More from A Q3 2026

Agilent Technologies, Inc.

A2026 Q3Healthcare

Ignite Operating System driving pricing, margins, and execution discipline

Management tied Q3 outperformance to sustained momentum from the Ignite Operating System, emphasizing compounding benefits across the organization.
Strategic pricing delivered approximately 200 basis points in Q3 and management stated it has surpassed the initial full-year target of more than 100 basis points.
Operating margin excluding tariff refunds expanded by over 210 basis points year-over-year, driven by gross margin performance and compounding Ignite efficiencies.
Ignite manufacturing excellence included an AI-enabled supply chain control tower improving prediction and enabling adaptive calibration of supply and demand plans.
Customer-requested delivery date performance reached a record 95% during the quarter, supporting responsiveness to demand.

Agilent Technologies, Inc.

A2026 Q3Healthcare

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).

Agilent Technologies, Inc.

A2026 Q3Healthcare

For the third quarter, Agilent reported $1.88 billion in revenue, growing 7.3% on a core basis and exceeding the high end of our guidance by 140 basis points.

Padraig McDonnell

CEO, Agilent Technologies, Inc.

Context

Padraig McDonnell opened the prepared remarks summarizing Q3 top-line results versus guidance. He stated that Q3 performance demonstrated sustained momentum enabled by commercial and operational execution and the Ignite Operating System. He then provided the core revenue growth rate and highlighted the magnitude of the beat versus the high end of guidance. He followed this with margin and EPS performance details that reinforced operating leverage.

More from A Q3 2026

Agilent Technologies, Inc.

A2026 Q3Healthcare

Ignite Operating System driving pricing, margins, and execution discipline

Management tied Q3 outperformance to sustained momentum from the Ignite Operating System, emphasizing compounding benefits across the organization.
Strategic pricing delivered approximately 200 basis points in Q3 and management stated it has surpassed the initial full-year target of more than 100 basis points.
Operating margin excluding tariff refunds expanded by over 210 basis points year-over-year, driven by gross margin performance and compounding Ignite efficiencies.
Ignite manufacturing excellence included an AI-enabled supply chain control tower improving prediction and enabling adaptive calibration of supply and demand plans.
Customer-requested delivery date performance reached a record 95% during the quarter, supporting responsiveness to demand.

Agilent Technologies, Inc.

A2026 Q3Healthcare

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).

Agilent Technologies, Inc.

A2026 Q3Healthcare

For the third quarter, Agilent reported $1.88 billion in revenue, growing 7.3% on a core basis and exceeding the high end of our guidance by 140 basis points.

Padraig McDonnell

CEO, Agilent Technologies, Inc.

Context

Agilent Technologies, Inc.: Q3 operating margin beat despite ex-tariff comparison and tariff refund framing

More from A Q3 2026

Agilent Technologies, Inc. 2026 Q3: Ignite Operating System driving pricing, margins, and execution discipline

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More from A Q3 2026

More from A Q3 2026

Agilent Technologies, Inc. 2026 Q3: Ignite Operating System driving pricing, margins, and execution discipline

Agilent Technologies, Inc. 2026 Q3: Financial Performance summary