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Agilent Technologies, Inc. drives innovation at the heart of scientific discovery and healthcare diagnostics, impacting countless lives through precision measurement and analysis. As a powerhouse in life sciences and applied chemical markets, Agilent is renowned for its cutting-edge chromatography, mass spectrometry, and genomics solutions. Its reputation for quality and market influence positions it as a key industry player. Yet, as the healthcare landscape evolves rapidly, investors must ask: do Agilent’s fundamentals still support its growth and valuation?
Table of contents
Business Model & Company Overview
Agilent Technologies, Inc., founded in 1999 and headquartered in Santa Clara, California, stands as a leader in the medical diagnostics and research industry. Its integrated ecosystem spans life sciences, diagnostics, and applied chemical markets, offering advanced instrumentation, software, and consumables that support critical laboratory workflows worldwide. This cohesive portfolio drives innovation in analytical testing and genomic research.
The company’s revenue engine balances high-precision hardware like chromatography and spectroscopy systems with specialized software and recurring consumables, creating a diversified income stream. Agilent’s strategic footprint across the Americas, Europe, and Asia enables broad market access and tailored customer solutions. Its strong competitive advantage lies in combining cutting-edge technology with comprehensive service offerings, solidifying its role in shaping the future of life sciences and diagnostics.
Financial Performance & Fundamental Metrics
I will analyze Agilent Technologies, Inc.’s income statement, key financial ratios, and dividend payout policy to assess its overall financial health and investment potential.
Income Statement
Below is the Income Statement for Agilent Technologies, Inc. over the last five fiscal years, showing key financial metrics in USD.
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Revenue | 6.32B | 6.85B | 6.83B | 6.51B | 6.95B |
| Cost of Revenue | 2.91B | 3.13B | 3.37B | 2.98B | 3.31B |
| Operating Expenses | 2.06B | 2.10B | 2.12B | 2.05B | 2.16B |
| Gross Profit | 3.41B | 3.72B | 3.47B | 3.54B | 3.64B |
| EBITDA | 1.76B | 1.91B | 1.70B | 1.87B | 1.84B |
| EBIT | 1.44B | 1.59B | 1.43B | 1.62B | 1.55B |
| Interest Expense | 81M | 84M | 95M | 96M | 112M |
| Net Income | 1.21B | 1.25B | 1.24B | 1.29B | 1.30B |
| EPS | 3.98 | 4.19 | 4.22 | 4.44 | 4.59 |
| Filing Date | 2021-12-17 | 2022-12-21 | 2023-12-20 | 2024-12-20 | 2025-12-22 |
Income Statement Evolution
From 2021 to 2025, Agilent Technologies’ revenue grew by nearly 10%, with a moderate 6.7% increase in the latest year, signaling steady top-line expansion. Net income rose by 7.7% over the period, though the net margin slightly declined by 2%, indicating some pressure on profitability despite a stable gross margin around 52%. Operating expenses grew in line with revenue, helping maintain margin stability.
Is the Income Statement Favorable?
In 2025, Agilent reported revenue of $6.95B and net income of $1.3B, yielding a net margin of 18.75%, a favorable level supported by an EBIT margin of 22.27%. While EBIT and net margin both declined slightly year-over-year, earnings per share increased by 3.2%, reflecting solid profitability fundamentals. Interest expenses remain low at 1.61% of revenue, contributing to an overall favorable income statement assessment.
Financial Ratios
The following table presents key financial ratios for Agilent Technologies, Inc. over the fiscal years 2021 to 2025, providing insight into profitability, liquidity, valuation, and leverage metrics:
| Ratios | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | 19% | 18% | 18% | 20% | 19% |
| ROE | 22% | 24% | 21% | 22% | 19% |
| ROIC | 13% | 15% | 14% | 13% | 13% |
| P/E | 39.5 | 33.0 | 24.5 | 29.3 | 31.8 |
| P/B | 8.9 | 7.8 | 5.2 | 6.4 | 6.1 |
| Current Ratio | 2.22 | 2.03 | 2.61 | 2.09 | 1.96 |
| Quick Ratio | 1.74 | 1.47 | 1.97 | 1.57 | 1.52 |
| D/E | 0.51 | 0.52 | 0.47 | 0.61 | 0.50 |
| Debt-to-Assets | 25% | 26% | 25% | 30% | 26% |
| Interest Coverage | 16.6 | 19.3 | 14.2 | 15.5 | 13.2 |
| Asset Turnover | 0.59 | 0.65 | 0.63 | 0.55 | 0.55 |
| Fixed Asset Turnover | 6.69 | 6.23 | 4.80 | 3.33 | 3.43 |
| Dividend Yield | 0.49% | 0.60% | 0.87% | 0.73% | 0.68% |
Evolution of Financial Ratios
From 2021 to 2025, Agilent Technologies’ Return on Equity (ROE) exhibited a slight decline from 22.45% to 19.33%, indicating a moderate slowdown in profitability growth. The Current Ratio decreased from 2.22 to 1.96, reflecting a marginal reduction in liquidity but remaining comfortably above 1. The Debt-to-Equity Ratio stayed relatively stable around 0.5, signaling consistent leverage management over the period.
