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Earnings call · Jul 2026 (Q3 FY26)

AGILENT TECHNOLOGIES Q3 FY26 earnings call A

Aug 26, 2026 Source

Executive summary

Agilent Q3 FY26 — Strong Top and Bottom Line Performance Driven by Ignite and Improving End Markets

Agilent delivered an excellent quarter, surpassing revenue and EPS guidance, primarily driven by the compounding benefits of its Ignite Operating System and improving end markets, particularly in China and Pharma. The company is seeing early benefits from reshoring initiatives and strong demand for new product launches, positioning it for continued momentum into year-end and FY27 despite some segment-specific headwinds.

Highlights

5

  • Revenue of $1.88 billion, growing 7.3% on a core basis, exceeded the high end of guidance by 140 basis points.

  • Operating margin of 27.2% (ex-tariff refunds) was 80 basis points ahead of implied guidance, demonstrating strong operating leverage.

  • Earnings per share of $1.56 (ex-tariff refunds) were $0.06 above the high end of guidance, representing robust year-over-year growth of 14%.

  • China revenue grew 9%, significantly exceeding flat expectations, driven by strong execution in pharma and food end markets.

  • Pharma segment grew 12%, well ahead of high single-digit expectations, with GLP-1 momentum delivering over 70% year-over-year growth.

Concerns

4

  • Diagnostics and Clinical grew 6%, slightly below high single-digit expectations, though underlying orders were robust.

  • Academic and Government, the smallest end market, declined 3%, modestly below expectations.

  • Europe grew low single digits on a tough year-over-year compare, with geopolitical disruption and delayed CapEx impacting some areas.

  • Advanced Therapeutics Division (ATD) is expected to have flattish growth in Q4 FY26 due to a tough year-over-year compare of over 40%.

