EX-99.1 2 exhibit991-q326pressrelease.htm EX-99.1 Document Exhibit 99.1 Agilent Reports Third-Quarter Fiscal Year 2026 Financial Results Delivers strong Q3 results and raises FY26 revenue growth, margin expansion, and non-GAAP EPS (4) guidance on continued operational momentum Third-quarter fiscal year 2026 • Revenue of $1.88 billion for the third quarter ended July 31, 2026, representing growth of 8.1% reported and up 7.3% core (1) compared with the third quarter of fiscal year 2025. • GAAP operating margin of 23.6%, expanded by 290 basis points year-over-year and 190 basis points sequentially. • Non-GAAP operating margin (2) of 28.3% (including an approximately 110 basis point net benefit from tariff refunds), expanded by 320 basis points year-over-year and 190 basis points sequentially. • GAAP net income of $362 million; earnings per share (EPS) of $1.28, an increase of 8% from the third quarter of fiscal year 2025. • Non-GAAP net income (3) of $459 million (including a $17 million net benefit from tariff refunds); non-GAAP EPS (3) of $1.62 (including a $0.06 net benefit from tariff refunds), an increase of 18% from the third quarter of fiscal year 2025. Fiscal year 2026 improved outlook and fourth-quarter guidance • Fiscal year 2026 revenue is now expected in the range of $7.49 billion to $7.51 billion, representing a range of up 7.8% to 8.1% reported and up 5.8% to 6.0% core, (1)(5) an increase of 65 basis points at the midpoint. • Non-GAAP fiscal year 2026 operating margin expansion (2) at the midpoint of core revenue growth guidance is now expected to be over 130 basis points (including approximately 30 basis points in net benefit from tariff refunds in the third quarter). • Non-GAAP fiscal year 2026 EPS (4) is now expected in the range of $6.18 to $6.21, an increase of 15 cents at the midpoint (including $0.06 net benefit from tariff refunds in the third quarter) versus our prior guide. 1 • Fourth-quarter 2026 revenue is expected in the range of $1.98 billion to $2.0 billion, growth of 6.4% to 7.4% reported and up 5.2% to 6.2% core (1)(5) . Non-GAAP EPS (4) is expected in the range of $1.71 to $1.74 per share. This guidance does not include any future benefit from tariff refunds. SANTA CLARA, California, August 26, 2026 — Agilent Technologies Inc. (NYSE: A) today reported revenue of $1.88 billion for the third quarter ended July 31, 2026, representing growth of 8.1% reported and up 7.3% core (1) compared with the third quarter of fiscal year 2025. Third-quarter GAAP net income was $362 million, or $1.28 per share. This compares with $336 million, or $1.18 per share, in the third quarter of fiscal year 2025. Non-GAAP net income (3) was $459 million (including a $17 million net benefit from tariff refunds), or $1.62 per share (including a $0.06 net benefit from tariff refunds), during the quarter, compared with $390 million, or $1.37 per share, during the year-ago quarter. “Agilent’s exceptional third-quarter performance reflects the sustained momentum created by our strategy, our execution discipline, and the compounding impact of the Ignite Operating System,” said Agilent CEO Padraig McDonnell. “We are seeing improving end markets, stronger demand in key regions, and excellent customer response to our innovative product launches. All of this gives us confidence in our increased outlook and our ability to sustainably outperform our end markets.” Financial Highlights Life Sciences and Diagnostics Markets Group The Life Sciences and Diagnostics Markets Group (LDG) reported third-quarter revenue of $746 million, growth of 11% reported and 10% core (1) year-over-year. LDG’s operating margin for the quarter was 23.5%. Agilent CrossLab Group The Agilent CrossLab Group (ACG) reported third-quarter revenue of $786 million, growth of 6% reported and 5% core (1) year-over-year. ACG’s operating margin for the quarter was 34.3%. Applied Markets Group 2 The Applied Markets Group (AMG) reported third-quarter revenue of $346 million, growth of 7% reported and 7% core (1) year-over-year. AMG’s operating margin for the quarter was 24.9%. Conference Call Agilent’s management will present additional details regarding the company’s third-quarter 2026 financial results on a conference call with investors today at 1:30 p.m. PT. This event will be broadcast live online in listen-only mode. To listen to the webcast, select the “Q3 2026 Agilent Technologies, Inc. Earnings Conference Call” link on the Agilent Investor Relations website. The replay of the call will remain on the company website for 90 days. About Agilent Technologies Agilent Technologies, Inc. (NYSE: A) is a global leader in analytical and clinical laboratory technologies, delivering insights and innovation that help our customers bring great science to life. Agilent’s full range of solutions includes