Agilent Technologies, Inc 10-Q for FY2026 Q1

Agilent Technologies, Inc. (A)

10-Q 2026-03-03 For: 2026-01-31

Added on April 09, 2026

About this 10-Q

Agilent Technologies, Inc filed this 10-Q on March 3, 2026, covering the quarter ended January 31, 2026 (FY2026 Q1).

Headline figures

Quarter ended January 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.8B; up 7.0% from $1.68B a year earlier
Net income: $305M; down 4.1% from net income of $318M a year earlier
Diluted EPS: $1.07; down 3.6% from $1.11 a year earlier

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			Page Number
Part I.	Financial Information		3
	Item 1.	Condensed Consolidated Financial Statements (Unaudited)	3
		Condensed Consolidated Statement of Operations	3
		Condensed Consolidated Statement of Comprehensive Income	4
		Condensed Consolidated Balance Sheets	5
		Condensed Consolidated Statement of Cash Flows	6
		Condensed Consolidated Statement of Equity	7
		Notes to Condensed Consolidated Financial Statements	8
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	43
	Item 4.	Controls and Procedures	44
Part II.	Other Information		45
	Item 1.	Legal Proceedings	45
	Item 1A.	Risk Factors	45
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	58
	Item 5.	Other Information	58
	Item 6.	Exhibits	59
Signature			60


	Three Months Ended
	January 31,
		2026		2025
Net revenue:
Products		$	1,273	$	1,200
Services and other		525		481
Total net revenue		1,798		1,681
Costs and expenses:
Cost of products		571		535
Cost of services and other		281		247
Total costs		852		782
Research and development		117		113
Selling, general and administrative		476		410
Total costs and expenses		1,445		1,305
Income from operations		353		376
Interest income		15		15
Interest expense		(25)		(28)
Other income (expense), net		21		4
Income before taxes		364		367
Provision for income taxes		59		49
Net income		$	305	$	318

Net income per share:
Basic		$	1.08	$	1.12
Diluted		$	1.07	$	1.11

Weighted average shares used in computing net income per share:
Basic		283		285
Diluted		284		287


	Three Months Ended
	January 31,
		2026		2025

Net income		$	305	$	318
Other comprehensive income (loss):


Unrealized gain (loss) on derivative instruments, net of tax expense (benefit) of $(3) and $3		(7)		11
Amounts reclassified into earnings related to derivative instruments, net of tax expense (benefit) of $1 and $(1)		1		(2)
Foreign currency translation, net of tax expense (benefit) of $0 and $0		51		(85)
Net defined benefit pension cost and post retirement plan costs:
Change in actuarial net gain (loss), net of tax expense (benefit) of $0 and $0		(3)		—

Other comprehensive income (loss)		42		(76)
Total comprehensive income		$	347	$	242


	January 31, 2026		October 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	1,758	$	1,789

Accounts receivable, net	1,521		1,487
Inventory	1,059		1,025
Other current assets	277		293
Total current assets	4,615		4,594
Property, plant and equipment, net	2,078		2,023
Goodwill	4,484		4,473
Other intangible assets, net	426		445
Long-term investments	135		133
Other assets	1,075		1,059
Total assets	$	12,813	$	12,727
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	602	$	570
Employee compensation and benefits	297		443
Deferred revenue	682		624
Short-term debt	304		304
Other accrued liabilities	349		406
Total current liabilities	2,234		2,347
Long-term debt	3,050		3,050
Retirement and post-retirement benefits	130		126
Other long-term liabilities	491		463
Total liabilities	5,905		5,986
Commitments and contingencies (Note 12)
Total equity:
Stockholders’ equity:
Preferred stock; $0.01 par value; 125,000,000 shares authorized; none issued and outstanding at January 31, 2026 and October 31, 2025	—		—
Common stock; $0.01 par value; 2,000,000,000 shares authorized; 282,695,763 shares at January 31, 2026 and 283,054,377 shares at October 31, 2025 issued and outstanding	3		3
Additional paid-in-capital	5,605		5,575
Retained earnings	1,484		1,389
Accumulated other comprehensive loss	(184)		(226)
Total stockholders' equity	6,908		6,741


Total liabilities and stockholders' equity	$	12,813	$	12,727


	Three Months Ended
	January 31,
	2026		2025
Cash flows from operating activities:
Net income	$	305	$	318
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	67		72
Share-based compensation	41		40
Deferred taxes expense (benefit)	25		(10)
Excess and obsolete inventory related charges	10		10
Net (gain) loss on equity securities	(2)		(1)



Other non-cash (income) expense, net	2		—
Changes in assets and liabilities:
Accounts receivable, net	(18)		(30)
Inventory	(39)		(40)
Accounts payable	39		3
Employee compensation and benefits	(151)		(104)
Other assets and liabilities	(11)		173
Net cash provided by operating activities	268		431

