EX-99.1 2 exhibit991-q226pressrelease.htm EX-99.1 Document Exhibit 99.1 Agilent Reports Second-Quarter Fiscal Year 2026 Financial Results Delivers strong Q2 results and raises FY26 revenue growth, margin expansion, and non-GAAP EPS (4) guidance on continued operational momentum Second-quarter fiscal year 2026 • Revenue of $1.83 billion for the second quarter ended April 30, 2026, representing growth of 10.0% reported and up 6.3% core (1) compared with the second quarter of 2025. • GAAP operating margin of 21.7%; non-GAAP operating margin (2) of 26.4% expanded by 130 basis points year-over-year and 180 basis points sequentially. • GAAP net income of $339 million; earnings per share (EPS) of $1.20, an increase of 60% from the second quarter of 2025. • Non-GAAP net income (3) of $423 million; non-GAAP EPS (3) of $1.49, an increase of 14% from the second quarter of 2025. Fiscal year 2026 improved outlook and third-quarter guidance • Fiscal year 2026 revenue is now expected in the range of $7.39 billion to $7.49 billion, representing a range of up 6.3% to 7.8% reported and up 4.5% to 6.0% core, (1)(5) an increase of 30 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 85 basis points, an increase of 10 basis points. Non-GAAP EPS (4) is now expected in the range of $6.00 to $6.10, an increase of 8 cents at the midpoint. • Fiscal third-quarter 2026 revenue is expected in the range of $1.83 billion to $1.85 billion, growth of 5.0% to 6.5% reported and up 4.4% to 5.9% core (1)(5) . Non-GAAP EPS (4) is expected in the range of $1.48 to $1.50 per share. SANTA CLARA, California, May 27, 2026 — Agilent Technologies Inc. (NYSE: A) today reported revenue of $1.83 billion for the second quarter ended April 30, 2026, representing growth of 10.0% reported and up 6.3% core (1) compared with the second quarter of 2025. 1 Second-quarter GAAP net income was $339 million, or $1.20 per share. This compares with $215 million, or $0.75 per share, in the second quarter of 2025. Non-GAAP net income (3 ) was $423 million, or $1.49 per share, during the quarter, compared with $373 million, or $1.31 per share, during the year-ago quarter. “It was an excellent second quarter for Agilent, with broad-based strength across key end markets, exceptional operational execution and strong margin performance,” said Padraig McDonnell, president and CEO of Agilent Technologies. “The continued momentum we are seeing across the business reflects the strength of our customer-focused strategy, healthy underlying demand, and the increasing impact of Ignite Operating System across the organization, supported by the resilience of our diversified portfolio. Innovation remains a key driver of our long-term growth. The introduction of solutions such as our new 9500 ICP-MS platform demonstrates our ability to anticipate evolving customer needs and translate those insights into differentiated technologies that improve laboratory productivity and performance. Combined with the continued progress of Ignite, replacement-cycle momentum, and a strong innovation pipeline, we remain well positioned to deliver sustainable growth and long-term value for our customers and shareholders.” Financial Highlights Life Sciences and Diagnostics Markets Group The Life Sciences and Diagnostics Markets Group (LDG) reported second-quarter revenue of $732 million, growth of 12% reported and 9% core (1) year-over-year. LDG’s operating margin for the quarter was 22.0%. Agilent CrossLab Group The Agilent CrossLab Group (ACG) reported second-quarter revenue of $759 million, growth of 6% reported and 2% core (1) year-over-year. ACG’s operating margin for the quarter was 32.0%. Applied Markets Group The Applied Markets Group (AMG) reported second-quarter revenue of $344 million, growth of 14% reported and 11% core (1) year-over-year. AMG’s operating margin for the quarter was 23.3%. Conference Call 2 Agilent’s management will present additional details regarding the company’s second-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 “Q2 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 third-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 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 3 quarter ended January 31, 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 second 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 third 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, acquisition and integration costs and net (gain) loss on equity securities. 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 third 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 $18 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: Kate Coyle +1 302-633-7490 kate.coyle@agilent.com 5 AGILENT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) (Unaudited) PRELIMINARY   Three Months Ended Six Months Ended April 30, April 30, 2026 2025 2026 2025 Net revenue $ 1,835  $ 1,668  $ 3,633  $ 3,349  Costs and expenses: Cost of products and services 845  802  1,697  1,584  Research and development 126  112  243  225  Selling, general and administrative 465  454  941  864  Total costs and expenses 1,436  1,368  2,881  2,673  Income from operations 399  300  752  676  Interest income 13  14  28  29  Interest expense (25) (29) (50) (57) Other income (expense), net 21  (25) 42  (21) Income before taxes 408  260  772  627  Provision for income taxes 69  45  128  94  Net income $ 339  $ 215  $ 644  $ 533  Net income per share: Basic $ 1.20  $ 0.75  $ 2.28  $ 1.87  Diluted $ 1.20  $ 0.75  $ 2.27  $ 1.86  Weighted average shares used in computing net income per share: Basic 282 285  283 285  Diluted 283 285  284 286  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 April 30, 2026 October 31, 2025 ASSETS   Current assets:   Cash and cash equivalents $ 1,807  $ 1,789  Accounts