AGILENT TECHNOLOGIES, INC.

Previous wording

The following discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto included elsewhere in this Form 10-Q and our Annual Report on Form 10-K. This report contains forward-looking statements including, without limitation, statements regarding growth opportunities, including for and in our end markets, new product and service introductions, the position and strength of our businesses, products and services, market demand for and adoption of our products and solutions, the ability of our products and solutions to address customer needs and meet industry requirements, our focus on enhancing our customers’ experience, delivering differentiated product solutions and driving productivity improvements, leveraging our product platforms to maximize growth, our investments, including in manufacturing infrastructure, research and development and expanding and improving our applications and solutions portfolios, expanding our position in developing countries and emerging markets, our contributions to our defined benefit plans, our hedging programs and other actions to offset the effects of foreign currency and interest rate movements, our future effective tax rate, unrecognized tax benefits, reimbursement incentives, our ability to satisfy our liquidity requirements, including through cash generated from operations, the potential impact of adopting new accounting pronouncements, indemnification obligations, our sales, our purchase commitments, our capital expenditures, the integration, effects and timing of our acquisitions and other transactions, expense reduction and other results from our restructuring programs and other cost saving initiatives, our stock repurchase program and dividends, macroeconomic and market conditions, including relating to or arising from changes to tariffs, import/export or trade policies, the recovery and health of our end markets, seasonality, mix, future financial results, our operating margin, our geographical diversification, interest rates, inflationary pressures and local regulations and restrictions, that involve risks and uncertainties. Our actual results could differ materially from the results contemplated by these forward-looking statements due to various factors, including those discussed in Part II Item 1A and elsewhere in this Form 10-Q.

Current wording

The following discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto included elsewhere in this Form 10-Q and our Annual Report on Form 10-K. This report contains forward-looking statements including, without limitation, statements regarding growth opportunities, including for and in our end markets, new product and service introductions, the position and strength of our businesses, products and services, market demand for and adoption of our products and solutions, the ability of our products and solutions to address customer needs and meet industry requirements, our focus on enhancing our customers’ experience, delivering differentiated product solutions and driving productivity improvements, leveraging our product platforms to maximize growth, our investments, including in manufacturing infrastructure, research and development and expanding and improving our applications and solutions portfolios, expanding our position in developing countries and emerging markets, our contributions to our defined benefit plans, our hedging programs and other actions to offset the effects of foreign currency and interest rate movements, our future effective tax rate, unrecognized tax benefits, reimbursement incentives, our ability to satisfy our liquidity requirements, including through cash generated from operations, the potential impact of adopting new accounting pronouncements, indemnification obligations, our sales, our purchase commitments, our capital expenditures, the integration, effects and timing of our acquisitions and other transactions, expense reduction and other results from our restructuring programs and other cost saving initiatives, our stock repurchase program and dividends, the effects of geopolitical tensions, macroeconomic and market conditions, including relating to or arising from changes to tariffs, import/export or trade policies, the recovery and health of our end markets, seasonality, mix, future financial results, our operating margin, our geographical diversification, interest rates, inflationary pressures and local regulations and restrictions, that involve risks and uncertainties. Our actual results could differ materially from the results contemplated by these forward-looking statements due to various factors, including those discussed in Part II Item 1A and elsewhere in this Form 10-Q.

Previous wording

Global Tariffs. While the tariff changes adversely impacted our costs of revenue during the three months ended January 31, 2026, we expect to fully offset the current impact during our fiscal year 2026. Although the tariff situation is still evolving, we expect to pursue mitigation strategies through supply chain optimization, targeted pricing actions, and other cost-efficiency initiatives to protect margins and sustain long-term growth. Additionally, recent judicial rulings in the U.S. on the legality of certain tariffs imposed and potential future U.S. governmental responses further increase the uncertainty as to the impact of tariffs on our future results of operations. We will continue to monitor these evolving trade dynamics closely, as they may influence future revenue and operational efficiency.

Current wording

While tariffs remain dynamic, we have mitigated the adverse impact related to our cost of revenue during the three and six months ended April 30, 2026 through our continued mitigation strategies such as supply chain optimization, targeted pricing actions, and other cost-efficiency initiatives to protect margins and sustain long-term growth. We will continue to monitor judicial rulings and evolving trade dynamics closely, as they may influence future revenue and operational efficiency.

Previous wording

Net income for the three months ended January 31, 2026 was $305 million compared to net income of $318 million for the corresponding period last year. In the three months ended January 31, 2026, cash provided by operations was $268 million compared to cash provided by operations of $431 million in the same period last year.

Current wording

Net income for the three and six months ended April 30, 2026 was $339 million and $644 million, respectively, compared to net income of $215 million and $533 million for the corresponding periods last year. In the six months ended April 30, 2026, cash provided by operations was $545 million compared to cash provided by operations of $652 million in the same period last year.

Previous wording

Dividends. During the three months ended January 31, 2026, we paid cash dividends of $0.255 per common share or $72 million on the company's common stock. During the three months ended January 31, 2025, we paid cash dividends of $0.248 per common share or $71 million on the company's common stock.