Cash flows from investing activities:

Payments to acquire property, plant and equipment	(93)		(97)




Payments in exchange for convertible note	—		(1)

Payments to acquire businesses and intangible assets, net of cash acquired	—		4
Net cash used in investing activities	(93)		(94)

Cash flows from financing activities:
Proceeds from issuance of common stock under employee stock plans	31		30
Payments of taxes related to net share settlement of equity awards	(27)		(22)
Payments for repurchase of common stock	(152)		(90)

Payments of dividends	(72)		(71)
Proceeds from issuance of long-term debt	—		4
Repayments of long-term debt	(2)		(1)

Net proceeds from (repayments of) short-term debt	—		(30)



Net cash used in financing activities	(222)		(180)

Effect of exchange rate movements	16		(19)

Net increase (decrease) in cash, cash equivalents and restricted cash	(31)		138

Cash, cash equivalents and restricted cash at beginning of period	1,791		1,332
Cash, cash equivalents and restricted cash at end of period	$	1,760	$	1,470

Supplemental cash flow information:
Income tax paid, net of refunds received	$	105	$	19
Interest payments, net of capitalized interest	$	1	$	3
Net change in property, plant and equipment included in accounts payable and accrued liabilities-increase (decrease)	$	(11)	$	8



	Common Stock							Accumulated Other Comprehensive Loss
Three Months Ended January 31, 2026	Number of Shares	Par Value		Additional Paid-in Capital		Retained Earnings				Total Stockholders' Equity
Balance as of October 31, 2025	283,054	$	3	$	5,575	$	1,389	$	(226)	$	6,741

Components of comprehensive income, net of tax:
Net income	—	—		—		305		—		305
Other comprehensive income (loss)	—	—		—		—		42		42
Total comprehensive income										347

Cash dividends declared ($0.255 per common share)	—	—		—		(72)		—		(72)
Share-based awards issued, net of tax of $27	692	—		4		—		—		4
Repurchase of common stock, including excise taxes	(1,050)	—		(15)		(138)		—		(153)
Share-based compensation	—	—		41		—		—		41
Balance as of January 31, 2026	282,696	$	3	$	5,605	$	1,484	$	(184)	$	6,908



	Common Stock							Accumulated Other Comprehensive Loss
Three Months Ended January 31, 2025	Number of Shares	Par Value		Additional Paid-in Capital		Retained Earnings				Total Stockholders' Equity
Balance as of October 31, 2024	285,193	$	3	$	5,450	$	750	$	(305)	$	5,898

Components of comprehensive income, net of tax:
Net income	—	—		—		318		—		318
Other comprehensive income (loss)	—	—		—		—		(76)		(76)
Total comprehensive income										242

Cash dividends declared ($0.248 per common share)	—	—		—		(71)		—		(71)
Share-based awards issued, net of tax of $22	689	—		8		—		—		8
Repurchase of common stock, including excise taxes	(650)	—		(9)		(81)		—		(90)
Share-based compensation	—	—		40		—		—		40
Balance as of January 31, 2025	285,232	$	3	$	5,489	$	916	$	(381)	$	6,027


	January 31,		October 31,
	2026		2025
	(in millions)
Cash and cash equivalents	$	1,758	$	1,789
Restricted cash included in other assets	2		2
Total cash, cash equivalents and restricted cash	$	1,760	$	1,791



	Three Months Ended January 31,
	2026								2025
	Life Sciences and Diagnostics Markets		Agilent CrossLab		Applied Markets		Total		Life Sciences and Diagnostics Markets		Agilent CrossLab		Applied Markets		Total
	(in millions)
Revenue by Region
Americas	$	307	$	273	$	98	$	678	$	312	$	261	$	96	$	669
Europe	203		215		100		518		190		188		85		463
Asia Pacific	169		270		163		602		145		247		157		549
Total	$	679	$	758	$	361	$	1,798	$	647	$	696	$	338	$	1,681


	Contract Liabilities
	(in millions)

Ending balance as of October 31, 2025	$	803
Net revenue deferred in the period	301
Revenue recognized that was included in the contract liability balance at the beginning of the period	(250)
Change in deferrals from customer cash advances, net of revenue recognized	10

Currency translation and other adjustments	13
Ending balance as of January 31, 2026	$	877


	Life Sciences and Diagnostics Markets		Agilent CrossLab		Applied Markets		Total
	(in millions)
Goodwill as of October 31, 2025	$	2,996	$	1,168	$	309	$	4,473
Foreign currency translation impact	1		3		7		11

Goodwill as of January 31, 2026	$	2,997	$	1,171	$	316	$	4,484


	Other Intangible Assets
	Gross Carrying Amount		Accumulated Amortization		Net Book Value
	(in millions)
As of October 31, 2025
Purchased technology	$	1,484	$	1,235	$	249
Trademark/Trade name	199		181		18
Customer relationships	289		129		160
Backlog	9		2		7
Third-party technology and licenses	34		23		11


