Agilent Technologies Inc. (NYSE:A) reported second-quarter 2025 sales of $1.67 billion on Wednesday, almost in line with the consensus of $1.63 billion, representing growth of 6% reported and up 5.3% core year-over-year.

The Life Sciences and Diagnostics Markets Group (LDG) reported second-quarter revenue of $654 million, an increase of 8% reported and 3% core year-over-year. LDG’s operating margin for the quarter was 19.7%.

The Agilent CrossLab Group (ACG) reported second-quarter revenue of $713 million, an increase of 7% reported and 9% core year-over-year. ACG’s operating margin for the quarter was 32.4%.

The Applied Markets Group (AMG) reported second-quarter revenue of $301 million, a decrease of 1% reported and flat core year-over-year. AMG’s operating margin for the quarter was 19.5%.

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The analytical and clinical laboratory technologies provider reported adjusted earnings of $1.31 per share, up from $1.22 a year ago, beating the consensus of $1.26.

“The Agilent team delivered strong second-quarter results in a highly dynamic market environment,” said Agilent President and CEO Padraig McDonnell. “That is in large part due to our Ignite Transformation, which is driving our financial success as it’s become our core enterprise delivery engine and operating model. Ignite represents a decisive shift to fuel accelerated profitable growth and operational excellence at Agilent.”

The company’s operating margin was 25.1% as it absorbed some incremental tariff costs.

In the earnings conference call, McDonnell said, “Through our tariff task force enabled by our Ignite operating model, we feel that we are able to mitigate most of the impact in 2025 and fully mitigate in 2026 even when considering recent developments on the U.S.-EU tariffs.”

Agilent reaffirmed fiscal 2025 adjusted earnings of $5.54-$5.61 per share compared to the consensus of $5.55.

The company raised sales guidance from $6.68 billion-$6.76 billion to $6.73 billion-$6.81 billion compared to the consensus of $6.73 billion.

The full-year revenue outlook represents growth of 3.4%-4.6% reported while maintaining core growth of 2.5%-3.5%

Based on the current tariff rates, Agilent estimates that the gross incremental tariff exposure in the second half will be $50 million. This is on top of the roughly $10 million already absorbed in the first half.

The company anticipates potential additional tariff impacts if U.S.-EU tariffs increase, which could add $40 million in gross exposure in the second half of 2025.

The outlook for third-quarter revenue is expected to be $1.65 billion-$1.68 billion versus a consensus of $1.65 billion, representing a growth of 4.2% to 6.1% reported and up 1.7% to 3.6% core.

Agilent sees Q3 adjusted earnings of $1.35-$1.37 versus a consensus of $1.39.

Price Action: A stock is trading higher by 5.52% to $117 premarket at last check Thursday.

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