Executive Summary
Agilent delivered a solid QQ1 2025 with revenue of USD 1.681 billion, marking a modest year-over-year uptick of 1.4% but a softer quarter-on-quarter backdrop as Q4 2024 compares against Q1 2025. The company maintained a robust gross margin of 53.48% and an operating margin of 22.37%, underscoring a disciplined cost structure amid steady demand for life sciences instrumentation. Net income of USD 318 million supported earnings per share of USD 1.12 (diluted USD 1.11), with free cash flow of USD 334 million and operating cash flow of USD 431 million, highlighting resilient cash generation even as R&D remains a meaningful investment in future growth.
Balance sheet liquidity remains strong, with USD 1.47 billion in cash and equivalents and a total debt burden of USD 3.363 billion against equity of USD 6.027 billion. Net debt stood at USD 1.896 billion, and management made ongoing use of share repurchases (USD 90 million) and dividends (USD 71 million), signaling a capital allocation framework aimed at returning value while funding strategic initiatives. The revenue mix continues to favor core Life Sciences and Applied Markets offerings, with Diagnostics and Genomics contributing to a diversified portfolio. Investors should monitor cataloged profitability, cash conversion dynamics, and the pace of lab-spend recovery in a healthcare capex cycle that remains sensitive to macro conditions and global R&D timelines.
Key Performance Indicators
Key Insights
Revenue: USD 1.681B; YoY +1.39%, QoQ -1.18%
Gross Profit: USD 899.0M; Gross Margin 53.48%; YoY -0.99%, QoQ -1.86%
Operating Income: USD 376.0M; Operating Margin 22.37%; YoY -2.08%, QoQ -7.84%
Net Income: USD 318.0M; Net Margin 18.92%; YoY -8.62%, QoQ -9.40%
EPS: USD 1.12; Diluted USD 1.11; YoY -5.88%, QoQ -8.94%
Free Cash Flow: USD 334.0M; Operating Cash Flow: USD 431.0M; CapEx: USD 97.0M
Cash and Equivalents: USD 1.467B; Total Debt: USD 3.363B; Net Debt: USD 1.896B
Balance sheet: Total Assets U...
Financial Highlights
Revenue: USD 1.681B; YoY +1.39%, QoQ -1.18%
Gross Profit: USD 899.0M; Gross Margin 53.48%; YoY -0.99%, QoQ -1.86%
Operating Income: USD 376.0M; Operating Margin 22.37%; YoY -2.08%, QoQ -7.84%
Net Income: USD 318.0M; Net Margin 18.92%; YoY -8.62%, QoQ -9.40%
EPS: USD 1.12; Diluted USD 1.11; YoY -5.88%, QoQ -8.94%
Free Cash Flow: USD 334.0M; Operating Cash Flow: USD 431.0M; CapEx: USD 97.0M
Cash and Equivalents: USD 1.467B; Total Debt: USD 3.363B; Net Debt: USD 1.896B
Balance sheet: Total Assets USD 11.914B; Total Liabilities USD 5.887B; Stockholders’ Equity USD 6.027B
Liquidity/Leverage: Current Ratio 2.20; Quick Ratio 1.66; Interest Coverage 14.07x; Debt/Assets 28.2%; Debt/Equity 0.56
Valuation context (as of QQ1 2025 data): P/E ~34.2x; P/S ~25.9x; P/B ~7.2x; Dividend Yield ~0.16%; Enterprise Value Multiple ~97x
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.68B |
1.39% |
-1.18% |
| Gross Profit |
899.00M |
-0.99% |
-1.86% |
| Operating Income |
376.00M |
-2.08% |
-7.84% |
| Net Income |
318.00M |
-8.62% |
-9.40% |
| EPS |
1.12 |
-5.88% |
-8.94% |
Key Financial Ratios
operatingProfitMargin
23.4%
operatingCashFlowPerShare
$1.51
freeCashFlowPerShare
$1.17
dividendPayoutRatio
22.3%
Management Commentary
Earnings transcript not provided in the data set. Consequently, no management quotes or quotes-based themes could be extracted for QQ1 2025. The analysis below therefore relies on disclosed financials and publicly reported quarter-over-quarter and year-over-year metrics. When transcript data becomes available, we can append quotes and thematic highlights by management commentary on strategy, operations, and market conditions.
Forward Guidance
No formal forward guidance is included in the dataset for QQ1 2025. Given the cyclicality of laboratory capex and ongoing demand for Life Sciences instrumentation, the near-term trajectory will depend on: (1) stability of biopharma and diagnostics capex converting into instrument orders, (2) continued adoption of CrossLab offerings and software-as-a-service components to drive recurring revenue, and (3) currency movements given USD reporting and international exposure. Our qualitative assessment suggests a cautious-to-neutral outlook with potential for mid-teens earnings growth if the company can sustain high-margin product mix, accelerate recurring software/maintenance revenue, and manage cost discipline during a modest macro recovery. Key factors investors should monitor: order backlog and utilization of core platforms (LC/GC/MS, genomics diagnostics), mix shift toward Diagnostics/Genomics and CrossLab services, R&D efficiency, and any changes in capital allocation policy (dividends vs. buybacks vs. strategic investments).