AI Takeaway
A (Agilent Technologies) delivered strong Q2 FY2026 results with revenue of $1.84B (+10.0% YoY), operating income surging 33.0% to $399M, and net income jumping 57.7% to $339M, reflecting meaningful margin expansion and earnings leverage.
Revenue
$1.83B
++10.01% YoY
EPS (Basic)
$1.20
++60.00% YoY
Operating Income
$399M
++33.00% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 10.0% year-over-year to $1,835M in Q2 FY2026, up from $1,668M in the prior-year period, indicating a meaningful recovery and demand improvement across the company's business segments.
Source: Source: 10-Q Income Statement
Operating income rose 33.0% to $399M while operating margin expanded approximately 380 basis points to 21.7%, driven by revenue growth outpacing cost increases and disciplined SG&A control (SG&A grew only 2.4% YoY to $465M).
Source: Source: 10-Q Income Statement & Key Ratios
Net income surged 57.7% to $339M and diluted EPS rose 60.0% to $1.20 from $0.75, reflecting both operational improvement and potentially favorable below-the-line items such as reduced interest expense tied to long-term debt reduction.
Source: Source: 10-Q Income Statement
2 more insights available
Upgrade to unlockYear-to-date operating cash flow fell 16.4% to $545M even as net income rose sharply, indicating a potential disconnect between reported earnings and cash generation. This could reflect working capital build-up or unfavorable timing of receivables and payables. Sustained divergence between earnings and cash flow warrants monitoring.
Source: Source: 10-Q Cash Flow Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.49 versus the $1.44 analyst consensus — a +3.8% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.83B | $1.67B | +10.01% |
Cost of Revenue | $845M | $802M | +5.36% |
Operating Income | $399M | $300M | +33.00% |
Net Income | $339M | $215M | +57.67% |
EPS (Basic) | $1.20 | $0.75 | +60.00% |
EPS (Diluted) | $1.20 | $0.75 | +60.00% |
R&D Expense | $126M | $112M | +12.50% |
SG&A Expense | $465M | $454M | +2.42% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $13.06B | $12.16B | +7.46% |
Current Assets | $4.76B | $4.21B | +13.19% |
Total Liabilities | $5.94B | $6.02B | -1.31% |
Current Liabilities | $2.27B | $2.01B | +12.77% |
Stockholders' Equity | $7.12B | $6.14B | +16.07% |
Cash & Equivalents | $1.81B | $1.49B | +21.60% |
Long-Term Debt | $3.05B | $3.35B | -8.90% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $545M | $652M | -16.41% |
Investing Cash FlowYTD | $-170M | $-208M | +18.27% |
Financing Cash FlowYTD | $-366M | $-296M | -23.65% |
Share BuybacksYTD | $217M | $255M | -14.90% |
D&AYTD | $134M | $145M | -7.59% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 21.7% | 18.0% | +3.76% |
Net Margin | 18.5% | — | — |
ROE | 4.8% | — | — |
ROA | 2.6% | — | — |
Current Ratio | $2.099 | — | — |
Debt to Equity | $0.834 | — | — |
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A delivered strong Q2 FY2026 results with revenue of $1,835M, up 10.0% year-over-year, and net income of $339M, up 57.7%. Diluted EPS came in at $1.20, a 60.0% increase from $0.75 in the prior-year quarter, reflecting significant operating leverage and margin expansion.
A's revenue grew 10.0% to $1,835M in Q2 FY2026, with cost of revenue growing at only 5.4%, indicating that demand recovery and pricing discipline were key drivers. Operating margin expanded to 21.7% from 18.0%, suggesting the revenue growth was high-quality and profitable.
A's financial health appears solid, with a current ratio of 2.10, cash and equivalents of $1,807M, and stockholders' equity of $7,122M. Long-term debt declined 8.9% to $3,051M and the debt-to-equity ratio stands at 0.83, reflecting a strengthening balance sheet.
Year-to-date operating cash flow was $545M, down 16.4% from $652M in the same prior-year period, despite significantly higher net income of $339M. This divergence may reflect working capital timing differences and warrants attention in future quarters.
Key risks include the decline in operating cash flow despite strong earnings growth, the company's remaining long-term debt of $3,051M which creates interest obligations, and the relatively modest R&D spending of $126M (approximately 6.9% of revenue) in innovation-intensive markets. Elevated financing outflows of $366M year-to-date also reduce financial flexibility.