 billion in outstanding debt, which consisted of $1.3 billion in outstanding senior unsecured notes and $0.1 billion borrowed under its credit agreement. The Company’s net debt borrowings as of December 31, 2025 were $220 million lower than as of December 31, 2024, while the net borrowings as of December 31, 2024 were $730 million lower than as of December 31, 2023. These changes in outstanding debt balances over these periods is attributable to the funding of the 2023 Wyatt acquisition and the subsequent debt repayments in 2024 and 2025. On May 22, 2025, the Company and certain of its subsidiaries, as guarantors, entered into an Amendment and Restatement Agreement (the “Amendment”) in respect of that certain Amended and Restated Credit Agreement, dated as of September 17, 2021 and amended as of March 3, 2023 (the “Existing Credit Agreement”, and as amended by the Amendment, the “Amended Credit Agreement”), with the lenders and issuing banks party thereto, and JPMorgan Chase Bank, N.A., as administrative agent, pursuant to which the Company, among other things, reduced the aggregate total borrowing capacity of its existing senior unsecured revolving credit facility (the “Credit Facility”) by up to $200 million for an aggregate principal amount of up to $1.8 billion. As of December 31, 2025 and December 31, 2024, the Credit Facility had a total of $0.1 billion and $0.4 billion outstanding, respectively. The Credit Facility will mature on May 22, 2030 subject to the Company’s ability to request, subject to customary conditions, a one-year extension to which each lender may, in its discretion, agree. The Company may, subject to customary conditions, also request additional incremental revolving or term loan commitments from the lenders in an aggregate principal amount not to exceed $750 million to which each lender may, in its discretion, agree, provided that the aggregate amount of all commitments, including any such incremental commitments, under the Amended Credit Agreement does not exceed $2.55 billion at any time. Up to $50 million of the Credit Facility is available in the form of letters of credit.

9 Income Taxes Income tax data for the years ended December 31, 2025, 2024 and 2023 is as follows (in thousands): Year Ended December 31, 2025 2024 2023 The components of income before income taxes are as follows: Domestic $ 57,267 $ 121,630 $ 74,119 Foreign 697,611 633,238 662,124 Total $ 754,878 $ 754,868 $ 736,243 Year Ended December 31, 2025 2024 2023 The components of the income tax provision were as follows: Federal $ 8,997 $ 20,609 $ 178 State 4,838 6,395 6,427 Foreign 113,071 90,907 88,601 Total current tax provision $ 126,906 $ 117,911 $ 95,206 Federal $ (18,553 ) $ (383 ) $ (2,457 ) State (564 ) 303 (3,029 ) Foreign 4,460 (797 ) 4,289 Total deferred tax provision (14,657 ) (877 ) (1,197 ) Total provision $ 112,249 $ 117,034 $ 94,009 Year EndedDecember 31, 2025 Income tax payments (net of refunds received): U.S. Federal 138,007 U.S. State and Local 6,376 Non-U.S. Ireland 59,221 Other Non-U.S. 40,632 Total income taxes paid, (net of refunds received) $ 244,236 A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate for the year ended December 31, 2025 was as follows: Year Ended December 31, 2025 % U.S. federal statutory tax rate $ 158,524 21.0 % State and local income taxes, net of federal income tax effect(a) 1,043 0.1 % Foreign tax effects Ireland Statutory tax rate difference between Ireland and United States (36,662 ) (4.9 %) Nondeductible interest expense 9,861 1.3 % Other (499 ) (0.1 %) Singapore Statutory tax rate difference between Singapore and United States (7,459 ) (1.0 %) Local taxes at a rate different than the statutory rate (b) (3,380 ) (0.4 %) Other 3,448 0.5 % Other foreign jurisdictions 13,416 1.8 % Effect of cross-border tax laws Global intangible low-taxed income, net of foreign tax credits 3,470 0.5 % Other, net of foreign tax credits (1,368 ) (0.2 %) Tax credits Foreign tax credits (29,952 ) (4.0 %) Other (6,659 ) (0.9 %) Nontaxable or nondeductible items Other 9,578 1.3 % Changes in unrecognized tax benefits (2,306 ) (0.3 %) Other adjustments 1,194 0.2 % Effective income tax rate $ 112,249 14.9 % (a) State taxes in California, Pennsylvania, Minnesota, New Jersey and New York made up the majority (greater than 50 percent) of the tax effect in this category. (b) The tax expense (benefit) related to the concessionary tax rate in Singapore was reduced by $14 million due to the global minimum tax under Pillar Two.

