• Revenue: $1.681 billion, a 1% increase year-over-year.
• Core Revenue Growth: 1.2%, exceeding expectations.
• Gross Margin: 54.7%, impacted by mix, currency, and timing of Lunar New Year.
• Operating Margin: 25.1%, in line with expectations despite currency headwinds.
• Net Income: Earnings per share of $1.31, up 2% from the previous year.
• Life Science and Diagnostics Markets Group Revenue: $647 million, a 1% increase.
• Agilent CrossLab Group Revenue: $696 million, a 3% increase.
• Applied Markets Group Revenue: $338 million, a 2% decline.
• Cash Flow: Operating cash flow of $431 million.
• Capital Expenditures: $97 million.
• Share Repurchase: $90 million in shares purchased.
• Dividend Payments: $71 million paid out.
• Net Leverage Ratio: 1.0.
• Full Year Revenue Guidance: Adjusted to $6.68 billion to $6.76 billion due to currency headwinds.
• Full Year EPS Guidance: $5.54 to $5.61, representing a 4.7% to 6% increase.
• Q2 Revenue Guidance: $1.61 billion to $1.65 billion.
• Q2 EPS Guidance: $1.25 to $1.28, representing growth of 2.5% to 4.9%.

• Warning! GuruFocus has detected 3 Warning Signs with CLDT.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Agilent Technologies Inc (NYSE:A) exceeded expectations for core revenue growth and EPS in Q1 2025.
• The company reported strong growth in its digital ecosystem, with digital orders growing in high single digits.
• Agilent's collaboration with ABB Robotics is expected to enhance lab productivity and efficiency.
• The Infinity III series has seen great adoption, contributing to increased win rates and customer satisfaction.
• Agilent's performance in China was strong, with a 50% win rate on stimulus-related tenders, indicating market leadership.

Negative Points

• The Applied Markets Group reported a 2% decline in revenue, despite better-than-expected performance related to China's stimulus orders.
• Currency fluctuations posed a significant headwind, impacting revenue and EPS guidance for the year.
• The academia and government market saw a 7% decline, with soft results globally.
• Concerns about potential reductions in NIH funding and tariffs could impact future performance.
• Gross margins were down due to product mix and currency impacts, with expectations for improvement throughout the year.

Q & A Highlights

Q: Can you quantify the level of headline risk embedded into the fiscal 2Q and full-year guidance, and have you seen any impact from customers? A: Our guidance is prudent, considering changes in the macro environment, such as NIH funding and tariffs, which we can mitigate. We haven't seen a material impact on our business or customer activity. (Padraig McDonnell, CEO & Robert McMahon, CFO)

Q: How much of the EPS number in fiscal 2Q is impacted by FX, and what would margins look like without these FX impacts? A: For the full year, the $110 million FX impact translates to a $0.09 EPS impact and a 50-basis point headwind. In Q2, it's a $32 million headwind, affecting EPS by $0.02 to $0.03. (Robert McMahon, CFO)

Q: Can you discuss the opportunities within PFAS, given the 70% growth in the quarter? A: Demand for PFAS solutions remains strong, contributing 75 basis points to company growth. Growth is driven by environmental, food, and chemical materials markets, with Europe showing strong demand. (Padraig McDonnell, CEO & Robert McMahon, CFO)

Q: What is driving the growth in instruments, and how is the Infinity III launch impacting win rates? A: Growth in LC and LC/MS instruments is driven by increased pharma CapEx spending and the successful Infinity III launch, which has improved win rates and productivity gains. (Padraig McDonnell, CEO)

Q: Can you provide an update on the China stimulus and its impact on your business? A: We won 50% of the stimulus orders, totaling $35 million, recognized in Q1. We expect more stimulus later in the year, but have not included it in our guidance. (Padraig McDonnell, CEO & Robert McMahon, CFO)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.