instruments, software, services, and expertise that provide trusted answers to our customers' most challenging questions. The company generated revenue of $6.95 billion in fiscal year 2025 and employs approximately 18,000 people worldwide. Information about Agilent is available at www.agilent.com. To receive the latest Agilent news, subscribe to the Agilent Newsroom. Follow Agilent on LinkedIn and Facebook. Forward-Looking Statements This news release contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. The forward-looking statements contained herein include, but are not limited to, information regarding Agilent’s growth prospects, business, financial results, revenue, non-GAAP earnings guidance for fiscal year and fourth-quarter 2026, and the effects of its operational transformation and customer and market-focused strategy. These forward-looking statements involve risks and uncertainties that could cause Agilent’s results to differ materially from management’s current expectations. Such risks and uncertainties include, but are not limited to, unforeseen changes in the strength of Agilent’s customers’ businesses; unforeseen changes in the demand for current and new products, technologies, and services; unforeseen changes in the currency markets; customer purchasing decisions and timing; and the risk that Agilent is not able to realize the savings expected from integration and restructuring activities. In addition, other risks that Agilent faces in running its operations include the ability to execute successfully through business cycles; the ability to meet and achieve the benefits of its operational transformation, customer and market-focused strategy and cost-reduction goals and otherwise successfully adapt its cost structures to continuing changes in business conditions; ongoing competitive, pricing and gross-margin pressures; the risk that its cost-cutting initiatives will impair its ability to develop products and remain competitive and to operate effectively; the impact of geopolitical uncertainties and global economic conditions on its operations, its markets and its ability to conduct business; the ability to improve asset performance to adapt to changes in demand; the impact relating to or arising from changes 3 to tariffs, import/export or trade policies; the ability of its supply chain to adapt to changes in demand; the ability to successfully introduce new products at the right time, price and mix; the ability of Agilent to successfully integrate recent acquisitions; the ability of Agilent to successfully comply with certain complex regulations; and other risks detailed in Agilent’s filings with the Securities and Exchange Commission, including its quarterly report on Form 10-Q for the fiscal quarter ended April 30, 2026. Forward-looking statements are based on the beliefs and assumptions of Agilent’s management and on currently available information. Agilent undertakes no responsibility to publicly update or revise any forward-looking statement. (1) Core or organic constant currency revenue growth excludes the impact of currency and acquisitions and divestitures within the past 12 months. Core or organic constant currency revenue is a non-GAAP measure. Reconciliations between GAAP revenue and core or organic constant currency revenue for third quarter 2026 are set forth on page 7 of the attached tables along with additional information regarding the use of this non-GAAP measure. Core or organic constant currency revenue growth rate as projected for fourth quarter 2026 and full fiscal year 2026 excludes the impact of currency and acquisitions and divestitures within the past 12 months. Most of the excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy and could differ materially. Therefore, no reconciliation to GAAP amounts has been provided for the projection. (2) Non-GAAP operating margin excludes the impacts of restructuring and other related costs, intangibles amortization, transformation initiatives and acquisition and integration costs. A reconciliation between non-GAAP operating margin and GAAP operating margin is set forth on page 5 of the attached tables along with additional information regarding the use of this non-GAAP measure. Non-GAAP operating margin as projected for full fiscal year 2026 excludes primarily the impacts of restructuring and other related costs, intangible amortization, transformation initiatives and acquisition and integration costs. Most of these excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy and could differ materially. Therefore, no reconciliation to GAAP amounts has been provided. (3) Non-GAAP net income and non-GAAP EPS exclude the impacts of restructuring and other related costs, intangibles amortization, transformational initiatives, acquisition and integration costs and net (gain) loss on equity