10-QPeriod: Q1 FY2026

AGILENT TECHNOLOGIES, INC. Quarterly Report for Q1 Ended Jan 31, 2026

Filed March 3, 2026For Securities:A

Summary

Agilent Technologies, Inc. reported total net revenue of $1,798 million for the three months ended January 31, 2026, a 7% increase year-over-year, with favorable foreign currency movements contributing 3 percentage points to this growth. Net income for the quarter was $305 million, a slight decrease from $318 million in the prior year period. While overall revenue grew, driven by increases across all segments and geographic regions, the company faced increased costs impacting gross and operating margins. Notably, higher tariffs, unfavorable business mix including the specialty CDMO business, wage increases, and restructuring costs contributed to a decrease in gross margin. Selling, general, and administrative expenses also saw a significant increase, partly due to transformation initiatives and restructuring costs. Despite these pressures, the company continues to invest in R&D and capacity expansion, particularly for nucleic acid-based therapeutics.

Financial Highlights

57 data points
Beta

Revenue

$1.80B

52.6% Gross Margin

Net Income

$305.00M

17.0% Net Margin

EPS (Diluted)

$1.07

Total Assets

$12.81B

Cash & Equivalents

$1.76B

Free Cash Flow

$175.00M

Financial Statements
Beta
Revenue$1.80B
Cost of Revenue$852.00M
Gross Profit$946.00M
R&D Expenses$117.00M
SG&A Expenses$476.00M
Operating Expenses$1.45B
Operating Income$353.00M
Interest Expense$25.00M
Net Income$305.00M
EPS (Basic)$1.08
EPS (Diluted)$1.07
Shares Outstanding (Basic)283.00M
Shares Outstanding (Diluted)284.00M

Key Highlights

  • 1Total net revenue increased by 7% to $1,798 million for the three months ended January 31, 2026, compared to the prior year period.
  • 2Net income for the quarter was $305 million, down from $318 million in the prior year.
  • 3Gross margin decreased by 1 percentage point to 52.6% due to higher tariffs, unfavorable business mix, and increased costs.
  • 4Operating margin decreased by 3 percentage points to 19.7% driven by increased tariffs, restructuring costs, and SG&A expenses.
  • 5The company repurchased approximately $152 million of common stock under its 2024 repurchase program during the quarter.
  • 6Cash provided by operating activities decreased to $268 million from $431 million in the prior year, impacted by higher tax payments and variable pay programs.
  • 7Agilent expects to fully offset the impact of tariff changes on its cost of revenue during fiscal year 2026 through mitigation strategies.

Frequently Asked Questions

Agilent Technologies reported total net revenue of $1,798 million for the three months ended January 31, 2026, representing a 7% increase compared to the same period last year. This growth was observed across all segments and geographic regions, with favorable foreign currency movements contributing 3 percentage points.

Profitability saw some pressure. Net income decreased to $305 million from $318 million in the prior year. Gross margin declined by 1 percentage point to 52.6% and operating margin decreased by 3 percentage points to 19.7%. This was primarily due to increased tariffs, unfavorable business mix, wage increases, and restructuring costs impacting the cost of revenue and SG&A expenses.

The company acknowledges that tariff changes adversely impacted its costs of revenue during the three months ended January 31, 2026. However, Agilent expects to fully offset this impact during fiscal year 2026 through supply chain optimization, targeted pricing actions, and other cost-efficiency initiatives. They are closely monitoring the evolving trade dynamics.

Agilent continues to return capital to shareholders through dividends and share repurchases. During the quarter, the company paid cash dividends of $72 million and repurchased approximately $152 million of common stock under its 2024 repurchase program. The company has a remaining authorization of approximately $1,797 million under this program.