Agilent Technologies, Inc. delivers specialized, application-focused technologies and services to the global life sciences, diagnostics, and applied chemistry industries. Its Life Sciences ...
Agilent Technologies, Inc. is a multi-billion dollar company that emerged from Hewlett-Packard's spin-off in 1999. Headquartered in Santa Clara, California, the company operates across three primary segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab. The Life Sciences and Applied Markets segment offers a wide range of ...Agilent Technologies, Inc. is a multi-billion dollar company that emerged from Hewlett-Packard's spin-off in 1999. Headquartered in Santa Clara, California, the company operates across three primary segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab. The Life Sciences and Applied Markets segment offers a wide range of analytical instrumentation, including liquid and gas chromatography, mass spectrometry, spectroscopy (e.g., ICP-MS, AA, MP-AES, ICP-OES), Raman spectroscopy, and cell analysis platforms such as flow cytometers and microplate readers. These tools are complemented by software, information management platforms, and automated laboratory systems. The Diagnostics and Genomics division focuses on genetic and diagnostic research, providing DNA arrays, target enrichment for next-generation sequencing, custom oligonucleotides, and staining solutions for immunohistochemistry, in situ hybridization, and H&E staining. Agilent CrossLab provides consumables like columns, sample preparation products, and services ranging from training and compliance to asset management and SaaS offerings. With approximately 18,100 employees, the company serves a global customer base through direct sales, distributors, resellers, and e-commerce. Financially, Agilent has demonstrated robust performance with a market capitalization around $40 billion, a net profit margin of 19.6%, and a return on equity of 20.8%. Its gross profit margin stands at 53%, and a dividend payout ratio of 20.2% indicates a balanced approach to shareholder returns. Under CEO Padraig McDonnell, who stepped into the role in May 2024, Agilent continues to invest in R&D (6.5% of revenue) and strategic initiatives. The company's commitment to innovation is evident in its portfolio and its focus on liquid-based pharmacodiagnostics, aiming to advance precision medicine and laboratory efficiency worldwide.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$6.9B
+6.7%
+2.3%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$1.3B
+1.1%
+6.8%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+52.4%
-3.4%
+0.9%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+21.3%
-6.9%
+8.7%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+18.8%
-5.3%
+4.3%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$1.2B
-16.1%
+18.6%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+16.6%
-21.4%
+15.9%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
49.8%
-17.9%
+13.9%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.96x
-6.3%
-2.3%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Ladies and gentlemen, thank you for joining us, and welcome to the Q3 2026 Agilent Technologies, Inc. Earnings Conference Call. [Operator Instructions] I will now hand the call over to Tejas Savant, Head of Investor Relations. You may begin.
Tejas Savant: Thank you, and welcome, everyone, to Agilent's conference call for the third quarter of fiscal year 2026. With me on the line are CEO, Padraig McDonnell; and CFO, Adam Elinoff. Joining for the Q&A will be Simon May, President of the Life Sciences and Diagnostics Markets Group; Angelica Riemann, President of the Agilent CrossLab Group; and Mike Zhang, President of the Applied Markets Group. This presentation is being webcast live. The press release for our third quarter financial results, investor presentation and information to supplement today's discussion, along with the recording of this webcast, are available on our website at investor.agilent.com. Today's comments will refer to non-GAAP financial measures. Non-GAAP measures are supplemental and should not be considered a substitute for GAAP results. You'll find the most directly comparable GAAP financial metrics and reconciliations in the press release and on our website. Unless otherwise noted, all references to increases or decreases in financial metrics are year-over-year and references to revenue growth are on a core or organic constant currency basis. All references to profitability metrics are on a non-GAAP basis. Core or organic constant currency revenue growth is adjusted for the impact of currency exchange rates and any acquisitions and divestitures completed within the past 12 months. Guidance is based on forecasted exchange rates. During this call, we will make forward-looking statements about the financial performance of the company. These statements are subject to risks and uncertainties and are only valid as of today. Agilent assumes no obligation to update them. Please refer to the company's recent SEC filings for a more detailed description of the risks and other factors that could cause our performance to differ from these forward-looking statements. And now I'd like to turn the call over to Padraig.
Padraig McDonnell: Thanks, Tejas, and welcome, everyone. We delivered an excellent third quarter with strong performance on both the top and bottom lines. Our results clearly demonstrate the sustained momentum unlocked by our exceptional commercial and operational execution and the Ignite Operating System against the backdrop of steadily improving end markets. For the third quarter, Agilent reported $1.88 billion in revenue, growing 7.3% on a core basis and exceeding the high end of our guidance by 140 basis points. Our operating margin of 27.2%, excluding the net benefit from tariff refunds, was 80 basis points ahead of our implied guidance of 26.4%, providing further evidence of the strong operating leverage and execution discipline embedded in the business. Including the net benefit from tariff refunds of $20 …