- Revenue Growth Agilent reported $1.8 billion in revenue with 4.4% core growth, in line with guidance, despite a $10M winter storm impact.
- Operating Margin Stability Maintained 24.6% operating margin, down 50 bps YoY, due to tariff headwinds and performance-based pay, but in line with expectations.
- Product Innovation Impact Altura columns drove 50% of top 20 biopharma orders, boosting biocolumn growth to 30%, while Pro iQ LC/MS saw over 40% growth.
- FY26 Guidance Revenue projected at $7.3–7.5B (4–6% core growth), with EPS of $5.90–6.04, reflecting margin expansion and tariff cost mitigation.
- Segment Performance ACG grew 6% (led by consumables), AMG 4% (spectroscopy strength), while LDG lagged at 3% due to academia/government softness.
Segment Performance
The company's segments showed varied performance. The Acoustic Cell Group (ACG) grew 6%, driven by strong consumables growth. The Agilent Microbiology Group (AMG) grew 4%, ahead of expectations, led by double-digit performance in spectroscopy. The Diagnostics and Genomics Group (LDG) grew 3%, below expectations, due to softness in academia and government. Notably, the LDG segment's softness was attributed to weather impact and cautious spending, with the company believing it is at or near the bottom.
Growth Drivers
Agilent's growth is driven by innovative products such as the Pro iQ LC/MS and Infinity III, a strong commercial team, and enterprise service capabilities. The company's enterprise services business grew nicely at a low double-digit CAGR, cementing customer intimacy and unlocking downstream value. The Altura ultra-inert column portfolio has seen strong demand, with 50% of the top 20 biopharma companies ordering these columns since launch.
Guidance and Outlook
Agilent expects fiscal year '26 revenue to be in the range of $7.3 billion to $7.5 billion, representing growth of 4% to 6% on a core basis. The company maintains its expected core growth range of 4% to 6% for the full year and expects EPS to be between $5.90 and $6.04. For the second quarter, revenue is expected to be between $1.79 billion and $1.82 billion, with EPS guidance of $1.39 to $1.42.
Valuation
With a P/E Ratio of 26.54 and an EV/EBITDA of 20.85, Agilent's valuation suggests that the market is pricing in a certain level of growth. The company's ROE of 19.73% and ROIC of 12.05% indicate a strong ability to generate returns. Analysts estimate next year's revenue growth at 6.2%, which is slightly above the company's current guidance. Considering the valuation metrics and growth expectations, it remains to be seen if Agilent can continue to deliver on its growth promises.