Core Insights - Agilent reported Q2 revenue of $1.67 billion, a 6.0% increase compared to Q2 2024, with core business growth of 5.3% [1] - GAAP net income for Q2 was $215 million, or $0.75 per share, down from $308 million, or $1.05 per share in Q2 2024 [1] - Non-GAAP net income for the quarter was $373 million, or $1.31 per share, compared to $356 million, or $1.22 per share in the same period last year [1] - The CEO highlighted the success of the Ignite transformation as a key driver of financial performance [1] Business Segment Performance - AMG segment revenue was $301 million, a decline of 1.3% year-over-year and 10.9% quarter-over-quarter [1] - LDG segment revenue reached $654 million, an increase of 8.3% year-over-year and 1.1% quarter-over-quarter [1] - ACG segment revenue was $713 million, showing a year-over-year growth of 7.4% and a quarter-over-quarter increase of 2.4% [1] Fiscal Year and Q3 Outlook - The full-year revenue outlook is between $6.73 billion and $6.81 billion, representing a growth of 3.4% to 4.6%, with core revenue growth of 2.5% to 3.5% [2] - Q3 revenue is projected to be between $1.645 billion and $1.675 billion, with a report growth of 4.2% to 6.1% and core growth of 1.7% to 3.6% [2] - Non-GAAP earnings per share for Q3 are expected to be between $1.35 and $1.37 [2]

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]