01—Abstract
Summary
Summary of the 10-Q filed March 3, 2026. Cited figures are marked; the original filing is the authoritative source.
Agilent Technologies, Inc. reported total net revenue of $1,798 milliona 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 millionb, 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.
02—Key points
Key Highlights
- Total net revenue increased by 7% to $1,798 million for the three months ended January 31, 2026, compared to the prior year period.
- Net income for the quarter was $305 million, down from $318 million in the prior year.
- Gross margin decreased by 1 percentage point to 52.6% due to higher tariffs, unfavorable business mix, and increased costs.
- Operating margin decreased by 3 percentage points to 19.7% driven by increased tariffs, restructuring costs, and SG&A expenses.
- The company repurchased approximately $152 million of common stock under its 2024 repurchase program during the quarter.
- Cash provided by operating activities decreased to $268 million from $431 million in the prior year, impacted by higher tax payments and variable pay programs.
- Agilent expects to fully offset the impact of tariff changes on its cost of revenue during fiscal year 2026 through mitigation strategies.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Agilent Technologies, Inc. kept $0.17.
- Revenue$1.80B100.0%
- Cost of revenue−$852.0M47.4%
- Gross profit$946.0M52.6%
- Operating costs−$593.0M33.0%
- Operating income$353.0M19.6%
- Interest, other & tax−$48.0M2.7%
- Net income$305.0M17.0%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed March 3, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.80B$1.68B | +7.0% |
| Cost of Revenue | $852.00M$782.00M | +9.0% |
| Gross Profit | $946.00M$899.00M | +5.2% |
| R&D Expenses | $117.00M$113.00M | +3.5% |
| SG&A Expenses | $476.00M$410.00M | +16.1% |
| Operating Expenses | $1.45B$1.30B | +10.7% |
| Operating Income | $353.00M$376.00M | −6.1% |
| Interest Expense | $25.00M$28.00M | −10.7% |
| Net Income | $305.00M$318.00M | −4.1% |
| EPS (Basic) | $1.08$1.12 | −3.6% |
| EPS (Diluted) | $1.07$1.11 | −3.6% |
| Shares Outstanding (Basic) | 283.00M285.00M | −0.7% |
| Shares Outstanding (Diluted) | 284.00M287.00M | −1.0% |
05—Questions
Frequently Asked Questions
What was Agilent's revenue performance in the latest quarter?
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.
How did Agilent's profitability fare in this quarter?
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.
What is Agilent's outlook regarding tariffs?
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.
What is Agilent's capital allocation strategy regarding shareholder returns?
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.
06—Continue