AI Takeaway
A (Agilent Technologies) posted Q1 FY2026 revenue growth of 7.0% to $1.80B, but operating income fell 6.1% to $353M as SG&A expenses surged 16.1%, compressing margins and driving a 37.8% decline in operating cash flow.
Revenue
$1.8B
++6.96% YoY
EPS (Basic)
$1.08
-3.57% YoY
Operating Income
$353M
-6.12% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 7.0% year-over-year to $1.798B in Q1 FY2026, up from $1.681B in Q1 FY2025, indicating continued demand for Agilent's products and services despite a challenging macro environment.
Source: Source: 10-Q Income Statement, XBRL Financial Data
SG&A expenses jumped 16.1% year-over-year to $476M from $410M, significantly outpacing revenue growth of 7.0% and acting as the primary driver of operating income compression from $376M to $353M.
Source: Source: 10-Q Income Statement, XBRL Financial Data
Operating margin declined approximately 2.7 percentage points to 19.6% from 22.4%, while net margin came in at 17.0%, reflecting the disproportionate rise in operating expenses relative to revenue growth.
Source: Source: 10-Q Key Ratios, XBRL Financial Data
2 more insights available
Upgrade to unlockSG&A expenses grew at 16.1% year-over-year, more than double the revenue growth rate of 7.0%, which could indicate structural cost increases in sales, marketing, or administrative functions. If this trend persists without corresponding revenue acceleration, operating margins will continue to compress. Management must demonstrate cost discipline to restore profitability levels seen in prior periods.
Source: Source: 10-Q Income Statement, XBRL Financial Data
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Upgrade to unlockReported EPS of $1.36 versus the $1.40 analyst consensus — a -2.6% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.8B | $1.68B | +6.96% |
Cost of Revenue | $852M | $782M | +8.95% |
Operating Income | $353M | $376M | -6.12% |
Net Income | $305M | $318M | -4.09% |
EPS (Basic) | $1.08 | $1.12 | -3.57% |
EPS (Diluted) | $1.07 | $1.11 | -3.60% |
R&D Expense | $117M | $113M | +3.54% |
SG&A Expense | $476M | $410M | +16.10% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $12.81B | $11.91B | +7.55% |
Current Assets | $4.62B | $4.11B | +12.37% |
Total Liabilities | $5.91B | $5.89B | +0.31% |
Current Liabilities | $2.23B | $1.87B | +19.53% |
Stockholders' Equity | $6.91B | $6.03B | +14.62% |
Cash & Equivalents | $1.76B | $1.47B | +19.84% |
Long-Term Debt | $3.05B | $3.35B | -8.87% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $268M | $431M | -37.82% |
Investing Cash Flow | $-93M | $-94M | +1.06% |
Financing Cash Flow | $-222M | $-180M | -23.33% |
Share Buybacks | $152M | $90M | +68.89% |
D&A | $67M | $72M | -6.94% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 19.6% | 22.4% | -2.73% |
Net Margin | 17.0% | — | — |
ROE | 4.4% | — | — |
ROA | 2.4% | — | — |
Current Ratio | $2.066 | — | — |
Debt to Equity | $0.855 | — | — |
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Based on the 10-Q filing data, Agilent reported diluted EPS of $1.07 in Q1 FY2026, down 3.6% from $1.11 in Q1 FY2025. Whether this beat or missed Wall Street consensus estimates is not determinable from the filing alone, as analyst estimates are not included in SEC filings.
Agilent's Q1 FY2026 results showed revenue growth of 7.0% to $1.798B, but profitability declined as SG&A expenses surged 16.1% to $476M, compressing operating margin by approximately 2.7 percentage points to 19.6%. Operating cash flow fell sharply by 37.8% to $268M, raising questions about near-term cash generation quality.
Agilent's revenue grew 7.0% year-over-year to $1.798B in Q1 FY2026, up from $1.681B in Q1 FY2025. However, cost of revenue grew faster at 9.0%, which partially offset the benefit of higher sales on gross profit.
Key risks identified from the financial data include the 16.1% surge in SG&A expenses outpacing revenue growth, a 37.8% decline in operating cash flow to $268M, and a 19.5% rise in current liabilities. These trends suggest potential cost structure challenges and working capital pressures that could weigh on future profitability if not addressed.
Agilent's balance sheet remains solid with $1.758B in cash (up 19.8% YoY), a current ratio of 2.07, and stockholders' equity of $6.908B (up 14.6% YoY). However, the sharp decline in operating cash flow and rising SG&A costs are near-term concerns that investors should watch in subsequent quarters.