A · Q2 2026 Earnings

Bullish

Agilent Technologies

Reported May 27, 2026

30-second summary

Agilent delivered Q2 FY2026 revenue of $1.835B (+10% reported, +6.3% core) and non-GAAP EPS of $1.49, beating consensus by 1.9% and 5.7% respectively and clearing the high end of last quarter's revenue and EPS guides by $15M and $0.07. Management raised the FY26 core growth floor 50bps to 4.5%–6.0%, lifted FY26 non-GAAP EPS by $0.08 at the midpoint to $6.00–$6.10 (+7% to +9% YoY, up from +5.5% to +8%), and pushed operating-margin expansion guidance to 85bps at the midpoint — all while strategic pricing ran at ~200bps in Q2 versus an initial 100bps FY goal. The squeeze point from Q1 — holding core flat at 4%–6% despite a beat — has now been answered, and Ignite has shifted in management's vocabulary from "operating system" to "structurally embedded" margin engine.

Headline numbers

EPS

Q2 FY2026

$1.49

+5.7% vs est.

Revenue

Q2 FY2026

$1.83B

+10.0% YoY

+1.9% vs est.

Gross margin

Q2 FY2026

54.0%

Operating margin

Q2 FY2026

21.7%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$1.83B	$1.67B	+10.0%	$1.80B	+2.1%
EPS	$1.49	$1.31	+13.7%	$1.36	+9.6%
Gross margin	54.0%	51.9%	+210bps	—	—
Operating margin	21.7%	18.0%	+372bps	—	—

Guidance

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q2 FY2026	$1.79B to $1.82B	$1.835B	+$0.015B above high end of guide	Beat
EPS (non-GAAP)	Q2 FY2026	$1.39 to $1.42	$1.49	+$0.07 above high end of guide	Beat

New guidance

Metric	Period	Guide	YoY
Revenue	Q3 FY2026	$1.83B to $1.85B	+5.2% to +6.3% YoY
EPS (non-GAAP)	Q3 FY2026	$1.48 to $1.50	8% to 9% YoY
Revenue (core organic constant currency)	Q3 FY2026	4.4% to 5.9%	—
EPS growth (year-over-year)	Q3 FY2026	8% to 9%	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Revenue	FY2026	$7.30B to $7.50B	$7.39B to $7.49B	Midpoint raised $0.01B (from $7.40B to $7.44B); narrowed lower bound by $0.09B	Raised
Revenue (core organic constant currency)	FY2026	4% to 6%	4.5% to 6.0%	Lower bound raised 50bps (from 4.0% to 4.5%); upper bound unchanged	Raised
EPS (non-GAAP)	FY2026	$5.90 to $6.04	$6.00 to $6.10	+$0.08 at midpoint (from $5.97 to $6.05); range raised by $0.10 at low end and $0.06 at high end	Raised
EPS growth (year-over-year)	FY2026	5.5% to 8%	7% to 9%	Low end raised 150bps (5.5% to 7.0%); high end raised 100bps (8% to 9%)	Raised
Non-GAAP operating margin expansion	FY2026	75 basis points at midpoint	85 basis points at midpoint	+10bps at midpoint	Raised

Segment KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Life Sciences and Diagnostics Markets Group	$0.732B	—	+12.0%
Agilent CrossLab Group	$0.759B	—	+6.0%
Applied Markets Group	$0.344B	—	+14.0%
Life Sciences and Diagnostics Markets - Core Growth	9%	—	—
Agilent CrossLab - Core Growth	2%	—	—
Applied Markets - Core Growth	11%	—	—

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Non-GAAP Operating Margin	26.4%	—	—
Life Sciences and Diagnostics Markets Operating Margin	22.0%	19.7%	—
Agilent CrossLab Operating Margin	32.0%	32.4%	—
Applied Markets Operating Margin	23.3%	19.5%	—
Core Revenue Growth	6.3%	5.3%	—

Management tone

Narrative arc: Tariff absorption → Quantified FY26 bridge → Ignite as operating system → Ignite as structurally embedded.

Three quarters ago Ignite was a forward-looking org redesign delivering $80M of run-rate savings; two quarters ago it was the operational engine that mitigated tariffs in real time; last quarter it was elevated to "enterprise operating system"; this quarter it is described as "structurally embedded in the business" with "compounding benefits in the years to come." The verbatim anchor: "the operational and P&L benefits from our Ignite operating system are increasingly becoming structurally embedded in the business... Ignite is poised to deliver compounding benefits in the years to come." That progression — from program to model to embedded competitive advantage — is the strongest signal yet that management views the FY26 margin algorithm not as a recovery but as a new baseline. The FY operating-margin expansion raise from 75bps to 85bps is the financial proof.

Pricing has shifted from a tariff-response lever to a primary growth driver. Q1 framed pricing at "at least 100bps" as the FY26 target; this quarter Q2 strategic pricing delivered ~200bps and management has put itself on a path to exceed the initial 100bps FY goal. The mindset shift is meaningful — Agilent now treats pricing capability as a structural Ignite output, not a one-time tariff surcharge.