receivable, net 1,498  1,487  Inventory 1,089  1,025  Other current assets 369  293  Total current assets 4,763  4,594  Property, plant and equipment, net 2,099  2,023  Goodwill 4,484  4,473  Other intangible assets, net 407  445  Long-term investments 136  133  Other assets 1,176  1,059  Total assets $ 13,065  $ 12,727  LIABILITIES AND EQUITY   Current liabilities: Accounts payable $ 615  $ 570  Employee compensation and benefits 387  443  Deferred revenue 665  624  Short-term debt 304  304  Other accrued liabilities 298  406  Total current liabilities 2,269  2,347  Long-term debt 3,051  3,050  Retirement and post-retirement benefits 127  126  Other long-term liabilities 496  463  Total liabilities 5,943  5,986  Total Equity:   Stockholders' equity:   Preferred stock; $0.01 par value; 125,000,000 shares authorized; none issued and outstanding —  —  Common stock; $0.01 par value; 2,000,000,000 shares authorized; 282,218,158 shares at April 30, 2026 and 283,054,377 shares at October 31, 2025, issued and outstanding 3  3  Additional paid-in-capital 5,629  5,575  Retained earnings 1,692  1,389  Accumulated other comprehensive loss (202) (226) Total stockholders' equity 7,122  6,741  Total liabilities and stockholders' equity $ 13,065  $ 12,727    The preliminary balance sheet is estimated based on our current information. 2 AGILENT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (In millions) (Unaudited) PRELIMINARY Six Months Ended April 30, April 30, 2026 2025 Cash flows from operating activities: Net income $ 644  $ 533  Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 134  145  Share-based compensation 73  70  Deferred taxes expense (benefit) 57  (28) Excess and obsolete inventory related charges 25  22  Net (gain) loss on equity securities (1) 27  Asset impairment charges —  15  Other non-cash (income) expense, net 4  2  Changes in assets and liabilities: Accounts receivable, net (6) (27) Inventory (85) (41) Accounts payable 54  (27) Employee compensation and benefits (59) (25) Other assets and liabilities (295) (14) Net cash provided by operating activities (a) 545  652  Cash flows from investing activities: Payments to acquire property, plant and equipment (169) (211) Payments in exchange for convertible note (1) (1) Payments to acquire businesses and intangible assets, net of cash acquired —  4  Net cash used in investing activities (170) (208) Cash flows from financing activities: Proceeds from issuance of common stock under employee stock plans 32  31  Payment of taxes related to net share settlement of equity awards (29) (24) Payments for repurchase of common stock (217) (255) Payment of excise taxes related to repurchases of common stock (3) (10) Payments of dividends (144) (141) Proceeds from issuance of long-term debt —  4  Repayments of long-term debt (3) (1) Net proceeds from (repayment of) short-term debt —  100  Payments of finance lease (2) —  Net cash used in financing activities (366) (296) Effect of exchange rate movements 9  9  Net increase (decrease) in cash, cash equivalents and restricted cash 18  157  Cash, cash equivalents and restricted cash at beginning of period 1,791  1,332  Cash, cash equivalents and restricted cash at end of period $ 1,809  $ 1,489  Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheet:    Cash and cash equivalents $ 1,807  $ 1,486     Restricted cash, included in other assets 2  3     Total cash, cash equivalents and restricted cash $ 1,809  $ 1,489  (a)  Cash payments included in operating activities: Income tax payments, net of refunds received $ 320  $ 248  Interest payments, net of capitalized interest $ 45  $ 51  Net change in property, plant and equipment included in accounts payable and accrued liabilities-increase (decrease) $ (11) $ —  Excise tax on share repurchases, accrued but not paid $ 1  $ 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 Six Months Ended April 30, April 30, 2026 2025 2026 2025 Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS GAAP net income $ 339  $ 1.20  $ 215  $ 0.75  $ 644  $ 2.27  $ 533  $ 1.86  Non-GAAP adjustments: Restructuring and other related costs 8  0.03  56  0.20  28  0.10  57  0.20  Asset impairments —  —  15  0.05  —  —  15  0.05  Intangible amortization 19  0.07  27  0.10  38  0.13  55  0.19  Transformational initiatives 39  0.14  24  0.08  58  0.21  30  0.10  Acquisition and integration costs 12  0.04  3  0.01  15  0.05  12  0.04  Net (gain) loss on equity securities 1  —  27  0.10  1  —  27  0.10  Pension settlement loss —  —  —  —  —  —  14  0.05  Other 7  0.02  9  0.03  34  0.12  15  0.05  Adjustment for taxes (a) (2) (0.01) (3) (0.01) (9) (0.03) (8) (0.02) Non-GAAP net income $ 423  $ 1.49  $ 373  $ 1.31  $ 809  $ 2.85  $ 750  $ 2.62  (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 six months ended April 30, 2026, management used a non-GAAP effective tax rate of 14.50%. For the three months ended April 30, 2025, management used a non-GAAP effective tax rate of 11.50%. For the six months ended April 30, 2025, management used a non-GAAP effective tax rate of 12.00%. 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 benefits including acceleration of stock-based compensation expense, facility-related costs and contract termination fees. Asset impairments include assets that have been written down to their fair value. Transformational initiatives include expenses associated with targeted cost reduction activities such as manufacturing transfers including costs to move manufacturing, site consolidations, legal entity and other business reorganizations, insourcing or outsourcing of activities. Such costs may include move and relocation costs, one-time termination benefits and other one-time reorganization costs. Included in this category are also expenses associate