Third quarter fiscal year 2026
Filed Aug 26, 2026Agilent Reports Third-Quarter Fiscal Year 2026 Financial Results Delivers strong Q3 results and raises FY26 revenue growth, margin expansion, and non-GAAP EPS guidance on continued operational momentum
Revenue grew 8.1% reported and 7.3% core year-over-year, all three operating groups grew, GAAP and non-GAAP operating margins expanded, and management raised fiscal year 2026 revenue growth, non-GAAP operating-margin expansion, and non-GAAP EPS guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenueGAAP | $1.88 billion | – | growth of 8.1% reported and up 7.3% core |
| Net revenueGAAP | $1,878 million | – | 8% |
| Cost of products and servicesGAAP | $836 million | – | – |
| Research and development expenseGAAP | $123 million | – | – |
| Selling, general and administrative expenseGAAP | $475 million | – | – |
| Total costs and expensesGAAP | $1,434 million | – | – |
| Income from operationsGAAP | $444 million | – | – |
| Operating marginGAAP | 23.6% | expanded by 190 basis points sequentially | expanded by 290 basis points year-over-year |
| Non-GAAP income from operationsnon-GAAP | $532 million | – | – |
| Non-GAAP operating marginnon-GAAP | 28.3% (including an approximately 110 basis point net benefit from tariff refunds) | expanded by 190 basis points sequentially | expanded by 320 basis points year-over-year |
| Interest incomeGAAP | $15 million | – | – |
| Interest expenseGAAP | $(29) million | – | – |
| Other income (expense), netGAAP | $14 million | – | – |
| Income before taxesGAAP | $444 million | – | – |
| Provision for income taxesGAAP | $82 million | – | – |
| Net incomeGAAP | $362 million | – | – |
| Diluted EPSGAAP | $1.28 | – | an increase of 8% from the third quarter of fiscal year 2025 |
| Basic EPSGAAP | $1.28 | – | – |
| Non-GAAP net incomenon-GAAP | $459 million (including a $17 million net benefit from tariff refunds) | – | – |
| Non-GAAP diluted EPSnon-GAAP | $1.62 (including a $0.06 net benefit from tariff refunds) | – | an increase of 18% from the third quarter of fiscal year 2025 |
| Nine-month net revenueGAAP | $5,511 million | – | – |
| Nine-month income from operationsGAAP | $1,196 million | – | – |
| Nine-month net incomeGAAP | $1,006 million | – | – |
| Nine-month diluted EPSGAAP | $3.55 | – | – |
| Nine-month non-GAAP net incomenon-GAAP | $1,268 million | – | – |
| Nine-month non-GAAP diluted EPSnon-GAAP | $4.48 | – | – |
| Nine-month net cash provided by operating activitiesGAAP | $1,064 million | – | – |
| Nine-month payments to acquire property, plant and equipmentGAAP | $(249) million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Life Sciences and Diagnostics Markets Group (LDG)No segment-specific revenue driver was provided. | $746 million | – | growth of 11% reported and 10% core year-over-year |
| Agilent CrossLab Group (ACG)No segment-specific revenue driver was provided. | $786 million | – | growth of 6% reported and 5% core year-over-year |
| Applied Markets Group (AMG)No segment-specific revenue driver was provided. | $346 million | – | growth of 7% reported and 7% core year-over-year |
Fiscal year 2026 and fourth quarter 2026 outlook
- RevenueFiscal year 2026: $7.49 billion to $7.51 billion, up 7.8% to 8.1% reported and up 5.8% to 6.0% core. Fourth quarter 2026: $1.98 billion to $2.0 billion, growth of 6.4% to 7.4% reported and up 5.2% to 6.2% core.
- NoteFiscal year 2026 non-GAAP operating margin expansion at the midpoint of core revenue growth guidance is expected to be over 130 basis points, including approximately 30 basis points in net benefit from tariff refunds in the third quarter.
- NoteFiscal year 2026 non-GAAP EPS is expected in the range of $6.18 to $6.21, an increase of 15 cents at the midpoint, including $0.06 net benefit from tariff refunds in the third quarter, versus the prior guide.
- NoteFourth-quarter 2026 non-GAAP EPS is expected in the range of $1.71 to $1.74 per share.
- NoteFourth-quarter guidance does not include any future benefit from tariff refunds.
- NoteFuture amortization of intangibles is expected to be approximately $27 million per quarter.
Capital returns
- Nine-month payments for repurchase of common stock were $(295) million, compared with $(340) million in the prior-year period.
- Nine-month payments of dividends were $(216) million, compared with $(212) million in the prior-year period.
- Nine-month payments of excise taxes related to repurchases of common stock were $(3) million, compared with $(10) million in the prior-year period.
What drove it
- Company revenue grew 8.1% reported and 7.3% core year-over-year.
- LDG delivered the fastest reported and core growth, at 11% and 10%, respectively.
- Management cited improving end markets, stronger demand in key regions, and excellent customer response to innovative product launches.
- Management attributed operational momentum to its strategy, execution discipline, and the Ignite Operating System.
- Currency contributed 1 percentage point to company reported revenue growth; core revenue was $1,868 million versus GAAP revenue of $1,878 million.
