Agilent Technologies, Inc. Q1 FY2026 earnings call

• Key business initiatives: Differentiated customer intimacy with enterprise services business (10% of total services revenue, low double-digit CAGR), recent innovations like Altura ultra-inert column portfolio, ProIQ LCMS, S540MD slide scanner system, Rampant Insight BRT series alarm resolution system, and Ignite operating system for execution excellence, decision making, and value unlocking. - End market momentum: Underlying momentum in largest end markets, reshoring of pharma and semiconductor manufacturing, GLP-1 uptake, LCNGC instrument replacement cycles, etc. - Instrument performance: Instrument book-to-bill at or above one for eighth consecutive quarter, Infinity Tree HPLC growing in high single digits, gaining share globally. - Ignite operating system: Delivered financial results like doubling pricing realization, procurement savings, simplified organization, tariff mitigation, and successful M&A execution like biovector integration.

ACG grew 6%, driven by strong consumables growth in high single digits, solid services performance, and balanced global growth. AMG grew 4%, led by double-digit spectroscopy growth in the semiconductor space. LDG grew 3%, impacted by weather and softness in academia and government, but large end markets like pharma, biotech, and diagnostics grew high single digits. Geographic growth: Asia had strongest growth (China 6%, rest of Asia 13%), Europe 4% growth, America 1% growth due to weather and small end market softness.

• Full year FY26: Expected core growth range 4%-6%, reported revenue range $7.3-$7.5 billion, non-GAAP EPS $5.90-$6.04. - Q2: Expected core growth ~4%-5.5%, reported revenue $1.79-$1.82 billion, EPS $1.39-$1.42. - Expect operating margin expansion of 75 basis points at midpoint, tariff impact fully offset through cost-saving and pricing actions, and continued focus on capital deployment for organic growth and M&A.

Q: Walk through impact of snowstorm and margin impact.

A: $10M revenue impact, majority recovered, margin impact modest.

Q: Cadence of margin improvement.

A: Second quarter expected 50 basis point improvement driven by pricing, volume, Ignite savings, offset by performance-based pay and tariffs, second half acceleration.

Q: Tariff assumptions.

A: Dynamic situation, no change to guide as actions like supply chain moves and pricing/surcharges mitigate impact.

Q: Capital equipment demand and M&A.

A: CapEx demand steady, M&A focus on aligned, strategic, and financially attractive deals with high bar.

Q: LDG segment details.

A: LDG growth 3% impacted by weather and academia/government softness, but large end markets grew high single digits.

Q: CDMO business.

A: Low double-digit growth in Q1, mid-teens growth expected, batch cadence and commercial program mix impact.

Q: Q1 growth and guidance.

A: Solid Q1 growth, guidance maintained with pushes from small/mid-cap biotech, academia growth, and China stimulus.

Q: Atomic spectroscopy and pharma growth.

A: Atomic spectroscopy driven by reshoring and memory shortage, pharma growth includes GLP-1 and small molecule.

Q: China growth and market segments.

A: 6% growth in China, under indexed in DX and pharma, over indexed in applied markets.

Q: LC, LCMS pacing and enterprise services.

A: LC high single digit growth, LCMS in line with expectations, enterprise services drive customer intimacy and growth flywheel.