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1. Company Snapshot

1.a. Company Description

Agilent 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.

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1.b. Last Insights on A

Agilent Technologies' recent performance was driven by strong Q3 earnings, with revenue growth of 10.1% year-over-year to $1.74 billion, exceeding guidance. The company's non-GAAP net income was $390 million, or $1.37 per share, beating estimates. Citi analysts had a "constructive" meeting with management, citing growth drivers that "should translate into earnings leverage." Additionally, Agilent introduced new products, including the Altura Line of Inert HPLC Columns and Insight Series Alarm Resolution Systems, expanding its offerings in biotherapeutic testing and airport security screening.

1.c. Company Highlights

2. Agilent Technologies' Q4 FY '25 Earnings: A Strong Finish to a Successful Year

Agilent Technologies reported a robust fourth quarter, with revenue reaching $1.86 billion, a 7.2% core growth, and earnings per share (EPS) of $1.59, surpassing the midpoint of their guidance. The company's gross margin stood at 54.1%, while operating margins were 27.2%. The strong EPS performance was slightly above analyst estimates of $1.58. The revenue growth was broad-based, driven by strong demand in LC and LCMS, share gains, and a replacement cycle that continues to accelerate.

Publication Date: Nov -25

📋 Highlights
  • Revenue Growth:: Q4 revenue reached $1.86 billion, a 7.2% core growth, exceeding guidance with 9.4% reported growth (currency +0.9%, M&A +1.3%).
  • Earnings Performance:: EPS of $1.59, up 9% YoY, surpassed the midpoint of guidance, with FY 2026 EPS growth projected at 5-7%.
  • Market Expansion:: CDMO business grew over 40%, while pharma and biotech markets expanded 12% and low twenties, respectively.
  • Operational Efficiency:: Gross margins improved to 54.1%, and 75 bps operating margin expansion is targeted for FY 2026 via pricing and operational efficiencies.
  • Strategic Focus:: Agilent prioritizes innovation (e.g., Infinity 3, Pro IQ LCMS), AI integration, and the Ignite operating system to drive growth amid secular trends like replacement cycles and reshoring.

Segment Performance

The Life Sciences and Diagnostics Group (LDG) grew 11%, driven by strong demand in pharma and biotech. The Advanced Measurement Group (AMG) grew 3%, while the Applied and Clinical Group (ACG) grew 6%, with high single-digit growth ex China. Geographically, the Americas and Europe saw 11% growth, while China declined 4% and the rest of Asia ex China grew 4%. The company's GLP-1 revenue was $40 million in Q4, with 60% from BioVectra and 40% from the analytical lab.

Guidance and Outlook

For fiscal year 2026, Agilent expects 4% to 6% core growth, driven by secular growth drivers such as instrument replacement cycles and demand for specialty CDMO services. The company anticipates 75 basis points of operating margin expansion and 5% to 7% EPS growth. The guidance implies a revenue range of $7.3-7.4 billion, representing a 5.4% growth, which is in line with analyst estimates.

Valuation and Return Metrics

With a P/E Ratio of 35.88 and an EV/EBITDA of 25.11, Agilent's valuation suggests that the market is pricing in a certain level of growth and profitability. The company's ROE of 19.31% and ROIC of 11.83% indicate a strong return on equity and invested capital. The Dividend Yield of 0.65% and Free Cash Flow Yield of 3.22% provide a relatively attractive return for income investors.

Key Drivers and Risks

The company's growth is driven by its innovative products and services, customer intimacy, and the Ignite operating system. The acquisition of BioVectra has contributed to the growth, and the company expects sustained long-term recurring revenue ramp. However, the decline in academia and government spending due to US federal spending reductions is a risk. Additionally, the company's exposure to China, which is expected to be flat in FY '26, is another risk factor.

3. NewsRoom

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Agilent Technologies, Inc. (A) Presents at Citi Annual Global Healthcare Conference 2025 Transcript

Dec -04

Source: seekingalpha.com

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Groupe la Francaise Purchases 5,333 Shares of Agilent Technologies, Inc. $A

Dec -04

Source: defenseworld.net

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30% of the S&P 500 Is Mag 7 Tech Stocks, but This ETF Refuses to Own a Single One

Dec -02

Source: 247wallst.com

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Agilent Announces 21 CFR Part 11 Compliance Software for xCELLigence RTCA eSight

Dec -01

Source: businesswire.com

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5 Stocks Worth Watching on Recent Dividend Hikes

Nov -28

Source:

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Agilent Technologies: Steady As She Goes

Nov -26

Source: seekingalpha.com

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Agilent Q4 Earnings Match Estimates, Revenues Up Y/Y, Shares Fall

Nov -25

Source: zacks.com

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These Analysts Boost Their Forecasts On Agilent After Upbeat Q4 Results

Nov -25

Source: benzinga.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

Life Sciences and Applied Markets Group

Expected Growth: 6.5%

The demand for advanced research tools and services in life sciences and applied markets is on the rise, driven by government funding, technological advancements, and the need for environmental sustainability. The segment's broad customer base and diverse product offerings position it for slightly above-average growth.

Diagnostics and Genomics Group

Expected Growth: 7.0%

The Diagnostics and Genomics Group is poised for significant growth due to the expanding use of genomic information in healthcare, driven by decreasing sequencing costs, and the increasing prevalence of genetic testing. This segment is likely to outpace the overall company growth due to its critical role in advancing personalized medicine.

Agilent Crosslab Group

Expected Growth: 5.5%

The Agilent Crosslab Group is expected to grow at a slightly slower pace than the overall company average. While laboratory services are essential and provide a steady stream of revenue, the segment's growth is somewhat constrained by its dependence on the installed base of instruments and the competitive landscape of laboratory services.

7. Detailed Products

Life Sciences and Applied Markets

Provides instruments, software, and services for life sciences, diagnostics, and applied markets

Agilent CrossLab

Offers a range of laboratory supplies, including instruments, consumables, and services

Mass Spectrometry

Provides mass spectrometry instruments and software for life sciences, pharmaceutical, and applied markets

Chromatography and Spectroscopy

Offers a range of chromatography and spectroscopy instruments and software for life sciences and applied markets

Diagnostics and Genomics

Provides instruments, software, and services for molecular diagnostics, genomics, and pathology

Electronic Measurement

Offers a range of electronic measurement instruments and software for aerospace, defense, and industrial markets

8. Agilent Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Agilent Technologies, Inc. faces moderate threat from substitutes due to the availability of alternative products and services in the life sciences and applied markets.

Bargaining Power Of Customers

Agilent Technologies, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Agilent Technologies, Inc. relies on a few key suppliers for critical components, giving them some bargaining power, but the company's size and scale mitigate this risk.

Threat Of New Entrants

The life sciences and applied markets have high barriers to entry, including significant R&D investments and regulatory hurdles, making it difficult for new entrants to challenge Agilent Technologies, Inc.'s position.

Intensity Of Rivalry

The life sciences and applied markets are highly competitive, with several established players competing for market share, driving innovation, and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 32.24%
Debt Cost 3.95%
Equity Weight 67.76%
Equity Cost 9.41%
WACC 7.65%
Leverage 47.58%

11. Quality Control: Agilent Technologies, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
IDEXX Laboratories

A-Score: 4.6/10

Value: 0.0

Growth: 7.2

Quality: 7.6

Yield: 0.0

Momentum: 7.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Agilent Technologies

A-Score: 4.5/10

Value: 1.2

Growth: 5.8

Quality: 7.4

Yield: 1.0

Momentum: 4.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Mettler-Toledo

A-Score: 4.4/10

Value: 3.0

Growth: 6.3

Quality: 7.1

Yield: 0.0

Momentum: 3.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
IQVIA

A-Score: 4.1/10

Value: 3.5

Growth: 6.9

Quality: 5.4

Yield: 0.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Thermo Fisher

A-Score: 4.0/10

Value: 1.6

Growth: 6.1

Quality: 6.1

Yield: 0.0

Momentum: 3.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Danaher

A-Score: 3.8/10

Value: 1.6

Growth: 4.0

Quality: 6.8

Yield: 1.0

Momentum: 1.5

Volatility: 7.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

145.49$

Current Price

145.49$

Potential

-0.00%

Expected Cash-Flows