A · Agilent Technologies, Inc.

Agilent Technologies delivered a strong fiscal second quarter, with revenue of $1.83 billion growing 10.0% reported and 6.3% core year-over-year, exceeding the prior quarter's momentum. Growth was powered by broad-based strength across key end markets, particularly in the Applied Markets Group (AMG) which surged 14% reported and 11% core, and the Life Sciences and Diagnostics Markets Group (LDG) which grew 12% reported and 9% core. The Agilent CrossLab Group (ACG) posted a more modest 6% reported increase (2% core), reflecting steady services demand. Margin performance stood out: GAAP operating margin reached 21.7% while non-GAAP operating margin expanded 130 basis points year-over-year to 26.4%, and 180 bps sequentially, driven by operational leverage and the ongoing Ignite Operating System initiatives. GAAP net income of $339 million ($1.20 EPS) more than doubled from $215 million ($0.75 EPS) a year ago, while non-GAAP net income rose to $423 million ($1.49 EPS) from $373 million ($1.31 EPS). Segment operating margins also strengthened, with LDG hitting 22.0%, AMG at 23.3%, and ACG maintaining a strong 32.0%. Management's commentary highlighted "exceptional operational execution" and the "increasing impact of Ignite Operating System." The company raised its full-year fiscal 2026 revenue guidance to $7.39-$7.49 billion (up 6.3%-7.8% reported, 4.5%-6.0% core) and non-GAAP EPS to $6.00-$6.10, an increase of $0.08 at the midpoint. Third-quarter guidance of $1.83-$1.85 billion revenue and $1.48-$1.50 non-GAAP EPS implies continued sequential growth. Free cash flow generation remains solid with $545 million in operating cash flow for the first six months. The balance sheet shows $1.807 billion in cash and equivalents with modest debt. Overall, the quarter reflects robust demand, margin expansion, and confident upward revision to full-year expectations, positioning Agilent favorably in the analytical and life sciences instruments market.