Are the Financial Ratios Favorable?
In 2025, profitability ratios such as net margin (18.75%) and ROE (19.33%) are rated favorable, showing solid earnings generation. Liquidity ratios, including the current ratio at 1.96 and quick ratio at 1.52, are also favorable, suggesting adequate short-term financial health. Leverage indicators like debt-to-equity at 0.5 and debt-to-assets at 26.35% are positive, indicating manageable debt levels. However, market valuation ratios such as price-to-earnings (31.79) and price-to-book (6.14) are unfavorable, while asset turnover is neutral, resulting in an overall favorable assessment of the financial ratios.
Shareholder Return Policy
Agilent Technologies maintains a consistent dividend payout ratio around 21%, with dividends per share steadily increasing from $0.78 in 2021 to nearly $1.00 in 2025. The annual dividend yield remains modest, close to 0.7%, supported by free cash flow coverage above 70%, indicating a balanced distribution strategy.
The company also engages in share buybacks, complementing its dividend payments. Given the stable payout ratio and healthy cash flow coverage, this approach appears aligned with sustainable long-term shareholder value creation, avoiding excessive distributions or overleveraging risks.
Score analysis
The following radar chart presents a comprehensive view of Agilent Technologies, Inc.’s key financial scores:
Agilent shows very favorable returns on equity and assets, coupled with a favorable discounted cash flow score. However, debt-to-equity and price-to-earnings scores are moderate, while the price-to-book score is very unfavorable, indicating some valuation concerns.
Analysis of the company’s bankruptcy risk
Agilent Technologies is positioned well within the safe zone according to its Altman Z-Score, indicating a low risk of bankruptcy in the near term:
Is the company in good financial health?
The Piotroski Score diagram below illustrates Agilent’s moderate financial strength based on its score:
With a Piotroski Score of 6, Agilent demonstrates average financial health, suggesting it maintains reasonable profitability and efficiency but does not exhibit the strongest value investment characteristics.
Competitive Landscape & Sector Positioning
This sector analysis will examine Agilent Technologies, Inc.’s strategic positioning, revenue breakdown, key products, main competitors, and competitive advantages. I will assess whether the company holds a competitive edge in the healthcare diagnostics and research industry.
Strategic Positioning
Agilent Technologies operates a diversified product portfolio spanning Life Sciences, Diagnostics and Genomics, and CrossLab services, with 2025 revenues of $2.9B, $1.3B, and $2.7B respectively. Geographically, it maintains broad exposure across Americas ($2.8B), Asia Pacific ($2.2B), and Europe ($1.9B), reflecting a balanced global footprint.
Revenue by Segment
This pie chart illustrates Agilent Technologies, Inc.’s revenue distribution by segment for the fiscal year 2025, highlighting key contributors to the company’s overall sales.
In 2025, Agilent CrossLab led with $2.9B in revenue, showing a strong increase from prior years. Life Sciences and Applied Markets, at $2.7B, remains a critical segment but has seen a decline from $3.2B in 2024. Applied Markets contributed $1.3B, a new classification replacing Diagnostics and Genomics, which previously hovered around $1.6B. The data suggests a strategic shift and some concentration risk as revenue streams consolidate.
Key Products & Brands
The following table presents Agilent Technologies’ key products and brands along with their descriptions:
| Product | Description |
|---|---|
| Life Sciences and Applied Markets | Offers liquid chromatography and mass spectrometry systems, gas chromatography instruments, spectroscopy tools, cell analysis assays, laboratory software, automation, and measurement technologies. |
| Diagnostics and Genomics | Provides DNA mutation detection arrays, gene profiling tools, synthesized oligonucleotides, immunohistochemistry, reagents, software for nucleic acid quality control, and pharmacodiagnostics. |
| Agilent CrossLab | Supplies GC and LC columns, sample preparation products, custom chemistries, instrument supplies, and offers startup, operational, training, compliance support, asset management, and consulting services. |
Agilent’s product portfolio spans advanced analytical instruments, genomic diagnostics, and comprehensive laboratory support services, serving life sciences, diagnostics, and applied chemical markets worldwide.
