Agilent Technologies, Inc.

Agilent reported Q2 fiscal 2026 revenue of $1.83 billion, up 10% reported and 6.3% core/organic constant currency. Gross margin was 55%, up 90 basis points year over year, and operating margin was 26.4%, up 130 basis points year over year and 180 basis points sequentially. EPS was $1.49, up 14% year over year, with diluted shares of 283 million and a tax rate of 14.5%. Operating cash flow was $277 million, capex was $76 million, net leverage was 0.7 turns, and the company returned $65 million via buybacks and $72 million via dividends. For FY26, Agilent raised reported revenue guidance to $7.39 billion to $7.49 billion and core growth to 4.5% to 6%, with EPS guided to $6.00 to $6.10; operating margin expansion is now targeted at 85 bps at the midpoint, operating cash flow remains $1.6 billion to $1.7 billion, and capex is now expected to be about $450 million. For Q3, revenue is guided to $1.83 billion to $1.85 billion and EPS to $1.48 to $1.50.

Padraig McDonnell framed the quarter as evidence that Agilent’s operating transformation is producing durable top- and bottom-line benefits. He emphasized share gains, customer intimacy, innovation, and the Ignite operating system as the core drivers, and pointed to upcoming launches at ASMS, the Biocare acquisition, and China innovation investments as part of the growth strategy. His tone was notably confident, with repeated comments that the company is outperforming and that improvements are becoming structurally embedded.

Adam Elinoff highlighted that Q2 performance was driven by 55% gross margin, 26.4% operating margin, volume leverage, Ignite efficiencies, and favorable geographic mix, with pricing contributing roughly 200 bps. He said the tariff task force fully mitigated the incremental tariffs that began in late spring, and that manufacturing overhead fell by more than 50 bps versus last year. On capital allocation, he cited $277 million of operating cash flow, $76 million of capex, $65 million of share repurchases, $72 million of dividends, and a 0.7-turn net leverage ratio; he also noted no change to the $1.6 billion to $1.7 billion operating cash flow outlook and a lower capex plan of about $450 million.

Analysts pressed on whether instrument strength masked weakness in some areas, how durable CAM growth is amid Middle East uncertainty, and what is driving the big margin beat. Management said CAM was 8% in Q2, strength was broad across chemicals and advanced materials, and they are not yet seeing a slowdown from the Middle East; on margins, they pointed to pricing, execution, procurement savings, and volume leverage, with a normal H2 ramp still expected. Other questions focused on advanced therapeutics visibility, diagnostics momentum, China softness, food weakness, and spectroscopy replacement cycles; management said visibility into the second half of advanced therapeutics is strong, Omnis and assay attachments are ramping well, China was stable on a first-half basis, food was hurt by delayed government funding in Asia, and spectroscopy and GC replacement cycles remain supportive.