Agilent Technologies-Agilent Q2 Earnings Beat Estimates, Revenues Up Y/Y, Shares Rise

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]