Main Competitors
There are 11 competitors in the Healthcare Medical – Diagnostics & Research sector; below are the top 10 leaders by market capitalization:
| Competitor | Market Cap. |
|---|---|
| Thermo Fisher Scientific Inc. | 225B |
| Danaher Corporation | 165B |
| IDEXX Laboratories, Inc. | 53.5B |
| Agilent Technologies, Inc. | 39.1B |
| IQVIA Holdings Inc. | 38.4B |
| Mettler-Toledo International Inc. | 28.8B |
| Waters Corporation | 22.7B |
| Quest Diagnostics Incorporated | 19.4B |
| Revvity, Inc. | 11.6B |
| Charles River Laboratories International, Inc. | 10.0B |
Agilent Technologies, Inc. ranks 4th among its competitors, with a market cap approximately 17% of the sector leader, Thermo Fisher Scientific. The company stands below the average market cap of the top 10 competitors but remains above the median market cap for the sector. It enjoys a notable 39.7% market cap gap over its closest competitor above, highlighting a solid mid-tier position.
Comparisons with competitors
Check out how we compare the company to its competitors:
Does Agilent have a competitive advantage?
Agilent Technologies, Inc. demonstrates a competitive advantage by consistently generating returns on invested capital (ROIC) above its weighted average cost of capital (WACC) by 3.16%, indicating value creation despite a declining ROIC trend. Its gross margin of 52.43% and net margin of 18.75% further support its favorable profitability in the medical diagnostics and research industry.
Looking ahead, Agilent’s diverse product portfolio across life sciences, diagnostics, and applied chemical markets, combined with geographic revenue growth in Americas, Asia Pacific, and Europe, presents opportunities for expansion. The company’s ongoing development of advanced laboratory instruments and software solutions positions it to capitalize on evolving market demands and technological advancements.
SWOT Analysis
This SWOT analysis highlights the key internal and external factors influencing Agilent Technologies, Inc., helping investors understand its strategic position.
Strengths
- Strong market position in life sciences and diagnostics
- Favorable profitability margins with 18.75% net margin
- Diverse global revenue streams with growth in Americas and Asia Pacific
Weaknesses
- Declining EBIT and net margin growth over the last year
- High price-to-book ratio indicating potential overvaluation
- Dividend yield lower than industry peers
Opportunities
- Expansion in emerging markets, especially Asia Pacific
- Growing demand for advanced diagnostic and genomics solutions
- Increasing adoption of laboratory automation and software services
Threats
- Intense competition in medical diagnostics and research markets
- Macroeconomic uncertainties impacting healthcare budgets
- Technological disruption requiring continuous innovation
Agilent shows solid strengths in profitability and market reach, but recent margin declines and valuation concerns warrant caution. Strategic focus on innovation and market expansion will be key to mitigating competitive and economic risks.
Stock Price Action Analysis
The weekly stock chart for Agilent Technologies, Inc. illustrates the price movements and volatility over the past 12 months:
Trend Analysis
Over the past 12 months, Agilent Technologies’ stock price decreased by 2.88%, indicating a bearish trend. The price showed deceleration in its downward movement, with a notable high of 154.23 and a low of 102.48. Volatility remains elevated, with a standard deviation of 12.86, reflecting significant price fluctuations.
Volume Analysis
Trading volumes over the last three months reveal a slight seller dominance, with buyer volume at 53.76M and seller volume at 59.75M. Buyer activity appears neutral, and the overall volume trend is increasing, suggesting growing market participation amid cautious investor sentiment.
Target Prices
The consensus target prices for Agilent Technologies, Inc. reflect moderately optimistic analyst expectations.
| Target High | Target Low | Consensus |
|---|---|---|
| 180 | 130 | 166.36 |
Analysts anticipate a target price range between 130 and 180, with a consensus around 166, indicating potential upside from current levels.
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Analyst & Consumer Opinions
This section presents an analysis of analyst ratings and consumer feedback regarding Agilent Technologies, Inc. (A).
Stock Grades
Here is the latest summary of Agilent Technologies, Inc. stock grades from recognized financial institutions and analysts:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Evercore ISI Group | Upgrade | Outperform | 2026-01-05 |
| Barclays | Upgrade | Overweight | 2025-12-15 |
| Barclays | Maintain | Equal Weight | 2025-11-25 |
| Citigroup | Maintain | Buy | 2025-11-25 |
| UBS | Maintain | Buy | 2025-11-25 |
| Wells Fargo | Maintain | Overweight | 2025-11-25 |
| JP Morgan | Maintain | Overweight | 2025-11-25 |
| Baird | Maintain | Outperform | 2025-11-25 |
| B of A Securities | Maintain | Neutral | 2025-11-25 |
| TD Cowen | Maintain | Buy | 2025-10-14 |
Overall, the grades indicate a positive consensus, with recent upgrades and multiple firms maintaining buy or outperform ratings, reflecting sustained analyst confidence in the stock’s outlook.
