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Agilent Technologies (A)
NYSE:A
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Agilent
(NYSE:A)
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Rating:64Neutral
Price Target:
$133.00
▲(10.34% Upside)
Action:ReiteratedDate:02/26/26
The score reflects solid underlying financial profitability and supportive FY26 guidance (including higher EPS outlook and planned margin expansion), partially offset by margin/cash-flow softness. The biggest drag is weak technical momentum with the stock trading below major moving averages, while valuation appears somewhat premium for the current setup.
Positive Factors
Diversified recurring model
Agilent's revenue mix of instruments plus high-margin consumables, services and software subscriptions produces recurring revenue and reduces reliance on single capital cycles. This diversification supports steadier cash flows, resilience to end-market swings and durable revenue visibility over multiple quarters.
Strong profitability & ROE
Sustained double-digit ROE and healthy operating margins indicate efficient capital allocation and pricing power. These fundamentals support long-term organic investment, shareholder returns and the ability to fund R&D and targeted M&A, underpinning multi-quarter financial stability.
Ignite operating leverage
The Ignite program has driven structural pricing and cost improvements, improving unit economics and enabling management to offset tariffs and invest in growth. Persistent savings and pricing realization create a durable path to the targeted operating margin expansion and stronger free cash flow.
Negative Factors
Gross margin erosion
A meaningful decline in gross margins versus historical levels points to structural cost or mix pressures (tariffs, product mix, or competition). Sustained lower gross margins reduce operating leverage, constrain reinvestment capacity and materially lower long-term free cash generation.
Weakened cash conversion
Declining FCF growth and operating cash flow lagging net income signal worsening working-capital dynamics or timing issues. If persistent, weaker cash conversion limits flexibility for capex, buybacks or M&A and raises sensitivity to any operating setbacks over the next several quarters.
Tariff & end-market exposures
Prolonged tariff uncertainty and pockets of academic/government softness create structural margin and demand risks. Mitigation (pricing, reshoring) is multi-quarter work; persistent policy or funding headwinds could depress instrument orders and pressure margins across fiscal periods.
Agilent (A) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.06B
Dividend Yield0.72%
Average Volume (3M)2.27M
Price to Earnings (P/E)31.0
Beta (1Y)0.98
Revenue Growth6.73%
EPS Growth3.34%
CountryUS
Employees17,900
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)1.36
Shares Outstanding282,839,630
10 Day Avg. Volume3,174,408
30 Day Avg. Volume2,273,395
Financial Highlights & Ratios
PEG Ratio9.41
Price to Book (P/B)6.14
Price to Sales (P/S)5.96
P/FCF Ratio35.95
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue4.97
Enterprise Value/Gross Profit9.51
Enterprise Value/Ebitda19.23
Forecast
1Y Price Target
$163.62Price Target Upside35.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)5.96
Revenue Forecast (FY)$7.39B
Agilent Business Overview & Revenue Model
Company DescriptionAgilent Technologies, Inc. provides application focused solutions to the life sciences, diagnostics, and applied chemical markets worldwide. The Life Sciences and Applied Markets segment offers liquid chromatography systems and components; liquid chromatography mass spectrometry systems; gas chromatography systems and components; gas chromatography mass spectrometry systems; inductively coupled plasma mass spectrometry instruments; atomic absorption instruments; microwave plasma-atomic emission spectrometry instruments; inductively coupled plasma optical emission spectrometry instruments; raman spectroscopy; cell analysis plate based assays; flow cytometer; real-time cell analyzer; cell imaging systems; microplate reader; laboratory software; information management and analytics; laboratory automation and robotic systems; dissolution testing; vacuum pumps, and measurement technologies. The Diagnostics and Genomics segment provides arrays for DNA mutation detection, genotyping, gene copy number determination, identification of gene rearrangements, DNA methylation profiling, gene expression profiling, next generation sequencing, target enrichment and genetic data management, and interpretation support software; and produces synthesized oligonucleotide. It also offers immunohistochemistry in situ hybridization, and hematoxylin and eosin staining and special staining; consumables, and software for quality control analysis of nucleic acid samples; and reagents for use in turbidimetry and flow cytometry, as well as develops liquid-based pharmacodiagnostics. The Agilent CrossLab segment provides GC and LC columns, sample preparation products, custom chemistries, and laboratory instrument supplies; and startup, operational, training, compliance support, software as a service, asset management, and consultation services. The company markets its products through direct sales, distributors, resellers, manufacturer's representatives, and electronic commerce. Agilent Technologies, Inc. was incorporated in 1999 and is headquartered in Santa Clara, California.
How the Company Makes MoneyAgilent generates revenue through a diversified business model primarily focused on three key segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab. The majority of its income comes from the sale of instruments and consumables, with recurring revenue also derived from services, support, and software subscriptions. Additionally, Agilent benefits from strategic partnerships and collaborations with research institutions and other companies, which enhance its product offerings and expand its market reach. The company's continuous investment in innovation and development of new technologies further contributes to its competitive edge and revenue growth.
