Agilent Technologies(A) - 2025 Q1 - Quarterly Report

Financial Performance - Net revenue for the three months ended January 31, 2025, was $1,681 million, representing a 1$318 million, down from $348 million in the same period last year[133]. - Cash provided by operations was$431 million for the three months ended January 31, 2025, compared to $485 million in the same period last year[133]. - Total net revenue for the three months ended January 31, 2025, was$1,681 million, representing a 1% increase compared to $1,658 million in the same period last year[150]. - Income from operations for the three months ended January 31, 2025, decreased by$8 million or 2% to $376 million, despite a revenue increase of$23 million[158]. - Income from operations for the three months ended January 31, 2025, increased by $3 million or 3$27 million[177]. Revenue Segmentation - Revenue from the Life Sciences and Diagnostics Markets segment increased by 4% year-over-year, while the Applied Markets segment saw a decrease of 4%[131]. - Revenue in the Life Sciences and Diagnostics Markets segment increased by 4% to $647 million, while the Agilent CrossLab segment saw a 1$696 million; however, the Applied Markets segment experienced a 4% decline to $338 million[150][151][152]. - Revenue in the Americas increased by 10$113 million, while selling, general and administrative expenses increased by 3% to $410 million[153][155][156]. - Research and development expenses decreased by 7$26 million for the three months ended January 31, 2025, primarily due to lower salary expenses[185]. - Selling, general and administrative expenses increased by 3% to $143 million for the three months ended January 31, 2025, due to higher corporate infrastructure expenses[186]. - Operating margin for the three months ended January 31, 2025, decreased to 31.8$0.248 per common share, totaling $71 million, during the three months ended January 31, 2025[134]. - The 2023 share repurchase program authorized the purchase of up to$2.0 billion of common stock, with $90 million spent to repurchase 649,857 shares in the three months ended January 31, 2025[136]. - The company repurchased and retired 649,857 shares for$90 million under the 2023 repurchase program during the three months ended January 31, 2025, with remaining authorization to repurchase approximately $284 million[206]. - Cash dividends paid during the three months ended January 31, 2025, were$0.248 per common share, totaling approximately $71 million, compared to$0.236 per share or $69 million in the same period of 2024[208]. Cash Flow and Investments - Net cash provided by operating activities was$431 million for the three months ended January 31, 2025, compared to $485 million for the same period in 2024[200]. - Net cash used in investing activities was$94 million for the three months ended January 31, 2025, compared to $95 million in the same period of 2024[203]. - Investments in property, plant and equipment were$97 million for the three months ended January 31, 2025, compared to $90 million in the same period of 2024, with total capital expenditures expected to be approximately$450 million for the current year[204]. - Net cash used in financing activities for the three months ended January 31, 2025, was $180 million, a decrease from$240 million in the same period of 2024[205]. Market Outlook and Strategy - The company anticipates a steady recovery in customer capital budgets and remains optimistic about the long-term health of key end markets[137]. - The company remains optimistic about long-term growth opportunities, particularly in the life sciences and diagnostics markets, and plans to continue investing in research and development[171]. - Restructuring plans are expected to result in approximately $100 million in annual cost savings across all business segments[141]. - The organizational structure was changed in November 2024 to support a market-focused strategy, resulting in a new segmentation of business units[165]. Foreign Currency Impact - Foreign currency movements negatively impacted revenue growth by 2 percentage points for the three months ended January 31, 2025[146]. - Approximately 47$4 million, which included a net gain of $1 million on equity securities[160]. - The effective tax rate for the three months ended January 31, 2025, was 13.4$49 million, compared to 13.6% and $55 million in the same period last year[162]. - As of January 31, 2025, the company had no borrowings outstanding under its$1.5 billion unsecured credit facility and $750 million incremental revolving credit facility[210]. - Under the U.S. commercial paper program, the company borrowed$301 million and repaid $331 million during the three months ended January 31, 2025, with$10 million outstanding as of January 31, 2025[213]. - The company had commitments for indirect material and services increased by $12 million to$148 million, while commitments to contract manufacturers and suppliers decreased by $38 million to$603 million[217]. - There were no changes in internal control over financial reporting during the quarter ended January 31, 2025, that materially affected the company's internal control[226].