Agilent Technologies, Inc.: Ignite Operating System driving pricing, margins, and execution discipline

Agilent Technologies, Inc. 2026 Q3: Financial Performance summary

• Cash flow: operating cash flow was $519 million; capital expenditures were $80 million; free cash flow was $439 million with a 96% non-GAAP net income conversion ratio.
• Gross margin was 56.4% in Q3; excluding an ~160 bps net benefit from tariff refunds, gross margin was 54.9%, up 180 bps year-over-year from incremental volume leverage and Ignite momentum.
• Non-GAAP EPS was $1.56 excluding refunds, $0.06 above the high end of guidance ($1.48–$1.50), up 14% year-over-year; EPS was $1.62 including the $0.06 refund benefit.
• Operating margin was 27.2% excluding net tariff refunds (80 bps ahead of implied guidance of 26.4%), and 28.3% including net tariff refunds of $20 million.
• Q3 FY26 revenue was $1.88 billion, up 7.3% on a core basis and 8.1% reported, exceeding the high end of guidance by 140 bps.
• Segment and market performance: Pharma +12%, Chemicals & Advanced Materials (CAM) +7%, Diagnostics and clinical at 6% (slightly below guide but with double-digit underlying orders).