Agilent Technologies, Inc.

New York Stock Exchange
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Slightly Bullish +25

Why Is Agilent (A) Down 6.2% Since Last Earnings Report?

📉 Agilent Technologies (A) shares have dropped 6.2% over the past month, outperforming the S&P 500 decline.

🏢 Q1 fiscal 2026 earnings came in at $1.36 per share, missing analyst consensus estimates by 0.52%.

💰 Revenue of $1.8 billion beat expectations, growing 7% year-over-year on a reported basis and 4.4% core.

🔬 The Life Sciences and Diagnostics Markets Group (LDG) segment generated $679 million, accounting for 37.8% of total revenue.

🧪 The Agilent CrossLab Group (ACG) segment contributed $758 million, representing 42.2% of the company's total revenue.

🧠 The Applied Markets Group (AMG) segment reached $361 million in revenue, making up the remaining 20.1% of the total.

⚠️ Gross margins contracted across all three segments, with LDG seeing the largest decline of 230 basis points year-over-year.

💸 R&D and SG&A expenses both increased in dollar terms but decreased as a percentage of revenues year over year.

📉 Non-GAAP operating margin fell to 24.6% from the prior-year quarter, marking a contraction of 50 basis points.

💵 Cash and cash equivalents stood at $1.75 billion as of Jan. 31, 2026, with long-term debt remaining unchanged at $3.05 billion.

📅 For Q2 fiscal 2026, revenue is forecasted between $1.79 billion and $1.82 billion, implying growth of 7% to 9%.

🎯 Full-year fiscal 2026 guidance anticipates revenues between $7.3 billion and $7.5 billion with non-GAAP earnings of $5.90 to $6.04 per share.

📊 Investors have shown flat estimates following the earnings release, keeping Agilent at a Zacks Rank #3 (Hold).

⚖️ Agilent holds an average Growth Score of C and a Value Score of C, with an overall VGM Score of C from Zacks Investment Research.

🔬 Bio-Rad Laboratories (BIO) is noted for comparison within the same medical-products industry, trading near its earnings date.

Bullish Signals
  • Revenue of $1.8 billion surpassed the Zacks Consensus Estimate by 0.27%, with top-line growth of 7% reported and 4.4% core year over year.
  • For fiscal 2026, Agilent expects revenues between $7.3 billion and $7.5 billion, implying a reported increase of 5.5%-7.5% and a core increase of 4%-6%.
  • The company operates through three reporting segments—Life Sciences and Diagnostics Markets Group, Agilent CrossLab Group, and Applied Markets Group—all generating year-over-year revenue growth.
  • As of Jan. 31, 2026, Agilent's cash and cash equivalents were $1.75 billion, providing strong liquidity to manage operations and potential strategic initiatives.
  • For the second quarter of fiscal 2026, non-GAAP earnings are expected to be between $1.39 per share and $1.42 per share, indicating management's guidance on profitability.
  • The Applied Markets Group generated revenues of $361 million with a 7% year-over-year increase, demonstrating resilient performance in this segment.
  • As a percentage of revenues, R&D expenses fell 20 basis points year over year to 6.5%, while SG&A expenses fell 40 bps to 22.6%, showing potential for efficiency improvements.
Risk Factors
  • Agilent Technologies stock has declined 6.2% since its last earnings report, underperforming the broader market trend despite fiscal results.
  • First-quarter fiscal 2026 earnings per share of $1.36 missed the Zacks Consensus Estimate by 0.52%, signaling weak investor sentiment.
  • Gross margins contracted significantly across all segments: LDG dropped 230 bps to 50.5%, ACG fell 90 bps to 55.2%, and AMG declined 70 bps to 56.5%.
  • Non-GAAP operating margin of 24.6% contracted by 50 basis points year over year, indicating deteriorating profitability.
  • The LDG segment's operating margin decreased 200 bps year over year to 16.1%, raising concerns about the company's largest revenue-generating segment.
  • Agilent holds a Zacks Rank #3 (Hold), suggesting analysts expect an in-line return rather than significant upside potential.
  • Growth Score is graded C while Momentum Score is D, indicating weak near-term technical and growth characteristics.
  • Bio-Rad Laboratories, a direct competitor in the same industry, has a lower Zacks Rank of #4 (Sell) with a VGM Score of D, suggesting relative weakness in the sector.
  • Long-term debt remains at $3.05 billion unchanged from Q4 2025, raising concerns about leverage and balance sheet flexibility if revenues stagnate.
Full Analysis
Agilent Technologies (NYSE: A) shares have fallen approximately 6.2% since its last earnings report, a decline that contrasts with the S&P 500's performance over the same period. The company reported first-quarter fiscal 2026 earnings of $1.36 per share, which missed the Zacks Consensus Estimate by 0.52%, though revenue of $1.8 billion exceeded estimates by 0.27%. Revenue grew 7% on a reported basis and 4.4% on a core basis year over year across its three segments: Life Sciences and Diagnostics Markets Group (LDG), Agilent CrossLab Group (ACG), and Applied Markets Group (AMG). Despite the top-line growth, Agilent reported margin contractions in Q1 fiscal 2026. The LDG segment saw gross margins decline by 230 basis points to 50.5%, while ACG and AMG gross margins fell 90 bps to 55.2% and 70 bps to 56.5%, respectively. Operating margins also contracted across the board, with LDG dropping 200 bps to 16.1%, ACG falling 10 bps to 31.7%, and AMG contracting 90 bps to 25.8%. Non-GAAP operating margin for the quarter was 24.6%, down 50 bps year over year, as R&D expenses rose 4.5% to $117 million and SG&A expenses increased 5.2% to $406 million. Looking ahead, Agilent expects Q2 fiscal 2026 revenues between $1.79 billion and $1.82 billion, representing a 7% to 9% increase on a reported basis. For the full fiscal 2026, the company projects revenues in the range of $7.3 billion to $7.5 billion with non-GAAP earnings expected between $5.90 and $6.04 per share. As of January 31, 2026, Agilent held $1.75 billion in cash and cash equivalents against $3.05 billion in long-term debt. Zacks Investment Research assigns Agilent a Zacks Rank #3 (Hold) with an aggregate VGM Score of C, predicting an in-line return for the stock in the coming months compared to peer Bio-Rad Laboratories (BIO), which has received a Zacks Rank #4 (Sell).