Agilent Technologies Inc. (A) FY2025 10-K and Q3 FY2026 10-Q Summary

Business

Source: Annual Report on Form 10-K for fiscal year 2025, accession 0001090872-25-000087, updated where noted by the Form 10-Q for the quarter ended July 31, 2026, accession 0001090872-26-000064.

Agilent sells the equipment and supplies that analytical and clinical laboratories run on: instruments, software, services and consumables covering the whole laboratory workflow. Its main customers are pharmaceutical and biopharmaceutical companies, followed by diagnostics and clinical labs, academic and government institutes, and industrial testing labs in chemicals and advanced materials, food safety, environmental testing and forensics. Fiscal 2025 revenue was $6,948 million. Products (instruments, software and consumables) made up 71% of it and services and other 29%. The service and consumables businesses are mostly recurring and less exposed to industry cycles than instrument sales. Geographically, fiscal 2025 revenue was $2,806 million in the Americas, $1,923 million in Europe and $2,219 million in Asia Pacific. Within those regions, the United States contributed $2,342 million and China (including Hong Kong) $1,224 million. Agilent sells mainly through its own direct sales force, supported by distributors, resellers, manufacturers' representatives and e-commerce. It had about 18,100 employees at October 31, 2025.

Since a November 2024 reorganization, Agilent has reported three segments:

• Agilent CrossLab ($2,908 million fiscal 2025 revenue; about 59,700 customers). This is the largest and highest-margin segment. It covers services across the whole lab (repair, maintenance, installation, compliance, training, software as a service, asset management and consulting) plus consumables (gas and liquid chromatography columns, sample preparation products, chemical standards and lab supplies), OpenLab laboratory software and laboratory automation. Most of the consumables are vendor-neutral, so CrossLab can sell to labs whatever brand of instrument they own. Its direct service organization operates in 28 countries.
• Life Sciences and Diagnostics Markets ($2,726 million; about 22,200 customers). This segment sells liquid chromatography and liquid chromatography–mass spectrometry systems, cell analysis platforms (Seahorse, xCELLigence, NovoCyte, BioTek), pathology products for cancer diagnostics (Dako Omnis and Autostainer staining platforms and in situ hybridization), companion diagnostics developed with pharmaceutical partners, genomics reagents and arrays, and nucleic-acid quality control. It also includes a contract development and manufacturing business that makes oligonucleotide active pharmaceutical ingredients and, through BIOVECTRA, offers microbial fermentation, highly potent ingredients and peptide capabilities. By the fiscal 2026 third-quarter 10-Q this business was renamed Agilent Advanced Therapeutics, and the segment's activities were regrouped into electrophoresis and cell phenotyping, cell imaging and metabolism, Advanced Therapeutics, pathology, companion diagnostics and genomics alongside the chromatography platforms. Biocare, acquired in June 2026, added to the pathology portfolio (see Current quarter).
• Applied Markets ($1,314 million; about 17,200 customers). This segment sells gas chromatography (where Agilent says it is the world's leading provider), gas chromatography–mass spectrometry, atomic and molecular spectroscopy (ICP-MS, ICP-OES, atomic absorption, Raman, FTIR, UV-Vis), vacuum pumps and leak detection, and certified refurbished instruments. Its main buyers are chemicals, energy, advanced materials (semiconductors and batteries), food, environmental and forensics labs.

Agilent competes with Thermo Fisher Scientific, Waters, Danaher (including AB Sciex and Leica Biosystems), Shimadzu, Bruker, PerkinElmer, Roche Ventana, Twist Bioscience and Avecia (Nitto Denko). It competes on performance, reliability, support, applications expertise and price. It does not consider backlog a meaningful indicator, because much of each quarter's revenue comes from orders placed in that quarter. Manufacturing and R&D sites are spread across the U.S. (California, Colorado, Delaware, Massachusetts, Texas, Vermont and others) and Australia, Canada, China, Denmark, Germany, Italy, Japan, Malaysia, Singapore and the United Kingdom. Agilent is building out its advanced therapeutics manufacturing capacity in Frederick, Colorado. Agilent and Keysight Technologies separated under a 2014 separation and distribution agreement. Agilent still provides site services to Keysight and leases it space, which brought in $12 million of other income in fiscal 2025.

Risk factors

Source: Item 1A of the fiscal 2025 Form 10-K, accession 0001090872-25-000087, with updates from Part II, Item 1A of the July 31, 2026 Form 10-Q, accession 0001090872-26-000064.

• Customer capital spending and funding cycles. Instrument demand depends on pharmaceutical, academic, government and industrial capital and R&D budgets, which shift with economic conditions, consolidation and public spending priorities. Visibility is limited: quarterly results depend on orders booked and shipped within the quarter, and expected seasonality does not always materialize. Because much of the cost base is fixed, a demand shortfall falls heavily on margins. The 10-K pointed to U.S. federal agencies operating under a continuing resolution expiring January 30, 2026. The 10-Q broadened this into a general risk from lapses in federal appropriations, government shutdowns and cuts to the federal workforce.
• Tariffs, trade policy and geopolitics. Agilent sources components from and manufactures in several countries and sells into China. U.S. tariffs, Chinese counter-tariffs, export controls and sanctions can raise costs, disrupt supply and restrict shipments. The 10-Q adds judicial rulings on the legality of tariffs and conflicts in the Middle East to this risk.
• International operations and currency. Most revenue comes from outside the U.S.; about 48% of nine-month fiscal 2026 revenue was generated in US dollars. The hedging program is designed for short-term exposures over a rolling period of up to twelve months. General accounting, payables, receivables and tax processing are centralized in India and Malaysia, so disruption in either country could delay financial reporting and payments.
• Acquisitions and integration. Agilent says it generally expects to complete several transactions a year. Acquired businesses such as BIOVECTRA (closed September 2024) and Biocare (closed June 2026) carry integration risk, may miss expected synergies, and could lead to goodwill or intangible impairments of up to their full carrying value.
• Pharmaceutical program and product risk. Companion diagnostics and active-ingredient manufacturing are tied to customers' drug programs, which can be cancelled if clinical trials fail. New products have to keep pace with fast-moving technology and competitors' launches.
• Regulation. Diagnostics products are regulated by the FDA, HHS and CMS, and by the EU In Vitro Diagnostic Regulation enforced since May 2022. Failures can bring warning letters, recalls or production shutdowns. Agilent is also subject to anti-bribery law (FCPA, UK Bribery Act), sanctions, privacy law (GDPR fines of up to 4% of revenue, China's Personal Information Protection Law and Data Security Law), Toxic Substances Control Act chemical rules, and government-contracting rules that carry debarment risk.
• Supply chain and facilities. Some custom-designed parts have no ready alternative supplier. Contract manufacturers and logistics providers may fail to perform. Production, headquarters and labs in California, and production in Japan, sit in seismically active areas, and Agilent carries no insurance or reserves for earthquake or terrorism losses. Consolidating manufacturing reduces redundancy.
• Technology, cyber and AI. Agilent relies on centralized IT systems, and outsourced IT and cyberattacks pose risks; it cites the 2020 SolarWinds incident, which it contained. Using AI in products and operations brings intellectual-property, data-leakage, accuracy and regulatory risks.
• Tax. Agilent benefits from Singapore tax incentives, extended through 2030, which reduced fiscal 2025 income taxes by $102 million ($0.36 per diluted share). Losing or failing to renew them, the OECD Pillar Two minimum tax, or changes to U.S. or Singapore tax law could raise its effective rate.
• Debt and liquidity. Outstanding debt rose from about $3.4 billion at October 31, 2025 to about $3.9 billion at July 31, 2026, almost all of it unsecured senior notes. Credit-facility financial-ratio covenants and note covenants restrict liens and sale-leasebacks. Agilent has paid a quarterly dividend since fiscal 2012 but says continued payment is not assured.
• Legacy environmental liabilities and cost programs. Agilent indemnifies former affiliates, including HP Inc., Hewlett-Packard Enterprise and Siemens Healthineers (formerly Varian Medical Systems), for contamination at certain properties. Its repeated cost-restructuring programs may distract management or slow product improvement.

Management's discussion: fiscal 2025

Source: Item 7 of the fiscal 2025 Form 10-K, accession 0001090872-25-000087.

Revenue grew in every segment and region, but tariffs and mix cut margins. Fiscal 2025 revenue rose 7% to $6,948 million, with no currency effect. Growth came from all three segments, all regions and most end markets. The BIOVECTRA acquisition contributed about 2 percentage points. This followed a 5% decline in fiscal 2024, when pressure on customers' capital spending held back instrument sales, particularly to pharmaceutical customers. Product revenue rose 6%, led by the CDMO, liquid chromatography, LC-MS and consumables businesses and partly offset by cell analysis and vacuum. Services and other revenue rose 9% on contract repair and preventive maintenance.

Each segment contributed as follows:

• Life Sciences and Diagnostics Markets: revenue $2,726 million, up 11%. BIOVECTRA added about 5 points and currency added 1 point. Pharmaceutical demand was strong (CDMO, liquid chromatography, LC-MS), as was diagnostics (companion diagnostics, pathology). Academic and government revenue fell across all businesses. Operating margin was flat at 19.7%, and income from operations was $536 million.
• Agilent CrossLab: revenue $2,908 million, up 6% with no currency effect, with broad growth in pharmaceutical, chemicals and advanced materials and food. Operating margin fell 1 point to 32.5%, and income from operations was $946 million.
• Applied Markets: revenue $1,314 million, up 1% (currency took off 1 point). Food and pharmaceutical grew strongly. Academic and government fell significantly and chemicals and advanced materials fell modestly; China was weak. Operating margin fell 1 point to 22.9%, and income from operations was $301 million.

Total gross margin fell about 2 points to 52.4%, and operating margin fell to 21.3% from 22.9%. Management attributed this to higher tariffs and shipping costs from the second half of fiscal 2025, an unfavorable business mix (including lower-margin CDMO revenue), higher wages, variable pay and restructuring, partly offset by volume and targeted price increases. R&D fell 5% to $455 million. SG&A rose 9% to $1,709 million on transformational initiatives, corporate infrastructure, variable pay and restructuring.

Net income held up because of one-time tax benefits. Net income was $1,303 million, against $1,289 million in fiscal 2024. The effective tax rate was 9.2% ($132 million), reduced by a $57 million federal benefit from an intra-entity asset transfer, a $29 million foreign-derived intangible income benefit and a $28 million reserve release. Management said it expected income taxes to rise in fiscal 2026 because of Pillar Two top-up taxes and the One Big Beautiful Bill Act.

Cash and capital allocation. Operating cash flow fell to $1,559 million from $1,751 million. Receivables used $149 million as revenue rose late in the year, and inventory used $97 million. Higher inventory purchases for tariff mitigation also reduced the cash inflow from payables. Capital expenditures were $407 million, and management planned about $500 million for fiscal 2026, mainly for the Frederick, Colorado expansion. Agilent repurchased 3.4 million shares for $425 million and paid $282 million in dividends ($0.992 per share). It ended the year with $1,789 million of cash. The 2023 buyback program was completed in September 2025, leaving about $1.9 billion under the 2024 authorization. The fiscal 2025 restructuring plan cost $81 million in the year; the 10-K estimated annual savings of $75 million to $80 million.

Outlook in the 10-K. Management said customers' ability to spend capital budgets had begun to normalize, except for customers funded by the U.S. federal government. It expected to substantially mitigate the tariff impact during fiscal 2026 through supply-chain changes, targeted pricing and cost efficiency.

Current quarter: third quarter of fiscal 2026 (ended July 31, 2026)

Sources: Form 10-Q for the quarter ended July 31, 2026, accession 0001090872-26-000064; earnings release furnished on Form 8-K on August 26, 2026, accession 0001090872-26-000062.

Growth broadened and margins widened sharply. Revenue was $1,878 million, up 8% from $1,738 million. Currency had no effect, and core growth (excluding currency and acquisitions and divestitures of the past 12 months) was 7.3%. Revenue came in above the $1.83 billion to $1.85 billion range Agilent had guided to in May. All segments and regions grew. Americas revenue was $761 million, against $683 million a year earlier, Europe $504 million against $492 million, and Asia Pacific $613 million against $563 million. Product revenue rose 8% to $1,333 million, led by Agilent Advanced Therapeutics, consumables and LC-MS. Services and other revenue rose 7% to $545 million. Over nine months, revenue rose 8% to $5,511 million, including a 2-point currency benefit.

Gross margin rose to 55.5% from 51.1%, and operating margin to 23.6% from 20.7%. Income from operations rose 23% to $444 million. The drivers were higher volume, a net benefit from refunds of tariffs paid under the International Emergency Economic Powers Act, targeted price increases, favorable mix, and lower amortization and restructuring costs, partly offset by wage increases and higher variable pay. The tariff refunds added about 1 point of operating-margin improvement in the quarter, a $20 million net benefit to GAAP income from operations. SG&A rose 14% to $475 million, mainly because of transformational initiatives, variable pay and wages, and R&D rose 10% to $123 million. The effective tax rate rose to 18.5% from 8.2%; the year-ago quarter included a $28 million reserve release. Net income was $362 million, or $1.28 per share, against $336 million, or $1.18. Non-GAAP EPS was $1.62, including $0.06 from tariff refunds.

Segment results for the quarter:

• Life Sciences and Diagnostics Markets: revenue $746 million, up 11% (core 10%). Americas revenue rose 17%, helped by Biocare, and Asia Pacific rose 14%; Europe was flat. Pharmaceutical and diagnostics demand was strong, while academic and government declined. Operating margin rose to 23.5% from 17.6%, and income from operations rose 49% to $176 million.
• Agilent CrossLab: revenue $786 million, up 6% (core 5%; currency added 1 point), led by consumables and by service demand in China. Operating margin was 34.3%, against 33.3%, and income from operations rose 9% to $270 million.
• Applied Markets: revenue $346 million, up 7%. Chemicals and advanced materials and environmental and forensics grew strongly, while food was flat. Operating margin rose to 24.9% from 21.8%, and income from operations rose 22% to $86 million.

Biocare acquisition. On June 24, 2026, Agilent acquired all outstanding stock of BC Midco I, Inc. ("Biocare"), a provider of clinical and research pathology solutions, for net consideration of $950 million ($964 million cash paid less $14 million cash acquired). The company recorded $549 million of goodwill, $372 million of customer relationships and $145 million of developed technology. Biocare sits in Life Sciences and Diagnostics Markets and broadens the pathology portfolio. Agilent did not present pro forma figures, saying the deal is not material to its consolidated results.

Financing. On June 25, 2026, Agilent issued $600 million of 4.90% senior notes due January 15, 2032, at 99.968% of principal. Commercial paper borrowings of $1.06 billion during the nine months were fully repaid. Cash was $1,758 million at July 31, 2026. Nine-month operating cash flow was $1,064 million, against $1,014 million a year earlier. Inventory days rose to 120 from 107 because of strategic purchases to mitigate tariff risk. Management now expects fiscal 2026 capital expenditures of about $450 million, below the roughly $500 million planned at the start of the year. In the quarter Agilent repurchased 612,270 shares for $78 million (2.212 million shares for $295 million over nine months), leaving $1,654 million of authorization. It paid a quarterly dividend of $0.255 per share.

Tariffs and restructuring. On February 20, 2026, the U.S. Supreme Court invalidated certain IEEPA tariffs. U.S. Customs and Border Protection opened a refund portal on April 20, 2026. Agilent has filed further refund claims and recognizes refunds only when they are realized or realizable. Management said the Middle East conflict had not materially affected results. A new restructuring plan, the fiscal 2026 plan, was implemented in the quarter at a cost of $15 million, with expected annual savings of $30 million to $35 million and completion by the first quarter of fiscal 2027. Expected savings from the fiscal 2025 plan were raised to $90 million to $95 million, with $109 million of total costs. Headcount was about 18,200, against 18,000 a year earlier; the increase came mainly from the acquisition.

Guidance. In the August 26, 2026 release, Agilent raised its fiscal 2026 outlook:

• Revenue of $7.49 billion to $7.51 billion (up 7.8% to 8.1% reported, 5.8% to 6.0% core).
• Non-GAAP operating-margin expansion of more than 130 basis points.
• Non-GAAP EPS of $6.18 to $6.21.

For the fourth quarter it guided to revenue of $1.98 billion to $2.0 billion and non-GAAP EPS of $1.71 to $1.74, excluding any future tariff refunds. In the 10-Q, management described customer capital budgets as having "largely normalized", a firmer statement than the 10-K's "begun to normalize".

Subsequent events

Sources: Form 10-Q for the quarter ended July 31, 2026, accession 0001090872-26-000064; Form 8-K filed September 8, 2026, accession 0001193125-26-384426; earnings release furnished on Form 8-K on August 26, 2026, accession 0001090872-26-000062.

The July 31, 2026 Form 10-Q, filed September 1, 2026, has no separate subsequent-events note and discloses no acquisition, divestiture, borrowing or litigation outcome after the quarter end. The Biocare acquisition and the 2032 notes both closed inside the quarter (described above). After July 31, 2026:

• August 26, 2026: Agilent reported its third-quarter results and raised its fiscal 2026 guidance, as described above.
• Board leadership change: On September 2, 2026, independent board chair Koh Boon Hwee, a director since 2003 and chair since 2017, told the company he would retire. His retirement took effect September 4, 2026, and the company said it did not stem from any disagreement. The board elected Dow R. Wilson, a director since 2018 and chair of the Audit and Finance Committee, as chair, also effective September 4, 2026. On the same day it appointed Glenn Boehnlein, Stryker's chief financial officer from 2016 to 2025, as a Class III director, a member of the Audit and Finance and Compensation Committees and an audit committee financial expert.
• Debt maturity: Agilent's $300 million of 3.05% senior notes, already classified as short-term debt, were scheduled to mature on September 22, 2026. No filing to date reports their repayment.
• Agilent had 281,928,854 common shares outstanding as of August 26, 2026.