Agilent Technologies A reported second-quarter fiscal 2026 earnings of $1.49 per share, up 13.7% year over year. The figure surpassed the Zacks Consensus Estimate by 6.21%.
Quarterly revenues came in at $1.84 billion, which represented 10% reported growth year over year. The figure beat the Zacks Consensus Estimate by 2.12%. Strength in instruments and solid execution also supported a favorable mix, with 66% of fiscal second-quarter revenue coming from recurring streams such as consumables, services and informatics.
A Posts Strong Q2 Growth Across Operating Segments
A’s top-line expansion was broad-based across its three reporting groups. The Life Sciences and Diagnostics Markets Group generated $732 million of revenues, up 12% year over year on a reported basis and 9% on a core basis.
Agilent CrossLab delivered $759 million, reflecting 6% reported growth and 2% core growth, while Applied Markets recorded $344 million, increasing 14% reported and 11% core. Segment profitability remained solid, with operating margins of 22.0% in LDG, 32.0% in CrossLab and 23.3% in Applied Markets.
Agilent Technologies, Inc. Price, Consensus and EPS Surprise
Agilent Technologies, Inc. price-consensus-eps-surprise-chart | Agilent Technologies, Inc. Quote
Agilent’s Q2 Operating Results
For the second quarter of fiscal 2026, the LDG segment’s gross margin expanded 130 basis points (bps) year over year to 54.1%. ACG’s gross margin was flat year over year to 55.5%, while AMG’s gross margin expanded 230 bps year over year to 55.8%.
Research and development (R&D) expenses on a non-GAAP basis were $116 million, up 6.4% from the prior-year quarter. Selling, general, and administrative (SG&A) expenses on a non-GAAP basis rose to $409 million, marking a 9.4% increase from the prior-year quarter.
As a percentage of revenues, R&D expenses fell 20 bps year over year to 6.3%, while SG&A expenses fell 10 bps year over year to 22.3%.
Non-GAAP operating margin expanded 130 basis points year over year to 26.4% and improved 180 basis points sequentially.
A Sees Divergent Trends Across End Markets
Demand trends varied by end market, but the overall mix remained constructive. Pharma, which represented 36% of quarterly revenues, delivered 6% core growth and marked a fifth straight quarter of mid-single to low-double-digit growth, including low-double-digit growth in biotech.
Diagnostics and Clinical (16% of revenue) rose 11% on core growth, supported by expansion in Cancer Diagnostics offerings and traction for the Omnis family. Chemicals and Advanced Materials (23% of revenue) increased 8%, driven by semiconductor demand and chemicals capex investments in the Americas, while Environmental and Forensics (10% of revenue) grew 13% on competitive wins and a TSA airport security contract. Offsetting pockets of strength, Academia and Government (7% of revenue) declined 5% amid a muted research funding environment, and Food (8% of revenue) fell 3% on funding delays in China and India.
Agilent Details Geography and Business Mix
Geographically, results reflected strength in the Americas and Europe and a tougher year-over-year comparison in Asia-Pacific. Core revenue growth was 11% in the Americas and 8% in Europe, while APAC declined 1% on a core basis. In terms of mix, the Americas accounted for 42% of Agilent’s fiscal second-quarter revenue, Europe contributed 28% and APAC represented 30%.
Agilent also highlighted the durability of its model through the product-type mix. Consumables, services and informatics represented 66% of total revenues in the quarter, while instruments accounted for the remaining 34%. The company emphasized robust instrument growth in the quarter alongside an increasing recurring-revenue mix.
A’s Balance Sheet Details
The balance sheet remained steady. Cash and cash equivalents totaled $1.807 billion as of April 30, 2026, compared with $1.75 billion as of Jan. 31, 2025, while long-term debt stood at $3.051 billion.
Agilent generated $277 million in operating cash flow during the quarter and returned cash to shareholders through multiple channels. The company spent $65 million to repurchase 0.55 million shares and paid $72 million in dividends, along with $76 million of capex investment.
A Raises Full-Year Outlook and Issues Q3 Targets
A lifted its fiscal 2026 outlook, driven by increased confidence in business performance and execution. Full-year revenues are now expected to be in the range of $7.39-$7.49 billion, with core revenue growth projected to be between 4.5% and 6.0%. The company also expects 85 basis points of non-GAAP operating margin expansion at the midpoint of core growth guidance.
For the third quarter of fiscal 2026, A expects revenues in the range of $1.83-$1.85 billion, implying 5.0%-6.5% reported growth and 4.4%-5.9% core growth. Non-GAAP earnings for the quarter are expected to be in the range of $1.48-$1.50 per share, while full-year non-GAAP earnings were raised to $6.00-$6.10 per share.
A’s Zacks Rank & Stocks to Consider
A currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Medical sector are Align Technology ALGN, AC Immune ACIU, and Biodesix BDSX. Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Align Technology have surged 4.3% year to date. The Zacks Consensus Estimate for Align Technology’s fiscal 2026 earnings is pegged at $11.36 per share, up 97 cents over the past seven days, indicating an 8.09% year-over-year surge.
Shares of AC Immune have declined 6.7% year to date. The Zacks Consensus Estimate for AC Immune 2026 earnings is pegged at a loss of 68 cents per share, decreased by a penny over the past 30 days, indicating a year-over-year jump of 19.05%.
Biodesix shares have risen 117.8% year to date. The Zacks Consensus Estimate for Biodesix 2026 earnings is pegged at a loss of $2.99 per share. The company reported a loss of $4.67 per share in the year-ago quarter, indicating a year-over-year increase of 35.97%.
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