AI framing has hardened from "future opportunity" (Q4 FY25, where AI was an aspirational growth driver) to "key FY26 enterprise focus" with a specific demand-pull thesis: "there is a growing need for large-scale multimodal datasets to train AI models, which will require significant investments in the wet lab." This is the first quarter Agilent has named AI as an upstream demand catalyst for its instrumentation rather than an internal productivity lever — and it is the framing investors should track for FY27 setup.

Innovation cycle commentary has also tightened. The Q2 9500 ICP-MS launch was pulled forward by a full quarter through Ignite-enabled resource reallocation: "The 9500 ICP-MS we are featuring at ASMS is a great demonstration of how our Ignite operating system is accelerating our innovation, expediting the launch by a full quarter." The instrument replacement cycle now has nine consecutive quarters of book-to-bill above 1.0 (up from seven at Q4 FY25) — the durability framing is intact and extending.

What did not soften: H2 macro hedges remain. Management explicitly flagged Middle East logistics, memory-chip inflation, tariff impacts, and China funding delays in food and diagnostics, plus tougher H2 YoY comps. The Q3 core guide of 4.4%–5.9% — a deceleration from Q2's 6.3% — is consistent with that comp-tightening framing rather than underlying weakness.

Recurring themes management leaned on this quarter:

Ignite operating system delivering structural and durable margin expansionStrategic pricing momentum outpacing initial targets (200bps vs 100bps goal)Instrument replacement cycle strength with 9 consecutive quarters of book-to-bill >1AI as growth driver requiring upstream wet lab investmentGeographic and end-market diversification providing resilienceInnovation velocity acceleration and customer-centric product development

Risks management surfaced:

Middle East conflict creating logistic challenges and material shortagesInflationary cost pressures from memory chip demand and tariff impactsChina funding delays affecting food and diagnostics marketsIncreasingly tough year-over-year comparisons in H2Geopolitical uncertainties requiring continued adaptation

Q&A highlights

Vijay Kumar · Evercore

Asked about CAM growth drivers, specifically the standout performance in LC-MS and GC (double digits) versus overall instruments (high singles), implying cell analysis weakness. Inquired about A&G trends and CAM outlook given Middle East situation concerns.

Management highlighted CAM grew 8% in Q2, beating mid-single digit guidance. Chemistry grew mid-single digits, advanced materials grew high-middle to low double digits. CAM growth ex-China was low teens. A&G declined ~5% in Q2 but revenue was flat with instruments starting to ease. Management expects continued momentum driven by semiconductor investment, supply chain investment, and chemical sector demand from semiconductors and batteries.

CAM Q2 growth: 8%Chemistry CAM growth: mid-single digitsAdvanced materials CAM: high-middle to low double digitsCAM ex-China growth: low teens

Vijay Kumar · Evercore

Followed up on margin expansion drivers. Asked how much of the margin beat was driven by pricing versus volumes and execution, and sought visibility into Q4 margin progression given the large sequential step-up guided.

Management attributed margin beat to: (1) Ignite initiatives including 200+ bps of pricing, execution excellence, structural improvements in operations, and procurement productivity; (2) volume leverage; (3) favorable geographic mix skewing toward higher-margin Americas. Q2-Q3 margins expected flat sequentially (Ignite favorability offset by inflation and geographic mix normalization), then Q3-Q4 expansion of ~220 bps. H1-H2 operating profit ramp ~47-53 bps, in line with historical norms.

Pricing contribution: >200 bpsQ3 sequential margin: flat vs Q2Q4 sequential margin expansion: ~220 bpsH1-H2 operating profit ramp: 47-53 bps

Patrick Donnelly · Citi

Asked about specialty CDMO (advanced therapeutics) business high single-digit Q2 growth and visibility on mid-teens FY26 growth guide. Inquired about contractual coverage of H2 production schedule uptick and Train C timing (noted spring 2027 go-live, implying minimal 2026 contribution).

Management confirmed high single-digit Q2 growth was within expectations. Stated strong visibility for H2 with production schedules pointing to very strong YoY growth in Q3 and Q4, targeting mid-teens FY26 growth despite tough Q4 comp. Train C mechanically completed in Q2, remains on schedule for spring 2027 go-live. Strong line of sight to Train C demand for bulk of FY27, with bookings proceeding as normal for timing further out.

Q2 CDMO growth: high single digitsFY26 CDMO guidance: mid-teens growthTrain C mechanical completion: Q2Train C go-live: spring 2027

Tycho Peterson · Jefferies

Asked to quantify the semiconductor business size within advanced materials CAM, confirm logic vs. memory exposure, assess sustainability of double-digit spectroscopy growth, and discuss pricing power in semi markets.

Management stated semiconductor represents ~30% of advanced materials market. Confirmed strong pricing power and new spectroscopy system launching at ASMS to drive replacement cycle. Growth driven by fab capex deployments and systems qualifications. Noted systems placed inside fabs and qualified for future growth. Emphasized visibility across multiple years as capex continues to deploy.

