NYSE · Healthcare

Agilent Technologies, Inc.

A · Diagnostics & Research

$127.06

▲ 2.73 (2.2%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 54.0%

Operating Margin 21.7%

Net Income Margin 18.5%

Fin. Health

D⤢

Years to Pay Off Debt 9.9 yrs

Working Capital vs Long-Term Debt -$557M

Working Capital $2.5B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 5.04x

Cash Flow

B⤢

Free Cash Flow $201M

CapEx % of Net Income 22.4%

Owner Earnings $482M

Profitability

Gross Profit Margin 54.0%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 21.7%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 18.5%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 9.9 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$557M

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $2.5B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $201M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 22.4%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $482M

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Agilent Technologies, Inc.

Agilent Technologies, Inc. provides application focused solutions to the life sciences, diagnostics, and applied chemical markets worldwide. The company operates through three segments: Life Sciences and Diagnostics Markets, Agilent CrossLab, and Applied Markets. The Life Sciences and Diagnostics Markets segment offers liquid chromatography systems and components; and liquid chromatography mass spectrometry systems. This segment is also involved in the genomics, contract development and manufacturing organization, pathology, companion diagnostics, and biomolecular analysis businesses. The Agilent CrossLab segment provides various services, including repairs, parts, maintenance, installations, training, compliance support, software as a service, asset management, consulting, and other custom services. This segment also offers consumables, including gas chromatography and liquid chromatography columns, sample preparation products, custom chemistries, and various laboratory supplies; software and informatics solutions comprising software for instrument control, data acquisition, data analysis, secure storage of results, and laboratory information and workflow management; and OpenLab laboratory software, an open software platform that enables customers to capture, analyze, and share scientific data throughout the lab and across the enterprise. In addition, it provides automated sample preparation solutions, such as liquid handling, plate management, consumables, and scheduling software. The Applied Markets segment offers products in the areas of gas chromatography, mass spectrometry, spectroscopy, vacuum technology, and remarketed instruments. It markets its products through direct sales, distributors, resellers, manufacturer's representatives, and electronic commerce. Agilent Technologies, Inc. was incorporated in 1999 and is headquartered in Santa Clara, California.

Market Data

Market Cap $35.9B

Enterprise Value $38.0B

P/E (TTM) 25.51

Dividend Yield 0.81%

Exchange NYSE

Key Margins

Gross Profit 54.0%

Operating Margin 21.7%

Net Margin 18.5%

Company Info

Sector Healthcare

Industry Diagnostics & Research

Employees 18000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Agilent Technologies, Inc. at $127.06.

The business passes only 3 of 6 of Graham's defensive criteria — well below his required standard.

At $127.06, the stock trades at a 387% premium to its Graham Number of $26.09. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q2 2026	Q4 2025
Gross Profit %	54.0%▲	53.2%
Operating Margin %	21.7%▼	23.8%
Net Income %	18.5%▼	23.3%
Diluted EPS	1.20▼	1.53

Balance Sheet Highlights

Metric	Q2 2026	Q4 2025	Q4 2024
Total Assets	$13.1B	$12.7B	N/A
Total Debt	$3.4B▲	$3.4B•	N/A
Working Capital	$2.5B▲	$2.2B•	N/A
Years to Pay Debt	9.90	7.73	N/A

Cash Flow Highlights

Metric	Q2 2026	Q4 2025	Q4 2024
Free Cash Flow	$201M▼	$452M•	N/A
Owner Earnings	$482M	$598M	N/A
CapEx % of Net Income	22.4%	21.4%	N/A

Income Statement

	2026	2025
Tax Rate For Calcs	0	0
Normalized EBITDA	500,000	540,000
Net Income From Continuing Operation Net Minority Interest	339,000	434,000
Reconciled Depreciation	67,000	71,000
Reconciled Cost Of Revenue	845,000	871,000
EBITDA	500,000	540,000
EBIT	433,000	469,000
Net Interest Income	-12,000	-10,000
Interest Expense	25,000	27,000
Interest Income	13,000	17,000
Normalized Income	339,000	434,000
Net Income From Continuing And Discontinued Operation	339,000	434,000
Total Expenses	1,436,000	1,418,000
Total Operating Income As Reported	399,000	443,000
Diluted Average Shares	283,000	284,000
Basic Average Shares	282,000	283,000
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	339,000	434,000
Net Income Common Stockholders	339,000	434,000
Net Income	339,000	434,000
Net Income Including Noncontrolling Interests	339,000	434,000
Net Income Continuous Operations	339,000	434,000
Tax Provision	69,000	8,000
Pretax Income	408,000	442,000
Other Income Expense	21,000	9,000
Other Non Operating Income Expenses	21,000	9,000
Net Non Operating Interest Income Expense	-12,000	-10,000
Interest Expense Non Operating	25,000	27,000
Interest Income Non Operating	13,000	17,000
Operating Income	399,000	443,000
Operating Expense	591,000	547,000
Research And Development	126,000	119,000
Selling General And Administration	465,000	428,000
Gross Profit	990,000	990,000
Cost Of Revenue	845,000	871,000
Total Revenue	1,835,000	1,861,000
Operating Revenue	1,835,000	1,861,000

