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AGILENT TECHNOLOGIES, INC.

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Business Summary

Agilent Technologies, Inc. is a global leader in life sciences, diagnostics, and applied markets, providing application-focused solutions including instruments, software, services, and consumables for the entire laboratory workflow . The company's business model revolves around generating revenue from the sale of analytical and diagnostics products and services, with a mix of both point-in-time transfers of control for equipment, consumables, and most software licenses, and over-time recognition for service contracts . Primary customer segments include pharmaceutical and biopharmaceutical, diagnostics and clinical, academic and government, chemicals and advanced materials, food, and environmental and forensics markets . The company also operates a centralized order fulfillment and supply chain organization (OFS) for manufacturing, engineering, and strategic sourcing, supported by a global infrastructure providing shared services in finance, IT, legal, procurement, workplace services, and human resources .

The Life Sciences and Diagnostics Markets segment is comprised of seven areas of activity, including liquid chromatography and liquid chromatography mass spectrometry, cell analysis, specialty contract development and manufacturing organization (CDMO) services for oligonucleotide active pharmaceutical ingredients, pathology solutions for cancer diagnostics, companion diagnostics development in partnership with pharmaceutical companies, genomics reagents and solutions, and biomolecular analysis . This segment generated $2,726 million in revenue in fiscal year 2025 . The Agilent CrossLab segment offers an extensive services and consumables portfolio, along with software and laboratory automation solutions, designed to improve customer outcomes across various end-markets and applications . Its services include repairs, maintenance, installations, training, compliance support, software as a service, asset management, and consulting, while consumables include chromatography columns, sample preparation products, and laboratory supplies . This segment reported $2,908 million in revenue for fiscal year 2025 . The Applied Markets segment provides application-focused solutions, including instruments and software, for identifying, quantifying, and analyzing physical and biological properties of substances . Its offerings include gas chromatography and gas chromatography mass spectrometry, inductively coupled plasma mass spectrometry, spectroscopy, vacuum technology, and remarketed instruments . This segment contributed $1,314 million to total revenue in fiscal year 2025 .

For the fiscal year ended October 31, 2025, Agilent reported total net revenue of $6,948 million , an increase of 7% compared to $6,510 million in 2024 . Gross profit for products was $2,707 million, resulting in a gross margin of 54.8% . Gross profit for services and other was $936 million, with a gross margin of 46.7% . The total gross margin was 52.4% . Operating income was $1,479 million , yielding an operating margin of 21.3% . Net income for the year was $1,303 million , with diluted EPS of $4.57 . Net cash provided by operating activities was $1,559 million . As of October 31, 2025, cash and cash equivalents stood at $1,789 million , and total long-term debt was $3,050 million .

Comparing fiscal year 2025 to 2024, total net revenue increased by 7% . The Life Sciences and Diagnostics Markets segment saw an 11% increase in revenue , with a 1 percentage point favorable impact from foreign currency movements and approximately 5 percentage points contributed by the BIOVECTRA acquisition . The Agilent CrossLab segment's revenue grew by 6% , with no impact from foreign currency movements . The Applied Markets segment experienced a 1% increase in revenue , offset by a 1 percentage point unfavorable impact from foreign currency movements . Total gross margin decreased by 2 percentage points , and operating margin decreased by 2 percentage points . Research and development expenses decreased by 5% , while selling, general and administrative expenses increased by 9% .

Significant operational developments during the period include a change in organizational structure in November 2024, which reorganized the former Diagnostics and Genomics segment and parts of the former Life Sciences and Applied Markets segment into the new Life Sciences and Diagnostics Markets, Agilent CrossLab, and Applied Markets segments . The company acquired 100% of BIOVECTRA for $915 million in cash on September 20, 2024, expanding its contract development and manufacturing organization . Restructuring plans were initiated in fiscal years 2025, 2024, and 2023 to optimize management structure and reduce costs . The FY25 plan, announced in the second quarter of fiscal year 2025, is expected to result in a reduction of approximately $75 million to $80 million in annual cost of sales and operating expenses . The FY24 plan, initiated in the third quarter of fiscal year 2024, included a reduction of approximately 500 regular employees , and all workforce management actions and payments for this plan were completed in fiscal year 2025 . The FY23 plan, initiated in the fourth quarter of fiscal year 2023, involved a reduction of approximately 400 regular employees and consolidation of excess facilities , with all workforce management actions and payments also completed in fiscal year 2025 .