Total amortizable intangible assets	$	2,015	$	1,570	$	445
As of January 31, 2026
Purchased technology	$	1,488	$	1,249	$	239
Trademark/Trade name	198		182		16
Customer relationships	289		135		154
Backlog	9		2		7
Third-party technology and licenses	34		24		10


Total amortizable intangible assets	$	2,018	$	1,592	$	426


Estimated future amortization expense:
(in millions)
Remainder of 2026	$	56
2027	$	72
2028	$	65
2029	$	61
2030	$	52
2031	$	47
Thereafter	$	73


			Fair Value Measurement at January 31, 2026 Using
	January 31, 2026		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in millions)
Assets:
Short-term
Cash equivalents (money market funds)	$	1,093	$	1,093	$	—	$	—
Derivative instruments (foreign exchange contracts)	11		—		11		—

Long-term
Trading securities	42		42		—		—
Other investments	39		—		39		—

Total assets measured at fair value	$	1,185	$	1,135	$	50	$	—
Liabilities:
Short-term
Derivative instruments (foreign exchange contracts)	$	14	$	—	$	14	$	—

Long-term
Deferred compensation liability	42		—		42		—

Total liabilities measured at fair value	$	56	$	—	$	56	$	—


			Fair Value Measurement at October 31, 2025 Using
	October 31, 2025		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in millions)
Assets:
Short-term
Cash equivalents (money market funds)	$	1,614	$	1,614	$	—	$	—
Derivative instruments (foreign exchange contracts)	14		—		14		—

Long-term
Trading securities	41		41		—		—
Other investments	37		—		37		—
Total assets measured at fair value	$	1,706	$	1,655	$	51	$	—
Liabilities:
Short-term
Derivative instruments (foreign exchange contracts)	$	10	$	—	$	10	$	—

Long-term
Deferred compensation liability	41		—		41		—

Total liabilities measured at fair value	$	51	$	—	$	51	$	—


	Three Months Ended
	January 31,
		2026		2025
		(in millions)
Revenue by End Markets
Pharmaceutical and Biotechnology		$	640	$	585
Diagnostics and Clinical		263		240
Academia and Government		130		137
Chemicals and Advanced Materials		422		379
Food		166		168
Environmental and Forensics		177		172
Total		$	1,798	$	1,681

Revenue by Type
Instrumentation		$	658	$	625
Non-instrumentation and other		1,140		1,056
Total		$	1,798	$	1,681


	Three Months Ended
	January 31,
		2026	2025
Stock Option Plans:
Weighted average risk-free interest rate		—	4.1%
Dividend yield		—	0.7%
Weighted average volatility		—	29%
Expected life		—	5.5 years
LTPP:
Volatility of Agilent shares		29%	30%
Volatility of selected peer-company shares		17%-59%	16%-62%
Pair-wise correlation with selected peers		24%	29%

Post-vest holding restriction discount for all executive awards(1)		6.5%	6.7%


	Number of Open Forward Contracts	Aggregate Notional Amount USD
		Buy/(Sell)
		($ in millions)
Derivatives designated as hedging instruments:
Cash Flow Hedges
Foreign exchange forward contracts	384	$	(503)

Net Investment Hedges
Foreign exchange forward contracts	3	$	(35)

Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	181	$	(135)


	January 31, 2026		October 31, 2025
	Amortized Principal		Amortized Principal
	(in millions)

2027 Senior Notes	597		597
2029 Senior Notes	497		497
2030 Senior Notes	498		498
2031 Senior Notes	846		845
2034 Senior Notes	594		593
Total Senior Notes	$	3,032	$	3,030


Fair Values of Derivative Instruments
Asset Derivatives					Liability Derivatives
	Fair Value					Fair Value
Balance Sheet Location	January 31, 2026		October 31, 2025		Balance Sheet Location	January 31, 2026		October 31, 2025
(in millions)
Derivatives designated as hedging instruments:
Cash flow hedges
Foreign exchange contracts
Other current assets	$	5	$	9	Other accrued liabilities	$	8	$	3

Net investment hedges
Foreign exchange contracts
Other current assets	$	—	$	—	Other accrued liabilities	$	1	$	—


Derivatives not designated as hedging instruments:
Foreign exchange contracts
Other current assets	$	6	$	5	Other accrued liabilities	$	5	$	7
Total derivatives	$	11	$	14		$	14	$	10