Consumer Opinions
Consumer sentiment around Agilent Technologies, Inc. reflects a mix of appreciation for product quality and concerns over customer service responsiveness.
| Positive Reviews | Negative Reviews |
|---|---|
| “Agilent’s instruments are highly reliable and precise, crucial for our lab’s daily operations.” | “Customer support can be slow to respond to technical issues, causing delays.” |
| “The product range is extensive, meeting diverse scientific needs effectively.” | “Pricing is on the higher side, which can be a barrier for small businesses.” |
| “User-friendly software enhances productivity and reduces training time.” | “Occasional shipping delays have impacted project timelines.” |
Overall, consumers praise Agilent for its product reliability and comprehensive solutions but often cite slower customer service and premium pricing as areas needing improvement.
Risk Analysis
Below is a table summarizing key risks associated with Agilent Technologies, Inc., their likelihood, and potential impact on investment value:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Share price fluctuates within a wide range (96.43-160.27), reflecting sensitivity to market shifts. | High | Medium |
| Valuation Risk | Elevated price-to-book ratio (6.14) and price-to-earnings ratio (31.79) may signal overvaluation. | Medium | High |
| Industry Risk | Exposure to medical diagnostics and research markets, which can be affected by regulatory changes. | Medium | Medium |
| Dividend Yield Risk | Low dividend yield (0.68%) may reduce appeal for income-focused investors. | Low | Low |
| Financial Leverage | Moderate debt-to-equity ratio (0.5) indicates manageable leverage but requires monitoring. | Low | Medium |
| Earnings Variability | Net margin strong (18.75%) but sector competition and innovation pace could impact profitability. | Medium | Medium |
| Economic Sensitivity | Beta of 1.291 suggests stock is more volatile than the market, increasing systemic risk. | High | Medium |
The most significant risks for Agilent Technologies stem from its relatively high valuation metrics and elevated market volatility, reflecting investor sensitivity to sector dynamics and economic conditions. Despite a strong Altman Z-Score indicating financial stability, caution is warranted due to valuation and market-driven risks.
Should You Buy Agilent Technologies, Inc.?
Agilent Technologies appears to be delivering robust value creation with a slightly favorable competitive moat, despite a declining ROIC trend. Its leverage profile is manageable, supported by a strong Altman Z-score, while the overall B+ rating suggests a very favorable financial standing.
Strength & Efficiency Pillars
Agilent Technologies, Inc. demonstrates solid profitability and financial health, underscored by a net margin of 18.75% and a return on equity of 19.33%. The company’s return on invested capital (ROIC) stands at 12.57%, comfortably exceeding its weighted average cost of capital (WACC) of 9.41%, confirming its status as a value creator. Financial stability is reinforced by a strong Altman Z-Score of 5.28, placing Agilent well within the safe zone, and a Piotroski Score of 6, indicating average but stable financial strength. These pillars reflect efficient operations and prudent risk management.
Weaknesses and Drawbacks
Despite its strengths, Agilent faces valuation and market pressure challenges. The price-to-earnings ratio of 31.79 and price-to-book ratio of 6.14 signal a premium valuation, raising concerns over potential overpricing. Although leverage ratios are favorable, with a debt-to-equity ratio of 0.5 and current ratio of 1.96, the stock’s recent bearish trend and a 7.97% price decline since November 2025 indicate short-term investor caution. Dividend yield at 0.68% also appears unattractive compared to peers, potentially limiting income-focused investor appeal.
Our Verdict about Agilent Technologies, Inc.
Agilent’s long-term fundamental profile appears favorable, supported by strong profitability and value creation metrics. However, the recent technical bearish trend and moderate market pressure suggest a cautious stance. Despite its solid fundamentals, investors might consider a wait-and-see approach for a more attractive entry point given current valuation premiums and short-term price weakness. The company may appear suitable for long-term exposure once momentum stabilizes.
Disclaimer: This content is for informational purposes only and does not constitute financial, investment, or other professional advice. Investing in financial markets involves a significant risk of loss, and past performance is not indicative of future results.
Additional Resources
- Rakuten Investment Management Inc. Purchases New Shares in Agilent Technologies, Inc. $A – MarketBeat (Jan 23, 2026)
- Is Agilent Technologies, Inc.’s (NYSE:A) Latest Stock Performance Being Led By Its Strong Fundamentals? – Yahoo Finance (Jan 12, 2026)
- Agilent Accelerates Digital Pathology with the Launch of the Agilent S540MD Slide Scanner System – Business Wire (Jan 23, 2026)
- Earnings Preview: What to Expect From Agilent Technologies’ Report – Barchart.com (Jan 21, 2026)
- HSBC Initiates Coverage of Agilent Technologies (A) with Buy Recommendation – Nasdaq (Jan 20, 2026)
For more information about Agilent Technologies, Inc., please visit the official website: agilent.com