Balance Sheet

	2026	2025	2024
Ordinary Shares Number	282,218	283,054
Share Issued	282,218	283,054
Net Debt	1,548,000	1,565,000
Total Debt	3,355,000	3,354,000
Tangible Book Value	2,231,000	1,823,000
Invested Capital	10,477,000	10,095,000
Working Capital	2,494,000	2,247,000
Net Tangible Assets	2,231,000	1,823,000
Common Stock Equity	7,122,000	6,741,000
Total Capitalization	10,173,000	9,791,000
Total Equity Gross Minority Interest	7,122,000	6,741,000
Stockholders Equity	7,122,000	6,741,000
Gains Losses Not Affecting Retained Earnings	-202,000	-226,000
Other Equity Adjustments	-202,000	-226,000
Retained Earnings	1,692,000	1,389,000
Additional Paid In Capital	5,629,000	5,575,000
Capital Stock	3,000	3,000
Common Stock	3,000	3,000
Total Liabilities Net Minority Interest	5,943,000	5,986,000
Total Non Current Liabilities Net Minority Interest	3,674,000	3,639,000
Other Non Current Liabilities	496,000	463,000
Employee Benefits	127,000	126,000
Non Current Pension And Other Postretirement Benefit Plans	127,000	126,000
Long Term Debt And Capital Lease Obligation	3,051,000	3,050,000
Long Term Debt	3,051,000	3,050,000
Current Liabilities	2,269,000	2,347,000
Current Deferred Liabilities	665,000	624,000
Current Deferred Revenue	665,000	624,000
Current Debt And Capital Lease Obligation	304,000	304,000
Current Debt	304,000	304,000
Other Current Borrowings	304,000
Commercial Paper
Pensionand Other Post Retirement Benefit Plans Current	387,000	443,000
Payables And Accrued Expenses	913,000	976,000
Current Accrued Expenses	298,000	406,000
Payables	615,000	570,000
Accounts Payable	615,000	570,000
Total Assets	13,065,000	12,727,000
Total Non Current Assets	8,302,000	8,133,000
Other Non Current Assets	1,176,000	1,059,000
Investments And Advances	136,000	133,000
Goodwill And Other Intangible Assets	4,891,000	4,918,000
Other Intangible Assets	407,000	445,000
Goodwill	4,484,000	4,473,000
Net PPE	2,099,000	2,023,000
Accumulated Depreciation		-1,423,000	-1,304,000
Gross PPE		3,446,000	3,082,000
Machinery Furniture Equipment		1,321,000	1,227,000
Buildings And Improvements		2,056,000	1,786,000
Current Assets	4,763,000	4,594,000
Other Current Assets	369,000	293,000
Inventory	1,089,000	1,025,000
Finished Goods	561,000	547,000
Raw Materials	528,000	478,000
Receivables	1,498,000	1,487,000
Other Receivables
Accounts Receivable	1,498,000	1,487,000
Cash Cash Equivalents And Short Term Investments	1,807,000	1,789,000
Cash And Cash Equivalents	1,807,000	1,789,000

