Agilent Technologies (A) Q1 2026 earnings summary

Executive summary

• Q1 FY26 revenue reached $1.80 billion, up 7% reported and 4.4% core year-over-year, with growth across all segments and regions, despite a $10 million weather-related shipping disruption, most of which was recovered in early Q2.

• Operating margin was 24.6% (non-GAAP), in line with expectations; GAAP operating margin was 19.6%-19.7%.

• Non-GAAP EPS was $1.36, up 4% year-over-year; GAAP EPS was $1.07, down from $1.11.

• Growth was driven by strong performance in pharma, chemicals and advanced materials, diagnostics, and innovation launches, with continued market share gains.

• The Ignite operating system and procurement savings, pricing realization, and successful M&A integration supported margin expansion and digital order growth.

Financial highlights

• Core revenue grew 4.4% year-over-year; reported revenue growth was 7%, with currency providing a 2.6%-3% tailwind.

• Gross margin was 52.6%-53.7%, down year-over-year due to tariff headwinds and wage increases.

• Operating cash flow was $268 million; $93 million invested in CapEx, $152 million in share repurchases, and $72 million in dividends.

• Net leverage ratio ended at 0.8x, maintaining a strong balance sheet.

• Cash and cash equivalents at quarter-end were $1.76-$1.758 billion.

Outlook and guidance

• FY26 core revenue growth expected at 4%-6%, with reported revenue of $7.3-$7.5 billion and a 1.5% currency tailwind.

• FY26 non-GAAP EPS guidance raised to $5.90-$6.04, reflecting 5.5%-8% growth and a $0.04 currency benefit.

• Q2 FY26 revenue expected at $1.79-$1.82 billion (4%-5.5% core growth), with non-GAAP EPS of $1.39-$1.42.

• Operating margin expansion of 75 bps targeted for the year, with sequential improvement expected as tariff headwinds ease.

• FY26 operating cash flow expected at $1.6-$1.7 billion; CapEx: ~$500 million; $290 million in dividends planned.