Guidance & targets

CategoryTargetConfidence
Full-year FY26 Core Revenue Growth
5.8% to 6.0%
high materiality
High
Full-year FY26 Reported Revenue
$7.49 billion to $7.51 billion
high materiality
High
Full-year FY26 Adjusted EPS (ex-tariff refund)
$6.12 to $6.15
high materiality
High
Full-year FY26 Adjusted EPS (incl. tariff refund)
$6.18 to $6.21
high materiality
High
Full-year FY26 Operating Margin Expansion (ex-tariff refund)
over 100 basis points
medium materiality
High
Full-year FY26 Operating Margin Expansion (incl. tariff refund)
over 130 basis points
medium materiality
High
Full-year FY26 Operating Cash Flow
$1.6 billion to $1.7 billion
medium materiality
High
Full-year FY26 Capital Expenditures
approximately $450 million
medium materiality
High
Q4 FY26 Reported Revenue
$1.98 billion to $2.0 billion
high materiality
High
Q4 FY26 Core Revenue Growth
5.2% to 6.2%
high materiality
High
Q4 FY26 Adjusted EPS
$1.71 to $1.74
high materiality
High
Advanced Therapeutics Division (ATD) Growth
flattish growth
medium materiality
Medium
Train C Revenue Generation
begin next spring
medium materiality
High
Train C Ramp to Full Capacity
next 6 to 8 quarters
medium materiality
High
Pharma Reshoring Revenue Contribution
building in fiscal 2027 and beyond
high materiality
High
Full Year FY26 CAM Growth
high single-digit growth
medium materiality
High
Full Year FY26 AMG Growth
mid- to high single-digit growth
medium materiality
High
Full Year FY26 LDG Growth
mid- to high single-digit growth
medium materiality
High
Full Year FY26 China Growth
mid-single digits
high materiality
High
Full Year FY26 Asia ex China Growth
double digits
medium materiality
High
Full Year FY26 Europe Growth
low single-digit growth
medium materiality
High
Full Year FY26 Americas Growth
mid- to high single digit
medium materiality
High
CDMO Business Growth
mid-teens growth
medium materiality
High
Pharma Reshoring Market Opportunity
about $1 billion through 2030
high materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Total Company
Exceeded high end of guidance by 140 basis points. Reported growth was 8.1%.
$1.88 billion7.3% core——
Life Sciences and Diagnostics Markets Group (LDG)
Ahead of expectations, driven by LC and ATD. Cancer diagnostics business driven by strong growth in companion diagnostics and genomics.
LC growth: low double digitsSpecialty CDMO Advanced Therapeutic Division (ATD) growth: nearly 30%
—10% core——
Applied Markets Group (AMG)
Well ahead of low single-digit expectations, driven by strong demand for market-leading tools to support semiconductor production.
Spectroscopy growth: high single-digitVacuum growth: double-digit
—7% core——
Agilent CrossLab Group (ACG)
Modestly ahead of forecast, driven by strong performance in consumables. Ongoing installed base expansion will fuel future consumables uptake and service revenue growth.
Consumables growth: high single digitsService growth: mid-single digits
—north of 5% core——
China
Well ahead of flat expectations, driven by strong execution in pharma and food. Minimal stimulus benefit. Biotech grew double digits, small molecule grew mid-teens. Competitive wins in CXOs and PFAS testing.
Pharma growth: double-digitFood growth: double-digitAdvanced Materials growth: high teensSpectroscopy growth: double digitVacuum products growth: double digit
—9%——
Asia ex-China
Strong performance across end markets.
Pharma growth: robust double-digitCAM growth: robust double-digit
—9%——
Americas
Broad-based growth, exceeding high single-digit expectations. Academic & Government slightly declined.
Pharma growth: low to mid-teensDiagnostics and Clinical growth: low to mid-teensEnvironmental and Forensics growth: low to mid-teensBiotech growth: high teensSmall molecule growth: mid-single digits
—10%——
Europe
On a tough year-over-year compare. Pharma grew low single digits against a low double-digit compare. EMEA C&E down due to geopolitical disruption and delayed CapEx.
Diagnostics and Clinical growth: mid-single-digitCAM growth: mid-single-digitAcademic and Government growth: mid-single-digitPharma growth: low single digits
—low single digits——
Pharma
Well ahead of high single-digit expectations. Driven by stronger funding environment for small and mid-cap biotech customers and strong demand in Advanced Therapeutics Division.
Biotech growth: double digitsSmall molecule growth: mid-single digitsGLP-1 growth: more than 70%
—12%——
Chemicals and Advanced Materials (CAM)
Ahead of mid-single-digit guide. Advanced Materials led performance despite tough low double-digit year-over-year compare. C&E grew low single digits against a tough compare.
Advanced Materials growth: double-digitC&E growth: low single digits
—7%——
Diagnostics and Clinical
Just shy of high single-digit expectations. Robust double-digit order growth in pathology gives confidence in underlying demand. Underpinned by expanded Dako Omnis family.
Pathology order growth: robust double-digitCDx growth: mid-teensGenomics growth: high single digits
—6%——
Environmental and Forensics
Delivered 5% growth, exceeding expectations. PFAS grew 20% despite a low double-digit compare.
PFAS growth: 20%
—5%——
Food
Ahead of expectations for a low single-digit decline.
—roughly flat——
Academic and Government
Modestly below expectations. On an ex-China basis, the end market was up low single digits.
—-3%——

Product announcements

ProductTypeDetails
9500 Triple Quad ICP-MSlaunch
8890B and 8860B Flagship GC Systemslaunch
Altura Column Family Expansionexpansion
Omnis Familyexpansion
Raman Insight series (Insight BRT and Insight300)milestone

Deals & partnerships

Biocare Acquisition of clinically focused antibody menu.

Builds on momentum in pathology by expanding clinically focused antibody menu and complementing pathology offering. Business is off to a solid start, integration progressing well.

OpenAI and BCG X Partnership for enterprise AI strategy execution.

Mobilized partnership to advance solutions focused on the commercial customer journey and build the Agilent AI center of excellence.

Leading commercial testing customer (China) Lab automation software co-development.

Co-developing lab automation software ahead of building a fully automated lab in China.

Cutting-edge local biotech company (China) Leveraging AI to automate drug discovery workflows on Agilent instrument platforms.

Partnership generating positive momentum and strengthening R&D capabilities in AI and automation.

Risks & headwinds

Tough year-over-year compare for Advanced Therapeutics Division (ATD) Q4 FY26

over 40% compare

Mitigation:Management expects flattish growth in Q4, but Train C capacity is largely spoken for, supporting long-term mid-teens growth.

Geopolitical disruption and delayed CapEx in Europe Q3 FY26

Europe grew low single digits

Mitigation:Management views this as a regional issue, not indicative of broader trends, and expects low single-digit growth for full year FY26.