Cash Flow

	2026	2025	2024
Free Cash Flow	201,000	452,000
Repurchase Of Capital Stock	-65,000	-85,000
Repayment Of Debt	-3,000	-1,000
Capital Expenditure	-76,000	-93,000
Interest Paid Supplemental Data	44,000	46,000
Income Tax Paid Supplemental Data	215,000	14,000
End Cash Position	1,809,000	1,791,000
Beginning Cash Position	1,760,000	1,537,000
Effect Of Exchange Rate Changes	-7,000	-1,000
Changes In Cash	56,000	255,000
Financing Cash Flow	-144,000	-200,000
Cash Flow From Continuing Financing Activities	-144,000	-200,000
Net Other Financing Charges	-5,000	-1,000
Proceeds From Stock Option Exercised	1,000	12,000
Cash Dividends Paid	-72,000	-70,000
Common Stock Dividend Paid	-72,000	-70,000
Net Common Stock Issuance	-65,000	-85,000
Common Stock Payments	-65,000	-85,000
Net Issuance Payments Of Debt	-3,000	-56,000
Net Short Term Debt Issuance	0	-55,000
Net Long Term Debt Issuance	-3,000	-1,000
Long Term Debt Payments	-3,000	-1,000
Investing Cash Flow	-77,000	-90,000
Cash Flow From Continuing Investing Activities	-77,000	-90,000
Net Other Investing Changes		0	-2,000
Net Investment Purchase And Sale		3,000	0
Sale Of Investment		3,000	0
Purchase Of Business			-859,000
Net PPE Purchase And Sale	-76,000	-93,000
Purchase Of PPE	-76,000	-93,000
Operating Cash Flow	277,000	545,000
Cash Flow From Continuing Operating Activities	277,000	545,000
Change In Working Capital	-211,000	85,000
Change In Other Working Capital	-192,000	186,000
Change In Payables And Accrued Expense	15,000	29,000
Change In Payable	15,000	29,000
Change In Account Payable	15,000	29,000
Change In Inventory	-46,000	-25,000
Change In Receivables	12,000	-105,000
Changes In Account Receivables	12,000	-105,000
Other Non Cash Items	17,000	16,000
Stock Based Compensation	32,000	26,000
Asset Impairment Charge		0	11,000
Deferred Tax	32,000	-95,000
Deferred Income Tax	32,000	-95,000
Depreciation Amortization Depletion	67,000	71,000
Depreciation And Amortization	67,000	71,000
Operating Gains Losses	1,000	8,000
Gain Loss On Investment Securities	1,000	8,000
Net Income From Continuing Operations	339,000	434,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $1.7B ▲ $1.8B +10.0%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 51.9% ▲ 54.0% +2.0pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 23.9% ▲ 21.7% -2.2pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 12.9% ▲ 18.5% +5.6pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$1.8B/qtr (≈$7.3B ann.)

vs > $1.5B annualised revenue

✅ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

2.10x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$201M

vs Positive

Operating Cash Flow

$277M

Latest quarter · Buffett's cash reality check

ROIC

2.9%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

5.0x

Net Assets: $7.1B

Asset Context — Diagnostics & Research

R&D costs are expensed immediately under GAAP rather than capitalised as assets, meaning a pharma/biotech company's most valuable assets (drug pipeline, patents) are largely invisible on the balance sheet. Net Assets significantly understates true economic value. Pipeline depth and revenue diversification matter more.

⚠️ Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.

Peers & Industry

No auto-detected peers for Diagnostics & Research. You can manually compare A against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.19%

Low — management has little skin in the game

Return on Equity (ROE)

4.8%

Weak — poor returns on equity

Return on Assets (ROA)

2.6%

Fair — average asset utilization

Share Buybacks (Latest Year)

$425M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+0.0% YoY

Debt is roughly stable

Leadership Team

Padraig McDonnell

CEO, President & Director

Age 53

Pay: $2,639,627

0.779% of net income

Angelica Riemann

Senior VP & President of Agilent CrossLab Group

Age 54

Pay: $1,124,756

0.332% of net income

Simon May

Senior VP and President of Life Sciences & Diagnostics Markets Group

Age 52

Pay: $1,625,186

0.479% of net income

Adam Elinoff

Senior VP, CFO & Principal Financial Officer

Age 47

Tejas Rajeev Savant

Vice President of Investor Relations

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	9.17%	25,902,662
Vanguard Capital Management LLC	6.51%	18,381,030
Vanguard Portfolio Management LLC	5.08%	14,352,682
State Street Corporation	4.52%	12,764,632
Massachusetts Financial Services Co.	4.47%	12,624,090
T. Rowe Price Investment Management, Inc.	3.18%	8,992,649
Geode Capital Management, LLC	2.66%	7,522,028
Wellington Management Group, LLP	2.57%	7,256,433

Risk Analysis

Beta (Market Risk)

1.26

Moderate volatility — moves slightly more than market

Short Interest

2.1% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.50x

Conservative balance sheet — low financial risk

Current Ratio

2.10x

Strong liquidity — Graham approved

52-Week Price Range

Low: $108.35 Current: $127.06 High: $160.27

Currently at 36% of 52-week range

Agilent Technologies, Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis