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Agilent Technologies Q2 Earnings Beat Estimates, Revenues Up Y/Y
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Key Takeaways
Agilent Q2 EPS rose 13.7% Y/Y to $1.49, while revenue climbed 10% to $1.84 billion.
A raised fiscal 2026 outlook, projecting up to $7.49 billion in revenues and EPS up to $6.10.
Agilent saw strong growth in pharma, diagnostics, and chemicals, while the demand in academia weakened.
Agilent Technologies (A - Free Report) reported second-quarter fiscal 2026 earnings of $1.49 per share, up 13.7% year over year. The figure surpassed the Zacks Consensus Estimate by 6.21%.
Quarterly revenues came in at $1.84 billion, which represented 10% reported growth year over year. The figure beat the Zacks Consensus Estimate by 2.12%. Strength in instruments and solid execution also supported a favorable mix, with 66% of fiscal second-quarter revenue coming from recurring streams such as consumables, services and informatics.
A Posts Strong Q2 Growth Across Operating Segments
A’s top-line expansion was broad-based across its three reporting groups. The Life Sciences and Diagnostics Markets Group generated $732 million of revenues, up 12% year over year on a reported basis and 9% on a core basis.
Agilent CrossLab delivered $759 million, reflecting 6% reported growth and 2% core growth, while Applied Markets recorded $344 million, increasing 14% reported and 11% core. Segment profitability remained solid, with operating margins of 22.0% in LDG, 32.0% in CrossLab and 23.3% in Applied Markets.
Agilent Technologies, Inc. Price, Consensus and EPS Surprise
For the second quarter of fiscal 2026, the LDG segment’s gross margin expanded 130 basis points (bps) year over year to 54.1%. ACG’s gross margin was flat year over year to 55.5%, while AMG’s gross margin expanded 230 bps year over year to 55.8%.
Research and development (R&D) expenses on a non-GAAP basis were $116 million, up 6.4% from the prior-year quarter. Selling, general, and administrative (SG&A) expenses on a non-GAAP basis rose to $409 million, marking a 9.4% increase from the prior-year quarter.
As a percentage of revenues, R&D expenses fell 20 bps year over year to 6.3%, while SG&A expenses fell 10 bps year over year to 22.3%.
Non-GAAP operating margin expanded 130 basis points year over year to 26.4% and improved 180 basis points sequentially.
A Sees Divergent Trends Across End Markets
Demand trends varied by end market, but the overall mix remained constructive. Pharma, which represented 36% of quarterly revenues, delivered 6% core growth and marked a fifth straight quarter of mid-single to low-double-digit growth, including low-double-digit growth in biotech.
Diagnostics and Clinical (16% of revenue) rose 11% on core growth, supported by expansion in Cancer Diagnostics offerings and traction for the Omnis family. Chemicals and Advanced Materials (23% of revenue) increased 8%, driven by semiconductor demand and chemicals capex investments in the Americas, while Environmental and Forensics (10% of revenue) grew 13% on competitive wins and a TSA airport security contract. Offsetting pockets of strength, Academia and Government (7% of revenue) declined 5% amid a muted research funding environment, and Food (8% of revenue) fell 3% on funding delays in China and India.
Agilent Details Geography and Business Mix
Geographically, results reflected strength in the Americas and Europe and a tougher year-over-year comparison in Asia-Pacific. Core revenue growth was 11% in the Americas and 8% in Europe, while APAC declined 1% on a core basis. In terms of mix, the Americas accounted for 42% of Agilent’s fiscal second-quarter revenue, Europe contributed 28% and APAC represented 30%.
Agilent also highlighted the durability of its model through the product-type mix. Consumables, services and informatics represented 66% of total revenues in the quarter, while instruments accounted for the remaining 34%. The company emphasized robust instrument growth in the quarter alongside an increasing recurring-revenue mix.
A’s Balance Sheet Details
The balance sheet remained steady. Cash and cash equivalents totaled $1.807 billion as of April 30, 2026, compared with $1.75 billion as of Jan. 31, 2025, while long-term debt stood at $3.051 billion.
Agilent generated $277 million in operating cash flow during the quarter and returned cash to shareholders through multiple channels. The company spent $65 million to repurchase 0.55 million shares and paid $72 million in dividends, along with $76 million of capex investment.
A Raises Full-Year Outlook and Issues Q3 Targets
A lifted its fiscal 2026 outlook, driven by increased confidence in business performance and execution. Full-year revenues are now expected to be in the range of $7.39-$7.49 billion, with core revenue growth projected to be between 4.5% and 6.0%. The company also expects 85 basis points of non-GAAP operating margin expansion at the midpoint of core growth guidance.
For the third quarter of fiscal 2026, A expects revenues in the range of $1.83-$1.85 billion, implying 5.0%-6.5% reported growth and 4.4%-5.9% core growth. Non-GAAP earnings for the quarter are expected to be in the range of $1.48-$1.50 per share, while full-year non-GAAP earnings were raised to $6.00-$6.10 per share.
Shares of Align Technology have surged 4.3% year to date. The Zacks Consensus Estimate for Align Technology’s fiscal 2026 earnings is pegged at $11.36 per share, up 97 cents over the past seven days, indicating an 8.09% year-over-year surge.
Shares of AC Immune have declined 6.7% year to date. The Zacks Consensus Estimate for AC Immune 2026 earnings is pegged at a loss of 68 cents per share, decreased by a penny over the past 30 days, indicating a year-over-year jump of 19.05%.
Biodesix shares have risen 117.8% year to date. The Zacks Consensus Estimate for Biodesix 2026 earnings is pegged at a loss of $2.99 per share. The company reported a loss of $4.67 per share in the year-ago quarter, indicating a year-over-year increase of 35.97%.
