Agilent Technologies operates in high-growth, mission-critical markets within life sciences and diagnostics where secular tailwinds are accelerating.
The firm’s transformation program fundamentally reshapes its operational model, having already delivered $130 million in annualized cost savings and implemented AI-driven manufacturing excellence that reduces downtime while accelerating innovation cycles. This productivity engine will enable operating margin expansion while the company simultaneously invests in R&D to capture new markets.
Management is targeting 4–6% organic growth for fiscal 2026 while the shares trade at 23.5 times the 2026 consensus EPS of $5.93. That’s a reasonable premium for a company delivering mid-single-digit organic growth with margin expansion catalysts and strong free cash flow generation.
AGILENT TECHNOLOGIES INC. (New York symbol A; www.agilent.com) makes specialized testing equipment for medical research laboratories and industrial clients. Its equipment includes mass spectrometers, used to analyze substances.
In the fiscal 2025 fourth quarter, ended October 31, 2025, revenue rose 9.4%, to $1.86 billion from $1.70 billion a year earlier. That topped the consensus forecast of $1.83 billion. If you factor out acquisitions and currency rates, revenue gained 8.1%.
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The higher revenue is mainly due to strong demand for new products, including its Infinity 3 and Pro IQ liquid analyzers. That helped offset lower sales to China (down 4%) as well as to U.S. laboratories and universities (down 10%) because of government cutbacks.
Earnings in the quarter, before unusual items, also rose 8.1%, to $452 million from $418 million. The company repurchased $425 million of its shares in the fiscal year, which is why per-share earnings improved 8.9%, to $1.59 from $1.46. That beat the $1.58 consensus estimate.
Agilent’s cost savings will help keep profits rising
Agilent also continues to streamline its businesses to improve its long-term profitability. The plan cut its annual costs by over $150 million over the last year.
The saving came from strategic pricing initiatives, supply chain optimization, and organizational efficiency improvements. Two manufacturing facilities—Shanghai and Penang—have been recognized by the World Economic Forum as Lighthouse Sites for AI and automation adoption. These operational enhancements position the company to expand profit margins while investing in innovation.
The company now expects its revenue in fiscal 2026 to rise between 4% and 6%. Its earnings should also increase about 6% to between $5.86 and $6.00 a share. The stock trades at 23.5 times the midpoint of that range. That’s a reasonable multiple as the company is a leader in its niche market and spends a high 6% of its revenue on research.
Agilent is also increasing your quarterly dividend by 2.8%. Starting with the January 2026 payment, investors will receive $0.255 a share instead of $0.248. The new annual rate of $1.02 yields 0.7%.
Recommendation in Wall Street Stock Forecaster: Agilent Technologies Inc. is a buy.
