Agilent Q2 Earnings Beat Estimates, Revenues Up Y/Y, Shares Rise

Agilent Technologies A reported second-quarter fiscal 2025 earnings of $1.31 per share, which beat the Zacks Consensus Estimate by 3.97%. The figure increased 7.4% year over year.

Revenues of $1.67 billion surpassed the Zacks Consensus Estimate by 2.64%. The top line increased 6% on a reported basis and 5.3% on a core basis from the year-ago quarter.

This growth was driven by sustained improvements in Pharmaceuticals and increased demand across Diagnostics and Clinical, Food, and Environmental and Forensics markets. 

After the results were announced, shares of Agilent gained 4.71% in after-hours trading.

Agilent Technologies, Inc. Price, Consensus and EPS Surprise

Agilent Technologies, Inc. price-consensus-eps-surprise-chart | Agilent Technologies, Inc. Quote

A’s Segmental Top-Line Details

The company now operates through three reporting segments—Life Sciences and Diagnostics Markets Group (“LDG”), Agilent CrossLab Group (“ACG”) and Applied Markets Group (“AMG”).

LDG: The segment generated $654 million or 39.2% of the company’s total revenues. This represented an 8% increase on a reported basis and a 3% rise on a core basis compared with the prior-year quarter. Growth was driven by strong performance in LC and LCMS instruments.

ACG: Revenues from the segment were $713 million, accounting for 42.7% of the total revenues. The top line grew 7% on a reported basis and 9% on a core basis compared with the prior-year quarter. This was led by double-digit growth in automation and consumables and high single-digit growth in services.

AMG: Revenues decreased 1% year over year on a reported and flat on a core basis to $301 million, accounting for the remaining 18% of the total revenues. Growth in spectroscopy and GCMS was offset by timing-related declines in gas chromatography and challenges in China.

Agilent’s Operating Results

For the second quarter of fiscal 2025, the gross margin in the LDG segment contracted 230 basis points (bps) to 52.8% from the prior-year quarter. ACG’s gross margin decreased 110 bps to 55.5%, while AMG’s gross margin declined 70 bps year over year to 53.5%.

Research and development (R&D) expenses on a non-GAAP basis were $109 million, down 3.5% from the prior-year quarter. 

Selling, general and administrative (SG&A) expenses on a non-GAAP basis rose slightly to $374 million, marking a 2.2% increase from the prior-year quarter. 

As a percentage of revenues, R&D expenses fell 60 bps year over year to 6.5%, while SG&A expenses fell 80 bps year over year to 22.4%.

The non-GAAP operating margin of 25.1% for the fiscal second quarter of 2025 was in line with the prior year.

Segment-wise, the operating margin in the LDG segment increased 70 bps to 19.7% from the prior-year quarter. ACG’s operating margin fell 10 bps year over year to 32.4%. Meanwhile, AMG’s operating margin contracted 140 bps year over year to 19.5%.

A’s Balance Sheet & Cash Flow

As of April 30, 2025, Agilent’s cash and cash equivalents were $1.49 billion, up from $1.47 billion as of Jan. 31, 2025.

Accounts receivables were $1.36 billion at the end of the second quarter of fiscal 2025 compared with $1.33 billion at the end of the fiscal first quarter.

The long-term debt was $3.349 billion for the reported quarter compared with $3.347 billion in the prior quarter.

Cash flow from operating activities was $652 million in the second quarter of fiscal 2025 compared with $431 million in the previous quarter.

Agilent’s Q3 & FY25 Guidance

For the third quarter of fiscal 2025, management expects revenues of $1.645-$1.675 billion, indicating a rise of 4.2% to 6.1% on a reported basis and up 1.7% to 3.6% on a core basis. 

Non-GAAP fiscal third-quarter earnings per share are expected to be in the range of $1.35-$1.37. 

For fiscal 2025, management revised its revenue guidance from $6.68-$6.76 billion to $6.73-$6.81 billion, implying an increase of 3.4-4.6% on a reported basis and 2.5-3.5% on a core basis. 

The company reaffirmed its fiscal 2025 non-GAAP earnings per share guidance at $5.54-$5.61. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

A’s Zacks Rank & Stocks to Consider

Currently, Agilent carries a Zacks Rank #3 (Hold).

Amphenol APH, Juniper Networks JNPR and Upwork UPWK are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. APH, JNPR and UPWK sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

APH shares have gained 26.9% in the year-to-date period. The Zacks Consensus Estimate for APH’s full-year 2025 earnings is pegged at $2.66 per share, up by 8 cents over the past 30 days, suggesting growth of 40.74% from the year-ago quarter’s reported figure.

JNPR shares have lost 4.1% in the year-to-date period. The Zacks Consensus Estimate for JNPR’s full-year fiscal 2025 earnings has been revised upward to $2.09 in the past 30 days, suggesting year-over-year growth of 21.51%.

UPWK shares have lost 4.6% in the year-to-date period. The Zacks Consensus Estimate for UPWK’s full-year 2025 earnings is pegged at $1.14 per share, implying a rise of 9.62% from the year-ago quarter’s levels.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research