Core Insights - Agilent Technologies reported second-quarter fiscal 2025 earnings of $1.31 per share, exceeding the Zacks Consensus Estimate by 3.97%, and reflecting a year-over-year increase of 7.4% [1] - Revenues reached $1.67 billion, surpassing the Zacks Consensus Estimate by 2.64%, with a reported increase of 6% and a core increase of 5.3% compared to the previous year [1] Revenue Growth Drivers - Growth was primarily driven by sustained improvements in Pharmaceuticals and increased demand across Diagnostics and Clinical, Food, and Environmental and Forensics markets [2] Segment Performance - **Life Sciences and Diagnostics Markets Group (LDG)**: Generated $654 million, accounting for 39.2% of total revenues, with an 8% increase on a reported basis and a 3% rise on a core basis, driven by strong performance in LC and LCMS instruments [3] - **Agilent CrossLab Group (ACG)**: Revenues were $713 million, representing 42.7% of total revenues, with a 7% increase on a reported basis and a 9% increase on a core basis, led by double-digit growth in automation and consumables [4] - **Applied Markets Group (AMG)**: Revenues decreased 1% year over year to $301 million, accounting for 18% of total revenues, with growth in spectroscopy and GCMS offset by declines in gas chromatography and challenges in China [5] Operating Results - Gross margins for LDG, ACG, and AMG segments contracted to 52.8%, 55.5%, and 53.5% respectively [6] - R&D expenses on a non-GAAP basis were $109 million, down 3.5% year over year, while SG&A expenses rose slightly to $374 million, marking a 2.2% increase [7] - Non-GAAP operating margin for the second quarter was 25.1%, consistent with the prior year [7] Balance Sheet & Cash Flow - As of April 30, 2025, cash and cash equivalents were $1.49 billion, up from $1.47 billion at the end of January 2025 [9] - Long-term debt was $3.349 billion, with cash flow from operating activities increasing to $652 million from $431 million in the previous quarter [10] Guidance - For Q3 fiscal 2025, management expects revenues between $1.645 billion and $1.675 billion, indicating a rise of 4.2% to 6.1% on a reported basis [11] - Fiscal 2025 revenue guidance was revised to $6.73 billion to $6.81 billion, implying an increase of 3.4% to 4.6% on a reported basis [11] - Non-GAAP earnings per share guidance for fiscal 2025 remains at $5.54 to $5.61 [12]

Core Viewpoint - Agilent Technologies has appointed August Specht as the Chief Technology Officer, bringing over 25 years of experience in the design, development, and marketing of analytical instruments, software, and consumables [1]. Group 1: Appointment Details - August Specht previously served as the Vice President of Global R&D for the Chromatography and Mass Spectrometry Division at Thermo Fisher Scientific [1]. - Specht will join Agilent on June 9 [1]. - Agilent's President and CEO, Padraig McDonnell, expressed enthusiasm about Specht's appointment, highlighting his deep understanding of the evolving needs of the scientific community [1]. Group 2: Educational Background - August Specht holds a Bachelor’s degree in Chemistry (Honors) from Queen's University, a PhD in Analytical Chemistry from the University of British Columbia, and an MBA from the University of California, Berkeley [2].

Core Viewpoint - Agilent has upgraded the 8850 gas chromatograph (GC) to enhance compatibility with mass spectrometry (MS) systems, significantly improving analytical efficiency and throughput for various laboratory applications [3][4]. Summary by Sections Product Upgrade - The Agilent 8850 GC has been upgraded to support compatibility with single quadrupole and triple quadrupole MS systems, aimed at improving laboratory work efficiency [3]. - The upgraded GC/MS system is designed for high performance in space-constrained environments, making it suitable for chemical, energy, food, environmental, and forensic laboratories [3][4]. Technical Enhancements - The new features include an extended temperature range, compatibility with the CTC PAL3 Series 2 automatic sampler, a multi-mode inlet (MMI), and a backflush capability [3]. - The system can achieve a column temperature ramp rate of up to 300 °C per minute, significantly enhancing analysis throughput and reducing turnaround time [4]. Environmental and Economic Benefits - The 8850 GC reduces power consumption by 45% compared to other benchtop gas chromatographs, aiding laboratories in achieving sustainability goals and saving energy costs [4]. - When used in conjunction with MS systems like the 5977C, 7000E, or 7010D, the 8850 GC enables high-speed analysis and substantial optimization of space and energy consumption [4]. Market Positioning - Agilent aims to solidify its position as a preferred partner for GC and GC/MS solutions through continuous innovation driven by the Ignite Transformation program [4]. - The compact design and advanced features of the 8850 GC are expected to help laboratories meet their analytical and sustainability objectives more easily [4].

