🔬 What the company does (Agilent 10-K Analysis)
Agilent Technologies is a global provider of scientific instruments, software, and services used in labs to measure and analyze chemicals, biological samples, and materials with high precision. It serves customers in life sciences, diagnostics, pharmaceutical research, environmental testing, and industrial quality control—areas where accuracy and regulatory compliance matter.
- Life Sciences and Applied Markets (LSAG): analytical instruments (e.g., chromatography and mass spectrometry) used in pharma, food, and environmental testing.
- Agilent CrossLab: services, consumables, and software that support ongoing lab operations (recurring revenue).
- Diagnostics and Genomics Group (DGG): tools for genomics (DNA-related testing) and clinical diagnostics.
Plain English: Agilent sells the “measurement tools” that labs rely on to test drugs, food, water, and materials—and it also earns repeat revenue from service and lab supplies.
📊 Financial Highlights (Agilent 10-K Analysis)
In FY2025, Agilent reported $6,948m of total revenue, up from $6,510m in FY2024. Operating income was $1,479m (roughly flat versus $1,488m in FY2024), and net income was $1,303m versus $1,289m.
- Revenue: increased year over year in FY2025.
- Profitability: operating profit stayed steady despite higher operating expenses.
- EPS (diluted): $4.6 in FY2025 vs $4.4 in FY2024.
- Operating cash flow: $1,559m in FY2025 (vs $1,751m in FY2024).
Plain English: Sales improved, profits were steady, and earnings per share edged up—while cash flow from operations remained strong, though lower than the prior year.
⚠️ Key Risks (company-specific)
- Customer spending cycles: labs may delay large instrument purchases when budgets tighten.
- Regulated environments: many customers require strict compliance, making product quality and reliability critical.
- Innovation pressure: scientific tools must keep up with evolving standards and competitor advances.
- Global operations: supply chain disruptions and cross-border constraints can affect costs and delivery timing.
- Cybersecurity: increased software and digital workflows raise exposure to security incidents.
- M&A integration: acquisitions can create execution risk if integration is difficult.
Plain English: If lab customers delay equipment spending, or if quality/innovation/supply issues arise, results can be pressured even if long-term demand remains healthy.
🧭 MD&A Highlights
Management described FY2025 as a year of steady execution in a mixed demand environment, emphasizing profitability discipline and the importance of recurring revenue supported by its installed base (equipment already in customer labs). The company also highlighted continued focus on innovation, cost control, and balanced capital allocation (how cash is used across reinvestment, buybacks, dividends, and debt decisions).
Plain English: Management’s message was: keep margins steady, keep recurring revenue strong, and keep investing carefully while returning cash to shareholders.
✅ Takeaway
Agilent is a specialized “picks-and-shovels” provider to life science and diagnostics labs, with a business mix that includes both high-value instruments and recurring revenue from services and consumables. FY2025 showed revenue growth and stable profitability, while management emphasized disciplined execution and long-term positioning.
Income Statement Summary
| (Units: $m, EPS in $) | FY 2023 | FY 2024 | FY 2025 |
| Revenue | 6,833 | 6,510 | 6,948 |
| Cost of Goods Sold | 3,368 | 2,975 | 3,305 |
| Gross Profit | 3,465 | 3,535 | 3,643 |
| SG&A | 1,634 | 1,568 | 1,709 |
| Operating Income | 1,350 | 1,488 | 1,479 |
| Non-Operating Income/Expense | 33 | 49 | 6 |
| Interest Income/Expense | (44) | (16) | (50) |
| Income Before Tax | 1,339 | 1,521 | 1,435 |
| Income Tax | 99 | 232 | 132 |
| Net Income | 1,240 | 1,289 | 1,303 |
| EPS | 4.2 | 4.4 | 4.6 |
Plain English: Revenue increased in FY2025, but operating income was essentially flat versus FY2024. The mix shift toward services and recurring revenue is visible in the growth of the business, but costs (including SG&A) also rose, which kept operating profit from expanding. EPS improved slightly in FY2025.
Key Financial Ratios
| Ratio | FY 2023 | FY 2024 | FY 2025 |
| ROE (%) | 21.2 | 21.9 | 19.3 |
| ROA (%) | 11.5 | 10.9 | 10.2 |
| ROTC (%) | 15.7 | 16.0 | 14.7 |
| ROIC (%) | 17.9 | 15.8 | 16.2 |
| Gross Margin (%) | 50.7 | 54.3 | 52.4 |
| Operating Margin (%) | 19.8 | 22.9 | 21.3 |
| Pretax Margin (%) | 19.6 | 23.4 | 20.6 |
| Net Margin (%) | 18.1 | 19.8 | 18.8 |
| Debt-to-Equity Ratio (D/E) (%) | 46.8 | 57.5 | 49.7 |
| Net Debt / EBITDA (x) | 0.7 | 1.2 | 0.9 |
| Interest Coverage Ratio (x) | 14.2 | 15.5 | 13.2 |
| Current Ratio (%) | 2.6 | 2.1 | 2.0 |
| Quick Ratio (%) | 2.0 | 1.6 | 1.5 |
| Fixed Asset to Long-term Capital Ratio (%) | 14.8 | 19.2 | 20.7 |
Plain English: Profitability remained strong, with double-digit returns (ROE/ROA) and healthy operating margins. Leverage stayed moderate: net debt-to-EBITDA remained under 1.5x, and interest coverage stayed above 10x, which generally indicates manageable debt servicing. Liquidity is solid, with current and quick ratios above 1.0, meaning the company appears capable of covering near-term obligations.
📝 Disclaimer
This article is intended for educational purposes only. It does not constitute financial, investment, or legal advice. All investment decisions involve risks, and readers should conduct their own research or consult with a licensed financial advisor.
👉 Agilent Technologies (A) 2025 10-K Analysis (Filed 2025) | Explained for Beginners