Agilent stock shows market strength as KeyBanc reiterates Sector Weight

Investing.com - KeyBanc has reiterated its Sector Weight rating on Agilent (NYSE:A) following the company’s third-quarter 2025 earnings beat for the period ending July. According to InvestingPro data, Agilent maintains a GOOD financial health score, with particularly strong profitability metrics. The company currently trades above its Fair Value, suggesting investors should carefully consider entry points.

The life sciences company demonstrated balanced global performance with revenue distributed evenly across the United States, Europe, and Asia, particularly China. Agilent reported 9% growth in pharmaceutical markets and 10% growth in its Chemical & Advanced Materials segment.

Within the pharmaceutical sector, small molecule products achieved double-digit growth driven by downstream quality assurance/quality control demand and strong clinical trial performance. The company also noted stabilization in China and improved capital spending in the Americas, which grew 5% year-over-year.

Agilent’s Academia & Government end market, representing 9% of fiscal year 2024 revenue, returned to modest growth despite ongoing funding pressures. The company highlighted its ignite enterprise model, which is expected to deliver positive pricing of 100 basis points for fiscal year 2025, more than double the 50 basis points achieved in fiscal year 2024.

KeyBanc analysts believe a broader reset for capital equipment remains ongoing, noting that continuing improvement is needed for Agilent to achieve the higher end of its long-term growth goal of 5-7%. With robust free cash flow of $1.19 billion and strong liquidity metrics, InvestingPro analysis shows the company is well-positioned to navigate this transition period. Discover 8 additional exclusive InvestingPro Tips and comprehensive valuation metrics in our detailed Pro Research Report, available to subscribers.

In other recent news, Agilent Technologies reported its third-quarter earnings for 2025, with revenue reaching $1.74 billion, surpassing the anticipated $1.67 billion. The company also met earnings per share (EPS) expectations at $1.37. This marks a continuation of Agilent’s strong revenue growth, as highlighted by TD Cowen, which maintained its Buy rating and $150 price target for the company. TD Cowen noted that Agilent’s organic growth in the fiscal third quarter was 6.1%, significantly above the consensus expectation of 3.6%.

Additionally, Bernstein SocGen Group reiterated its Market Perform rating with a $125 price target, emphasizing Agilent’s fifth consecutive quarter of sequential core revenue acceleration. Analyst Eve Burstein from Bernstein highlighted the widespread improvement across Agilent’s business segments, signaling a continued market recovery. These developments reflect Agilent’s robust performance and positive outlook from analysts.

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