Agilent Technologies, Inc.

New York Stock Exchange
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Somewhat Bullish +45

Madison Large Cap Fund Maintains Position on Agilent Technologies (A) Amid AI Fears - Insider Monkey

📈 Madison Large Cap Fund maintained its position on Agilent Technologies (NYSE: A) in Q1 2026 despite broader market headwinds.

💰 Agilent reported $1.83 billion in revenue for fiscal Q2 2026, representing a 6.3% core increase that exceeded high-end guidance.

🤖 Investors express 'AI risk' concerns that AI simulation might reduce demand for physical lab instruments and consumables.

📉 Hedge fund ownership of Agilent declined to 63 portfolios in Q1 2026 from 71 in the prior quarter.

⚠️ The fund notes a slower-than-expected pace in end-market recovery for life science tools despite consistent results.

🔬 Madison Investments asserts that early-stage R&D activity represents only a small percentage of Agilent's total revenue.

📊 Agilent shares gained 17.50% over the past 52 weeks with a market capitalization of $36.88 billion as of June 15, 2026.

🏆 The company is classified among the top five detractors for the fund alongside Danaher due to mixed outlooks.

Bullish Signals
  • Agilent Technologies exceeded high-end guidance with $1.83 billion in revenue for fiscal Q2 2026, growing 6.3% on a core basis.
  • The company maintains its status as a leading global provider of application-focused solutions to life sciences and diagnostics markets.
  • Madison Investments believes the likelihood of AI significantly disrupting early-stage R&D revenue is low, mitigating long-term demand risks.
  • Agilent shares demonstrated strong momentum with a 17.50% gain over the past 52 weeks and a one-month return of 14.75%.
  • The fund's conviction remains in Agilent despite acknowledging that other AI stocks may offer higher returns in shorter timeframes.
Risk Factors
  • Investors have ascribed 'AI risk' to the company, fearing that AI technology could enable customers to simulate research experiments and reduce purchases of physical instruments.
  • The outlook for 2026 calls for a continued end-market recovery at a slower pace than investors had hoped.
  • Hedge fund portfolios holding Agilent decreased from 71 in the previous quarter to 63 at the end of Q1 2026.
  • Agilent Technologies is listed as one of the fund's top five detractors alongside Danaher due to results being broadly consistent with expectations rather than beating them significantly.
Full Analysis
Madison Large Cap Fund maintained its position on Agilent Technologies (NYSE: A) in its first-quarter 2026 investor letter, despite the fund's overall decline of 2.7% compared to the S&P 500's -4.33% return. The fund manager noted a market shift toward physical economy stocks due to AI disruption fears and inflation concerns driven by rising commodity prices, which impacted sectors outside the fund's mandate. The investment team highlighted Agilent as a leading global provider of solutions for life sciences and diagnostics. While acknowledging that results were broadly consistent with expectations, they noted that 2026 outlooks showed a slower-than-hoped recovery in end markets. A significant portion of the commentary addresses investor concerns regarding 'AI risk,' specifically the belief that AI simulation could reduce demand for physical lab instruments. Madison Investments argues there is a low likelihood that AI will significantly disrupt early-stage R&D revenue, which constitutes only a small percentage of Agilent's total business. The company reported $1.83 billion in revenue for the second quarter of fiscal 2026, up 6.3% on a core basis, exceeding high-end guidance. However, hedge fund ownership decreased slightly to 63 portfolios from 71 in the previous quarter as investors favor other AI stocks with potentially higher returns.