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 impact, most of which was recovered in Q2.

• Non-GAAP EPS was $1.36, up 4% year-over-year, while GAAP net income was $305 million (EPS $1.07), down 4% from the prior year; operating margin was 24.6% non-GAAP and 19.6% GAAP.

• Growth was driven by differentiated service offerings, innovation (notably Altura columns and ProIQ LC-MS), and the Ignite operating system, with strong replacement cycle momentum in LC and GC instruments.

• Strong performance in pharma, chemicals and advanced materials, and diagnostics (each up 7% core), with double-digit growth in biotech and semiconductors; softness in academia/government and food markets.

• Instrument book-to-bill remained at or above 1 for the 8th consecutive quarter, reflecting robust demand.

Financial highlights

• Q1 core revenue growth was 4.4% year-over-year; reported growth was 7% with a 2.6%-3% currency tailwind.

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

• Operating margin was 24.6% non-GAAP (down 50 bps) and 19.6%-19.7% GAAP; operating income was $353 million.

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

• Cash and cash equivalents at quarter-end were $1.76-$1.758 billion; no outstanding borrowings under credit facilities.

Outlook and guidance

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

• FY26 non-GAAP EPS expected between $5.90 and $6.04, up 5.5%-8% year-over-year, with a $0.04 increase from favorable FX.

• Q2 FY26 revenue guidance is $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 expected for FY26, with sequential improvement weighted to the second half.

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