Agilent Technologies Stock Earnings Reports

Key points for investors: Agilent reported strong Q3 FY2025 results with revenue of $1.74 billion (core +6.1%, reported +10.1%) and EPS of $1.37. This was the fifth consecutive quarter of sequential core revenue acceleration. Management raised full‑year revenue guidance to $6.91–$6.93 billion (midpoint core growth ~4.5%) and expects Q4 revenue of $1.82–$1.84 billion (core growth ~4.8–6.0%). Q3 gross margin was 53.1% and operating margin 25.1%; management expects ~230 bps of sequential operating margin improvement in Q4 driven by higher volume leverage, CDMO margin conversion, and additional Ignite savings, partially offset by tariffs. Tariffs are a meaningful near‑term headwind: management flagged a higher-than-expected tariff impact in H2 (Rodney’s prepared remarks indicated a $20M net cost assumption for FY2025, while later Q&A commentary quantified ~ $35M recognized in Q3 and expected to be similar in Q4 — roughly $70M in the second half — with mitigation actions planned to be implemented by end of Q4 and expected to fully mitigate impact in FY2026). Ignite (enterprise operating model) and pricing actions are driving productivity and a ~100 bps pricing benefit year-over-year; management reduced management layers >15% and is seeing double-digit savings in key cost categories. Demand was broad-based and led by pharma (+9%) and chemicals & advanced materials (+10%); notable strength in CDMO/NASD (high‑twenties growth) and continued adoption of new platforms (Infinity Tree LC, Pro IQ LCMS, DACO OMDAS). PFAS testing remains a long‑term growth opportunity (global low double-digit growth) though US PFAS was softer in Q3 due to EPA policy uncertainty. Instrument book-to-bill >1 for six consecutive quarters. Cash flow: operating cash flow $362M, capex $103M, buybacks $85M, dividends $71M; net leverage ~0.9x. Management reiterated focus on disciplined capital allocation (continued buybacks, dividends, and targeted M&A aligned to strategy) and expects tariff mitigation and Ignite savings to drive improved margins into FY2026. Risks: tariff volatility, near-term margin pressure from tariffs/logistics and higher variable commercial spend, and macro/funding pressures in some end markets (US academia & government, US biopharma).