Agilent Technologies (A) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was $1.701 billion, up 0.8% reported and down 0.3% core year-over-year, with non-GAAP EPS of $1.46, up 6% year-over-year; FY24 revenue was $6.51 billion, down 4.7% year-over-year.

• Services and analytical lab consumables delivered mid-single digit growth globally, offsetting weaker demand for new instruments.

• New market-focused organizational structure announced to enhance customer centricity and execution, with no impact on consolidated financials.

• BIOVECTRA acquisition closed in Q4, expanding CDMO capabilities and strengthening the portfolio in therapeutic modalities.

• Digital orders surpassed $1 billion for the first time in the full year, reflecting successful digital ecosystem investments.

Financial highlights

• Q4 operating margin was 27.4%, with gross margin at 55.1% and operating cash flow of $481 million; FY24 operating margin was 26.4% and operating cash flow totaled $1.75 billion.

• Q4 non-GAAP EPS was $1.46, up 6% year-over-year; FY24 non-GAAP EPS was $5.29, down 3% year-over-year.

• Returned over $400 million to shareholders in Q4 and $1.4 billion for the year via share repurchases and dividends.

• Q4 capital allocation included $859 million for M&A, $93 million in capex, $335 million for share repurchases, and $68 million in dividends.

• FY24 capital allocation included $0.9 billion for M&A, $0.4 billion in capex, $1.2 billion for share repurchases, and $0.3 billion in dividends.

Outlook and guidance

• FY2025 revenue guidance: $6.79–$6.87 billion, reported growth of 4.3%–5.5%, core growth of 2.5%–3.5%.

• Non-GAAP EPS for FY2025: $5.54–$5.61, representing 5%–6% growth, including $0.05 dilution from BIOVECTRA.

• Q1 2025 revenue guidance: $1.65–$1.68 billion, with core growth between -2% and flat, and non-GAAP EPS of $1.25–$1.28.

• FY25 operating cash flow expected at $1.6–$1.7 billion, with $450 million in capex and $287 million in dividends.

• Operating margin expansion of 50–70 bps expected for FY2025.