13 Stock-Based Compensation In May 2020, the Company’s shareholders approved the Company’s 2020 Equity Incentive Plan (“2020 Plan”). As of December 31, 2025, the 2020 Plan has 5.8 million shares available for grant in the form of incentive or non-qualified stock options, stock appreciation rights (“SARs”), restricted stock or other types of awards (e.g. restricted stock units and performance stock units). The Company issues new shares of common stock upon exercise of stock options, restricted stock unit conversion or performance stock unit conversion. Under the 2020 Plan, the exercise price for stock options may not be less than the fair market value of the underlying stock at the date of grant. The 2020 Plan is scheduled to terminate on May 13, 2030. Options generally will expire no later than ten years after the date on which they are granted and will become exercisable as directed by the Compensation Committee of the Board of Directors and generally vest in equal annual installments over a five-year period. A SAR may be granted alone or in conjunction with an option or other award. Shares of restricted stock, restricted stock units and performance stock units may be issued under the 2020 Plan for such consideration as is determined by the Compensation Committee of the Board of Directors. As of December 31, 2025, the Company had stock options, restricted stock and restricted and performance stock unit awards outstanding.In May 2009, the Company’s shareholders approved the 2009 Employee Stock Purchase Plan, under which eligible employees may contribute up to 15% of their earnings toward the quarterly purchase of the Company’s common stock. The plan makes available 0.8 million shares of the Company’s common stock, and as of December 31, 2025, 0.8 million shares have been issued under the plan. Each plan period lasts three months beginning on January 1, April 1, July 1 and October 1 of each year. The purchase price for each share of stock is the lesser of 90% of the market price on the first day of the plan period or 100% of the market price on the last day of the plan period. Stock-based compensation expense related to this plan was $1 million for each of the years ended December 31, 2025, 2024 and 2023.

11 LeasesAs of December 31, 2025 and 2024, the Company had lease agreements that expire at various dates through 2035, with weighted-average remaining lease terms of 3.7 years and 3.6 years, respectively. Rental expense was $41 million, $39 million and $38 million for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025 and 2024, the weighted-average discount rates used to determine the present value of lease liabilities were 3.92% and 4.41%, respectively. During the years ended December 31, 2025, 2024 and 2023, cash paid for amounts included in the measurement of lease liabilities in operating activities in the statement of cash flows was $41 million, $39 million and $38 million, respectively. The Company recorded a $19 million and a $2 million increase in right-of-use assets in exchange for new operating lease liabilities during the years ended December 31, 2025 and 2023, respectively. The Company recorded a $3 million decrease in right-of-use assets in exchange for new operating lease liabilities during the year ended December 31, 2024.

6 Acquisitions On May 20, 2025, the Company acquired all of the outstanding equity interests of Optofluidics, Inc., and its wholly owned operating subsidiary, Halo Labs LTD (collectively, “Halo Labs”), for $35 million, net of cash acquired. There is no contingent consideration related to this acquisition. Halo Labs offers high throughput biopharmaceutical formulation, stability and product quality control tools for aggregate and subvisible particle analysis through the use of custom optics and image processing techniques. As a result of the acquisition, the results of Halo Labs are included in the Company’s consolidated financial statements from the acquisition date. The Company allocated $13 million of the purchase price to intangible assets comprised of developed technology and customer relationships. The developed technology will be amortized over ten years, and the customer relationships will be amortized over five years. The Company allocated $24 million of the purchase price to goodwill, which is not deductible for tax purposes and has been allocated to the Waters operating segment. The principal factor that resulted in recognition of goodwill in the acquisition was that the purchase price was based, in part, on cash flow projections assuming the integration of any acquired technology, distribution channels and products with the Company’s products, which are higher than if the acquired companies’ technology, customer access or products were utilized on a stand-alone basis. The assets and liabilities acquired were valued with input from valuation specialists. The Company used various income-approach valuation techniques, which use Level 3 inputs, in determining the fair value of the assets and liabilities acquired.