Semiconductor % of advanced materials: ~30%Spectroscopy growth: double digitsNew spectroscopy system: launching at ASMSCustomer exposure: fabs and high-purity chemical companies supporting fabs

Puneet Suda · Leerink

Asked to elaborate on CAM improvement trajectory through the quarter, confidence drivers (semi vs. instrumentation vs. chemicals), impact of Middle East conflict, and positioning in pharma/biotech (discovery vs. preclinical vs. later stage drug development) and how biotech capital raises flow into the business.

Management described CAM momentum as steady and increasing, pleased with high single-digit Q2 growth. Differentiation driven by technology leadership in advanced materials (low double-digit growth). Noted Middle East inflationary pressures may affect capital spend but not seeing impact currently; H2 guidance includes degree of prudence. Emphasized #1 CAM market position with substantial leadership in GC/GCMS/spectroscopy. On pharma: strong replacement cycle, GLP-1 tailwind, positioned in QAQC and development for supply chain reshoring. Mid-size biotech challenged but investment activity improving.

CAM Q2 growth: high single digitsAdvanced materials growth: low double digitsH2 CAM guidance: accelerating from high single to mid-single digitsMarket position: #1 in CAM by far

Answers to last quarter's watch list

Q2 core growth landing within the 4%–5.5% guide — Q2 core printed 6.3%, well above the 4%–5.5% guide and above the prior FY core ceiling of 6.0%. This forced the FY floor raise from 4.0% to 4.5%; the ceiling held at 6.0%, indicating management is banking the Q2 beat into H2 conservatism rather than flowing it through fully.

Resolved positively

First reshoring order booking in late FY26 — No update on the print regarding pull-forward or sizing; management's prior "late this year" commitment for first orders remains the standing framing, with Train C mechanical completion in Q2 and FY27 go-live unchanged. The reshoring optionality has not been pulled forward into FY26 numbers.

Continue monitoring

LDG operating margin recovery off the 16.0% Q1 base — LDG op margin rebuilt to 22.0% in Q2, a +600bps sequential recovery, with LDG core growth of +9% (vs +5% Q1). This is consistent with weather fade plus NASD batch cadence normalizing, and answers the Q1 question on whether the margin compression was structural — it was not.

Resolved positively

BioVectra H2 ramp delivering mid-teens FY CDMO growth — Specialty CDMO grew high single-digit in Q2 (vs. low double-digit in Q1), below the mid-teens FY pace, but management reaffirmed mid-teens FY26 confidence with H2 visibility from production schedules pointing to "very strong YoY growth" in Q3 and Q4. The mid-teens FY commitment now requires H2 acceleration to high-teens or better — the credibility test is Q3.

Continue monitoring

FY core revenue guide revision in Q2 — Floor raised 50bps from 4.0% to 4.5%; ceiling held at 6.0%. This is the partial-release outcome flagged last quarter — management is banking the Q2 beat conservatively rather than fully flowing it through, leaving room for a further H2 raise.

Resolved positively

China revenue versus the $300M/quarter baseline — No specific China revenue disclosure in the materials provided; Q&A flagged China funding delays in food and diagnostics as an H2 risk, and management noted continued "China funding delays" affecting select end markets. Whether a larger SAMR stimulus materializes remains open.

Continue monitoring

What to watch into next quarter

Q3 core growth landing within the 4.4%–5.9% guide: Q2 printed 6.3%, but the Q3 guide implies deceleration on tougher comps. A print above 5.9% would force a third consecutive FY core raise (and likely lift the ceiling above 6.0%); a print below 4.4% would signal the underlying demand-velocity story is decelerating faster than the comp dynamic explains.

ACG core growth recovery off the +2% Q2 base: ACG core decelerated sharply from +9% in Q1 to +2% in Q2 — out of step with the broader business. Watch whether Q3 ACG core rebuilds to mid-single digits (confirming Q2 was timing) or holds at low-single digits (signaling consumables/services demand is genuinely softer).

Q3 operating margin holding flat sequentially per guide, with the Q4 +220bps step still intact: management committed to flat Q3 sequential margin and ~220bps Q4 sequential expansion. A Q3 sequential decline would break the FY 85bps expansion bridge before Q4 even arrives.

BioVectra/NASD Q3 print as the mid-teens FY26 credibility test: with Q1 low-double-digit and Q2 high-single-digit, the H2 ramp must be high-teens+ to hit mid-teens FY. Watch Q3 specialty CDMO growth — anything below low-teens raises real risk to the FY commitment.

Pricing run-rate sustaining above 150bps: Q2 strategic pricing of ~200bps is the single biggest driver of the FY operating-margin guide raise. Watch whether Q3 pricing holds above the original 100bps FY goal or whether Q2 was a peak.

First reshoring order in late FY26 versus a slip: management's "late this year" commitment is now a one-quarter visible horizon. A Q3 slip to "early FY27" would push the FY27 top-line bolster narrative back materially.

Sources

Agilent Technologies Q2 FY2026 Press Release, May 27, 2026 — https://www.sec.gov/Archives/edgar/data/1090872/000109087226000052/exhibit991-q226pressrelease.htm
Tapebrief prior-quarter briefs on Agilent Technologies Q1 FY2026, Q4 FY2025, Q3 FY2025, and Q2 FY2025 (cross-quarter context)

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