Company Overview - Agilent Technologies has undergone a busy and exciting year, implementing a new market-based strategy and establishing a new leadership team that is working effectively together [2] - The company has introduced a new market group structure to enhance its strategic outlook [2] Strategic Initiatives - Agilent is engaged in the Ignite Transformation, aimed at increasing overall company effectiveness, which is crucial in the current environment impacted by tariffs [3] - The company has deployed $1 billion of capital with BIOVECTRA, which is performing well and is expected to contribute positively to future growth [3] Market Position and Outlook - Agilent is positioned in growth markets with strong secular drivers, indicating a favorable market environment [3] - The company has reported standout business performance in the first quarter and anticipates continued success through the second half of the year [3]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $1.67 billion, representing a 6% reported growth and a 5.3% core growth compared to Q2 2024 [9][27] - Operating margin was 25.1%, absorbing some incremental tariff costs, and EPS was $1.31, growing 7% year over year [9][33] - Gross margin was 54.1%, down from the previous year due to tariffs, currency, and product mix [31] Business Line Data and Key Metrics Changes - The Agilent CrossLab Group reported revenue of $713 million, growing 9%, driven by double-digit growth in consumables and automation [28] - Life Sciences and Diagnostics Market Group revenue was $654 million, growing 3%, with high single-digit growth in pathology and NASD [29] - Applied Markets Group revenue was flat at $300 million, with growth in spectroscopy offset by declines in gas chromatography [29] Market Data and Key Metrics Changes - All regions experienced growth, with China leading at 10%, while the Americas grew low single digits and EMEA grew mid single digits [12] - India delivered high teens growth, prompting the opening of a new solution center [13] - PFAS testing grew over 70% year over year globally, with Europe and China more than doubling their business [15][16] Company Strategy and Development Direction - The company is executing its three-year Ignite transformation strategy, focusing on operational efficiency and tariff mitigation [11][20] - Agilent acquired BioVectra for approximately $1 billion to expand its CDMO capabilities [20] - The company is committed to innovation, launching new products in cell analysis and chromatography [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth prospects despite macroeconomic uncertainties, maintaining a core growth rate of 2.5% to 3.5% for the year [26][37] - The company is proactively managing tariff exposure and expects to fully mitigate costs by fiscal 2026 [25][39] - Management highlighted the importance of strategic pricing initiatives to maintain competitiveness [21][84] Other Important Information - Digital orders grew by 12% year over year, reaching $295 million [18] - The company is tracking over 350 regulations globally related to PFAS testing, anticipating significant market growth [16][22] - The board welcomed new members with extensive experience in the pharmaceutical and healthcare sectors [42] Q&A Session Summary Question: Order trends in the quarter - Management noted that orders grew low single digits in Q2, with a book-to-bill ratio greater than one, indicating stable business across regions [49][50] Question: Performance of NASD and BioVectra - Management expressed optimism about the CDMO business, with expectations for double-digit growth in the second half of the year [55] Question: Impact of tariffs on consumables - The $15 million of consumables pulled forward was due to customer anticipation of tariffs, with no overall revenue impact expected [63][64] Question: Differences in ordering patterns in pharma - The majority of business is in QAQC and development, with small molecule growth of 10% in the quarter [71] Question: PFAS regulation impacts - PFAS testing grew 75% year over year, with expectations for continued strong results despite regulatory uncertainties [73][75] Question: Reshoring and capacity build-outs - Discussions with pharma customers are early, with expectations for potential tailwinds in the next few years [82] Question: Pricing strategies - The company is on track for approximately 100 basis points of price realization for the year, aided by tariff mitigation activities [86][88]