Combined sales of precision chemistry consumables and services increased by only 1%, with foreign currency translation decreasing sales growth by 3%. Additionally, two fewer business days in the quarter negatively impacted service revenue growth, resulting in flat service revenue and only 3% growth in chemistry sales.

Waters instrument system sales increased 11% in the first quarter of 2025 due to stronger customer demand for our Acquity and Xevo TQ-S instrument systems.

TA sales declined 1% in the first quarter of 2025 due to lower customer demand for TA products in most major regions except for Asia, where sales increased 15%. Foreign currency translation decreased TA sales growth by 1% in the quarter.

Operating income increased by 13% due to higher sales volume and the absence of $18 million in restructuring and patent litigation expenses incurred in the prior year. This demonstrates effective cost management and operational efficiency.

The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 29, 2025, ensuring timely and accurate financial reporting. This reflects a commitment to transparency and regulatory compliance.

No changes were identified in the company's internal control over financial reporting, indicating stable and reliable financial reporting processes. This provides confidence in the integrity of the financial statements.

The company acknowledges that varying levels of tariffs issued by the U.S. government, particularly with China, and any resulting retaliatory tariffs could have a significant impact on the consolidated statement of operations and cash flows. This highlights the vulnerability of the company to trade policy changes.

The company notes that foreign currency exchange rate fluctuations could potentially affect translation of the company's future non-U.S. operating results, particularly when a foreign currency weakens against the U.S. dollar.

The company highlights the impact of global economic, sovereign, and political conditions, including new or proposed tariff or trade regulations, inflation, interest rates, and the ongoing conflicts between Russia and Ukraine, as well as in the Middle East, as factors creating uncertainties.

The company acknowledges increased competition from local and international competitors in China as a risk factor, indicating potential pressure on market share and pricing in this key market.

The company identifies the introduction of competing products by other companies and loss of market share, as well as pressures on prices from competitors and/or customers, as a risk factor.

The company acknowledges changes in the competitive landscape as a result of changes in ownership, mergers and continued consolidation among the Company's competitors.

Operating income was $152 million in the first quarter of 2025, an increase of 13% as compared to $134 million in the first quarter of 2024. The increase in operating income was primarily attributed to the higher sales volume in the first quarter of 2025 and the absence of $8 million of restructuring expense and $10 million of patent litigation expense incurred in the first quarter of 2024.

Selling and administrative expenses were flat in the first quarter of 2025 compared to the first quarter of 2024. The effect of foreign currency translation decreased selling and administrative expenses by 2% in the first quarter of 2025.

Cost of sales increased by 6% in the first quarter 2025, primarily due to higher sales volume and changes in the sales mix.

Research and development expenses increased 5% in the first quarter of 2025, primarily driven by merit compensation and costs associated with the development of new product and technology initiatives.

The company acknowledges regulatory, economic and competitive obstacles to new product introductions, lack of acceptance of new products and inability to grow organically through innovation as a risk factor.

The company identifies rapidly changing technology and product obsolescence as a risk factor.

Interest expense, net, decreased $11 million in the first quarter of 2025, which can be primarily attributed to the repayment of outstanding debt.

In December 2024, the Company's Board of Directors authorized the extension of its existing share repurchase program through January 21, 2028. The Company's remaining authorization is $1.0 billion.

As of March 29, 2025, the Company has entered into interest rate cross-currency swap derivative agreements with durations up to three years with a notional value of $705 million to hedge the variability in the movement of foreign currency exchange rates on a portion of its euro-denominated and yen-denominated net asset investments.

The provided 10-Q filing does not contain any specific information or discussion regarding ESG initiatives, environmental commitments, social responsibility programs, or governance practices. This suggests a lack of focus or disclosure on these topics in the current reporting period.

The company acknowledges that varying levels of tariffs issued by the U.S. government, particularly with China, and any resulting retaliatory tariffs could have a significant impact on the consolidated statement of operations and cash flows. This highlights the vulnerability of the company to trade policy changes.

The company highlights the impact of global economic, sovereign, and political conditions, including new or proposed tariff or trade regulations, inflation, interest rates, and the ongoing conflicts between Russia and Ukraine, as well as in the Middle East, as factors creating uncertainties.

The company identifies economic conditions in China, trade tensions and tariffs between the U.S. and China and their impact on our business as a risk factor.