Agilent Reports Financial Results from Q1 of 2025

On February 26, 2025, Agilent Technologies released financial results from first-quarter fiscal year 2025, which ended in January (1). For the first quarter of 2025, the company reported $1.68 billion in revenue at a 25.1% operating margin (2).

Laptop computer displaying logo of Agilent Technologies | Image Credit: © monticellllo - stock.adobe.com

The company’s revenue was spread across the world with 40% coming from the Americas, 27% from Europe, and 33% from the Asia-Pacific region. The company’s finances were also divided between its various divisions. The Life Sciences and Diagnostics Markets Group (LDG), which provides a wide portfolio of technology platforms and solutions to serve Agilent customers' value chain, such as therapeutic production and the development of critical cancer diagnostics, reported $647 million in revenue, a 4% increase in reported growth (2,3). This exceeded expectations on high-single digit (HSD) growth performance in liquid chromatography (LC) and liquid chromatography–mass spectrometry (LC–MS), likely due to positive reception to the company’s newly released LC platform.

Applied Markets Group (AMG), which primarily focuses on the food, environmental, and advanced materials markets, among others, accrued $338 million in revenue; while this is a 4% decrease in reported growth, the company claims this division “[delivered] better than expected revenue versus a very challenging Q1’24 comparison, impacted by the timing of Lunar New Year,” and strong future growth remains expected (2,3). Finally, the Agilent CrossLab Group (ACG) brought in $696 million in revenue with a 1% increase in reported growth, bearing solid mid-single digit growth in providing services and HSD growth in contract revenue.

Padraig McDonnell, president and chief executive officer (CEO) of Agilent, said the company exceeded expectations for core revenue growth and earnings per second (EPS) (1). The company has been working on multiple strategies for growth, including strategic price setting, improving digital ecosystem, and identifying procurement opportunities.

“We have made meaningful improvements to our website, upgrading the user experience on our e-commerce platform by making it easier to find and purchase the products our customers need, helping topline growth. In Q1, our progress continued with digital orders growing high single digits,” McDonnell said. “Our procurement teams have challenged our historical approach and are identifying significant cost-savings opportunities in many of Agilent’s functions.”

Regionally, performance in the Americas grew 3%, Europe 2%, and Asia outside of China grew 2%, all of which were slightly ahead of expectations. While revenue in China declined 4%. Gross margin was 54.7% in the quarter, with operating margins of 25.1%. Altogether, Q1 EPS were $1.31, ahead of expectations and up 2% from Q1 2024. In addition to the discussions on their financial bearings for Q1 2025, Agilent also released documents revealing their financial information from this quarter (5).

The company will be guiding to revenue of $1.61–1.65 billion, approximately an increase of 2.5 to 5.0 percent growth on a core basis and an increase of 2.4 to 4.9% growth on a reported basis (1). Second-quarter non-Generally Accepted Accounting Principles (GAAP) EPS are expected to be between $1.25 and $1.28, representing a growth range of 2.5–4.9% (5).

McDonnell also highlighted the company’s recognition as a member of the Global Lighthouse Networks. The World Economic Forum named the companies’ factories in Shanghai, China, and Penang, Malaysia, as part of the networks (6). This recognizes the company’s work in scaling artificial intelligence (AI), 3D printing, robotics, big-data analytics, and industrial internet of things (IIoT). According to the initial press release, Agilent remains the sole analytical and clinical laboratory technology company worldwide to be recognized by the Forum.

“In less than nine months, we’ve made incredible changes that are improving our customers’ productivity in an era when the pace of science is faster than ever… the outcome we’re enabling is faster decision-making so that we can accelerate innovation and create differentiated growth,” McDonnell said. “What we are doing at Agilent is turning a good company into a great one. We are committed to continuous improvement and adapting to changing market dynamics.”

References

(1) Agilent Technologies First Quarter Fiscal 2025 Conference Call Prepared Remarks. Agilent 2025. https://s24.q4cdn.com/305549747/files/doc_earnings/2025/q1/transcript/Q1-25-Prepared-Remarks-Final.pdf (accessed 2025-3-10)

(2) Agilent Announces New Organizational Structure to Support its Market-Focused Strategy. Agilent 2024. https://www.agilent.com/about/newsroom/presrel/2024/25nov-gp24027.html (accessed 2025-2-18)

(3) Agilent Technologies: Q1 FY2025 Financial Results Overview. Agilent 2025. https://s24.q4cdn.com/305549747/files/doc_earnings/2025/q1/presentation/Q1-2025-Results-Presentation_Final.pdf (accessed 2025-3-10)

(4) Agilent Technologies, Inc. Financial Information Index of Schedules. Agilent 2025. https://s24.q4cdn.com/305549747/files/doc_earnings/2025/q1/supplemental-info/Q1-25-Financial-Information-Final.pdf (accessed 2025-3-11)

(5) Fernando, J. Generally Accepted Accounting Principles (GAAP): Definition and Rules. Investopedia 2024. https://www.investopedia.com/terms/g/gaap.asp (accessed 2025-2-18)

(6) Two Agilent Factories Among 13 to Join World Economic Forum Lighthouse Network. Agilent 2025. https://www.agilent.com/about/newsroom/presrel/2025/14jan-gp25001.html (accessed 2025-3-11)