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Agilent Technologies Inc. (A) Stock

Agilent Technologies Inc. Stock Details, Movements and Public Alerts

Agilent Technologies Inc. (A): The $38B Life Sciences Powerhouse Betting on Diagnostics and AI

When Padraig McDonnell took over as Agilent's CEO in May 2024, he inherited a company at a crossroads. Revenue had declined 4.7% to $6.51 billion as the post-pandemic pharma slowdown hit lab equipment spending. McDonnell's response: launch the 'Ignite' transformation, restructuring Agilent's business around end markets rather than product lines. The new Life Sciences and Diagnostics Markets Group targets pharma, biopharma, and clinical diagnostics—markets representing 38% of revenue with stronger growth prospects. With $1.29 billion in net income and a fortress balance sheet, Agilent has the financial strength to weather the slowdown while positioning for the next upswing in life sciences capital spending. For investors, Agilent offers defensive exposure to healthcare innovation: less volatile than biotech, more growth potential than traditional medical devices.

52-Week Range

$152.88 - $96.03

-6.02% from high · +49.61% from low

Avg Daily Volume

1,818,159

20-day average

100-day avg: 1,864,903

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

33.02

Above market average

Forward P/E

22.94

Earnings expected to grow

PEG Ratio

2.16

Potentially overvalued

Price to Book

6.17

EV/EBITDA

22.92

EPS (TTM)

$4.29

Price to Sales

5.92

Beta

1.26

Similar volatility to market

How is A valued relative to its earnings and growth?
Agilent Technologies Inc. trades at a P/E ratio of 33.02, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 22.94 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.16 indicates a premium valuation even accounting for growth.
What is A's risk profile compared to the market?
With a beta of 1.26, Agilent Technologies Inc. is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 6.17 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

18.00%

Operating Margin

23.20%

EBITDA

$1.84B

Return on Equity

19.90%

Return on Assets

8.35%

Revenue Growth (YoY)

10.10%

Earnings Growth (YoY)

21.60%

How profitable and efficient is A's business model?
Agilent Technologies Inc. achieves a profit margin of 18.00%, meaning it retains $18.00 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 23.20% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 19.90% and ROA at 8.35%, the company generates strong returns on invested capital.
What are A's recent growth trends?
Agilent Technologies Inc.'s revenue grew by 10.10% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 21.60% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against DIAGNOSTICS & RESEARCH industry averages for proper context.

Dividend Information

Dividend Per Share

$0.98

Dividend Yield

0.71%

Ex-Dividend Date

Sep 30, 2025

Dividend Date

Oct 22, 2025

What dividend income can investors expect from A?
Agilent Technologies Inc. offers a dividend yield of 0.71%, paying $0.98 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Sep 30, 2025.
How reliable is A's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Agilent Technologies Inc. pays $0.98 per share in dividends against earnings of $4.29 per share, resulting in a payout ratio of 22.84%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for Oct 22, 2025.

Company Size & Market

Market Cap

$40.2B

Revenue (TTM)

$6.79B

Revenue/Share (TTM)

$23.84

Shares Outstanding

283.50M

Book Value/Share

$22.46

Asset Type

Common Stock

What is A's market capitalization and position?
Agilent Technologies Inc. has a market capitalization of $40.2B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 283.50M shares outstanding, the company's ownership is relatively concentrated. As a participant in the DIAGNOSTICS & RESEARCH industry, it competes with other firms in this sector.
How does A's price compare to its book value?
Agilent Technologies Inc.'s book value per share is $22.46, while the current stock price is $143.67, resulting in a price-to-book (P/B) ratio of 6.40. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$142.11

1.09% downside potential

Analyst Recommendations

Strong Buy

2

Buy

6

Hold

10

Sell

0

Strong Sell

0

How reliable are analyst predictions for A?
18 analysts cover A with 44% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $142.11 implies -1.1% downside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on A?
Current analyst recommendations:2 Strong Buy, 6 Buy, 10 Hold, 00The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Oct 6, 2025, 06:18 PM

Technical Indicators

RSI (14-day)

75.23

Overbought

50-Day Moving Average

$122.87

16.93% above MA-50

200-Day Moving Average

$122.47

17.31% above MA-200

MACD Line

4.16

MACD Signal

2.49

MACD Histogram

1.67

Bullish

What does A's RSI value tell investors?
The RSI (Relative Strength Index) for A is currently 75.23, indicating the stock is in overbought territory (above 70). This suggests strong recent buying pressure that may be unsustainable. While overbought conditions can persist in strong trends, traders often watch for RSI divergences or a drop below 70 as potential sell signals. Combined with the price being above the 50-day moving average, this confirms bullish conditions.
How should traders interpret A's MACD and moving average crossovers?
MACD analysis shows the MACD line at 4.16 above the signal line at 2.49, with histogram at 1.67. This bullish crossover suggests upward momentum is building. The wide histogram confirms strong momentum. The 50-day MA ($122.87) is above the 200-day MA ($122.47), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently above both MAs, confirming strength.

Indicators last updated: Oct 7, 2025, 12:50 AM

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Agilent Technologies Inc. (A) Stock Analysis 2025: Complete Investment Guide

Padraig McDonnell faced a challenging debut as Agilent's CEO. Just weeks into his tenure in May 2024, he reported fourth-quarter revenue of $1.70 billion—barely up 0.8% year-over-year—as pharma and biotech customers delayed capital equipment purchases. Rather than retreat, McDonnell launched the 'Ignite' transformation in November 2024, restructuring Agilent's three business groups around customer markets instead of technology platforms. The move signals a strategic bet: by organizing around pharma, diagnostics, and food/environmental end markets, Agilent can deliver integrated solutions rather than selling individual instruments. Early signs suggest customers are responding—the company projects 5.5% revenue growth for fiscal 2025, a sharp reversal from 2024's decline.

