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Introduction & Market Context
Agilent Technologies Inc (NYSE:A) presented its third-quarter fiscal year 2025 financial results on August 27, 2025, showcasing stronger-than-expected performance and raising its full-year outlook. The laboratory instrument and consumables maker reported its fifth consecutive quarter of accelerating core growth, building on momentum seen in its Q2 results.
The company’s shares, which closed at $118.30 in regular trading, gained an additional 0.17% to $118.50 in after-hours trading following the presentation. This modest gain adds to Agilent’s recovery from its 52-week low of $96.43, though the stock remains below its 52-week high of $153.84.
Quarterly Performance Highlights
Agilent reported Q3 FY25 revenue of $1.74 billion, exceeding guidance by more than $60 million. This represents a reported growth of 10.1% and core growth of 6.1% year-over-year. Earnings per share reached $1.37, up 4% from the previous year and at the high end of the company’s guidance range.
As shown in the following financial highlights:
The company maintained a stable operating margin of 25.1%, consistent with the first half of fiscal 2025. Operating cash flow was strong at $362 million, allowing Agilent to return capital to shareholders through $85 million in share repurchases (0.7 million shares) and $71 million in dividends, while also investing $103 million in capital expenditures.
Agilent’s growth momentum has been building throughout fiscal 2025, with the company now reporting five consecutive quarters of accelerating core growth:
This consistent acceleration has prompted management to raise its full-year core growth outlook to 4.5%, representing a 150 basis point increase from previous guidance.
Segment and Geographic Analysis
Agilent’s performance was solid across all three of its business segments. The Life Sciences and Diagnostics Group (LDG) led with 7% core growth and a 17.6% operating margin. The Agilent CrossLab Group (ACG), which includes services and consumables, delivered 5% core growth with the highest operating margin at 33.3%. The Agilent Molecular and Cell Analysis Group (AMG) also achieved 5% core growth with a 21.8% operating margin.
The following segment breakdown highlights key drivers for each business unit:
Geographically, Agilent demonstrated balanced growth across all regions. The Americas, representing 39% of total revenue, grew by 5%. Europe and Asia-Pacific, accounting for 28% and 33% of revenue respectively, both delivered stronger growth at 7%.
The company’s global footprint is illustrated in this geographic breakdown:
End-Market Performance
Agilent’s diversified end-market exposure showed varying performance across sectors. The pharmaceutical market, which represents 36% of Agilent’s revenue, grew by 9%, continuing the strong momentum seen in previous quarters. Chemicals & Advanced Materials also performed exceptionally well with 10% growth, comprising 23% of total revenue.
The food sector showed solid growth at 7%, while Diagnostics & Clinical grew by 4%. Academia & Government posted modest growth of 1%. The only declining segment was Environmental & Forensics, which contracted by 5%.
The following chart details the performance across all end markets:
Agilent’s revenue mix continues to shift toward more recurring revenue streams, with Consumables, Services & Informatics now representing 66% of total revenue, up 100 basis points year-over-year, while Instruments account for the remaining 34%.
Innovation and Growth Strategy
Agilent highlighted its innovation pipeline as a key driver of growth, showcasing three significant product developments. These include next-generation liquid chromatography systems with strong adoption and mid-teens growth, a new single-quad LC/MS system ahead of launch, and the Dako Omnis Family for automated cancer diagnostics.
The company’s product innovation strategy is illustrated here:
This focus on innovation aligns with comments made by CEO Porek McDonald during the Q2 earnings call, where he emphasized the company’s Ignite transformation program as "the backbone of our operating system" and expressed confidence in Agilent’s long-term prospects.
Forward Guidance
Based on its strong Q3 performance, Agilent raised its full-year fiscal 2025 guidance. The company now expects net revenue between $6,910 million and $6,930 million, with core revenue growth of 4.3% to 4.6%. Full-year EPS is projected to be between $5.56 and $5.59.
The updated full-year guidance is detailed here:
For the fourth quarter of fiscal 2025, Agilent projects net revenue of $1,822 million to $1,842 million, representing core revenue growth of 4.8% to 6.0%. Q4 EPS is expected to be between $1.57 and $1.60.
The company also provided additional financial projections, including $1.5-1.6 billion in operating cash flow for the full year, $282 million in dividends, and $450 million in capital expenditures.
Market Reaction and Conclusion
Agilent’s Q3 results and raised guidance reflect the company’s continued execution of its growth strategy amid varying market conditions. The consistent acceleration in core growth over five consecutive quarters demonstrates resilience and effective management of its diverse business portfolio.
The modest after-hours stock movement suggests investors had already priced in some of the positive developments, following the 6% stock price increase after the Q2 results when the company first showed signs of accelerating growth. However, the raised guidance and strong performance across most segments and geographies position Agilent well for continued momentum through the remainder of fiscal 2025.
With its balanced geographic presence, diverse end-market exposure, and increasing shift toward recurring revenue streams, Agilent appears well-positioned to navigate market uncertainties while continuing to invest in innovation to drive long-term growth.
Full presentation:
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