Agilent Technologies Inc. reported third-quarter earnings that exceeded Wall Street expectations, marking the company’s third consecutive quarter of upside surprises in both earnings per share and revenue. The Santa Clara, California-based life sciences and diagnostics company said adjusted earnings per share came in at $1.62, beating the $1.49 consensus estimate by 8.7%. Revenue reached $1.88 billion, topping the $1.84 billion estimate.
The company’s stock, which closed at $157.57 on Tuesday, has gained 15.8% year-to-date. Agilent’s market capitalization stands at $44.5 billion, with a trailing price-to-earnings ratio of 30.9x. Analysts at JPMorgan estimate a fair value of $145.64, implying the stock is currently overvalued by about 7.6%.
Agilent’s gross margins have softened from prior periods, declining to 52.4% in the latest fiscal year from 54.3% in fiscal 2024. Despite this, the company has maintained strong returns on equity, though ROE fell to 20.6% in fiscal 2025 from 23.6% a year earlier. Free cash flow also declined to $1.15 billion in fiscal 2025, down from $1.37 billion in fiscal 2024.
The company’s revenue grew 6.7% in fiscal 2025 after contracting 4.7% in fiscal 2024, while adjusted EPS increased to $4.57 from $4.43. For the current fiscal year, analysts expect full-year revenue of $7.45 billion and adjusted EPS of $6.06, according to consensus estimates.
Analysts have modestly revised upward their earnings and revenue forecasts over the past year, with EPS estimates up 2.65% and revenue estimates up 2.37%. The most recent 90-day revision for EPS stands at 0.45%. Looking ahead, Agilent is scheduled to report its fourth-quarter results on November 30, 2026, with current estimates calling for adjusted EPS of $1.71 and revenue of $1.97 billion.
For fiscal 2027, consensus estimates project adjusted EPS of $6.61 on revenue of $7.89 billion, while fiscal 2028 forecasts point to adjusted EPS of $7.31 on revenue of $8.40 billion.
