Agilent (A) Q1 2026 Earnings Call Transcript

The Motley Fool

by newsfeedback@fool.com (Motley Fool Transcribing)

February 25, 2026

AI-Generated Deep Dive Summary

Agilent Technologies (A) reported strong financial performance for its Q1 2026 earnings call, despite facing external challenges such as tariffs and weather-related disruptions. Core revenue grew 4.4%, reaching $1.8 billion, with a 7% increase in reported revenue and a 2.6% tailwind from currency fluctuations. However, the company’s gross margin declined by 100 basis points year over year to 53.7%, primarily due to tariff headwinds. The Life Sciences and Diagnostics Group saw softness in academia and government markets, with an 8% revenue decline, while other segments like CrossLab (+6%) and Applied Markets (+4%) performed well. Notably, the Pharma and biotech sectors showed strong growth, with chemicals and advanced materials leading the way. The company’s earnings per share (EPS) rose 4% year over year to $1.36 on a non-GAAP basis, though management noted that adjusted for weather impacts, all metrics would have exceeded guidance. Tariff-related challenges were significant but expected to improve as mitigation strategies and pricing gains offset these headwinds. Agilent’s backlog remained strong, with instrument book-to-bill ratios at or above 1 for eight consecutive quarters, signaling sustained demand. Agilent highlighted robust growth in key areas, including its GLP-1 business, which expanded by 50%, and specialty CDMO services, up low double digits. The Altura and Pro IQ LCMS product launches also drove strong adoption, particularly among top biopharma companies. Operating cash flow reached $268 million, with $93 million in capital expenditures and $152 million spent on share repurchases, reflecting the company’s commitment to returning value to shareholders. Looking ahead, Agilent provided fiscal year 2026 guidance, forecasting revenue between $7.3 billion and $7.5 billion (core growth of 4-6%) and raising its non-GAAP EPS outlook to $5.90-$6.04. For Q2, the company expects core revenue growth of 4-5.5% and an improved operating margin of approximately 100 basis points sequentially. These projections underscore Agilent’s confidence in its ability to navigate external challenges while maintaining strong financial performance. This earnings call highlights Agilent’s resilience despite macroeconomic headwinds

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Originally published on The Motley Fool on 2/25/2026