Agilent Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyAgilent Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 26, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial picture: solid top-line growth, maintained full‑year guidance, strong product and commercial momentum (notably in pharma/GLP‑1, CAM/advanced materials, Infinity III and Pro iQ), healthy cash generation and clear benefits from the Ignite operating program. Near-term headwinds—tariff-driven gross margin pressure, an isolated weather disruption (~$10M), and pockets of softness in academia/government, cell analysis and certain smaller end markets—were acknowledged but framed as manageable through pricing, supply‑chain actions and Ignite-led savings. Management maintained disciplined capital allocation, reiterated mid‑term growth drivers (replacement cycles, CDMO expansion, reshoring of semiconductor/pharma manufacturing) and emphasized integration/M&A readiness. Overall, positive execution and momentum outweigh the identified challenges.Q1-2026 Updates
Positive Updates
Revenue and Core Growth
Q1 revenue of $1.8 billion; core (adjusted) revenue growth of 4.4% year-over-year and reported growth of 7.0%; currency contributed a 2.6% tailwind to reported growth.
Profitability and Guidance
Q1 non-GAAP operating margin of 24.6% (in line with expectations); Q1 EPS of $1.36 (up ~4% year-over-year). Full-year core revenue growth guide maintained at 4%–6% and FY26 non-GAAP EPS raised to $5.90–$6.04 (a $0.04 improvement driven by favorable FX).
Cash Flow, Capital Returns and Balance Sheet
Operating cash flow of $268 million in Q1; capital expenditures $93 million; returned capital via $152 million share repurchases and $72 million dividends; net leverage ratio of 0.8x, supporting continued shareholder returns and M&A optionality.
Ignite Operating System Impact
Ignite delivered measurable financial benefits: doubled pricing realization vs. prior baseline, delivered nearly 200 basis points of pricing in the prior quarter, generated substantial procurement savings, simplified organization, launched tariff mitigation program and aided successful BIOVECTRA integration.
Strong Product and Commercial Momentum
Notable product traction: Infinity III HPLC driving high-single-digit LC growth and share gains; Pro iQ single-quad LC/MS family grew >40% in the quarter; Altura columns doubled biocolumn growth to >30%; Omnis expansion and new S-540-MD Slide Scanner launched.
End-Market Strengths
Pharma grew 7% (with GLP-1-related revenue up ~50%); CAM (chemicals & advanced materials) grew 9% with advanced materials >20%; diagnostics & clinical grew 7%. Instrument book-to-bill at or above 1 for the eighth consecutive quarter.
Specialty CDMO Performance
Specialty CDMO grew low double digits in Q1 with the company reiterating expectation of mid-teens growth for the fiscal year; BIOVECTRA integration cited as successful and accretive to execution capability.
Commercial Wins and New Contracts
Enterprise services momentum (accounts with nearly all top-20 biopharma), 18 competitive displacements in 3 years, and a $9 million TSA contract for the Raman Insight BRT system secured in Q1.
Negative Updates
Tariff and Gross Margin Pressure
Q1 gross margin declined to 53.7%, down ~100 basis points year-over-year primarily due to tariff headwinds; operating margin down ~50 basis points year-over-year with tariff expense and normalized performance-based pay cited as contributors.
Academia & Government Weakness
Academia and government end market declined 8% in Q1 (worse than expected), driven by soft U.S. academic funding and customers prioritizing operations over new capital equipment; company expects a low single-digit full-year decline in this market.
Selective End-Market Softness
Food declined 4% (though stronger ex-China), environmental & forensics were flat, and certain cell analysis and genomics businesses underperformed within Life Sciences & Diagnostics (LDG grew 3%, below expectations).
Weather-Related Disruption
A winter storm in late January caused ~ $10 million of delayed revenue from the Americas logistics center (Memphis) and pressured Americas growth (1% in Q1); majority of the revenue was recouped in early February but some service revenues took longer to recover.
Margin Volatility from CDMO Batch Cadence
Specialty CDMO margins are impacted by batch cadence variability in any given quarter; Q1 cadence contributed to margin softness even as the business grew low double digits.
Regional Headwinds and Uncertainty
Europe grew ~4% and experienced transient purchase slowdowns related to tariff discussions; China growth of 6% included modest pre-Lunar-New-Year spending and small stimulus benefits but broader stimulus remains uncertain and not baked into guidance.
Evolving Tariff Policy Risk
Ongoing tariff policy uncertainty (including possible changes following recent rulings) remains a risk; management currently expects to mitigate tariff impact via pricing, supply-chain localization and Ignite savings but noted the situation is dynamic.
