10-QPeriod: Q3 FY2025

AGILENT TECHNOLOGIES, INC. Quarterly Report for Q3 Ended Jul 31, 2025

Filed August 29, 2025For Securities:A

Summary

Agilent Technologies, Inc. reported solid revenue growth for the third quarter and the first nine months of fiscal year 2025, with total net revenue increasing by 10% and 6% year-over-year, respectively. This growth was driven by strong performance across all segments, particularly Life Sciences and Diagnostics Markets, which saw a 14% increase in Q3 revenue, aided by the BIOVECTRA acquisition. Despite revenue growth, net income for the nine-month period decreased compared to the prior year, largely due to higher costs, including increased tariffs and shipping expenses, and unfavorable product mix. The company is actively managing these cost pressures through supply chain optimization and targeted pricing actions, aiming to mitigate impacts by fiscal year 2026. Agilent also demonstrated a continued commitment to returning capital to shareholders, with ongoing dividend payments and a substantial share repurchase program. While facing macroeconomic headwinds and increased operating expenses, the company maintains a positive outlook, focusing on innovation and customer experience to drive long-term growth in its key end markets. Liquidity remains strong, supported by robust operating cash flows and existing credit facilities.

Financial Highlights

57 data points
Beta

Revenue

$1.74B

51.1% Gross Margin

Net Income

$336.00M

19.3% Net Margin

EPS (Diluted)

$1.18

Total Assets

$12.23B

Cash & Equivalents

$1.53B

Free Cash Flow

$259.00M

Financial Statements
Beta
Revenue$1.74B
Cost of Revenue$850.00M
Gross Profit$888.00M
R&D Expenses$111.00M
SG&A Expenses$417.00M
Operating Expenses$1.38B
Operating Income$360.00M
Interest Expense$28.00M
Net Income$336.00M
EPS (Basic)$1.18
EPS (Diluted)$1.18
Shares Outstanding (Basic)284.00M
Shares Outstanding (Diluted)285.00M

Key Highlights

  • 1Total net revenue for Q3 FY2025 increased 10% YoY to $1.738 billion, and nine-month revenue grew 6% YoY to $5.087 billion.
  • 2The Life Sciences and Diagnostics Markets segment was a key growth driver, with revenue up 14% YoY for Q3.
  • 3Net income for Q3 FY2025 was $336 million, up from $282 million in Q3 FY2024. However, net income for the nine-month period decreased to $869 million from $938 million.
  • 4Gross margin decreased by 3 percentage points YoY for Q3 and 2 percentage points YoY for the nine-month period, primarily due to higher tariffs, shipping costs, and unfavorable product mix.
  • 5The company repurchased approximately $85 million of its common stock in Q3 FY2025, reflecting ongoing capital return initiatives.
  • 6Cash flow from operations for the first nine months was $1,014 million, a decrease from $1,270 million in the prior year period.
  • 7Agilent continues to invest in manufacturing capacity expansion, particularly for nucleic acid-based therapeutics.

Frequently Asked Questions

Revenue growth in the third quarter of fiscal year 2025 was driven by broad-based performance across all segments and geographic regions. The Life Sciences and Diagnostics Markets segment was a significant contributor, with strong performance in pharmaceutical and diagnostic markets, further bolstered by the BIOVECTRA acquisition. The Agilent CrossLab and Applied Markets segments also showed positive growth.

The decrease in gross margin for the third quarter and nine-month period was primarily impacted by higher tariffs and shipping costs, an unfavorable product mix, increased wages, variable pay, and the unfavorable impact of currency movements. Agilent is actively managing these pressures through supply chain optimization, targeted pricing actions, and other cost-efficiency initiatives, with the expectation of substantially mitigating the impact of tariffs by fiscal year 2026.

Agilent continues to return value to shareholders through regular cash dividend payments and a share repurchase program. In the third quarter of fiscal year 2025, the company repurchased approximately $85 million of its common stock. The company also maintains a strong liquidity position with $1.535 billion in cash and cash equivalents and access to credit facilities.

Agilent highlighted several risks, including general economic conditions, global tariffs and trade policies, foreign currency exchange rate fluctuations, intense competition requiring continuous innovation, customer capital spending policies, regulatory changes, and operational risks related to manufacturing capacity and supply chain disruptions. The company also notes the potential impact of macroeconomic conditions and governmental funding on its customer base.