Business Outlook

Management's primary focus for the upcoming period remains on enhancing customer experience, delivering differentiated product solutions, and driving productivity improvements . While recent tariff changes adversely impacted costs of revenue in the second half of fiscal year 2025, the company expects to substantially mitigate this impact during fiscal year 2026 . The company is actively pursuing mitigation strategies through supply chain optimization, targeted pricing actions, and other cost-efficiency initiatives to protect margins and sustain long-term growth .

The company remains optimistic about the long-term health of its key end markets, noting that many customers' ability to spend capital budgets has begun to normalize, with the exception of customers receiving funding from the U.S. federal government . In the Life Sciences and Diagnostics Markets segment, the rising demand for several modalities provided by the specialty CDMO business positions the company well to serve expanding customer demand . Leveraging liquid chromatography and liquid chromatography mass spectrometry platforms is expected to drive growth across key markets, and the company remains optimistic about long-term life sciences opportunities . Diagnostic and clinical markets are anticipated to continue growing with the OMNIS platforms . The company plans to continue investing in research and development, advancing its applications and solutions portfolio, and expanding its position in developing and emerging markets . For the Agilent CrossLab segment, the company is well positioned to continue its success in key end markets by supporting a growing installed base of instruments . Digital and remote capabilities are expected to remain a key factor in improving service quality and customer experience . The business is geographically diversified to capitalize on local market opportunities and hedge against regional weaknesses . In the Applied Markets segment, the company anticipates continued market recovery and is optimistic about long-term growth opportunities, as its broad portfolio of products and solutions is well suited to address customer needs . Investments will continue in expanding and improving application-focused solutions, including instruments and software .

Regarding operational outlook, the company expects to substantially mitigate the adverse impact of recent tariff changes on costs of revenue during fiscal year 2026 . With inflationary and tariff-related pressures remaining fluid, mitigation strategies include supply chain optimization, targeted pricing actions, and other cost-efficiency initiatives to protect margins and sustain long-term growth . The FY25 restructuring plan, designed to optimize management structure, is expected to result in a reduction of approximately $75 million to $80 million in annual cost of sales and operating expenses over the three business segments upon completion, which is anticipated by the second quarter of fiscal year 2026 .

Planned capital allocation for fiscal year 2026 includes anticipated capital expenditures of approximately $500 million . These investments are primarily due to the planned expansion of manufacturing capacity for nucleic acid-based therapeutics in Frederick, Colorado . Some of this investment may be eligible for reimbursement incentives, though the full extent will not be known until the expansion is substantially complete . The company had a remaining authorization to repurchase up to approximately $1.9 billion of its common stock under the 2024 repurchase program as of October 31, 2025 . A quarterly dividend of $0.255 per share of common stock, or approximately $72 million, was declared on November 19, 2025, to be paid on January 28, 2026 . The company does not expect to contribute to its U.S. defined benefit plans and U.S. post-retirement benefit plans during 2026, but expects to contribute $21 million to its non-U.S. defined benefit plans during 2026 .

Structural headwinds and execution risks management explicitly flagged include the adverse impact of recent tariff changes on costs of revenue, although mitigation is expected in fiscal year 2026 . Inflationary and tariff-related pressures remain fluid, requiring active mitigation strategies . Headcount and funding reductions of the U.S. federal government and customers receiving U.S. federal government funding have adversely impacted the business in 2025, and continued funding and resource pressure could further impact customers' ability to perform normal functions and the company's business . The United States enacted the One Big Beautiful Bill Act (OBBBA) on July 4, 2025, which is expected to increase income taxes in fiscal year 2026 due to adjustments to effective tax rates and the implementation of Pillar Two rules .