securities. Agilent also excludes any tax benefits or expenses that are not directly related to ongoing operations, and which are either isolated or are not expected to occur again with any regularity or predictability. A reconciliation between non-GAAP net income and GAAP net income and a reconciliation between non-GAAP EPS and GAAP EPS is set forth on page 4 of the attached tables along with additional information regarding the use of this non-GAAP measure. (4) Non-GAAP EPS as projected for fourth quarter 2026 and full fiscal year 2026 exclude primarily the estimated impacts of non-cash intangibles amortization, transformational initiatives, and acquisition and integration costs. Agilent also excludes any tax benefits or expenses that are not directly related to ongoing operations, and which are either isolated or are not expected to occur again with any regularity or predictability. Most of these excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy and could differ materially. Therefore, no reconciliation to GAAP amounts has been provided. Future amortization of intangibles is expected to be approximately $27 million per quarter. (5) Core or organic constant currency revenue growth outlook is based on forecasted currency exchange rates. 4 # # # INVESTOR CONTACT: Tejas Savant +1 917-574-4018 tejas.savant@agilent.com Media Contact: Andréa Topper 408-709-0060 andrea.topper@agilent.com 5 AGILENT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) (Unaudited) PRELIMINARY   Three Months Ended Nine Months Ended July 31, July 31, 2026 2025 2026 2025 Net revenue $ 1,878  $ 1,738  $ 5,511  $ 5,087  Costs and expenses: Cost of products and services 836  850  2,533  2,434  Research and development 123  111  366  336  Selling, general and administrative 475  417  1,416  1,281  Total costs and expenses 1,434  1,378  4,315  4,051  Income from operations 444  360  1,196  1,036  Interest income 15  16  43  45  Interest expense (29) (28) (79) (85) Other income (expense), net 14  18  56  (3) Income before taxes 444  366  1,216  993  Provision for income taxes 82  30  210  124  Net income $ 362  $ 336  $ 1,006  $ 869  Net income per share: Basic $ 1.28  $ 1.18  $ 3.55  $ 3.05  Diluted $ 1.28  $ 1.18  $ 3.55  $ 3.05  Weighted average shares used in computing net income per share: Basic 282 284  283 285  Diluted 283 285  283 285  The preliminary income statement is estimated based on our current information. 1 AGILENT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions, except par value and share data) (Unaudited) PRELIMINARY July 31, 2026 October 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 1,758  $ 1,789  Accounts receivable, net 1,478  1,487  Inventory 1,117  1,025  Other current assets 340  293  Total current assets 4,693  4,594  Property, plant and equipment, net 2,134  2,023  Goodwill 5,030  4,473  Other intangible assets, net 906  445  Long-term investments 130  133  Other assets 1,074  1,059  Total assets $ 13,967  $ 12,727  LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 608  $ 570  Employee compensation and benefits 423  443  Deferred revenue 640  624  Short-term debt 304  304  Other accrued liabilities 314  406  Total current liabilities 2,289  2,347  Long-term debt 3,645  3,050  Retirement and post-retirement benefits 128  126  Other long-term liabilities 542  463  Total liabilities 6,604  5,986  Total Equity: Stockholders' equity: Preferred stock; $0.01 par value; 125,000,000 shares authorized; none issued and outstanding 3 —  —  Common stock; $0.01 par value; 2,000,000,000 shares authorized; 281,965,813 shares at July 31, 2026 and 283,054,377 shares at October 31, 2025, issued and outstanding 3  3  Additional paid-in-capital 5,681  5,575  Retained earnings 1,912  1,389  Accumulated other comprehensive loss (233) (226) Total stockholders' equity 7,363  6,741  Total liabilities and stockholders' equity $ 13,967  $ 12,727    The preliminary balance sheet is estimated based on our current information. 2 AGILENT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) PRELIMINARY Nine Months Ended July 31, July 31, 2026 2025 Cash flows from operating activities: Net income $ 1,006  $ 869  Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 200  217  Share-based compensation 105  102  Deferred taxes expense (benefit) 77  (35) Excess and obsolete inventory related charges 35  30  Net (gain) loss on equity securities 2  28  Asset impairment charges —  15  Other non-cash (income) expense, net 12  4  Changes in assets and liabilities: Accounts receivable, net 16  (44) Inventory (110) (72) Accounts payable 41  (13) Employee compensation and benefits (25) (26) Other assets and liabilities (295) (61) Net cash provided by operating activities (a) 1,064  1,014  Cash flows from investing activities: Payments to acquire property, plant and equipment (249) (314) Proceeds