Company Guidance
Agilent maintained full-year FY‑26 core revenue guidance of 4%–6% (reported revenue $7.3–$7.5B) and raised its EPS range to $5.90–$6.04 (a 5.5%–8% increase, with a $0.04 benefit from FX), assuming a ~1.5% currency tailwind for the year; Q2 guidance calls for core growth of roughly 4%–5.5% (reported revenue $1.79–$1.82B) and EPS of $1.39–$1.42 (≈7% growth at the midpoint), with Q2 FX ~+3% and the majority of the $10M Q1 storm impact expected to be recovered; the company is targeting ~75 bps of operating margin expansion for the year (Q1 operating margin was 24.6% and Q2 is expected to improve ~100 bps sequentially), assumes a 14.5% tax rate, $22M of other income, 283M diluted shares, at least +100 bps pricing contribution (via Ignite), tariffs largely mitigated by H2 through cost savings/pricing, operating cash flow of $1.6–$1.7B, and ~ $500M of full‑year capex.Agilent Financial Statement Overview
Summary
Strong TTM revenue growth (+168.4%) with healthy profitability (about 18% net margin and ~16% EBIT margin) and solid ROE (~21%). Offsetting this, margins have compressed versus prior periods (notably gross margin) and cash conversion has weakened with declining free cash flow (TTM FCF growth -5.7%).Income Statement
TTM (Trailing-Twelve-Months) revenue is up strongly (+168.4%) and profitability remains healthy (about 18% net margin and ~16% EBIT margin). However, margins have compressed versus prior annual periods (TTM gross margin ~39% vs low-to-mid 50%s historically, and EBIT/EBITDA margins also down), suggesting higher costs or mix pressure that bears monitoring despite steady net income.78
Positive
Balance Sheet
Leverage looks manageable with debt at ~0.49x equity in TTM (Trailing-Twelve-Months), improved from the higher level seen in 2024, and equity has grown over time. Returns on equity remain solid (~21% TTM), but total debt is still meaningful (~$3.35B), so flexibility is good but not pristine if operating conditions weaken.74
Positive
Cash Flow
Cash generation is positive with TTM (Trailing-Twelve-Months) operating cash flow of ~$1.40B and free cash flow of ~$1.09B, and free cash flow is a solid ~78% of net income. That said, free cash flow is declining (TTM free cash flow growth -5.7%) and cash conversion has weakened versus prior years, with operating cash flow running below net income in TTM (Trailing-Twelve-Months), pointing to less favorable working-capital/timing dynamics.66
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.07B | 6.95B | 6.51B | 6.83B | 6.85B | 6.32B |
| Gross Profit | 3.69B | 3.64B | 3.54B | 3.46B | 3.72B | 3.41B |
| EBITDA | 1.82B | 1.83B | 1.87B | 1.70B | 1.91B | 1.76B |
| Net Income | 1.29B | 1.30B | 1.29B | 1.24B | 1.25B | 1.21B |
Balance Sheet | ||||||
| Total Assets | 12.81B | 12.73B | 11.85B | 10.76B | 10.53B | 10.71B |
| Cash, Cash Equivalents and Short-Term Investments | 1.76B | 1.79B | 1.33B | 1.59B | 1.05B | 1.57B |
| Total Debt | 3.35B | 3.35B | 3.57B | 2.73B | 2.77B | 2.73B |
| Total Liabilities | 5.91B | 5.99B | 5.95B | 4.92B | 5.23B | 5.32B |
| Stockholders Equity | 6.91B | 6.74B | 5.90B | 5.84B | 5.30B | 5.39B |
Cash Flow | ||||||
| Free Cash Flow | 993.00M | 1.15B | 1.37B | 1.47B | 1.02B | 1.30B |
| Operating Cash Flow | 1.40B | 1.56B | 1.75B | 1.77B | 1.31B | 1.49B |
| Investing Cash Flow | -393.00M | -394.00M | -1.26B | -310.00M | -338.00M | -749.00M |
| Financing Cash Flow | -757.00M | -715.00M | -752.00M | -930.00M | -1.37B | -696.00M |
Agilent Technical Analysis
Negative
120.54
Price Trends
133.73
Negative
139.29
Negative
129.50
Negative
Market Momentum
-4.10
Positive
35.32
Neutral
40.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For A, the sentiment is Negative. The current price of 120.54 is below the 20-day moving average (MA) of 125.09, below the 50-day MA of 133.73, and below the 200-day MA of 129.50, indicating a bearish trend. The MACD of -4.10 indicates Positive momentum. The RSI at 35.32 is Neutral, neither overbought nor oversold. The STOCH value of 40.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for A.
Agilent Risk Analysis
Agilent disclosed 35 risk factors in its most recent earnings report. Agilent reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Agilent Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $31.30B | 35.17 | 29.28% | ― | 6.90% | 3.86% | |
67 Neutral | $144.26B | 44.80 | 7.05% | 0.53% | 2.90% | -4.81% | |
66 Neutral | $26.76B | 33.06 | ― | ― | 4.77% | 7.93% | |
64 Neutral | $34.06B | 31.05 | 19.95% | 0.72% | 6.73% | 3.34% | |
61 Neutral | $188.75B | 32.34 | 13.14% | 0.30% | 3.91% | 7.09% | |
59 Neutral | $30.19B | 28.49 | 21.64% | ― | 3.85% | -4.74% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
A
Agilent
118.11
-7.43
-5.92%
DHR
Danaher
202.00
-11.47
-5.37%
MTD
Mettler-Toledo
1,261.21
-11.33
-0.89%
TMO
Thermo Fisher
518.84
-6.94
-1.32%
WAT
Waters
315.59
-70.74
-18.31%
IQV
IQVIA Holdings
178.50
-6.97
-3.76%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.