Core Viewpoint - Agilent Technologies, Inc. is conducting its earnings conference call for the second quarter of fiscal year 2025, highlighting key financial results and strategic insights from company executives [3][4]. Group 1: Company Overview - The conference call features key participants including the President and CEO, CFO, and Presidents of various market groups, indicating a comprehensive discussion on company performance [3]. - The call is being webcast live, and supplementary materials such as the press release and investor presentation are available on the company's investor website [4]. Group 2: Financial Metrics - The discussion will include references to non-GAAP financial measures, with a note that comparable GAAP financial metrics will be provided [4].

Core Insights - Agilent Technologies reported revenue of $1.67 billion for the quarter ended April 2025, reflecting a 6% increase year-over-year and exceeding the Zacks Consensus Estimate of $1.63 billion by 2.64% [1] - The company's EPS for the quarter was $1.31, up from $1.22 in the same quarter last year, surpassing the consensus estimate of $1.26 by 3.97% [1] Revenue Performance by End Markets - Pharmaceutical revenue reached $603 million, exceeding the average estimate of $572.63 million, with a year-over-year increase of 11.3% [4] - Academia and Government revenue was $135 million, below the average estimate of $145.13 million, representing a decline of 2.9% year-over-year [4] - Diagnostics and Clinical revenue amounted to $255 million, surpassing the average estimate of $247.93 million, with a year-over-year increase of 6.7% [4] - Agilent Crosslab Group net revenue was $713 million, exceeding the estimated $697.53 million, showing a significant year-over-year increase of 77.4% [4] - Food revenue was reported at $147 million, slightly above the average estimate of $146.05 million, with a year-over-year increase of 5.8% [4] - Environmental and Forensics revenue was $159 million, in line with the average estimate of $159.54 million, reflecting a year-over-year increase of 4.6% [4] - Chemical and advanced materials revenue was $369 million, slightly below the average estimate of $370.20 million, with a year-over-year increase of 1.9% [4] Stock Performance - Agilent's shares have returned +3.5% over the past month, compared to a +7.4% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

分组1 - Agilent Technologies reported quarterly earnings of $1.31 per share, exceeding the Zacks Consensus Estimate of $1.26 per share, and showing an increase from $1.22 per share a year ago, representing an earnings surprise of 3.97% [1] - The company achieved revenues of $1.67 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 2.64% and increasing from $1.57 billion year-over-year [2] - Agilent has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - Despite the positive earnings report, Agilent shares have declined approximately 17.2% since the beginning of the year, contrasting with the S&P 500's gain of 0.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $1.40 on revenues of $1.65 billion, and for the current fiscal year, it is $5.54 on revenues of $6.73 billion [7] 分组3 - The Zacks Industry Rank indicates that the Medical - Products industry is currently in the bottom 44% of over 250 Zacks industries, which may negatively impact Agilent's stock performance [8] - The estimate revisions trend for Agilent is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting expected underperformance in the near future [6]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $1.67 billion, representing a 6% reported growth and a 5.3% core growth compared to Q2 2024 [9][27] - Operating margin was 25.1%, absorbing some incremental tariff costs, and EPS was $1.31, growing 7% year over year [9][33] - Gross margin was 54.1%, down from the previous year due to tariffs, currency, and product mix [31] Business Line Data and Key Metrics Changes - The Agilent CrossLab Group reported revenue of $713 million, growing 9%, driven by double-digit growth in consumables and automation [28] - Life Sciences and Diagnostics Market Group revenue was $654 million, growing 3%, with high single-digit growth in pathology and NASD [29] - Applied Markets Group revenue was flat at $300 million, with growth in spectroscopy offset by declines in gas chromatography [29] Market Data and Key Metrics Changes - All regions experienced growth, with China leading at 10%, while the Americas grew low single digits and EMEA grew mid single digits [12] - India delivered high teens growth, prompting the opening of a new solution center [13] - PFAS testing grew over 70% year over year globally, with Europe and China more than doubling their business [15][16] Company