Agilent Technologies — Third Quarter Fiscal Year 2026 Earnings Summary

Financial Performance

• Q3 2026 revenue was $1.88 billion, representing 8.1% reported growth and 7.3% core growth year-over-year compared to Q3 2025.
• GAAP operating margin was 23.6%, an expansion of 290 basis points year-over-year and 190 basis points sequentially.
• Non-GAAP operating margin was 28.3%, including an approximately 110 basis point net benefit from tariff refunds; this represents a 320 basis point year-over-year expansion and 190 basis points sequential expansion.
• GAAP net income was $362 million ($1.28 per share), an 8% increase from $336 million ($1.18 per share) in Q3 2025.
• Non-GAAP net income was $459 million ($1.62 per share), including a $17 million net benefit from tariff refunds; this is an 18% increase from $390 million ($1.37 per share) in Q3 2025.
• Nine-month 2026 GAAP net income was $1,006 million ($3.55 per share) compared to $869 million ($3.05 per share) in the prior year period.
• Nine-month 2026 net cash provided by operating activities was $1,064 million, compared to $1,014 million in the prior year period.
• Deferred revenue was $640 million as of July 31, 2026, up from $624 million as of October 31, 2025.
• Total debt was $3,949 million ($304 million short-term + $3,645 million long-term) as of July 31, 2026, compared to $3,354 million ($304 million short-term + $3,050 million long-term) as of October 31, 2025.

Guidance and Future Outlook

• Fiscal year 2026 revenue guidance is raised to $7.49 billion–$7.51 billion, representing 7.8%–8.1% reported growth and 5.8%–6.0% core growth.
• Non-GAAP fiscal year 2026 operating margin expansion at the midpoint of core revenue growth guidance is now expected to be over 130 basis points.
• Non-GAAP fiscal year 2026 EPS is raised to $6.18–$6.21, an increase of 15 cents at the midpoint versus prior guidance.
• Q4 2026 revenue is expected to be $1.98 billion–$2.0 billion, representing 6.4%–7.4% reported growth and 5.2%–6.2% core growth.
• Q4 2026 Non-GAAP EPS is expected to be $1.71–$1.74 per share; this guidance excludes any future benefit from tariff refunds.
• Future amortization of intangibles is expected to be approximately $27 million per quarter.

Business Segments and Product Lines

• Life Sciences and Diagnostics Markets Group (LDG) reported Q3 revenue of $746 million (11% reported, 10% core growth) with an operating margin of 23.5%.
• Agilent CrossLab Group (ACG) reported Q3 revenue of $786 million (6% reported, 5% core growth) with an operating margin of 34.3%.
• Applied Markets Group (AMG) reported Q3 revenue of $346 million (7% reported, 7% core growth) with an operating margin of 24.9%.
• Management noted excellent customer response to innovative product launches and improving end markets.

Market and Competitive Landscape

• Management cited stronger demand in key regions and sustained momentum created by the company's strategy and execution discipline.
• The company operates in analytical and clinical laboratory technologies, delivering instruments, software, services, and expertise.

Risks and Challenges

• Forward-looking statements involve risks including unforeseen changes in customer business strength, product demand, currency markets, and purchasing timing.
• Risks include the ability to realize savings from integration and restructuring, ongoing competitive and pricing pressures, and the risk that cost-cutting may impair product development.
• Potential impacts from geopolitical uncertainties, global economic conditions, and changes to tariffs, import/export, or trade policies are noted.
• Risks include the ability of the supply chain to adapt to demand changes, successfully integrating recent acquisitions, and complying with complex regulations.

Management Commentary and Tone

• CEO Padraig McDonnell described the third-quarter performance as "exceptional," reflecting sustained momentum from strategy, execution discipline, and the compounding impact of the Ignite Operating System.
• Management expressed confidence in the increased outlook and the ability to sustainably outperform end markets.

Other Key Points

• Q3 2026 included a $17 million net benefit from tariff refunds ($0.06 per share).
• Nine-month 2026 cash used in investing activities was $1,202 million, primarily driven by $950 million in payments to acquire businesses and intangible assets.
• Nine-month 2026 cash provided by financing activities was $105 million, including $295 million in payments for repurchase of common stock and $216 million in payments of dividends.
• Agilent employs approximately 18,000 people worldwide.
• A conference call with investors was held on August 26, 2026, at 1:30 p.m. PT.