Agilent Technologies (A) Q4 2025 earnings summary

Executive summary

• Q4 revenue reached $1.86 billion, up 7.2% core and 9.4% reported, exceeding guidance and marking the sixth consecutive quarter of accelerating core growth.

• Q4 non-GAAP EPS was $1.59, up 9% year-over-year and above the midpoint of guidance; GAAP EPS was $1.53, up 25%.

• All business segments met or exceeded revenue expectations, with notable strength in LC/LCMS, CDMO, and robust performance in key regions.

• The Ignite Operating System delivered over $150 million in annualized savings and improved organizational efficiency.

• Integration of BIOVECTRA and leadership hires strengthened capabilities and future M&A readiness.

Financial highlights

• Q4 core revenue growth was 7.2%, with reported growth at 9.4%; gross margin improved sequentially by 100 bps to 54.1%, though down 100 bps year-over-year due to tariffs.

• Q4 operating margin was 27.2%, up over 200 bps sequentially, driven by volume leverage, pricing, and tariff mitigation.

• Operating cash flow was $545 million in Q4; $93 million in capex, $85 million in share repurchases, and $70 million in dividends paid.

• FY25 revenue totaled $6.95 billion, up 6.7% reported and 4.9% core, exceeding guidance.

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

Outlook and guidance

• FY26 revenue expected at $7.3–$7.4 billion, representing 4%-6% core growth and 5%-7% reported; currency to be a 1% tailwind.

• FY26 non-GAAP EPS guided to $5.86–$6.00, up 5%-7%, with a 3-point EPS headwind from higher tax rates.

• Operating margin expansion of 75 bps expected, with 9% operating profit growth at midpoint.

• Operating cash flow projected at $1.6–$1.7 billion; $500 million in capex planned.

• Q1 FY26 revenue guided to $1.79–$1.82 billion (4%-6% core growth); Q1 EPS $1.35–$1.38.