Unless otherwise noted, all references to increases or decreases in financial metrics are year-over-year, and references to revenue growth are on a core or organic constant currency basis. Core or organic constant currency revenue growth is adjusted for the impact of currency exchange rates and any acquisitions and divestitures completed within the past 12 months. We delivered an excellent second quarter with stronger than expected revenue growth, significant margin expansion, and double-digit EPS growth. For the second quarter, Agilent reported $1.83 billion in revenue, growing 6.3% on a core basis and exceeding the high end of our guidance by 80 basis points.
Operating margin of 26.4% for the quarter represents a year-over-year improvement of 130 basis points and 180 basis points on a sequential basis, well above our guidance despite the macro and geopolitical environment. Earnings per share of $1.49 represents 14% year-over-year growth, which also exceeded the top end of our guidance by $0.07. We delivered at or above our long-term plan on all metrics, revenue growth, margin expansion and EPS growth. Importantly, we expect these operational improvements to increasingly support higher quality and durable earnings growth.
Before getting into the specifics of our second quarter results, I want to spend time on the key growth drivers going forward. This includes another quarter of low double-digit growth in biotech led by large caps, while positive demand signals from small to mid-caps begin to emerge. It was fueled by strong semiconductor demand and healthy chemical CapEx investments in the Americas. Finally, our unique technology is helping us win outsized shares of forensics, where we delivered greater than 50% growth in the quarter.
| Metric | Period | Current guidance |
|---|---|---|
| FY2026 revenue (reported) | FY2026 | $7.39B-$7.49B |
| FY2026 core/organic constant-currency revenue growth | FY2026 | 4.5%-6% |
| FY2026 EPS | FY2026 | $6.00-$6.10 (7%-9% growth) |
| FY2026 operating margin expansion | FY2026 | 85 bps at midpoint (+10 bps) |
| FY2026 currency impact | FY2026 | 1.8% tailwind |
| FY2026 capital expenditures | FY2026 | ~$450M (down $50M) |
| FY2026 chemicals & advanced materials growth | FY2026 | mid to high single digit |
| FY2026 diagnostics & clinical growth | FY2026 | mid to high single digit |
| FY2026 environmental & forensics growth | FY2026 | low to mid single digit |
| FY2026 food growth | FY2026 | low single-digit decline |
| FY2026 AMG growth | FY2026 | mid-single digit |
| FY2026 Asia ex-China growth | FY2026 | mid to high single digit |
| Q3 FY2026 revenue (reported) | Q3 FY2026 | $1.83B-$1.85B (4.4%-5.9% core) |
| Q3 FY2026 EPS | Q3 FY2026 | $1.48-$1.50 (8%-9% growth) |
| FY2026 operating cash flow | FY2026 | $1.6B-$1.7B (unchanged) |
| FY2026 tax rate | FY2026 | 14.5% (unchanged) |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +6.3% core (+10% reported) | Broad-based strength, replacement-cycle momentum, share gains, and improving execution; currency a 3.7% tailwind. |
| Operating margin | +130 bps to 26.4% | Healthy gross margin, Ignite efficiencies, volume leverage, and favorable Americas regional mix. |
| Gross margin | +90 bps to 55% | Leverage on incremental volume, Ignite momentum, and favorable regional mix. |
| EPS | +14% to $1.49 | Superior execution and operational excellence. |
| AMG (Applied Markets Group) revenue | +11% core | Double-digit spectroscopy growth from semiconductor/fab demand plus the TSA airport-security contract. |
| LDG (Life Sciences & Diagnostics) revenue | +9% core | Low double-digit LC/LC-MS and cancer diagnostics growth plus high single-digit specialty CDMO. |
| ACG (Agilent CrossLab Group) revenue | +2% core | Lunar New Year timing and a tough China consumables compare; ex-China grew high-end mid-single digits. |
| Pharma end market | +6% | Low double-digit biotech growth led by large caps, with small/mid-cap demand signals emerging. |
| Chemical & advanced materials end market | +8% | Strong semiconductor demand and healthy chemical CapEx in the Americas; low teens ex-China. |
| Diagnostics & clinical end market | +11% | Strong Omnis family ramp, pathology reagents, and companion diagnostics. |
| Forensics | >50% | TSA security contract and multiple competitive large tender wins in Asia and Europe. |
| Academic & government end market | -5% | Tightened and delayed government spend; China A&G especially soft, Americas roughly flat. |
| Food end market | -3% | Delayed government spending in Asia; Americas and Europe grew high single digits. |
| China revenue | -9% | Larger-than-expected Lunar New Year softness and pre-tariff stocking compare; H1 roughly flat. |
| Americas revenue | +11% | Broad high-single-digit-plus results in all end markets except academic and government. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Ignite Operating System | Being piloted/incubated with pricing goal of ~100 bps for the year | Structurally embedded, delivering ~200 bps pricing in Q2 and compounding top- and bottom-line benefits | — |
| Instrument replacement cycle | Early replacement momentum | Ninth straight quarter of book-to-bill above one; LC replacement a 200-300 bps tailwind, GC a ~100 bps tailwind | — |
| Strategic pricing | Full-year goal of 100 bps | ~200 bps delivered in Q2, on a path to exceed the full-year goal | — |
| Tariffs | Incremental tariffs began in late spring, being mitigated | Tariff task force achieved full mitigation via manufacturing moves and targeted price adjustments | — |
| China stimulus | Expected as a potential FY2026 upside | Orders now expected late in year with revenue slipping into early next year; taken off the table as upside/downside | — |
| M&A / Biocare acquisition | Not yet announced | Announced agreement to acquire Biocare (clinical antibody menu) in March; not included in guidance | — |
| Specialty CDMO / Advanced Therapeutics Division | Specialty CDMO business | Rebranded as Advanced Therapeutics Division; Train C mechanically complete, go-live spring 2027, mid-teens FY2026 growth expected | — |
| ASMS product launches | Pipeline of innovation | 9500 Triple Quad ICP-MS, upgraded flagship GCs, new Altura columns, and OpenLab CDS 3.0 launching at ASMS | — |