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Agilent Technologies Q2 Earnings Beat Estimates, Revenues Up Y/Y
Key Takeaways
Agilent Technologies (A - Free Report) reported second-quarter fiscal 2026 earnings of $1.49 per share, up 13.7% year over year. The figure surpassed the Zacks Consensus Estimate by 6.21%.
Quarterly revenues came in at $1.84 billion, which represented 10% reported growth year over year. The figure beat the Zacks Consensus Estimate by 2.12%. Strength in instruments and solid execution also supported a favorable mix, with 66% of fiscal second-quarter revenue coming from recurring streams such as consumables, services and informatics.
A Posts Strong Q2 Growth Across Operating Segments
A’s top-line expansion was broad-based across its three reporting groups. The Life Sciences and Diagnostics Markets Group generated $732 million of revenues, up 12% year over year on a reported basis and 9% on a core basis.
Agilent CrossLab delivered $759 million, reflecting 6% reported growth and 2% core growth, while Applied Markets recorded $344 million, increasing 14% reported and 11% core. Segment profitability remained solid, with operating margins of 22.0% in LDG, 32.0% in CrossLab and 23.3% in Applied Markets.
Agilent Technologies, Inc. Price, Consensus and EPS Surprise
Agilent Technologies, Inc. price-consensus-eps-surprise-chart | Agilent Technologies, Inc. Quote
Agilent’s Q2 Operating Results
For the second quarter of fiscal 2026, the LDG segment’s gross margin expanded 130 basis points (bps) year over year to 54.1%. ACG’s gross margin was flat year over year to 55.5%, while AMG’s gross margin expanded 230 bps year over year to 55.8%.
Research and development (R&D) expenses on a non-GAAP basis were $116 million, up 6.4% from the prior-year quarter. Selling, general, and administrative (SG&A) expenses on a non-GAAP basis rose to $409 million, marking a 9.4% increase from the prior-year quarter.
As a percentage of revenues, R&D expenses fell 20 bps year over year to 6.3%, while SG&A expenses fell 10 bps year over year to 22.3%.
Non-GAAP operating margin expanded 130 basis points year over year to 26.4% and improved 180 basis points sequentially.
A Sees Divergent Trends Across End Markets
Demand trends varied by end market, but the overall mix remained constructive. Pharma, which represented 36% of quarterly revenues, delivered 6% core growth and marked a fifth straight quarter of mid-single to low-double-digit growth, including low-double-digit growth in biotech.
Diagnostics and Clinical (16% of revenue) rose 11% on core growth, supported by expansion in Cancer Diagnostics offerings and traction for the Omnis family. Chemicals and Advanced Materials (23% of revenue) increased 8%, driven by semiconductor demand and chemicals capex investments in the Americas, while Environmental and Forensics (10% of revenue) grew 13% on competitive wins and a TSA airport security contract. Offsetting pockets of strength, Academia and Government (7% of revenue) declined 5% amid a muted research funding environment, and Food (8% of revenue) fell 3% on funding delays in China and India.
Agilent Details Geography and Business Mix
Geographically, results reflected strength in the Americas and Europe and a tougher year-over-year comparison in Asia-Pacific. Core revenue growth was 11% in the Americas and 8% in Europe, while APAC declined 1% on a core basis. In terms of mix, the Americas accounted for 42% of Agilent’s fiscal second-quarter revenue, Europe contributed 28% and APAC represented 30%.
Agilent also highlighted the durability of its model through the product-type mix. Consumables, services and informatics represented 66% of total revenues in the quarter, while instruments accounted for the remaining 34%. The company emphasized robust instrument growth in the quarter alongside an increasing recurring-revenue mix.
A’s Balance Sheet Details
The balance sheet remained steady. Cash and cash equivalents totaled $1.807 billion as of April 30, 2026, compared with $1.75 billion as of Jan. 31, 2025, while long-term debt stood at $3.051 billion.
Agilent generated $277 million in operating cash flow during the quarter and returned cash to shareholders through multiple channels. The company spent $65 million to repurchase 0.55 million shares and paid $72 million in dividends, along with $76 million of capex investment.
A Raises Full-Year Outlook and Issues Q3 Targets
A lifted its fiscal 2026 outlook, driven by increased confidence in business performance and execution. Full-year revenues are now expected to be in the range of $7.39-$7.49 billion, with core revenue growth projected to be between 4.5% and 6.0%. The company also expects 85 basis points of non-GAAP operating margin expansion at the midpoint of core growth guidance.
For the third quarter of fiscal 2026, A expects revenues in the range of $1.83-$1.85 billion, implying 5.0%-6.5% reported growth and 4.4%-5.9% core growth. Non-GAAP earnings for the quarter are expected to be in the range of $1.48-$1.50 per share, while full-year non-GAAP earnings were raised to $6.00-$6.10 per share.
A’s Zacks Rank & Stocks to Consider
A currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Medical sector are Align Technology (ALGN - Free Report) , AC Immune (ACIU - Free Report) , and Biodesix (BDSX - Free Report) . Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Align Technology have surged 4.3% year to date. The Zacks Consensus Estimate for Align Technology’s fiscal 2026 earnings is pegged at $11.36 per share, up 97 cents over the past seven days, indicating an 8.09% year-over-year surge.
Shares of AC Immune have declined 6.7% year to date. The Zacks Consensus Estimate for AC Immune 2026 earnings is pegged at a loss of 68 cents per share, decreased by a penny over the past 30 days, indicating a year-over-year jump of 19.05%.
Biodesix shares have risen 117.8% year to date. The Zacks Consensus Estimate for Biodesix 2026 earnings is pegged at a loss of $2.99 per share. The company reported a loss of $4.67 per share in the year-ago quarter, indicating a year-over-year increase of 35.97%.