Agilent Technologies Inc. reported fourth‑quarter 2025 results that surpassed Wall Street expectations, with revenue of $1.86 billion—up 9.4% reported and 7.2% core versus the same period a year earlier—and non‑GAAP earnings per share of $1.59, a $0.07 beat to the consensus estimate of $1.58. The company’s GAAP net income rose to $434 million, and GAAP EPS reached $1.53, both reflecting a 4.5% increase in operating income despite modest cost inflation.
Operating margin expanded to 27.2% from 24.7% in the prior year, a 2.5‑percentage‑point lift driven by a higher mix of high‑margin Life Sciences and Diagnostics Markets Group (LDG) sales and the continued success of the Infinity III liquid chromatography (LC) platform. The margin improvement also reflects the company’s Ignite transformation, which has delivered more than 200 basis points of sequential margin gain through disciplined cost management and pricing power in its core product lines.
Segment analysis shows LDG revenue grew 11% core, propelled by strong demand for LC and LC/MS instruments in the pharmaceutical and biotech sectors. The Agilent CrossLab Group (ACG) also contributed to top‑line growth, while the Applied Markets Group (AMG) maintained steady performance amid a competitive landscape. The company’s focus on high‑margin, high‑growth product families has translated into a 100‑basis‑point increase in gross margin to 54.1% in Q4 2025, offsetting a 100‑basis‑point year‑over‑year decline caused by tariff headwinds.
For fiscal 2026, Agilent raised its revenue outlook to $7.30 billion–$7.40 billion, up from the previous guidance of $7.20 billion–$7.30 billion, and maintained its non‑GAAP EPS guidance at $5.86–$6.00 per share. The upward revision signals management’s confidence in sustained demand for its core instruments and services, as well as the continued impact of the Ignite transformation on operating efficiency.
President and CEO Padraig McDonnell highlighted the quarter as a “strong performance” that “demonstrates the effectiveness of our customer‑first approach and the momentum of our Ignite initiatives.” He noted that the Infinity III LC and Pro iQ LC/MS launches have accelerated replacement cycles, and that the Altura bio‑inert column has seen “order‑of‑magnitude” uptake compared to previous product introductions.
Analysts noted that the earnings beat and revenue growth were driven by robust demand in the life‑sciences sector, strong pricing power, and effective cost control. The company’s guidance, coupled with its focus on high‑margin product families, positions Agilent to continue delivering solid financial performance in a recovering market environment, while headwinds such as tariff impacts and potential tax rate changes remain under monitoring.
Overall, Agilent’s Q4 2025 results reinforce its trajectory of growth and profitability, and the company’s forward guidance reflects a positive outlook for the remainder of fiscal 2026.
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