Strategy and Development Direction - The company is executing its three-year Ignite transformation strategy, focusing on operational efficiency and tariff mitigation [11][20] - Agilent acquired BioVectra for approximately $1 billion to expand its CDMO capabilities [20] - The company is committed to innovation, launching new products in cell analysis and chromatography [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth prospects despite macroeconomic uncertainties, maintaining a core growth rate of 2.5% to 3.5% for the year [26][37] - The company is proactively managing tariff exposure and expects to fully mitigate costs by fiscal 2026 [25][39] - Management highlighted the importance of strategic pricing initiatives to maintain competitiveness [21][84] Other Important Information - Digital orders grew by 12% year over year, reaching $295 million [18] - The company is tracking over 350 regulations globally related to PFAS testing, anticipating significant market growth [16][22] - The board welcomed new members with extensive experience in the pharmaceutical and healthcare sectors [42] Q&A Session Summary Question: Order trends in the quarter - Management noted that orders grew low single digits in Q2, with a book-to-bill ratio greater than one, indicating stable business across regions [49][50] Question: Performance of NASD and BioVectra - Management expressed optimism about the CDMO business, with expectations for double-digit growth in the second half of the year [55] Question: Impact of tariffs on consumables - The $15 million of consumables pulled forward was due to customer anticipation of tariffs, with no overall revenue impact expected [63][64] Question: Differences in ordering patterns in pharma - The majority of business is in QAQC and development, with small molecule growth of 10% in the quarter [71] Question: PFAS regulation impacts - PFAS testing grew 75% year over year, with expectations for continued strong results despite regulatory uncertainties [73][75] Question: Reshoring and capacity build-outs - Discussions with pharma customers are early, with expectations for potential tailwinds in the next few years [82] Question: Pricing strategies - The company is on track for approximately 100 basis points of price realization for the year, aided by tariff mitigation activities [86][88]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $1.67 billion, representing a 6% increase reported and 5.3% core growth year-over-year [9][27] - Operating margin was 25.1%, absorbing some incremental tariff costs, and EPS was $1.31, growing 7% compared to Q2 2024 [9][33] - Gross margin was 54.1%, down from the previous year due to tariffs, currency, and product mix [31] Business Line Data and Key Metrics Changes - The Agilent CrossLab Group reported revenue of $713 million, growing 9%, driven by double-digit growth in consumables and automation [28] - Life Sciences and Diagnostics Market Group revenue was $654 million, growing 3%, with high single-digit growth in pathology and NASD [29] - Applied Markets Group revenue was flat at $300 million, with growth in spectroscopy offset by declines in gas chromatography [29] Market Data and Key Metrics Changes - All regions experienced growth: Americas grew low single digits, EMEA grew mid single digits, and China led with 10% growth [12] - India delivered high teens growth, prompting the opening of a new solution center [13] - Environmental and forensics grew 6% globally, driven by strong demand for PFAS testing [15] Company Strategy and Development Direction - The company is executing its three-year Ignite transformation strategy, focusing on operational efficiency and tariff mitigation [11][20] - Agilent acquired BioVectra for approximately $1 billion to expand CDMO capabilities [20] - The company is committed to innovation, launching new products in cell analysis and chromatography [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth prospects despite macroeconomic uncertainties [26] - The company is maintaining its core growth rate guidance of 2.5% to 3.5% for the year [26][35] - Management highlighted the importance of strategic pricing initiatives to mitigate tariff impacts [21][88] Other Important Information - The company is tracking over 350 regulations globally related to PFAS testing, anticipating significant market growth by 2030 [16] - Operating cash flow was $221 million, with capital expenditures of $114 million [33] - The company ended the quarter with a net leverage ratio of 1, indicating a strong balance sheet [33] Q&A Session Summary Question: Order trends in the quarter - Management noted that orders grew low single digits in Q2, with stable business across regions and no significant pull forward from pharma tariffs [50][51] Question: Expectations for NASD and BioVectra - Management expressed confidence in double-digit growth for NASD in the second half of the year, supported by strong order visibility [56] Question: Impact of tariffs on consumables - The $15 million pull forward in consumables was driven by customer actions in response to high tariff rates, with no overall revenue impact expected [64][65] Question: Differences in ordering patterns in pharma - The majority of business is on the QAQC and development side, with small molecule growth of 10% in the quarter [72] Question: PFAS regulation impacts - PFAS testing grew 75% year-over-year, with expectations for continued strong results despite regulatory uncertainties [74] Question: Reshoring and capacity build-outs - Discussions with pharma customers regarding reshoring are still in early stages, with potential tailwinds expected in the next 2-3 years [84] Question: Pricing strategies - The company has established enterprise pricing capabilities and is on track for approximately 100 basis points of price realization for the year [88][90]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $1,670 million, representing a 6% reported growth and a 5.3% core growth compared to Q2 2024 [6][26] - Operating margin was 25.1%, and EPS was $1.31, growing 7% year over year [6][32] - The company experienced its fourth consecutive quarter of accelerating growth [7] Business Line Data and Key Metrics Changes - The Agilent CrossLab Group reported revenue of $713 million, growing 9% [27] - Life Sciences and Diagnostics Market Group revenue was $654 million, growing 3% [28] - Applied Markets Group revenue was flat at $300 million on a core growth basis [28] Market Data and Key Metrics Changes - All regions experienced growth: Americas grew low single digits, EMEA grew mid single digits, and China led with 10% growth [9][11] - India delivered high teens growth, and the company opened its first solution center in India [11] - PFAS testing grew more than 70% year over year globally, with Europe and China more than doubling their business [13][14] Company Strategy and Development Direction - The company is executing its three-year Ignite transformation strategy, which has resulted in early wins and tariff mitigation [8][20] - Agilent is focused on innovation and has launched several new products, including the Seahorse XF Flex analyzer and the InfinityLab Pro IQ series [22][23] - The company is committed to maintaining a strong balance sheet and exploring external growth opportunities [41] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about long-term growth prospects, maintaining a core growth rate of 2.5% to 3.5% for the year [25][36] - The company is proactively managing tariff exposure and expects to fully mitigate costs by fiscal 2026 [24][37] - Despite exceeding expectations in Q2, management emphasizes the importance of a disciplined outlook due to ongoing macroeconomic uncertainties [26] Other Important Information - The company has a robust pipeline of opportunities aligned with its strategy and is focused on augmenting internal innovation with external growth [41] - Agilent's digital orders grew by 12% year over year to $295 million [16] Q&A Session Summary Question: Can you provide insights on order trends during the quarter? - Orders grew low single digits in Q2, with stable business across regions and no significant pull forward from pharma tariffs [47][48] Question: What are the expectations for the NASD and BioVectra businesses? - The CDMO business is seeing high single-digit growth, with confidence in double-digit growth for the second half of the year [50][53] Question: What was the impact of tariffs on consumables? - The $15 million of consumables pulled forward was due to customer anticipation of tariffs, with no overall revenue impact for Q2 [60][61] Question: How is the Infinity Tree replacement cycle performing? - The Infinity Tree ramp is strong, with positive customer feedback and increasing adoption rates [88][89] Question: What is the outlook for pricing in light of tariffs? - The company has achieved significant pricing contributions and expects to maintain pricing strategies to mitigate tariff impacts [83][85]

FINANCIAL RESULTS OVERVIEW Q2 FY2025 May 28, 2025 Thank You for Your Attention Safe Harbor (1) Core growth is reported growth adjusted for the effects of acquisitions and divestitures, and FX. (2) Presented on a non-GAAP basis; reconciliations to closest GAAP equivalent provided on Agilent's Investor Relations website. 03 This presentation contains forward- looking statements (including, without limitation, information, and future guidance on the company's revenue, revenue growth, earnings per share, operat ...