Agilent Technologies (A) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 revenue reached $1.67 billion, up 6% reported and 5.3% core year-over-year, exceeding expectations and guidance, with Ignite Transformation driving operational and financial performance.

• Non-GAAP net income was $373 million (EPS $1.31, up 7%), while GAAP net income was $215 million (EPS $0.75, down 29%); net income declined due to lower margins and higher restructuring costs.

• Growth was broad-based across all regions, with China up 10%, India in high teens, and all end markets except academia/government showing mid to high single-digit growth.

• Ignite Transformation and restructuring initiatives contributed to productivity and efficiency, supporting EPS growth above revenue growth and targeting $75–80 million in annual cost reductions.

• New segment structure implemented in Q1 2025, recasting historical segment data.

Financial highlights

• Q2 revenue: $1.67 billion (+6% reported, +5.3% core); operating margin: 18.0% (down from 23.1%); gross margin: 51.9% (down from 54.4%).

• Non-GAAP EPS: $1.31 (up 7%); GAAP EPS: $0.75 (down from $1.05); operating income: $300 million (down 17%).

• Operating cash flow: $221 million in Q2; $652 million for the first half of 2025 (down from $818 million year-over-year).

• Share repurchases: $165 million in Q2, $255 million in H1; dividends paid: $70 million in Q2, $141 million in H1.

• Cash and cash equivalents at April 30, 2025: $1.49 billion.

Outlook and guidance

• FY2025 revenue guidance raised to $6.73–$6.81 billion (3.4%–4.6% reported, 2.5%–3.5% core); non-GAAP EPS guidance: $5.54–$5.61.

• Q3 FY2025 revenue guidance: $1.645–$1.675 billion (1.7%–3.6% core growth); non-GAAP EPS: $1.35–$1.37.

• Tariff-related cost pressures expected in H2 2025, but substantial mitigation anticipated by year-end; full offset expected in 2026.

• Ongoing investments in R&D, manufacturing, and applications portfolio to support future growth.

• New $2B share repurchase program approved, effective August 2024.