Risk Factors

The company faces several material risks, including general economic conditions such as slower global economic growth, increasing interest rates, and inflationary pressures, which may reduce demand, increase inventory obsolescence, intensify price pressure, and impair investment values . International operations expose the company to risks from foreign currency fluctuations, political and economic instability, changes in trade relationships, tariffs, and differing labor regulations, with foreign currency movements having no impact on revenue growth in 2025 but potentially affecting profitability by reducing costs . The company's reliance on timely introduction of new products and services to address rapid technological changes and competition means that failure to innovate or accurately predict customer needs could lead to product obsolescence and adverse operating results . Demand for products and services is sensitive to capital spending policies, R&D budgets, and government funding, with fluctuations in these areas potentially harming revenue and operating results . Recent and dynamic government rulemaking and policy changes, including tariffs, sanctions, and export controls, could increase costs, disrupt supply chains, and restrict global product shipments . Failure to adjust purchases to changing market conditions or accurately estimate demand could lead to excess inventory and increased expenses . The inability to retain and hire key personnel, particularly in highly technical specialties, could hinder business maintenance or expansion . Strategic initiatives to adjust cost structure may distract management, slow product improvements, limit production increases, and may not yield anticipated operational or financial benefits . Acquisitions and divestitures carry risks of unexpected costs, integration difficulties, and failure to realize anticipated synergies . Industry consolidation could strengthen competitors and adversely affect the company's market position . Public health crises may disrupt operations, supply chains, and product delivery . Failure to maintain effective internal controls could lead to inaccurate financial reporting and loss of investor confidence . Compliance with extensive governmental regulations, including those from the FDA, data privacy laws (e.g., GDPR, China's PIPL, CCPA), and anti-bribery laws, could result in significant expenses, penalties, product recalls, or restrictions on business conduct, with possible fines of up to four percent of total company revenue under GDPR . Environmental contamination from past and ongoing operations could lead to substantial liabilities . The integration and use of artificial intelligence (AI) technologies present risks such as inaccurate or biased algorithms, intellectual property loss, data leakage, ethical concerns, and evolving regulatory scrutiny, potentially resulting in reputational harm, regulatory action, or legal liability . Third-party claims of intellectual property infringement could lead to costly litigation, licensing expenses, or injunctions against product sales . Conversely, failure to enforce the company's own intellectual property rights could result in competitive injury . Operational risks include manufacturing capacity mismatches with demand, potential disruptions from consolidating manufacturing operations, and adverse effects from dependence on contract manufacturing and outsourced administrative functions . Catastrophic losses to factories, facilities, or distribution systems due to natural disasters or other events could seriously harm operations, with the company not carrying insurance or financial reserves for interruptions or potential losses arising from earthquakes or terrorism . Significant disruptions or security breaches in information technology systems could lead to misappropriation of confidential information, financial damage, or increased compliance burdens . Retirement and post-retirement pension plans are subject to financial market risks that could increase funding obligations and adversely impact results . Changes in tax laws, unfavorable resolution of tax examinations, or changes in tax incentives (such as the Singapore tax holiday, which was renegotiated and extended through 2030 ) could increase income taxes . The company's outstanding debt of approximately $3.4 billion as of October 31, 2025 , and potential future debt, could adversely affect financial condition and liquidity by increasing vulnerability to downturns and dedicating more cash flow to debt service . Adverse conditions in the global banking industry and credit markets may impact the value of cash investments or impair liquidity, with approximately $1,789 million in cash and cash equivalents as of October 31, 2025 .

