Agilent Technologies 2025 Q4 Earnings Beats Expectations with 23.6% Net Income Growth

Agilent Technologies (A) reported Q4 2025 earnings that surpassed estimates, with revenue rising 9.4% to $1.86 billion and non-GAAP EPS of $1.59, outpacing expectations. The company raised FY2026 guidance, projecting core revenue growth of 4-6% and EPS of $5.86-$6.00, reflecting confidence in pharma reshoring and CDMO momentum.

Revenue

The Life Sciences and Diagnostics Markets Segment contributed $755 million, while Agilent CrossLab also generated $755 million. The Applied Markets Segment added $351 million, bringing the total net revenue to $1.86 billion. The performance was driven by strong demand for LC/MS systems, CDMO growth, and product innovation like Infinity III and Pro iQ.

Earnings/Net Income

Earnings per share (EPS) surged 24.4% to $1.53, with net income growing 23.6% to $434 million. The EPS increase reflects strong operational performance and effective cost management.

Post-Earnings Price Action Review

The strategy of buying Agilent shares on the earnings announcement day and holding for 30 days yielded a 5.5% return, outperforming the S&P 500’s 3.8% during the same period. However, the maximum drawdown of 2.5% was slightly lower than the index’s 3.2%, indicating moderate risk-adjusted returns. The Sharpe ratio suggested the strategy was marginally better than the benchmark, though volatility remained high.

CEO Commentary

CEO Padraig McDonnell highlighted 7.2% core revenue growth, driven by LC/MS demand and CDMO expansion. He emphasized the Ignite Operating System’s role in margin improvement and outlined strategic priorities: customer intimacy, talent expansion, and AI-driven innovation.

Guidance

Agilent guided for FY2026 core revenue growth of 4-6%, with EPS of $5.86-$6.00. Operating margin expansion of 75 bps and $1.6B-$1.7B operating cash flow are anticipated, supported by pricing optimization and capacity expansion.

Additional News

1. BofA Maintains Neutral Rating: BofA Securities raised Agilent’s price target to $165, citing strong Q4 performance despite maintaining a Neutral rating.

2. Evercore ISI Price Target Hike: Evercore ISI raised its price target to $155, praising double-digit growth in LC/MS and CDMO momentum.

3. CFO Appointment: Agilent named Adam S. Elinoff as CFO, signaling a strategic shift toward financial optimization and growth.