Agilent Q3 2025 revenue of $1.74 billion, exceeding guidance (CEO); core growth 6.1% year-over-year, the fifth consecutive quarter of sequential core revenue acceleration (CEO)
Segment core growth: Life Sciences & Diagnostics Group (LSDG) 7%, Applied Markets Group (AMG) 5%, Agilent CrossLab Group (ACG) 5% (CEO)
End-market core growth: Pharma 9%, Chemicals & Advanced Materials 10%; small molecule pharma double-digit; food and diagnostics & clinical mid-single-digit; academia & government modest growth; environmental & forensics declined (CEO)
Q3 gross margin 53.1%, down year-on-year due to currency, tariffs, and BioVectra downtime (CFO); operating margin 25.1%, consistent year-to-date but below expectations (CFO)
Operating cash flow $362 million; capital expenditures $103 million; purchased $85 million in shares; paid $71 million in dividends; net leverage ratio 0.9 (CFO)
Q3 non-GAAP EPS $1.37, at high end of guidance (CFO); diluted shares outstanding 285 million (CFO)
Currency tailwind of 2.1% in Q3; M&A contribution 1.9% (CFO)
Tariff net cost for FY2025 now expected at $20 million, up from minimal prior impact, driven by higher revenue and 50% tariff increase on imports from Europe (CFO)
Q4 end-market expectations: Pharma mid-to-high single-digit; Chemicals & Advanced Materials high single-digit; Diagnostics & Clinical and Food mid-single-digit; Environmental & Forensics very low single-digit; Academia & Government mid-single-digit decline (CFO)
Mgmt Quotes
"Agilent delivered outstanding results of $1.74 billion in revenue in the third quarter, exceeding our guidance while continuing to transform our enterprise operating model." (CEO)
"Our fiscal 2025 third quarter marks our fifth consecutive quarter of sequential core revenue acceleration, a testament to how we've evolved our enterprise strategy." (CEO)
"Given this strength, we are raising our fiscal 2025 full-year revenue guidance to the range of $6.91 to $6.93 billion, representing a core growth of 4.5% at the midpoint — a clear step up in our growth outlook." (CEO)
"We are also taking a consistent enterprise-wide approach to manufacturing and procurement. These efforts already are delivering double-digit savings in key cost categories." (CEO)
"Leveraging Ignite, we still expect that we will fully mitigate the impact of tariffs either through avoidance or other offsetting opportunities in FY '26." (CEO)
Prepared Metrics
Metric
Value
Speaker/Context
Q3 Revenue
$1.74B
(CEO)
Core Revenue Growth (Q3)
6.1%
(CEO)
Non-GAAP EPS (Q3)
$1.37
(CFO)
Gross Margin (Q3)
53.1%
(CFO)
Operating Margin (Q3)
25.1%
(CFO)
Operating Cash Flow (Q3)
$362M
(CFO)
Capital Expenditures (Q3)
$103M
(CFO)
Full-Year Revenue Guidance (2025)
$6.91B–$6.93B
(CFO)
Full-Year Core Growth Guidance (2025)
4.3%–4.6%
(CFO)
Full-Year EPS Guidance (2025)
$5.56–$5.59
(CFO)
Q4 Revenue Guidance
$1.82B–$1.84B
(CFO)
Q4 EPS Guidance
$1.57–$1.60
(CFO)
Q&A Batch (1-5 of 10)
Q1 — Dan Brennan
Topic: Margin miss drivers and pharma outlook
Key points:
Operating margins declined ~230 bps YoY; tariffs & logistics costs accounted for ~200 bps of that.
Tariff headwind will peak in Q4 2025 and be fully mitigated within 2026; net dollar impact trends down from start of 2026.
Pharma grew 9% overall; small molecule double-digit; NASD grew well into the 20s; full-year NASD outlook increasingly confident for double-digit.
Mgmt stance: Neutral on margins (near-term headwinds from tariffs, commercial investment, variable pay); bullish on pharma demand (budgets normalizing, larger quotes, replacement cycle).
Q2 — Tycho Peterson
Topic: Pharma sign-off dependency and PFAS softness
Key points:
Reduced sign-off dependency noted across all geographies, especially in small molecule and large pharma; velocity of replacement cycle improved.
PFAS low double-digit growth overall in Q3; Americas down 20% due to US EPA changes (uncertainty on CapEx, no policy change on testing volume).
Commercial investments decided dynamically based on order momentum (Infinity Tree, ProIQ LCMS ramp ahead of plan).
Mgmt stance: Bullish on pharma momentum (standard year-end budget flush expected); cautious on PFAS Americas (Q4/Q1 uncertainty from EPA changes).
Q3 — Rachel Vatnsdal
Topic: 2026 revenue and margin expectations
Key points:
Q4 2025 guide midpoint implies ~5.5% organic growth; too early to guide 2026.
Second half 2025 meaningfully stronger than first half, providing positive momentum into 2026; mindful of tougher comps.
Tariffs expected to be fully mitigated within 2026; Ignite savings continue; supplier cost increases still being factored.
Early indications of standard year-end budget flush (larger quotes, not yet orders).
Mgmt stance: Neutral on 2026 guidance (too early to detail); bullish on foundation (momentum from H2 2025, tariff mitigation, Ignite).
Q4 — Michael Ryskin
Topic: Chemicals & advanced materials strength and tariff quantification
Key points:
Chemicals & advanced materials grew 10% in Q3, broad-based; driven by capacity growth from supply chain regionalization, greenfield investments, replacement momentum.
Tariff costs: $35M in Q3 (up $10M from original $25M estimate); expected $35M in Q4; total ~$70M for second half 2025.
Mitigation actions (leverage manufacturing footprint, supplier relocation, pricing) mostly implemented by end of Q4 2025, ramping through 2026.
Mgmt stance: Bullish on chemicals (sustainable growth from regionalization and replacement); neutral on tariff impact (mitigation ramping, but $70M hit in H2 2025).
Q5 — Patrick Donnelly
Topic: Margin tailwinds for 2026 and pricing
Key points:
Three key tailwinds for 2026: Ignite savings (100 bps+ algorithm), tariff mitigation ramping through year, volume leverage.
Q4 margins expected to improve ~200 bps sequentially vs Q3 (driven by revenue uptick).
Pricing improved ~100 bps in Q3.
Mgmt stance: Bullish on 2026 margin potential (Ignite, tariff mitigation, volume); neutral on near-term (too early to guide, but Q4 sequential improvement visible).