Management Priorities

Management's message to shareholders emphasizes a continued focus on enhancing customer experience, delivering differentiated product solutions, and driving productivity improvements. They note an optimistic outlook for the long-term health of key end markets, despite an extended period of constrained capital spending, with customer capital budgets beginning to normalize, except for those receiving U.S. federal government funding. Management explicitly states that while recent tariff changes adversely impacted costs of revenue in the second half of fiscal year 2025, they expect to substantially mitigate this impact during fiscal year 2026. They are actively pursuing mitigation strategies through supply chain optimization, targeted pricing actions, and other cost-efficiency initiatives to protect margins and sustain long-term growth. Key strategic priorities include continued investment in research and development, advancing the applications and solutions portfolio, and expanding the company's position in developing and emerging markets, particularly leveraging liquid chromatography and liquid chromatography mass spectrometry platforms and the growing demand for specialty CDMO business modalities.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Overview
  2. [2] Item 7, MD&A — Critical Accounting Policies and Estimates — Revenue Recognition
  3. [3] Item 4, Revenue — Revenue by End Markets
  4. [4] Item 1, Business — Overview
  5. [5] Item 1, Business — Life Sciences and Diagnostics Markets
  6. [6] Item 7, MD&A — Net Revenue By Segment
  7. [7] Item 1, Business — Agilent CrossLab
  8. [8] Item 1, Business — Agilent CrossLab - Products and Applications
  9. [9] Item 7, MD&A — Net Revenue By Segment
  10. [10] Item 1, Business — Applied Markets
  11. [11] Item 1, Business — Applied Markets - Products and Applications
  12. [12] Item 7, MD&A — Net Revenue By Segment
  13. [13] Item 7, MD&A — Results from Operations — Net Revenue
  14. [14] Item 7, MD&A — Results from Operations — Net Revenue
  15. [15] Item 7, MD&A — Costs and Expenses
  16. [16] Item 7, MD&A — Costs and Expenses
  17. [17] Item 7, MD&A — Costs and Expenses
  18. [18] Item 8, Consolidated Statements of Operations
  19. [19] Item 7, MD&A — Costs and Expenses
  20. [20] Item 8, Consolidated Statements of Operations
  21. [21] Item 8, Consolidated Statements of Operations
  22. [22] Item 8, Consolidated Statements of Cash Flows
  23. [23] Item 8, Consolidated Balance Sheets
  24. [24] Item 8, Consolidated Balance Sheets
  25. [25] Item 7, MD&A — Results from Operations — Net Revenue
  26. [26] Item 7, MD&A — Net Revenue By Segment
  27. [27] Item 7, MD&A — Net Revenue By Segment
  28. [28] Item 7, MD&A — Overview and Executive Summary — Actual Results
  29. [29] Item 7, MD&A — Net Revenue By Segment
  30. [30] Item 7, MD&A — Net Revenue By Segment
  31. [31] Item 7, MD&A — Net Revenue By Segment
  32. [32] Item 7, MD&A — Net Revenue By Segment
  33. [33] Item 7, MD&A — Costs and Expenses
  34. [34] Item 7, MD&A — Costs and Expenses
  35. [35] Item 7, MD&A — Costs and Expenses
  36. [36] Item 7, MD&A — Costs and Expenses
  37. [37] Item 7, MD&A — Overview and Executive Summary — New Segment Structure
  38. [38] Item 3, Acquisition — Acquisition of BIOVECTRA
  39. [39] Item 7, MD&A — Restructuring and Other Related Costs — Summary of Restructuring Plans
  40. [40] Item 7, MD&A — Restructuring and Other Related Costs — Fiscal Year 2025 Plan ("FY25 Plan")
  41. [41] Item 7, MD&A — Restructuring and Other Related Costs — Fiscal Year 2024 Plan ("FY24 Plan")
  42. [42] Item 7, MD&A — Restructuring and Other Related Costs — Fiscal Year 2024 Plan ("FY24 Plan")
  43. [43] Item 7, MD&A — Restructuring and Other Related Costs — Fiscal Year 2023 Plan ("FY23 Plan")
  44. [44] Item 7, MD&A — Restructuring and Other Related Costs — Fiscal Year 2023 Plan ("FY23 Plan")
  45. [45] Item 7, MD&A — Overview and Executive Summary — Looking Forward
  46. [46] Item 7, MD&A — Overview and Executive Summary — Looking Forward
