Agilent Technologies, Inc.

New York Stock Exchange
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Slightly Bullish +25

Agilent Q1 Earnings Miss Estimates, Revenues Up Y/Y, Shares Fall

📊 Agilent reported first-quarter fiscal 2025 earnings of $1.36 per share, which missed the Zacks Consensus Estimate by 0.52%.

💰 Revenue increased to $1.8 billion, surpassing the consensus estimate and growing 7% year over year on a reported basis.

📉 Agilent shares declined 0.06% in pre-market trading following the earnings miss.

🔬 The Life Sciences and Diagnostics Markets Group generated $679 million, representing 37.8% of total revenues.

🧪 Agilent CrossLab Group contributed $758 million in revenue, accounting for 42.2% of total company revenues.

🧬 The Applied Markets Group reported $361 million in revenue, comprising the remaining 20.1% of total segment sales.

⚠️ Gross margins contracted across all three segments, with LDG declining 230 basis points to 50.5%.

📉 Non-GAAP operating margin fell 50 basis points year over year to 24.6% despite revenue growth.

💸 Research and development expenses rose to $117 million on a non-GAAP basis, up 4.5% from the prior year.

🏢 Selling, general, and administrative expenses increased to $406 million, reflecting a 5.2% increase year over year.

💵 Cash and cash equivalents stood at $1.75 billion as of January 31, 2026, down slightly from the previous quarter.

📉 Long-term debt remained unchanged at $3.05 billion as of the end of the first quarter.

🔮 For fiscal second quarter 2026, analysts expect revenues between $1.79 and $1.82 billion.

🎯 Agilent guidance for full fiscal 2026 projects revenues between $7.3 and $7.5 billion with non-GAAP earnings of $5.90-$6.04 per share.

🏆 Zacks Investment Research currently maintains a Rank #3 (Hold) rating for Agilent Technologies.

🔗 The article also highlights better-ranked peers in the sector including Broadcom and Credo Technology.

Bullish Signals
  • Revenues of $1.8 billion surpassed the Zacks Consensus Estimate by 0.27%, demonstrating the company's ability to beat expectations on top-line growth.
  • Total revenues increased 7% year over year, with core revenue (excluding acquisitions and divestitures) growing 4.4% year over year, indicating underlying business strength.
  • The LDG segment generated $679 million, accounting for 37.8% of total revenues, with a 5% reported increase and 3% core rise year over year.
  • ACG segment revenues reached $758 million, representing 42.2% of total revenue, with strong top-line growth of 9% reported and 6% core basis year over year.
  • AMG segment revenues increased 7% year over year to $361 million on a reported basis, showing consistent expansion across all business segments.
  • The company maintains a healthy cash position with cash and cash equivalents of $1.75 billion as of Jan. 31, 2026, providing ample liquidity for operations and strategic investments.
  • Fiscal year 2026 guidance shows management confidence with expected revenues between $7.3 billion and $7.5 billion, implying a reported increase of 5.5-7.5% on a full-year basis.
  • R&D expenses as a percentage of revenues fell 20 bps year over year to 6.5%, indicating improved expense management relative to revenue growth.
  • SG&A expenses as a percentage of revenues decreased 40 bps year over year to 22.6%, reflecting operational efficiency improvements despite absolute expense increases.
Risk Factors
  • Non-GAAP operating margin contracted 50 basis points year-over-year to 24.6%, indicating a decline in profitability despite revenue growth.
  • LDG segment operating margin decreased significantly 200 bps to 16.1% due to lower gross margins of 50.5%.
  • All three business segments faced margin compression: LDG (-230 bps), ACG (-90 bps), and AMG (-70 bps).
  • R&D expenses rose 4.5% year-over-year on a non-GAAP basis, pressuring investment efficiency.
  • SG&A expenses increased 5.2% year-over-year on a non-GAAP basis to $406 million.
  • Cash balances declined from $1.78 billion at Q3 end to $1.75 billion as of Jan. 31, 2026.
  • Agilent shares fall despite revenues beating estimates, signaling potential negative market sentiment or guidance concerns.
  • The Zacks Rank #3 (Hold) suggests analysts are not bullish on the stock compared to sector peers like Broadcom (#2) and Credo Technology (#1).
Full Analysis
Agilent Technologies A reported first-quarter fiscal 2025 earnings of $1.36 per share, which fell short of the Zacks Consensus Estimate by 0.52%, though the figure represented a 3.8% year-over-year increase. Revenue for the quarter stood at $1.8 billion, surpassing expectations by 0.27% on a reported basis and increasing 7% overall versus the prior year, or 4.4% on a core basis that excludes acquisitions and divestitures. Consequently, Agilent shares dipped slightly in pre-market trading, declining 0.06%. The company operates across three reporting segments: Life Sciences and Diagnostics Markets Group ("LDG"), Agilent CrossLab Group ("ACG"), and Applied Markets Group ("AMG"). LDG generated $679 million in revenue, accounting for 37.8% of total sales, with a reported increase of 5% year over year. ACG contributed $758 million, or 42.2% of total revenues, reflecting growth of 9% on a reported basis and 6% core. AMG generated $361 million, representing 20.1% of total revenue, with increases of 7% and 4% respectively on reported and core bases. Margin pressures were evident across the board; LDG's gross margin contracted 230 basis points to 50.5%, ACG's decreased 90 bps to 55.2%, and AMG's declined 70 bps to 56.5%. Operating expenses and margins also showed contraction despite revenue growth. Non-GAAP operating margin for the quarter contracted 50 basis points year over year to 24.6%, driven by a decrease in segment margins of up to 200 basis points for LDG, 10 bps for ACG, and 90 bps for AMG. Research and development expenses on a non-GAAP basis rose to $117 million, a 4.5% increase from the prior-year quarter, while selling, general, and administrative (SG&A) expenses climbed to $406 million, marking a 5.2% rise. As of January 31, 2026, the company held $1.75 billion in cash and cash equivalents, slightly down from $1.78 billion three months prior, while long-term debt remained steady at $3.05 billion. Looking ahead, Agilent expects revenues for the second quarter of fiscal 2026 to range between $1.79 billion and $1.82 billion, representing a 7% to 9% rise on a reported basis and 4% to 5.5% on a core basis. Non-GAAP earnings are projected between $1.39 and $1.42 per share for the quarter, while full-year fiscal 2026 revenue is anticipated between $7.3 billion and $7.5 billion, implying a 5.5-7.5% increase on a reported basis and 4-6% core. For the full year, non-GAAP earnings are expected to fall between $5.90 and $6.04 per share. The stock currently carries a Zacks Rank #3 (Hold), while the broader article mentions other top-ranked sector peers like Broadcom, ATN International, and Credo Technology with their respective upcoming earnings dates.