0001090872-26-000023
SEC filingAgilent's Notes reveal $1.8B cash, $3.4B debt, $1.8B buyback authorization, and $459M in remaining performance obligations.
As of January 31, 2026, Agilent held $1.758B in cash and cash equivalents, with total debt of $3.354B ($304M short-term, $3.050B long-term). The company's total stockholders' equity stood at $6.908B. Inventory increased to $1.059B from $1.025B at October 31, 2025, driven by higher purchased parts and fabricated assemblies. Accounts receivable, net rose to $1.521B. The current ratio (current assets $4.615B / current liabilities $2.234B) was 2.07x. Goodwill increased slightly to $4.484B due to foreign currency translation. The fair value of senior notes was $3.207B versus a carrying value of $3.332B, reflecting higher market interest rates.
The Notes disclose $459M in remaining performance obligations (contracts with original duration >1 year), primarily extended warranty, customer manufacturing contracts, software maintenance, and lease arrangements. The majority is expected to be recognized within 12 months. Contract liabilities (deferred revenue) totaled $877M, up from $803M at October 31, 2025, driven by $301M in new deferrals partially offset by $250M recognized as revenue. Standard warranty accruals were $28M. Bank guarantees and standby letters of credit amounted to $39M. No material purchase commitments for inventory or capacity were disclosed.
During Q1 FY2026, Agilent repurchased 1.050M shares for $152M (excluding excise taxes), leaving $1.797B remaining under the $2.0B 2024 repurchase program (announced May 29, 2024). Dividends totaled $72M ($0.255 per share), a 2.8% increase from $0.248 in the prior year. Capital expenditures were $93M (5.2% of sales). Net debt repayment was $2M (SIF/ACOA loans). No borrowings were made under the $1.5B credit facility or commercial paper program. The company also paid $27M in taxes related to net share settlement of equity awards.
Agilent reports three segments: Life Sciences and Diagnostics Markets ($679M revenue, $109M operating income, 16.1% margin), Agilent CrossLab ($758M, $240M, 31.7%), and Applied Markets ($361M, $93M, 25.8%). Total segment operating income was $442M, reconciled to GAAP income from operations of $353M after unallocated costs of $89M (including $19M amortization, $20M restructuring, $19M transformational initiatives). Geographically, Americas contributed $678M, Europe $518M, and Asia Pacific $602M. Revenue by end market: Pharmaceutical & Biotechnology $640M, Diagnostics & Clinical $263M, Academia & Government $130M, Chemicals & Advanced Materials $422M, Food $166M, Environmental & Forensics $177M.
Operating cash flow (CFO) of $268 million was significantly lower than net income of $305 million, yielding a CFO/Net Income ratio of 0.88x. The primary driver was a large working capital outflow from employee compensation and benefits (-$151 million), likely reflecting annual bonus payouts. Accounts payable provided a $39 million inflow, partially offsetting the compensation drag. Inventory and receivables consumed $57 million combined, consistent with prior year patterns.
Capital expenditure intensity remained moderate at $93 million, representing 34.7% of CFO. Free cash flow (CFO minus capex) was $175 million, covering dividends ($72 million) and share repurchases ($152 million) by only 78%, indicating the company funded a portion of capital returns through other sources (e.g., debt or cash reserves).
Notable anomalies: Income tax paid surged to $105 million from $19 million in the prior year, a significant cash outflow that reduced CFO. The prior year included a large $173 million inflow from 'Other assets and liabilities,' which reversed this year to an $11 million outflow, contributing to the year-over-year decline. Overall, cash generation weakened substantially versus the prior year period.