  47. [47] Item 7, MD&A — Overview and Executive Summary — Looking Forward
  48. [48] Item 7, MD&A — Overview and Executive Summary — Looking Forward
  49. [49] Item 7, MD&A — Life Sciences and Diagnostics Markets — Looking Forward
  50. [50] Item 7, MD&A — Life Sciences and Diagnostics Markets — Looking Forward
  51. [51] Item 7, MD&A — Life Sciences and Diagnostics Markets — Looking Forward
  52. [52] Item 7, MD&A — Life Sciences and Diagnostics Markets — Looking Forward
  53. [53] Item 7, MD&A — Agilent CrossLab — Looking Forward
  54. [54] Item 7, MD&A — Agilent CrossLab — Looking Forward
  55. [55] Item 7, MD&A — Agilent CrossLab — Looking Forward
  56. [56] Item 7, MD&A — Applied Markets — Looking Forward
  57. [57] Item 7, MD&A — Applied Markets — Looking Forward
  58. [58] Item 7, MD&A — Overview and Executive Summary — Looking Forward
  59. [59] Item 7, MD&A — Overview and Executive Summary — Looking Forward
  60. [60] Item 7, MD&A — Restructuring and Other Related Costs — Fiscal Year 2025 Plan ("FY25 Plan")
  61. [61] Item 7, MD&A — Financial Condition — Liquidity and Capital Resources — Net Cash Used in Investing Activities
  62. [62] Item 7, MD&A — Financial Condition — Liquidity and Capital Resources — Net Cash Used in Investing Activities
  63. [63] Item 7, MD&A — Financial Condition — Liquidity and Capital Resources — Net Cash Used in Investing Activities
  64. [64] Item 7, MD&A — Financial Condition — Liquidity and Capital Resources — Treasury Stock Repurchases
  65. [65] Item 7, MD&A — Overview and Executive Summary — Dividends
  66. [66] Item 7, MD&A — Financial Condition — Liquidity and Capital Resources — Net Cash Provided by Operating Activities
  67. [67] Item 7, MD&A — Overview and Executive Summary — Looking Forward
  68. [68] Item 7, MD&A — Overview and Executive Summary — Looking Forward
  69. [69] Item 1, Business — Risks and Uncertainties
  70. [70] Item 7, MD&A — Income Taxes
  71. [71] Item 1A, Risk Factors — Business and Strategic Risks — General economic conditions may adversely affect our operating results and financial condition.
  72. [72] Item 1A, Risk Factors — Business and Strategic Risks — Economic, political, foreign currency and other risks associated with international sales and operations could adversely affect our results of operations.
  73. [73] Item 1A, Risk Factors — Business and Strategic Risks — If we do not introduce successful new products and services in a timely manner to address increased competition through frequent new product and service introductions, rapid technological changes and changing industry standards, our products and services may become obsolete, and our operating results may suffer.
  74. [74] Item 1A, Risk Factors — Business and Strategic Risks — Demand for some of our products and services depends on the capital spending policies of our customers, research and development budgets and on government funding policies.
  75. [75] Item 1A, Risk Factors — Business and Strategic Risks — Recent and dynamic government rule making and policy changes could increase our costs, affect our markets and customers and impact our results of operations.
  76. [76] Item 1A, Risk Factors — Business and Strategic Risks — Failure to adjust our purchases due to changing market conditions or failure to accurately estimate our customers' demand could adversely affect our income.
  77. [77] Item 1A, Risk Factors — Business and Strategic Risks — Our business will suffer if we are not able to retain and hire key personnel.
  78. [78] Item 1A, Risk Factors — Business and Strategic Risks — Our strategic initiatives to adjust our cost structure could have long-term adverse effects on our business, and we may not realize the operational or financial benefits from such actions.
  79. [79] Item 1A, Risk Factors — Business and Strategic Risks — Our acquisitions, strategic investments and alliances, joint ventures, exiting of businesses and divestitures may result in financial results that are different than expected.
