Agilent Technologies Inc

XMUN:AG8

Strong quarter: Agilent reported Q3 revenue of $1.88 billion, up 7.3% organically and 140 basis points above the high end of its guidance; adjusted EPS excluding tariff refunds was $1.56, $0.06 above the guidance range’s high end.

Guidance raised: Full-year organic growth guidance increased to 5.8%-6%, while EPS guidance rose to $6.18-$6.21, including approximately $0.06 of tariff-refund benefit.

Broad demand: Pharma grew 12%, China grew 9% versus an expectation for flat growth, and chemicals and advanced materials grew 7%; diagnostics grew 6%, slightly below expectations but with double-digit order growth.

Growth drivers: LC and GC replacement cycles, GLP-1 demand, semiconductor investment, pharma reshoring, new products and stronger China demand are supporting the outlook.

CDMO momentum: Specialty CDMO revenue grew nearly 30%; Train C is expected to begin generating revenue next spring, with more than a majority of its capacity already booked and 75% of fiscal 2027 capacity currently supported by purchase orders.

Margin execution: Q3 operating margin excluding tariff refunds was 27.2%, up 210 basis points year over year, helped by approximately 200 basis points of pricing and Ignite efficiencies.

Reshoring opportunity: Management continues to size pharma reshoring at approximately $1 billion through 2030 and expects to win at least one-third, with revenue contributions building in fiscal 2027 and beyond.