Agilent Technologies, Inc. reported first‑quarter fiscal 2026 results that included $1.80 billion in revenue, a 7.0% increase in reported terms and a 4.4% rise in core terms compared with the same period a year earlier. Net income on a GAAP basis was $305 million, or $1.07 per share, while non‑GAAP net income was $386 million, or $1.36 per share. The company raised its full‑year 2026 revenue outlook to $7.30 billion–$7.50 billion and its non‑GAAP EPS guidance to $5.90–$6.04 per share, maintaining the prior guidance range.
The quarter’s revenue fell $10 million short of the consensus estimate of $1.81 billion, a miss largely attributable to a $10 million adverse impact from a U.S. snowstorm that hit the company’s operations in the final week of January. Segment performance was mixed: the CrossLab Group grew 9% reported and 6% core, the Applied Markets Group grew 7% reported and 4% core, and the Life Sciences and Diagnostics Markets Group grew 5% reported and 3% core. Growth in the GLP‑1 business (50%) and specialty CDMO (low double‑digit) helped offset softness in academia and government markets.
The non‑GAAP EPS of $1.36 missed the consensus estimate of $1.37 by $0.01, a miss of roughly 0.5%. The miss reflects both the $10 million revenue shortfall and a 50‑basis‑point decline in operating margin to 24.6% from 25.1% a year earlier, driven by tariff expenses and normalized performance‑based pay. Non‑GAAP gross margin fell 100 basis points to 53.7% from 54.7% a year earlier, primarily due to tariff headwinds. GAAP net income was $305 million, slightly below the $318 million reported in the same quarter of 2025.
Padraig McDonnell, CEO, said the company had a “solid start to the year” and that “on a normalized basis, excluding the weather‑related impact, first‑quarter results would have exceeded the midpoint of our guidance.” He highlighted continued momentum in the instrument‑replacement cycle, strong engagement in Enterprise Services, and innovation across the portfolio, noting that the Ignite operating system would help sustain growth. CFO Adam Elinoff added that the company now expects $5.90–$6.04 of earnings per share in FY 2026, a $0.04 increase due to favorable currency impact, and that operating margin was in line with expectations despite tariff‑related pressure.
The results underscore a mix of tailwinds and headwinds. Favorable currency movements and the launch of new products such as Altura columns and Pro IQ LCMS support revenue growth, while tariff expenses and performance‑based pay compress margins. The company’s focus on the Ignite operating system and its strong performance in pharma, biotech, and advanced materials markets suggest resilience, though softness in academia and government markets remains a concern. The raised full‑year guidance signals management confidence in sustaining core growth of 5.5%–7.5% reported and 4%–6% core for the year.
Market reaction to the earnings was mixed. Some analysts noted that the raised full‑year guidance and the company’s confidence in its operating system offset the Q1 miss, while others highlighted the impact of the snowstorm and margin compression as potential concerns. Overall, the market viewed the guidance as a positive sign of management’s confidence in the company’s trajectory.
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