  80. [80] Item 1A, Risk Factors — Business and Strategic Risks — The impact of consolidation and acquisitions of competitors is difficult to predict and may harm our business.
  81. [81] Item 1A, Risk Factors — Business and Strategic Risks — Public health crises may adversely impact, and pose risks to, certain elements of our business, results of operations and financial condition, the nature and extent of which are highly uncertain and unpredictable.
  82. [82] Item 1A, Risk Factors — Regulatory, Legal and Compliance Risks — If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results, which could lead to a loss of investor confidence in our financial statements and have an adverse effect on our stock price.
  83. [83] Item 1A, Risk Factors — Regulatory, Legal and Compliance Risks — Our customers and we are subject to various governmental regulations. Compliance with or changes in such regulations may cause us to incur significant expenses, and if we fail to maintain satisfactory compliance with certain regulations, we may be forced to recall products and cease their manufacture and distribution, and we could be subject to civil or criminal penalties.
  84. [84] Item 1A, Risk Factors — Regulatory, Legal and Compliance Risks — Environmental contamination from past and ongoing operations could subject us to substantial liabilities.
  85. [85] Item 1A, Risk Factors — Regulatory, Legal and Compliance Risks — Issues in the development, deployment, and use of artificial intelligence technologies in our business operations, services and products may result in reputational harm, regulatory action, or legal liability, and any failure to adapt to such technological developments or industry trends could adversely affect the competitiveness of our business.
  86. [86] Item 1A, Risk Factors — Regulatory, Legal and Compliance Risks — Third parties may claim that we are infringing their intellectual property, and we could suffer significant litigation or licensing expenses or be prevented from selling products or services.
  87. [87] Item 1A, Risk Factors — Regulatory, Legal and Compliance Risks — Third parties may infringe our intellectual property, and we may suffer competitive injury or expend significant resources enforcing our rights.
  88. [88] Item 1A, Risk Factors — Operational Risks — Our operating results may suffer if our manufacturing capacity does not match the demand for our products.
  89. [89] Item 1A, Risk Factors — Operational Risks — If we suffer a loss to our factories, facilities or distribution system due to catastrophe, our operations could be seriously harmed.
  90. [90] Item 1A, Risk Factors — Operational Risks — If we experience a significant disruption in, or breach in security of, our information technology systems, or if we fail to implement new systems and software successfully, our business could be adversely affected.
  91. [91] Item 1A, Risk Factors — Financial and Tax Risks — Our retirement and post retirement pension plans are subject to financial market risks that could adversely affect our future results of operations and cash flows.
  92. [92] Item 7, MD&A — Income Taxes
  93. [93] Item 1A, Risk Factors — Financial and Tax Risks — Changes in tax laws, unfavorable resolution of tax examinations, or exposure to additional tax liabilities could have a material adverse effect on our results of operations, financial condition and liquidity.
  94. [94] Item 1A, Risk Factors — Financial and Tax Risks — We have outstanding debt and may incur other debt in the future, which could adversely affect our financial condition, liquidity and results of operations.
  95. [95] Item 1A, Risk Factors — Financial and Tax Risks — We have outstanding debt and may incur other debt in the future, which could adversely affect our financial condition, liquidity and results of operations.
  96. [96] Item 1A, Risk Factors — Financial and Tax Risks — Adverse conditions in the global banking industry and credit markets may adversely impact the value of our cash investments or impair our liquidity.

Analysis on 5/22/2026