Middle East conflict and demand for memory chips Q4 FY26

pressure our costs

Mitigation:Ignite Operating System expected to deliver meaningful efficiencies and absorb inflationary impacts within Q4 outlook.

Rising material costs and supply chain headwinds Q3 FY26

null

Mitigation:Agile, regionally led distributed manufacturing model and AI-enabled supply chain control tower helped navigate these challenges without adding headcount.

Timing of regulatory-related submissions for CDMO customers Q4 FY26

null

Mitigation:Expected to impact Q4 ATD growth to be flattish, but these are timing issues with responses expected towards quarter-end.

What to watch in Q4 FY26

Advanced Therapeutics Division (ATD) Growth

Q4 FY26
Current nearly 30% (Q3 FY26)
Target Flattish growth (Q4 FY26)

Why it matters

To assess the impact of tough year-over-year comparisons and regulatory submission timing on this high-growth segment, and its implications for the long-term mid-teens growth target.

We expect flattish growth in ATD in the fourth quarter when the segment laps a tough year-over-year compare of over 40%.

Q&A highlights

Inquired about the strong growth in the specialty CDMO business (nearly 30% in Q3), its visibility into 2027, and the impact of GLP-1 demand and top NASD customers.

Management reiterated confidence in mid-teens growth over the long-range plan. Train C is mechanically complete and will start generating revenue next spring, ramping to full capacity over 6-8 quarters, with the majority of its capacity already booked. Q4 growth is expected to be flattish due to tough year-over-year compare and timing of regulatory submissions.

“our order book is really building very nicely, and we have the majority of our capacity available in Train C spoken for already.”

asked by Jack Meehan (Operon) · answered by Adam Elinoff

2 min read 6 chapters

Detailed narrative

Ignite Operating System Driving Performance

Agilent's Ignite transformation, initiated in late 2024, has expanded beyond strategic pricing and procurement to underpin all aspects of operations, innovation, and supply chain. This system is credited with strengthening the business, improving speed and agility, and delivering superior performance, as evidenced by the 200 basis points in strategic pricing contribution in Q3 and over 210 basis points of operating margin expansion year-over-year (ex-tariff refunds). Ignite also supports manufacturing excellence, supply chain agility, and digital initiatives, including AI integration.

Strong End Market Recovery and Commercial Execution

The company reported improving conditions across its largest end markets, with Pharma growing 12% (driven by biotech and GLP-1 momentum) and Chemicals and Advanced Materials (CAM) growing 7%. China saw a notable step-up with 9% growth, exceeding expectations, fueled by pharma, food, and competitive wins. This performance is attributed to strong commercial execution, a differentiated portfolio, and best-in-class service, leading to share gains.

Innovation Engine and New Product Momentum

Agilent's innovation engine is delivering new products that strengthen its installed base and drive recurring revenue. Recent launches like the 9500 ICP-MS, 8890B/8860B GC systems, and the expanded Altura column family are tracking ahead of plan, with strong demand across regions. The 9500 ICP-MS funnel already exceeds $60 million, and GC orders exceeded expectations by more than 2x in the first two months. The Altura family is driving a "land-and-expand" dynamic in customer accounts, with 28% quarter-over-quarter growth in new biopharma Altura column adoptions.

Reshoring Opportunities in Pharma and Semiconductor

Early gains from reshoring dynamics are materializing, particularly in pharma and semiconductor sectors, presenting a multi-year instrument growth opportunity. Agilent booked initial pharma reshoring orders in Q3, ahead of expectations, securing orders from 5 of the top 10 global pharma companies. The semiconductor reshoring, combined with AI CapEx build-out, is expected to underpin robust growth in the advanced materials end market.

Advanced Therapeutics Division (ATD) Expansion

The specialty CDMO Advanced Therapeutics Division grew nearly 30% in Q3, reflecting strong demand and disciplined execution. The mechanical completion of Train C build-out positions the company to begin revenue generation from the new facility next spring, with the majority of its capacity already spoken for. This expansion is expected to drive mid-teens growth over the long-range plan period.

Sustainability and ESG Achievements

Agilent highlighted significant progress in sustainability, including being named among TIME's World's Most Sustainable Companies and Newsweek's World's Greenest Companies in 2026. The company also achieved an MSCI ESG upgrade from AA to AAA, joined the United Nations Global Compact, and received an award for its Infinity III LC, demonstrating a programmatic embedding of sustainability across its operations and product design.

AI-generated summary of the company's earnings call. Not investment advice.