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December 22, 2025 • 4 min read
Agilent Technologies, a major player in the laboratory sciences sector, recently released its financial results for the fiscal year 2025. For those outside the industry, Agilent provides the critical infrastructure—instruments, software, and consumables—that scientists use for everything from pharmaceutical research to testing the safety of our food and water. If a laboratory is analyzing chemical compounds or biological samples, there is a high probability they are utilizing Agilent’s ecosystem.
We are going to dig into the income statement from their latest 10-K filing to analyze how the company is performing amidst a shifting macroeconomic landscape involving tariff uncertainties and evolving healthcare demand.
Agilent delivered a solid top-line performance for the fiscal year ended October 31, 2025. The company reported $6.95 billion in net revenue, representing a 7% increase over the $6.51 billion reported in 2024. However, converting that revenue growth into profit proved challenging. Net income remained virtually flat, inching up to $1.30 billion from $1.29 billion the prior year.
To visualize how revenue moved through the company's expenses to the bottom line, take a look at the flow of their financials below:
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The divergence between revenue growth and flat income is largely a story of margin compression. Agilent’s gross margin dropped to 52.4%, down from 54.3% in 2024. This pressure trickled down to the operating margin, which fell to 21.3% from 22.9%. This compression is partly due to the mix of products sold and costs associated with integrating new acquisitions.
Agilent reports through three primary segments. Understanding these helps clarify where the growth—and the stability—is coming from.
Agilent CrossLab (ACG) This segment is the company's largest revenue driver, generating $2.91 billion (approximately 42% of total revenue). It grew by 6% year-over-year. CrossLab encompasses the "recurring" side of the business: consumables (like chemical columns and sample prep supplies) and services (instrument repair and enterprise lab management). This segment provides stability, as labs need supplies and maintenance even when they aren't buying expensive new machines.
Life Sciences and Diagnostics Markets (LSDM) LSDM saw the most significant growth, with revenue rising 11% to $2.73 billion (roughly 39% of total revenue). A major driver here was the acquisition of BIOVECTRA, a Contract Development and Manufacturing Organization (CDMO). For context, a CDMO manufactures drug substances and ingredients for pharmaceutical companies. By acquiring BIOVECTRA, Agilent is expanding beyond testing drugs to helping manufacture them, specifically targeting the high-growth biotech and pharmaceutical sectors.
Applied Markets (AMG) This segment, which serves environmental, forensics, and food safety markets, remained essentially flat with 1% growth, bringing in $1.31 billion (about 19% of total revenue). This sluggishness reflects broader industrial caution and longer sales cycles noted in the filing's risk factors.
In response to margin pressures and a "dynamic" economic environment, Agilent has been actively managing its cost structure. The filing details the "Fiscal Year 2025 Plan," a restructuring initiative that incurred $81 million in expenses for the year.
These costs are primarily related to workforce reductions and facility consolidations. While these charges impact current profitability (contributing to the flat net income discussed earlier), they are intended to streamline operations and improve margins in future periods.
Agilent’s 2025 fiscal year depicts a company successfully pivoting toward higher-growth areas while managing the costs of that transition. The acquisition of BIOVECTRA signals a strategic deepening into the biopharma supply chain, offering new revenue streams that may initially carry different margin profiles than their traditional instrument business.
With the CrossLab segment providing a sturdy ballast of recurring revenue, Agilent appears focused on integrating its new assets and executing its restructuring plans to restore margin expansion. As the company navigates global trade complexities—including potential tariff impacts mentioned in the filing—investors will be watching to see if these efficiency measures pay off in 2026.
Last updated: December 22, 2025