Agilent Technologies, Inc. (A) | Investment Case

1. Company Snapshot

1.a. Company Description

Agilent Technologies, Inc.provides application focused solutions to the life sciences, diagnostics, and applied chemical markets worldwide.The Life Sciences and Applied Markets segment offers liquid chromatography systems and components; liquid chromatography mass spectrometry systems; gas chromatography systems and components; gas chromatography mass spectrometry systems; inductively coupled plasma mass spectrometry instruments; atomic absorption instruments; microwave plasma-atomic emission spectrometry instruments; inductively coupled plasma optical emission spectrometry instruments; raman spectroscopy; cell analysis plate based assays; flow cytometer; real-time cell analyzer; cell imaging systems; microplate reader; laboratory software; information management and analytics; laboratory automation and robotic systems; dissolution testing; vacuum pumps, and measurement technologies.

The Diagnostics and Genomics segment provides arrays for DNA mutation detection, genotyping, gene copy number determination, identification of gene rearrangements, DNA methylation profiling, gene expression profiling, next generation sequencing, target enrichment and genetic data management, and interpretation support software; and produces synthesized oligonucleotide.It also offers immunohistochemistry in situ hybridization, and hematoxylin and eosin staining and special staining; consumables, and software for quality control analysis of nucleic acid samples; and reagents for use in turbidimetry and flow cytometry, as well as develops liquid-based pharmacodiagnostics.The Agilent CrossLab segment provides GC and LC columns, sample preparation products, custom chemistries, and laboratory instrument supplies; and startup, operational, training, compliance support, software as a service, asset management, and consultation services.

The company markets its products through direct sales, distributors, resellers, manufacturer's representatives, and electronic commerce.Agilent Technologies, Inc.was incorporated in 1999 and is headquartered in Santa Clara, California.

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1.b. Last Insights on A

Agilent Technologies' recent performance was negatively impacted by Q1 earnings missing estimates, with EPS of $1.36 per share, falling short of the Zacks Consensus Estimate of $1.37 per share. Margin pressure and a revenue miss also contributed to the decline. Additionally, several institutional investors, including Balyasny Asset Management L.P. and Frontier Capital Management Co. LLC, reduced their stakes in the company, with decreases of 11.8% and 22.3%, respectively. These sales and earnings miss likely affected the stock's performance.

1.c. Company Highlights

Last Price	119.04
Change Percentage	0.74%
Open	116.64
Previous Close	118.17
Market Cap ( Millions)	33748
Volume	2237385
Year High	160.27
Year Low	96.43
M A 50	134.46
M A 200	129.76

FCF Yield	2.94%
Dividend Yield	0.84%
ROE	19.73%
Debt / Equity	48.55%
Net Debt / EBIDTA	87.50%
Price To Book	4.88
Price Earnings Ratio	26.11
Price To FCF	33.99
Price To sales	4.78
EV / EBITDA	19.38

2. Agilent's Q1 FY '26 Earnings: Steady Growth Amidst Challenges

Agilent reported revenue of $1.8 billion, growing 4.4% on a core basis, within the guidance range provided in November. Operating margins were 24.6%, in line with expectations. Earnings per share (EPS) came in at $1.36, slightly below estimates of $1.37. The company's gross margin was 53.7%, down 100 basis points year-over-year due to tariff headwinds. Agilent's net leverage ratio stood at 0.8 turns, indicating a strong balance sheet.

Publication Date: Feb -27

                                    📋 Highlights
                                    Revenue Growth:
                                                Agilent reported $1.8 billion in revenue with 4.4% core growth, in line with guidance, despite a $10M winter storm impact.
Operating Margin Stability:
                                                Maintained 24.6% operating margin, down 50 bps YoY, due to tariff headwinds and performance-based pay, but in line with expectations.
Product Innovation Impact:
                                                Altura columns drove 50% of top 20 biopharma orders, boosting biocolumn growth to 30%, while Pro iQ LC/MS saw over 40% growth.
FY26 Guidance:
                                                Revenue projected at $7.3–7.5B (4–6% core growth), with EPS of $5.90–6.04, reflecting margin expansion and tariff cost mitigation.
Segment Performance:
                                                ACG grew 6% (led by consumables), AMG 4% (spectroscopy strength), while LDG lagged at 3% due to academia/government softness.

                                

Segment Performance

The company's segments showed varied performance. The Acoustic Cell Group (ACG) grew 6%, driven by strong consumables growth. The Agilent Microbiology Group (AMG) grew 4%, ahead of expectations, led by double-digit performance in spectroscopy. The Diagnostics and Genomics Group (LDG) grew 3%, below expectations, due to softness in academia and government. Notably, the LDG segment's softness was attributed to weather impact and cautious spending, with the company believing it is at or near the bottom.

Growth Drivers

Agilent's growth is driven by innovative products such as the Pro iQ LC/MS and Infinity III, a strong commercial team, and enterprise service capabilities. The company's enterprise services business grew nicely at a low double-digit CAGR, cementing customer intimacy and unlocking downstream value. The Altura ultra-inert column portfolio has seen strong demand, with 50% of the top 20 biopharma companies ordering these columns since launch.

Guidance and Outlook

Agilent expects fiscal year '26 revenue to be in the range of $7.3 billion to $7.5 billion, representing growth of 4% to 6% on a core basis. The company maintains its expected core growth range of 4% to 6% for the full year and expects EPS to be between $5.90 and $6.04. For the second quarter, revenue is expected to be between $1.79 billion and $1.82 billion, with EPS guidance of $1.39 to $1.42.