Business Model: Recurring Revenue from Lab Equipment

Agilent sells analytical instruments—mass spectrometers, chromatography systems, genomics tools—to life sciences researchers and clinical labs. The business model resembles razors-and-blades: customers purchase expensive instruments ($100,000-$1 million+) then buy consumables, services, and upgrades for years. This creates high-margin recurring revenue streams that now represent 55%+ of total sales. Agilent's CrossLab Services division generates $2+ billion annually maintaining and supplying customers' installed base of equipment. The competitive moat stems from switching costs (labs rarely change instrument vendors once workflows are established), technical expertise (decades of R&D in analytical chemistry), and customer relationships (deep integration into pharma and biotech research processes).

Financial Performance

  • •FY2024 Revenue: $6.51 billion, down 4.7% as pharma capital spending softened
  • •Net Income: $1.29 billion (up 6%), demonstrating margin expansion despite revenue decline
  • •Q4 2024 EPS: $1.46 non-GAAP (up 6% YoY), beating expectations
  • •Cash Flow: Strong operating cash generation funding $500M+ annual R&D investment
  • •FY2025 Outlook: Revenue growth of 5.5%, non-GAAP EPS of $5.54-$5.61

Growth Catalysts

  • •Diagnostics Expansion: Life Sciences and Diagnostics Markets Group (38% of revenue) targets clinical testing growth as precision medicine adoption accelerates
  • •Biopharma Recovery: Pharma R&D spending expected to rebound in 2025-2026 after post-pandemic digestion, driving instrument replacement cycles
  • •AI-Powered Lab Automation: Integrating AI into instruments and workflows to improve throughput and data analysis, creating competitive differentiation
  • •Asia-Pacific Growth: China, India, and Southeast Asia represent underpenetrated markets where Agilent's $38M Singapore R&D hub supports local partnerships
  • •Food & Environmental Testing: Regulatory requirements for food safety and environmental monitoring drive steady instrument demand less tied to pharma cycles

Risks & Challenges

  • •Pharma Capital Spending Cycles: Agilent's revenue is highly correlated to pharmaceutical R&D budgets, which can decline sharply during biotech funding crunches or economic downturns
  • •Competition from Thermo Fisher and Waters: Thermo Fisher Scientific ($40B+ revenue) and Waters Corporation compete directly in analytical instruments, with Thermo's larger scale providing pricing power
  • •China Exposure: Geopolitical tensions and China's slowdown pose risks to Agilent's Asia-Pacific growth strategy, particularly in biopharma and chemical analysis markets
  • •Execution Risk on Ignite Transformation: Reorganizing business units creates near-term disruption; benefits depend on successful sales force realignment and customer adoption of integrated solutions
  • •Technology Disruption: Newer technologies (miniaturized diagnostics, AI-native platforms) could displace traditional analytical instruments if Agilent fails to adapt quickly enough

Competitive Landscape

Agilent competes in the $50+ billion analytical instruments market against Thermo Fisher Scientific (market leader with $40B+ revenue), Waters Corporation (specialized in chromatography), and Danaher's Life Sciences segment. Thermo Fisher's scale advantage enables broader product portfolios and aggressive pricing, while Waters focuses on high-end chromatography where it holds technical leads. Agilent differentiates through integrated solutions combining instruments, software, and services—positioning itself as a one-stop-shop for pharma labs. The company's 26% operating margin trails Thermo Fisher's 30%+ but exceeds Waters' 20%, reflecting balanced positioning between premium pricing and operational efficiency. Market consolidation benefits all three leaders as smaller competitors lack the R&D budgets to keep pace with technology advances.

Who Is This Stock Suitable For?

Perfect For

  • ✓Long-term healthcare investors seeking capital equipment exposure
  • ✓Dividend growth investors (0.8% yield with 10-year growth track record)
  • ✓Portfolio diversification away from pure biotech or pharma stocks
  • ✓Investors comfortable with cyclical revenue tied to R&D spending

Less Suitable For

  • ✗Growth investors seeking rapid revenue expansion (mid-single-digit growth)
  • ✗Value investors (25x P/E reflects premium valuation)
  • ✗Short-term traders (low volatility, moves slowly)
  • ✗Income investors (0.8% yield too low for income focus)

Investment Thesis

Agilent offers defensive exposure to life sciences innovation without biotech's binary risk. The recurring revenue model (55%+ of sales) provides earnings stability, while pharma R&D spending recovery should drive instrument replacement cycles in 2025-2026. CEO Padraig McDonnell's Ignite transformation positions Agilent to capture diagnostics growth as precision medicine expands clinical testing volumes. At 25x P/E, valuation isn't cheap, but reflects the quality of Agilent's market position and financial profile. The stock suits patient investors seeking steady 8-10% annual returns from a combination of mid-single-digit revenue growth, margin expansion, and dividend increases. Avoid if you need explosive growth or can't tolerate pharma capital spending volatility.

Conclusion

Hold for current investors, Buy on 10-15% pullbacks. Agilent offers quality exposure to healthcare innovation with less volatility than biotech. Not a home-run stock, but a steady compounder for diversified portfolios. Watch pharma R&D spending trends and Ignite transformation execution for confirmation of growth reacceleration.
Bull Case
$165 (20% upside) - Biopharma spending rebounds strongly, diagnostics expansion accelerates, margins improve to 28%+
Base Case
$145 (5% upside) - Steady 5-7% revenue growth, 26-27% margins, valuation holds at 23-25x P/E
Bear Case
$110 (20% downside) - Pharma recession delays recovery, China weakness persists, multiple compresses to 18-20x on growth concerns

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