Agilent Q3 Earnings Beat Estimates, Revenues Up Y/Y, Shares Rise

Agilent Technologies A reported third-quarter fiscal 2025 earnings of $1.37 per share, which beat the Zacks Consensus Estimate by 0.74%. The figure increased 3.8% year over year.Revenues of $1.74 billion surpassed the Zacks Consensus Estimate by 4.6%. The top line increased 10.1% on a reported basis and 8% on a core basis (excluding acquisitions and divestitures) year over year.Agilent shares are up 3.3% at the time of writing this article. A shares have dropped 8.4% compared with the Zacks Medical sector’s fall of 2.5%. Agilent Technologies, Inc. Price, Consensus and EPS Surprise Agilent Technologies, Inc. price-consensus-eps-surprise-chart | Agilent Technologies, Inc. Quote Agilent’s Q3 Top-Line DetailsThe company operates through three reporting segments—Life Sciences and Diagnostics Markets Group (“LDG”), Agilent CrossLab Group (“ACG”) and Applied Markets Group (“AMG”).LDG: The segment generated $670 million and accounted for 38.6% of the company’s total revenues. This represented a 14.5% increase on a reported basis and 9% rise on a core basis year over year. ACG: Revenues from the segment were $744 million, accounting for 42.8% of the total revenues. The top line grew 7.7% on a reported basis and 8% on a core basis year over year.AMG: Revenues increased 7.3% year over year to $324 million on a reported and 7% on a core basis, accounting for the remaining 18.6% of the total revenues.Agilent’s Q3 Operating ResultsFor the third quarter of fiscal 2025, the LDG segment’s gross margin contracted 390 basis points (bps) year over year to 50.5%. ACG’s gross margin decreased 260 bps year over year to 55.1%, while AMG’s gross margin declined 160 bps year over year to 53.6%.Research and development (R&D) expenses on a non-GAAP basis were $109 million, down 3.5% from the prior-year quarter. Selling, general and administrative (SG&A) expenses on a non-GAAP basis rose slightly to $374 million, marking a 2.2% increase from the prior-year quarter. As a percentage of revenues, Research and development expenses fell 50 bps year over year to 6.3%, while selling, general and administrative expenses fell 30 bps year over year to 21.6%.The non-GAAP operating margin of 25.1% for the fiscal third quarter contracted 220 bps on a year-over-year basis.Segment-wise, LDG operating margin decreased 190 bps year over year to 17.6%. ACG’s operating margin fell 260 bps year over year to 33.3%. Meanwhile, AMG’s operating margin contracted 130 bps year over year to 21.9%.A’s Balance Sheet DetailsAs of July 31, 2025, Agilent’s cash and cash equivalents were $1.54 billion, up from $1.49 billion as of April 30.The long-term debt was $3.35 billion as of July 31, 2025, unchanged sequentially.Agilent’s Q4 & FY25 GuidanceFor the fourth quarter of fiscal 2025, Agilent expects revenues of $1.822-$1.842 billion, indicating a rise of 7.1% to 8.3% on a reported basis and 4.8% to 6% on a core basis. Non-GAAP earnings are expected between $1.57 per share and $1.60 per share. For fiscal 2025, Agilent expects revenues between $6.91 billion and $6.93 billion, implying an increase of 6.2-6.5% on a reported basis and 4.3-4.6% on a core basis. The company expects non-GAAP earnings between $5.56 per share and $5.59 per share.Zacks Rank & Stocks to ConsiderCurrently, Agilent carries a Zacks Rank #3 (Hold).Astrana Health ASTH, Syndax Pharmaceuticals SNDX and Phibro Animal Health PAHC are some better-ranked stocks that investors can consider in the broader sector. Astrana Health sports a Zacks Rank #1 (Strong Buy), while Syndax Pharmaceuticals and Phibro Animal Health each carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Long-term earnings growth rate for Astrana Health, Syndax Pharmaceuticals and Phibro Animal Health is currently pegged at 29.68%, 27.29% and 25.99%, respectively.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Agilent Technologies, Inc. (A): Free Stock Analysis Report Phibro Animal Health Corporation (PAHC): Free Stock Analysis Report Syndax Pharmaceuticals, Inc. (SNDX): Free Stock Analysis Report Astrana Health, Inc. (ASTH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks