Why Is Agilent (A) Down 6.2% Since Last Earnings Report?

A month has gone by since the last earnings report for Agilent Technologies (A). Shares have lost about 6.2% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Agilent due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Agilent Technologies, Inc. before we dive into how investors and analysts have reacted as of late.

Agilent Q1 Earnings Miss Estimates, Revenues Up Y/Y

Agilent Technologies reported first-quarter fiscal 2026 earnings of $1.36 per share, which missed the Zacks Consensus Estimate by 0.52%. The figure increased 3.8% year over year.

Revenues of $1.8 billion surpassed the Zacks Consensus Estimate by 0.27%. The top line increased 7% on a reported basis and 4.4% on a core basis (excluding acquisitions and divestitures) year over year.

Agilent’s Q1 Top-Line Details

The company operates through three reporting segments—Life Sciences and Diagnostics Markets Group (“LDG”), Agilent CrossLab Group (“ACG”) and Applied Markets Group (“AMG”).

LDG: The segment generated $679 million and accounted for 37.8% of the company’s total revenues. This represented a 5% increase on a reported basis and a 3% rise on a core basis year over year.

ACG: Revenues from the segment were $758 million, accounting for 42.2% of the total revenues. The top line grew 9% on a reported basis and 6% on a core basis year over year.

AMG: Revenues increased 7% year over year to $361 million on a reported and 4% on a core basis, accounting for the remaining 20.1% of the total revenues.

Agilent’s Q1 Operating Results

For the first quarter of fiscal 2026, the LDG segment’s gross margin contracted 230 basis points (bps) year over year to 50.5%. ACG’s gross margin decreased 90 bps year over year to 55.2%, while AMG’s gross margin declined 70 bps year over year to 56.5%.

Research and development (R&D) expenses on a non-GAAP basis were $117 million, up 4.5% from the prior-year quarter. Selling, general and administrative (SG&A) expenses on a non-GAAP basis rose to $406 million, marking a 5.2% increase from the prior-year quarter.

As a percentage of revenues, R&D expenses fell 20 bps year over year to 6.5%, while SG&A expenses fell 40 bps year over year to 22.6%.

The non-GAAP operating margin of 24.6% for the fiscal first quarter contracted 50 bps on a year-over-year basis.

Segment-wise, LDG operating margin decreased 200 bps year over year to 16.1%. ACG’s operating margin fell 10 bps year over year to 31.7%. Meanwhile, AMG’s operating margin contracted 90 bps year over year to 25.8%.

A’s Balance Sheet Details

As of Jan. 31, 2026, Agilent’s cash and cash equivalents were $1.75 billion, up from $1.78 billion as of Oct. 31, 2025.

The long-term debt was $3.05 billion as of Jan. 31, 2026, unchanged from the previous quarter.

Agilent’s Q2 & FY26 Guidance

For the second quarter of fiscal 2026, Agilent expects revenues in the range of $1.79-$1.82 billion, indicating a rise of 7% to 9% on a reported basis and 4% to 5.5% on a core basis. Non-GAAP earnings are expected to be between $1.39 per share and $1.42 per share.

For fiscal 2026, Agilent expects revenues between $7.3 billion and $7.5 billion, implying an increase of 5.5-7.5% on a reported basis and 4-6% on a core basis. The company expects non-GAAP earnings between $5.90 per share and $6.04 per share.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a flat trend in estimates review.

VGM Scores

At this time, Agilent has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Agilent has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Agilent belongs to the Zacks Medical - Products industry. Another stock from the same industry, Bio-Rad Laboratories (BIO), has gained 0.5% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Bio-Rad reported revenues of $693.2 million in the last reported quarter, representing a year-over-year change of +3.9%. EPS of $2.51 for the same period compares with $2.90 a year ago.

Bio-Rad is expected to post earnings of $2.77 per share for the current quarter, representing a year-over-year change of +9.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.7%.

Bio-Rad has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

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