from sale of equity securities —  5  Proceeds from convertible note —  2  Payments in exchange for convertible note (3) (1) Payments to acquire businesses and intangible assets, net of cash acquired (950) 4  Net cash used in investing activities (1,202) (304) Cash flows from financing activities: Proceeds from issuance of common stock under employee stock plans 63  60  Payment of taxes related to net share settlement of equity awards (31) (28) Payments for repurchase of common stock (295) (340) Payment of excise taxes related to repurchases of common stock (3) (10) Payments of dividends (216) (212) Proceeds from issuance of long-term debt 600  4  Repayments of long-term debt (4) (2) Payments of debt issuance costs (5) —  Net proceeds from (repayment of) short-term debt —  13  Payments of finance lease (4) —  Net cash provided by (used in) financing activities 105  (515) Effect of exchange rate movements 2  10  Net increase (decrease) in cash, cash equivalents and restricted cash (31) 205  Cash, cash equivalents and restricted cash at beginning of period 1,791  1,332  Cash, cash equivalents and restricted cash at end of period $ 1,760  $ 1,537  Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets:    Cash and cash equivalents $ 1,758  $ 1,535     Restricted cash, included in other assets 2  2     Total cash, cash equivalents and restricted cash $ 1,760  $ 1,537  (a)  Cash payments included in operating activities: Income tax payments, net of refunds received $ 376  $ 304  Interest payments, net of capitalized interest $ 47  $ 55  Net change in property, plant and equipment included in accounts payable and accrued liabilities-increase (decrease) $ (9) $ —  Excise tax on share repurchases, accrued but not paid $ 2  $ 2  The preliminary cash flow is estimated based on our current information. 3 AGILENT TECHNOLOGIES, INC. NON-GAAP NET INCOME AND DILUTED EPS RECONCILIATIONS (In millions, except per share data) (Unaudited) PRELIMINARY   Three Months Ended Nine Months Ended July 31, July 31, 2026 2025 2026 2025 Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS GAAP net income $ 362  $ 1.28  (b) $ 336  $ 1.18  $ 1,006  $ 3.55  (c) $ 869  $ 3.05  Non-GAAP adjustments: Restructuring and other related costs 15  0.05  17  0.06  43  0.15  74  0.26  Asset impairments —  —  —  —  —  —  15  0.05  Intangible amortization 21  0.07  26  0.09  59  0.21  81  0.28  Transformational initiatives 37  0.13  18  0.06  95  0.34  48  0.17  Acquisition and integration costs 7  0.02  3  0.01  22  0.08  15  0.05  Net (gain) loss on equity securities 5  0.02  1  —  6  0.02  28  0.10  Pension settlement loss —  —  —  —  —  —  14  0.05  Other 8  0.03  12  0.05  42  0.15  27  0.09  Adjustment for taxes (a) 4  0.02  (23) (0.08) (5) (0.02) (31) (0.10) Non-GAAP net income $ 459  $ 1.62  (b) $ 390  $ 1.37  $ 1,268  $ 4.48  (c) $ 1,140  $ 4.00  (a) The adjustment for taxes excludes tax expense (benefits) that management believes are not directly related to on-going operations and which are either isolated, temporary or cannot be expected to occur again with any regularity or predictability such as the realized gain/loss due to sale of a business, windfall benefits on stock compensation, and the impact of R&D capitalization under section 174 of the Tax Cuts and Jobs Act of 2017 which does not apply for fiscal year 2026 due to the enactment of the One Big Beautiful Bill Act (OBBBA). For the three and nine months ended July 31, 2026, management used a non-GAAP effective tax rate of 14.50%. For the three and nine months ended July 31, 2025, management used a non-GAAP effective tax rate of 12.00%. (b) GAAP and Non-GAAP net income of $362 million and $459 million, respectively, includes a $17 million net benefit from tariff refunds. GAAP and Non-GAAP EPS of $1.28 and $1.62, respectively, includes a $0.06 net benefit from tariff refunds. (c) GAAP and Non-GAAP net income of $1,006 million and $1,268 million, respectively, includes a $17 million net benefit from tariff refunds. GAAP and Non-GAAP EPS of $3.55 and $4.48, respectively, includes a $0.06 net benefit from tariff refunds. We provide non-GAAP net income and non-GAAP net income per share amounts in order to provide meaningful supplemental information regarding our operational performance and our prospects for the future. These supplemental measures exclude, among other things, charges related to restructuring and other related costs, asset impairments, amortization of intangibles, transformational initiatives, acquisition and integration costs, net (gain) loss on equity securities and pension settlement loss. Restructuring and other related costs include incremental expenses incurred in the period associated with restructuring programs, usually aimed at changes in business and/or cost structure. Such costs may include one-time termination