Agilent Technologies (A 0.33%), a global leader in laboratory instruments and scientific solutions for life sciences and diagnostics, released its Q3 fiscal 2025 results on Aug. 27, 2025. The company delivered revenue of $1.74 billion, coming in over its own projected revenue guidance and achieving a 10.1% increase over the prior year period. Non-GAAP earnings per share were $1.37, which was at the high end of management’s forecast and matched analyst expectations. Profitability also improved compared to last year.
However, operating margins narrowed in all business units due to increased costs, including tariffs and higher operating expenses. Overall, the quarter demonstrated broad-based growth across the company, with management responding by raising both annual revenue and profit forecasts for fiscal 2025.
| Metric | Q3 2025 | Q3 2024 | Y/Y Change |
|---|---|---|---|
| EPS (Non-GAAP) | $1.37 | $1.32 | 3.8% |
| Revenue | $1.74 billion | $1.58 billion | 10.1% |
| Net Income | $336 million | $282 million | 19.1% |
| Operating Margin – Agilent CrossLab Segment | 33.3% | 35.9% | (2.6 pp) |
| Revenue – Life Sciences and Diagnostics Segment | $670 million | $585 million | 14.5% |
What does Agilent Technologies do?
Agilent Technologies provides analytical instruments, software, and consumables for laboratories worldwide. Its customers work primarily in life sciences, pharmaceutical research, diagnostics, food testing, and chemical analysis. The company’s products help scientists analyze everything from new medicines to food safety and environmental samples. Its technology range includes mass spectrometry systems, which identify molecular structures; liquid chromatography platforms, which separate chemical mixtures; and automated pathology diagnostics used in hospitals.
It operates through three main segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab. It has strengthened its position through sustained investment in new technologies, a broad portfolio of instruments and software, and a global footprint. Key drivers of success include technological leadership, regulatory compliance, access to emerging markets, and the flexibility to reorganize segments in line with growth opportunities.
Quarter in review: Growth, margins, and market trends
During the quarter, Agilent achieved notable top-line gains, with revenue growing 10.1% year over year, well above its own guidance. All three major business units and every geographic region posted year-over-year increases in sales, underscoring both resilient demand and the effectiveness of its execution initiatives.
The Life Sciences and Diagnostics segment, which includes laboratory instruments and automated diagnostic tools, posted the fastest growth at 14%. This reflects demand for technologies used in scientific research, biopharmaceuticals, and hospital labs. The Applied Markets unit, which provides testing systems for food, environmental, and chemical analysis, and Agilent CrossLab, which offers services and consumables that support overall laboratory workflow, also saw revenue increases.
The broad-based growth was coupled with a sequential and year-over-year decline in operating margins across segments. In the Life Sciences and Diagnostics group, higher sales were accompanied by a decrease in both gross and operating margins, with gross margin down to 50.5% from 54.4% a year ago.
The CrossLab segment’s operating margin slipped to 33.3%, down from 35.9% a year earlier, while Applied Markets diminished as well. Tariffs and higher costs, including an increase in the cost of goods sold and operational expenses, were cited as factors affecting profitability. Even though overall operating income improved in dollar terms, the reduced operating margin as a percentage of revenue points to elevated cost pressures that management is committed to addressing.
The company reported both strong cash and a solid balance sheet, with operating cash flow for the first nine months of fiscal 2025 totaling $1,014 million, down 20% compared to the same period a year earlier. The company noted that the cash flow decrease was mainly due to inventory building as a strategy to manage ongoing supply chain and tariff risks, as well as higher capital spending. Cash and cash equivalents rose to $1.54 billion as of the end of the quarter. Research and development spending decreased 12.6% compared to the same period last year.
The company continued its regular share repurchase and dividend programs.
What’s new and what stands out this quarter?
The most significant theme was continued strong demand from biopharma firms and hospitals in both developed and emerging markets. The Life Sciences and Diagnostics segment in particular, linked to testing tools and systems for analyzing biological samples and automating clinical workflows, delivered both the fastest growth rate and the largest sales increase. Applied Markets, supplying instruments for food safety, environmental, and forensics labs, and CrossLab, focused on laboratory consumables and support, both contributed to broad revenue gains.
While the quarter was marked by revenue growth, each segment also experienced some profit margin compression. This was attributed to ongoing tariff exposure and increases in operating expenses, including supply chain investment. To hedge against these risks, Agilent continued its Ignite Transformation initiative, aimed at driving operational efficiencies, expanding its innovation pipeline, and mitigating cost increases. While Ignite has helped offset some headwinds, cost inflation and tariffs have outpaced some efficiency benefits, as reflected in lower segment gross and operating margins. Management indicated it would continue focusing on price realization, localized manufacturing, and supply chain adjustments in future quarters.
Management reaffirmed continued investment in new technologies, including advanced mass spectrometry products, which are devices for analyzing molecules. Prior quarters emphasized portfolio expansion in life sciences instrumentation and informatics, and the company reiterated its commitment to innovation. All global regions contributed to growth.
There were no new sustainability or environmental disclosures in the quarter. The company’s public goal to achieve net-zero greenhouse gas emissions by 2050 remains in place, though no new progress updates were provided. Agilent reported no regulatory compliance issues or fines; compliance remains a critical factor because its diagnostic and analytical tools must meet health and safety regulations in all relevant markets.
Looking ahead: Guidance and key areas for investors
Management raised its full-year guidance for fiscal 2025, now expecting revenue of $6.91–$6.93 billion and non-GAAP earnings per share of $5.56–$5.59, both meaningfully higher than previous projections. For the fourth quarter of fiscal 2025, Agilent projects revenue between $1.822 billion and $1.842 billion, with non-GAAP earnings between $1.57 and $1.60 per share. This stronger guidance points to continued broad demand across end markets and signals confidence in ongoing portfolio and geographic expansion.
Investors should keep an eye on margin trends, as inflation, tariffs, and supply chain dynamics continue to present risks to profitability. The company is prioritizing operational resilience through supply chain strategy, efficiency programs like Ignite, and targeted price increases. Emerging markets, new product launches, and ongoing regulatory compliance will remain important watchpoints.
Agilent Technologies pays a regular dividend and continued its dividend program during the quarter.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.