Valuation

With a P/E Ratio of 26.54 and an EV/EBITDA of 20.85, Agilent's valuation suggests that the market is pricing in a certain level of growth. The company's ROE of 19.73% and ROIC of 12.05% indicate a strong ability to generate returns. Analysts estimate next year's revenue growth at 6.2%, which is slightly above the company's current guidance. Considering the valuation metrics and growth expectations, it remains to be seen if Agilent can continue to deliver on its growth promises.

3. NewsRoom

Agilent Technologies, Inc. (A) Presents at TD Cowen 46th Annual Health Care Conference Transcript

Mar -03

Source: seekingalpha.com

Elo Mutual Pension Insurance Co Has $5.05 Million Position in Agilent Technologies, Inc. $A

Mar -03

Source: defenseworld.net

Agilent Q1 Earnings Miss Estimates, Revenues Up Y/Y, Shares Fall

Feb -26

Source: zacks.com

Agilent Technologies, Inc. (A) Q1 2026 Earnings Call Transcript

Feb -26

Source: seekingalpha.com

Agilent (A) Reports Q1 Earnings: What Key Metrics Have to Say

Feb -26

Source: zacks.com

Agilent Technologies (A) Lags Q1 Earnings and Revenue Estimates

Feb -26

Source: zacks.com

Agilent reports in-line first quarter, says results hurt by US snowstorm

Feb -25

Source: reuters.com

Agilent Reports First-Quarter Fiscal Year 2026 Financial Results

Feb -25

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

Life Sciences and Applied Markets Group

Expected Growth: 6.5%

The demand for advanced research tools and services in life sciences and applied markets is on the rise, driven by government funding, technological advancements, and the need for environmental sustainability. The segment's broad customer base and diverse product offerings position it for slightly above-average growth.

Diagnostics and Genomics Group

Expected Growth: 7.0%

The Diagnostics and Genomics Group is poised for significant growth due to the expanding use of genomic information in healthcare, driven by decreasing sequencing costs, and the increasing prevalence of genetic testing. This segment is likely to outpace the overall company growth due to its critical role in advancing personalized medicine.

Agilent Crosslab Group

Expected Growth: 5.5%

The Agilent Crosslab Group is expected to grow at a slightly slower pace than the overall company average. While laboratory services are essential and provide a steady stream of revenue, the segment's growth is somewhat constrained by its dependence on the installed base of instruments and the competitive landscape of laboratory services.

7. Detailed Products

Life Sciences and Applied Markets

Provides instruments, software, and services for life sciences, diagnostics, and applied markets

Agilent CrossLab

Offers a range of laboratory supplies, including instruments, consumables, and services

Mass Spectrometry

Provides mass spectrometry instruments and software for life sciences, pharmaceutical, and applied markets

Chromatography and Spectroscopy

Offers a range of chromatography and spectroscopy instruments and software for life sciences and applied markets

Diagnostics and Genomics

Provides instruments, software, and services for molecular diagnostics, genomics, and pathology

Electronic Measurement

Offers a range of electronic measurement instruments and software for aerospace, defense, and industrial markets

8. Agilent Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Agilent Technologies, Inc. faces moderate threat from substitutes due to the availability of alternative products and services in the life sciences and applied markets.

Bargaining Power Of Customers

Agilent Technologies, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Agilent Technologies, Inc. relies on a few key suppliers for critical components, giving them some bargaining power, but the company's size and scale mitigate this risk.

Threat Of New Entrants

The life sciences and applied markets have high barriers to entry, including significant R&D investments and regulatory hurdles, making it difficult for new entrants to challenge Agilent Technologies, Inc.'s position.

Intensity Of Rivalry

The life sciences and applied markets are highly competitive, with several established players competing for market share, driving innovation, and pricing pressure.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	32.24%
Debt Cost	3.95%
Equity Weight	67.76%
Equity Cost	9.41%
WACC	7.65%
Leverage	47.58%

11. Quality Control: Agilent Technologies, Inc. passed 8 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Agilent Technologies

A-Score: 5.2/10

Value: 2.0

Growth: 6.1

Quality: 7.8

Yield: 1.0

Momentum: 7.0

Volatility: 7.3

1-Year Total Return ->

Mettler-Toledo

A-Score: 5.2/10

Value: 3.0

Growth: 6.3

Quality: 7.1

Yield: 0.0

Momentum: 7.5

Volatility: 7.3

1-Year Total Return ->

IDEXX Laboratories

A-Score: 5.1/10

Value: 0.0

Growth: 7.2

Quality: 8.6

Yield: 0.0

Momentum: 9.5

Volatility: 5.0

1-Year Total Return ->

IQVIA

A-Score: 4.8/10

Value: 3.5

Growth: 6.9

Quality: 5.5

Yield: 0.0

Momentum: 7.0

Volatility: 6.0

1-Year Total Return ->

Thermo Fisher

A-Score: 4.8/10

Value: 1.7

Growth: 6.1

Quality: 6.2

Yield: 0.0

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

Danaher

A-Score: 4.3/10

Value: 1.7

Growth: 3.9

Quality: 6.8

Yield: 1.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

9.40%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.65%

Agilent Technologies, Inc. - US00846U1016

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on A

1.c. Company Highlights

Expensive

Less Volatile

Better Quality

Earnings Beats

Revenues Beats

Higher Growth

2. Agilent's Q1 FY '26 Earnings: Steady Growth Amidst Challenges

Segment Performance

Growth Drivers

Guidance and Outlook

Valuation

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

Life Sciences and Applied Markets Group

Expected Growth: 6.5%

Diagnostics and Genomics Group

Expected Growth: 7.0%

Agilent Crosslab Group

Expected Growth: 5.5%

7. Detailed Products

Life Sciences and Applied Markets

Agilent CrossLab

Mass Spectrometry

Chromatography and Spectroscopy

Diagnostics and Genomics

Electronic Measurement

8. Agilent Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Agilent Technologies, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

119.04$

Current Price

119.04$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA