A Agilent Technologies

Agilent Technologies (NYSE:A) saw its stock rise over 5% in pre-market trading on Thursday after the company released stronger-than-expected second-quarter results and reaffirmed its full-year guidance for fiscal 2025, despite ongoing challenges such as tariff-related costs and mixed performance across different customer sectors.

The company posted revenue of $1.67 billion for the quarter, topping analyst projections of $1.63 billion. Organic growth came in at 5.3%, surpassing the company’s forecast range of 2.5% to 5%. Adjusted earnings per share also exceeded Wall Street’s expectations.

Analysts at TD Cowen attributed the performance in part to customers accelerating purchases ahead of new U.S.-China tariffs, although shipping bottlenecks at ports slightly tempered the full benefit. Still, TD Cowen noted the result as “a clean beat.”

China was a standout, with revenue from that region climbing 10%, ahead of Agilent’s internal forecasts. While the Life Sciences and Diagnostics divisions met projections, Cross Labs and Applied Markets exceeded expectations. Within these segments, food testing and diagnostics were key drivers of the beat, while categories such as chemical and applied markets, government and academic research, and environmental testing also outperformed.

Environmental revenues rose by 6%, thanks in large part to a 75% increase in PFAS testing, according to TD Cowen. Barclays added that this surge in demand was largely driven by “U.S. industrial wastewater testing, supported by international growth.” However, Barclays also warned that potential rollbacks in U.S. regulations could pose a challenge to that growth in 2026.

Agilent maintained its full-year adjusted EPS outlook, despite the headwinds. According to BofA Securities, the company is counteracting a $60 million tariff burden through strategic price adjustments, realigning its supply chain, and expanding local manufacturing. It has also prepared contingency plans for a second wave of mitigation measures should the U.S. impose a 50% tariff on EU goods in July—expected to add another $40 million in pressure.

The company’s book-to-bill ratio remained healthy at over 1.0x, with orders growing modestly. Liquid chromatography saw strong results, and biopharma revenue rose 6%, though slightly below internal targets. Academic and government sectors remained soft, prompting management to forecast a 20% full-year decline in U.S. A&G spending, compared to a 9% drop reported for Q2.

Margins faced some compression from efforts to absorb tariff impacts, falling by 55 basis points during the quarter. Nevertheless, Agilent expects flat margins for FY25 and anticipates improvement in 2026 as supply chain adjustments take effect. BofA noted that “the company plans to continue these changes even if tariffs are reversed.”

Wolfe Research estimated an approximate $0.05 boost to EPS stemming from foreign exchange gains and favorable product mix, particularly in LC and stack platforms. However, Wolfe also cautioned that “the short duration of Q2 tariffs likely limited their financial impact,” and warned of potential pull-forward demand that could jeopardize future guidance. The firm highlighted a possible $35 million revenue risk due to Agilent’s flat A&G outlook, which contrasts with steeper declines anticipated by competitors.

Barclays maintained an “equal weight” rating with a $115 price target, describing the outlook as “achievable but not conservative.” BofA echoed a “neutral” stance with a $128 price target, citing uncertainty in the pace of market recovery.

TD Cowen acknowledged strong performance under newly appointed CEO Padraig McDonnell, emphasizing that this marks the second consecutive quarter where Agilent has “demonstrated operational discipline” and outperformed expectations.

Agilent Technologies

Agilent Technologies (NYSE:A)
Gráfico Histórico do Ativo
De Jun 2025 até Jul 2025

Agilent Technologies (NYSE:A)
Gráfico Histórico do Ativo
De Jul 2024 até Jul 2025