Agilent Technologies(A)2025-05-30 23:02Revenue Performance - Net revenue for the three and six months ended April 30, 2025, was 3,349 million, representing increases of 6% and 4% year-over-year, respectively[150]. - Revenue from the Life Sciences and Diagnostics Markets segment increased by 8% and 6% for the three and six months ended April 30, 2025, respectively[150]. - The Agilent CrossLab segment saw revenue growth of 7% and 4% for the same periods, while the Applied Markets segment experienced declines of 1% and 3%[150]. - Total net revenue for the three months ended April 30, 2025, was 3,349 million, a 4% increase[167]. - Product revenue for the three and six months ended April 30, 2025, increased by 5% and 2%, respectively, driven by growth in consumables and liquid chromatography[168][169]. - Services and other revenue for the three and six months ended April 30, 2025, increased by 8% and 7%, respectively, with strong growth in contract repair and preventative maintenance services[170]. - Revenue in the Life Sciences and Diagnostics Markets segment increased by 8% and 6% for the three and six months ended April 30, 2025, respectively, with a significant contribution from the BIOVECTRA business[171]. - Revenue for the six months ended April 30, 2025 increased 6% to 1,224 million in the same period last year[191]. - Revenue in the Americas for the three months ended April 30, 2025 increased 12%, driven by the BIOVECTRA acquisition and strong growth in pathology and companion diagnostics businesses[192]. - Revenue growth in Asia Pacific for the three months ended April 30, 2025 increased 12%, driven by higher demand in China within the consumables business[205]. - Revenue for the three months ended April 30, 2025, increased significantly across all end markets, with strong growth in the pharmaceutical, chemicals and advanced materials, food, and environmental and forensics markets compared to the same period last year[208]. - For the six months ended April 30, 2025, revenue increased significantly in the chemicals and advanced materials, food, environmental and forensics, and diagnostics and clinical markets, while it was flat in the academia and government market[209]. Financial Performance - Net income for the same periods was 533 million, down from 656 million in the prior year[151]. - Cash provided by operations for the six months ended April 30, 2025, was 818 million in the same period last year[151]. - Total gross margin for the three and six months ended April 30, 2025, decreased by 2 percentage points to 51.9% and 52.7%, respectively, impacted by product mix and higher costs[174]. - Income from operations decreased by 71 million (10%) for the three and six months ended April 30, 2025, respectively, despite revenue increases[178]. - Interest income for the three months ended April 30, 2025, was 19 million in the same period last year, primarily due to lower cash balances[179]. - The effective tax rate for the three and six months ended April 30, 2025, was 17.3% and 15.0%, respectively, with total income tax expense of 94 million[185]. - Gross margin for the three months ended April 30, 2025 decreased by 2 percentage points to 52.8% compared to 55.1% in the same period last year[198]. - Operating margin for the three months ended April 30, 2025 increased by 1 percentage point to 19.7% compared to 19.0% in the same period last year[202]. - Gross margin for the three and six months ended April 30, 2025, decreased by 1 percentage point to 55.5% and 55.8%, respectively, impacted by unfavorable currency movements and higher costs[211]. - Income from operations for the three months ended April 30, 2025, increased by 14 million or 3%, corresponding to revenue increases of 59 million, respectively[216]. Expenses and Cost Management - Selling, general and administrative expenses increased by 19% and 11% for the three and six months ended April 30, 2025, respectively, due to higher restructuring expenses and corporate infrastructure costs[176]. - Research and development expenses for the three months ended April 30, 2025 decreased 7% to 64 million in the same period last year[199]. - Selling, general and administrative expenses for the three months ended April 30, 2025 increased 2% to 154 million in the same period last year[201]. - Research and development expenses for the three months ended April 30, 2025, increased by 2%, while for the six months, they decreased by 3% compared to the same periods last year[212]. - Selling, general and administrative expenses for the three and six months ended April 30, 2025, increased by 3% in both periods compared to the same periods last year[214]. - A restructuring plan was announced in fiscal year 2025, with an estimated reduction of 80 million in annual costs across all business segments[161]. - The total restructuring expense since the inception of all plans amounted to 0.248 per share, totaling 165 million during the three months ended April 30, 2025, with remaining authorization to repurchase approximately 255 million during the six months ended April 30, 2025, under its 2023 repurchase program[239]. - The board of directors declared a quarterly dividend of 70 million, to be paid on July 23, 2025[242]. Cash Flow and Liquidity - As of April 30, 2025, the company had cash and cash equivalents of 1,329 million as of October 31, 2024[231]. - Net cash provided by operating activities was 818 million for the same period in 2024[233]. - Accounts receivable used cash of 44 million in the same period in 2024[234]. - Net cash used in investing activities was 204 million in the same period of 2024[236]. - Investments in property, plant, and equipment were 193 million in the same period of 2024[237]. - Net cash used in financing activities was 531 million in the same period of 2024[238]. Market and Economic Factors - Future revenue may be impacted by recent tariff changes, although the company expects to mitigate these effects by the end of fiscal year 2025[155]. - The company anticipates that recent tariff changes will adversely impact costs of revenue in the second half of fiscal year 2025 but expects to mitigate the impact by the end of the fiscal year[197]. - Approximately 48% of the company's revenue was generated in U.S. dollars during the six months ended April 30, 2025[253]. - The overall effect of changes in foreign currency exchange rates had an unfavorable impact on revenue growth of 1 percentage point in the six months ended April 30, 2025[253]. Workforce and Organizational Changes - Headcount increased to approximately 18,000 as of April 30, 2025, compared to approximately 17,600 a year earlier[180]. - The company is optimistic about long-term growth opportunities in applied markets and plans to continue investing in expanding and improving application-focused solutions[224].