Concerns
- Third-quarter GAAP and non-GAAP income from operations each included a $20 million net benefit from tariff refunds, equal to a 110 basis point benefit to GAAP and non-GAAP operating margin.
- Third-quarter GAAP and non-GAAP net income each included a $17 million net benefit from tariff refunds, and GAAP and non-GAAP EPS each included a $0.06 net benefit.
- Fourth-quarter guidance does not include any future benefit from tariff refunds.
- Management identified ongoing competitive, pricing and gross-margin pressures, tariff and trade-policy changes, customer purchasing decisions and timing, and geopolitical uncertainties as risks.
- Long-term debt was $3,645 million at July 31, 2026, versus $3,050 million at October 31, 2025.
What to watch
- Fourth-quarter revenue delivery against guidance of $1.98 billion to $2.0 billion and core growth guidance of 5.2% to 6.2%.
- Fourth-quarter non-GAAP EPS delivery against guidance of $1.71 to $1.74 per share.
- Whether fiscal year 2026 non-GAAP operating-margin expansion exceeds 130 basis points at the midpoint of core revenue growth guidance.
- Demand progression in LDG, ACG, and AMG following year-over-year core growth of 10%, 5%, and 7%, respectively.
- The effect of tariff refunds, as future benefit is excluded from fourth-quarter guidance.
- Cash generation, acquisition spending, and debt following $950 million of nine-month payments to acquire businesses and intangible assets and $600 million of long-term debt issuance.
Balance sheet and cash flow
- Cash and cash equivalents were $1,758 million at July 31, 2026, compared with $1,789 million at October 31, 2025.
- Short-term debt was $304 million at July 31, 2026 and October 31, 2025.
- Long-term debt was $3,645 million at July 31, 2026, compared with $3,050 million at October 31, 2025.
- Nine-month net cash provided by operating activities was $1,064 million, compared with $1,014 million in the prior-year period.
- Nine-month payments to acquire businesses and intangible assets, net of cash acquired, were $(950) million, compared with $4 million in the prior-year period.
- Nine-month proceeds from issuance of long-term debt were $600 million, compared with $4 million in the prior-year period.
- Inventory was $1,117 million at July 31, 2026, compared with $1,025 million at October 31, 2025.
- Accounts receivable, net, was $1,478 million at July 31, 2026, compared with $1,487 million at October 31, 2025.
Analysis
Agilent reported third-quarter revenue of $1.88 billion, up 8.1% reported and 7.3% core from the third quarter of fiscal year 2025. All three operating groups grew. LDG was the largest growth contributor at 11% reported and 10% core growth, while ACG grew 6% reported and 5% core and AMG grew 7% reported and core. Management described improving end markets, stronger demand in key regions, and customer response to product launches.
Profitability expanded materially. GAAP operating margin was 23.6%, up 290 basis points year-over-year and 190 basis points sequentially. Non-GAAP operating margin was 28.3%, up 320 basis points year-over-year and 190 basis points sequentially. The reported margins included a $20 million tariff-refund benefit, equal to approximately 110 basis points. Segment operating margins were 23.5% for LDG, 34.3% for ACG, and 24.9% for AMG.
GAAP net income was $362 million and diluted EPS was $1.28, compared with $336 million and $1.18 in the year-ago quarter. Non-GAAP net income was $459 million and non-GAAP EPS was $1.62, compared with $390 million and $1.37, respectively. The quarter's GAAP and non-GAAP net income included a $17 million tariff-refund benefit, while each EPS measure included a $0.06 benefit. This benefit is important because the company explicitly excludes future tariff-refund benefits from fourth-quarter guidance.
For fiscal year 2026, Agilent raised revenue guidance to $7.49 billion to $7.51 billion, representing 7.8% to 8.1% reported growth and 5.8% to 6.0% core growth. It expects non-GAAP operating-margin expansion of over 130 basis points at the midpoint of core growth guidance and non-GAAP EPS of $6.18 to $6.21. Fourth-quarter guidance calls for $1.98 billion to $2.0 billion of revenue and non-GAAP EPS of $1.71 to $1.74 per share.
Nine-month operating cash flow was $1,064 million, while payments to acquire businesses and intangible assets were $950 million. Agilent also repurchased $295 million of common stock and paid $216 million of dividends over the nine-month period. Cash and cash equivalents were $1,758 million at July 31, 2026, and long-term debt was $3,645 million, compared with $3,050 million at October 31, 2025.
Management, verbatim
Agilent’s exceptional third-quarter performance reflects the sustained momentum created by our strategy, our execution discipline, and the compounding impact of the Ignite Operating System. We are seeing improving end markets, stronger demand in key regions, and excellent customer response to our innovative product launches. All of this gives us confidence in our increased outlook and our ability to sustainably outperform our end markets.
Padraig McDonnell, CEO
Not in the filing
stated, not guessed- Previous-quarter outlook figures were not provided, so comparisons of actual results with prior guidance cannot be completed.
- Consolidated gross margin was not reported.
- Quarterly operating cash flow was not reported; only nine-month operating cash flow was reported.
- Free cash flow was not reported.
- Gross-margin guidance was not reported.
- Operating-expense guidance was not reported.
- Tax-rate guidance was not reported.
- Prior-quarter revenue, net income, EPS, and segment revenue figures were not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.