	Three Months Ended January 31,
	U.S. Defined Benefit Plans				Non-U.S. Defined Benefit Plans				U.S. Post Retirement Benefit Plans
	2026		2025		2026		2025		2026		2025
	(in millions)
Service cost - benefits earned during the period	$	—	$	—	$	6	$	5	$	—	$	—
Interest cost on benefit obligation	5		5		5		6		1		—
Expected return on plan assets	(6)		(6)		(12)		(11)		(2)		(1)
Amortization of net actuarial (gain) loss	—		—		(7)		(6)		—		—

Total net periodic benefit cost (income)	$	(1)	$	(1)	$	(8)	$	(6)	$	(1)	$	(1)
Settlements (gain) loss	$	—	$	—	$	—	$	14	$	—	$	—



	Three Months Ended			Employer Contributions
	January 31,			For Remainder of Year
		2026		2025		2026
		(in millions)
U.S. defined benefit plans		$	—	$	—	$	—
Non-U.S. defined benefit plans		$	6	$	6	$	15


		Workforce Reduction Total
	(in millions)
Balance at October 31, 2025		$	18
Income statement expense		20
Non-cash settlement (accelerated share-based compensation expense)		(3)
Cash payments		(19)










Balance at January 31, 2026		$	16


Total restructuring expense since inception of FY25 Plan		$	101


			Net defined benefit pension cost and post retirement plan costs
Three Months Ended January 31, 2026	Foreign currency translation		Prior service credits		Actuarial Losses		Unrealized gains (losses) on derivatives		Total
	(in millions)
As of October 31, 2025	$	(297)	$	120	$	(64)	$	15	$	(226)
Other comprehensive income (loss) before reclassifications	51		—		4		(10)		45
Amounts reclassified out of accumulated other comprehensive income (loss)	—		—		(7)		2		(5)
Tax (expense) benefit	—		—		—		2		2
Other comprehensive income (loss)	51		—		(3)		(6)		42
As of January 31, 2026	$	(246)	$	120	$	(67)	$	9	$	(184)


Details about accumulated other comprehensive income (loss) components		Amounts Reclassified from other comprehensive income (loss)				Affected line item in statement of operations


	Three Months Ended
	January 31,
		2026		2025











Unrealized gain (loss) on derivatives		(1)		3		Cost of products
Unrealized gain (loss) on derivatives		(1)		—		Interest expense
		(2)		3		Total before income tax
		1		(1)		(Provision) benefit for income tax
		(1)		2		Total net of income tax
Net defined benefit pension cost and post retirement plan costs:

Actuarial net gain (loss)		7		—		Other income (expense), net

		7		—		Total before income tax
		(1)		—		(Provision) benefit for income tax
		6		—		Total net of income tax

Total reclassifications for the period		$	5	$	2



(1) Share-based compensation expense and depreciation expense included in segment expenses are shown below:

		Share-Based Compensation Expense				Depreciation Expense
		Three Months Ended January 31,				Three Months Ended January 31,
		2026		2025		2026		2025
		(in millions)				(in millions)
	Life Sciences and Diagnostics Markets	$	14	$	15	$	26	$	23
	Agilent CrossLab	$	16	$	16	$	14	$	14
	Applied Markets	$	7	$	8	$	6	$	6


	Three Months Ended					Year over Year Change
	January 31,					Three
		2026		2025			Months
		(in millions)
Net revenue:
Products		$	1,273	$	1,200		6%
Services and other		525		481			9%
Total net revenue		$	1,798	$	1,681		7%



Period	Total Number of Shares of Common Stock Purchased (1)	Weighted Average Price Paid per Share of Common Stock (2)		Total Number of Shares of Common Stock Purchased as Part of Publicly Announced Plans or Programs (1)	Maximum Approximate Dollar Value of Shares of Common Stock that May Yet Be Purchased Under the Plans or Programs (in millions) (1)
	(a)	(b)		(c)	(d)
2024 Repurchase Program
Nov 1, 2025 through Nov. 30, 2025	186,539	$	148.52	186,539	$	1,921
Dec. 1, 2025 through Dec. 31, 2025	171,165	$	142.81	171,165	$	1,897
Jan. 1, 2026 through Jan. 31, 2026	692,296	$	144.27	692,296	$	1,797
Total	1,050,000	$	144.79	1,050,000	$	1,797


Exhibit
Number						Description


31.1						Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2						Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1						Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2						Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS						Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

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104						Cover Page Interactive Data File (formatted as Inline XBRL and Contained in Exhibit 101)


Dated:	March 3, 2026	By:	/s/ Adam S. Elinoff
			Adam S. Elinoff
			Senior Vice President and Chief Financial Officer
			(Principal Financial Officer)


Dated:	March 3, 2026	By:	/s/ Rodney Gonsalves
			Rodney Gonsalves
			Vice President, Corporate Controllership
			(Principal Accounting Officer)


Date:	March 3, 2026
		/s/ Padraig McDonnell
		Padraig McDonnell
		Director, President and Chief Executive Officer