Agilent Q4 Earnings Match Estimates, Revenues Up Y/Y, Shares Fall

Core Insights - Agilent Technologies reported fourth-quarter fiscal 2025 earnings of $1.59 per share, matching the Zacks Consensus Estimate, with an 8.9% year-over-year increase [1] - Revenues reached $1.86 billion, exceeding the Zacks Consensus Estimate by 1.49%, reflecting a 9.4% increase on a reported basis and a 7.2% increase on a core basis year over year [1] Revenue Breakdown - The Life Sciences and Diagnostics Markets Group (LDG) generated $755 million, accounting for 40.6% of total revenues, with a 15% increase on a reported basis and an 11% rise on a core basis year over year [2] - The Agilent CrossLab Group (ACG) also reported revenues of $755 million, representing 40.6% of total revenues, with a 7% increase on a reported basis and a 6% increase on a core basis year over year [3] - The Applied Markets Group (AMG) saw revenues increase by 4% year over year to $351 million on a reported basis and 3% on a core basis, making up 18.9% of total revenues [3] Operating Results - The gross margin for the LDG segment contracted by 90 basis points year over year to 52.9%, while ACG's gross margin decreased by 140 basis points to 54.9%, and AMG's gross margin fell by 40 basis points to 54.6% [4] - Non-GAAP operating margin for the fourth quarter was 27.1%, down 30 basis points year over year [6] - LDG's operating margin increased by 130 basis points to 22.7%, while ACG's margin fell by 130 basis points to 32.5%, and AMG's margin contracted by 70 basis points to 24.7% [6] Expenses - Research and development (R&D) expenses on a non-GAAP basis were $116 million, up 6.4% from the prior-year quarter, while selling, general and administrative (SG&A) expenses rose to $386 million, marking a 6.6% increase [5] - As a percentage of revenues, R&D expenses fell by 20 basis points to 6.2%, and SG&A expenses decreased by 50 basis points to 20.7% year over year [5] Balance Sheet - As of October 31, 2025, Agilent's cash and cash equivalents were $1.78 billion, an increase from $1.54 billion as of July 31, 2025 [7] - Long-term debt decreased to $3.05 billion from $3.35 billion as of July 31, 2025 [7] Guidance - For Q1 fiscal 2026, Agilent expects revenues between $1.79 billion and $1.82 billion, indicating a rise of 6% to 8% on a reported basis and 4% to 6% on a core basis, with non-GAAP earnings projected between $1.35 and $1.38 per share [9] - For fiscal 2026, the company anticipates revenues between $7.3 billion and $7.4 billion, implying a 5-7% increase on a reported basis and 4-6% on a core basis, with non-GAAP earnings expected between $5.86 and $6.00 per share [10]