Current wording

Dividends. During the three and six months ended April 30, 2026, we paid cash dividends of $0.255 per common share or $72 million and $0.510 per common share or $144 million, respectively, on the company's common stock. During the three and six months ended April 30, 2025, we paid cash dividends of $0.248 per common share or $70 million and $0.496 per common share or $141 million, respectively, on the company's common stock.

Previous wording

2023 Repurchase Program. In September of 2025, we completed the 2023 repurchase program. During the three months ended January 31, 2025, we repurchased and retired 649,857 shares for $90 million, excluding excise taxes under this authorization.

Current wording

2023 Repurchase Program. In September of 2025, we completed the 2023 repurchase program. During the three and six months ended April 30, 2025, we repurchased and retired 1.347 million shares for $165 million, excluding applicable excise taxes and 1.997 million shares for $255 million, excluding applicable excise taxes, respectively, under this authorization.

Previous wording

2024 Repurchase Program. On May 29, 2024, we announced that our board of directors had approved a new share repurchase program (the "2024 repurchase program") designed, among other things, to reduce or eliminate dilution resulting from issuance of stock under the company's employee equity incentive programs. The 2024 repurchase program authorizes the purchase of up to $2.0 billion, excluding excise taxes, of our common stock at the company's discretion and has no fixed termination date. The 2024 repurchase program does not require the company to acquire a specific number of shares and may be suspended, amended or discontinued at any time. The 2024 repurchase program became effective on August 1, 2024 and commenced in September 2025 upon the completion of our 2023 repurchase program. During the three months ended January 31, 2026 we repurchased and retired 1.050 million shares for $152 million, excluding excise taxes of $0.5 million under this authorization. As of January 31, 2026, we had remaining authorization to repurchase up to approximately $1,797 million of our common stock under the 2024 repurchase program.

Current wording

2024 Repurchase Program. On May 29, 2024, we announced that our board of directors had approved a share repurchase program (the "2024 repurchase program") designed, among other things, to reduce or eliminate dilution resulting from issuance of stock under the company's employee equity incentive programs. The 2024 repurchase program authorizes the purchase of up to $2.0 billion, excluding excise taxes, of our common stock at the company's discretion and has no fixed termination date. The 2024 repurchase program does not require the company to acquire a specific number of shares and may be suspended, amended or discontinued at any time. The 2024 repurchase program became effective on August 1, 2024 and commenced in September 2025 upon the completion of our 2023 repurchase program. During the three and six months ended April 30, 2026, we repurchased and retired 550,000 shares for $65 million, excluding excise taxes and 1.600 million shares for $217 million excluding excise taxes, respectively, under this authorization. As of April 30, 2026, we had remaining authorization to repurchase up to approximately $1,732 million of our common stock under the 2024 repurchase program.

Previous wording

Looking Forward. Our primary focus remains on enhancing our customers’ experience, delivering differentiated product solutions and driving productivity improvements. After an extended period of constrained capital spending, many customers' ability to spend capital budgets has begun to normalize, with the exception of customers receiving funding from the U.S. federal government. We remain optimistic about the long-term health of our key end markets. While the tariff changes adversely impacted our costs of revenue during the three months ended January 31, 2026, we expect to fully offset the current impact during our fiscal year 2026. Although the tariff situation is still evolving, we expect to pursue mitigation strategies through supply chain optimization, targeted pricing actions, and other cost-efficiency initiatives to protect margins and sustain long-term growth. Additionally, recent judicial rulings in the U.S. on the legality of certain tariffs imposed and potential future U.S. governmental responses further increase the uncertainty as to the impact of tariffs on our future results of operations. We will continue to monitor these evolving trade dynamics closely, as they may influence future revenue and operational efficiency.

Current wording

Looking Forward. Our primary focus remains on enhancing our customers’ experience, delivering differentiated product solutions and driving productivity improvements. After an extended period of constrained capital spending, many customers' ability to spend capital budgets has begun to normalize, with the exception of customers receiving funding from the U.S. federal government. We remain optimistic about the long-term health of our key end markets. While tariffs and the Middle East conflict remain dynamic, we have mitigated the adverse impact related to our costs of revenue during the three and six months ended April 30, 2026 through our continued mitigation strategies such as supply chain optimization, targeted pricing actions, and other cost-efficiency initiatives to protect margins and sustain long-term growth. We will continue to monitor judicial rulings and evolving trade dynamics closely, as they may influence future revenue and operational efficiency.

Previous wording

In the second quarter of fiscal year 2025, we announced a restructuring plan designed to optimize our management structure to better serve our customers. The expense associated with this workforce reduction includes severance and other personnel-related costs. These actions impact all three of our business segments. The costs associated with this restructuring plan were not allocated to our business segments' results; however, each business segment will benefit from the future cost savings from these actions. When completed, the restructuring program is estimated to result in the reduction of approximately $90 million to $95 million in annual cost of sales and operating expenses over our three business segments.

Current wording

In the second quarter of fiscal year 2025, we announced a restructuring plan designed to optimize our management structure to better serve our customers. The expense associated with this workforce reduction includes severance and other personnel-related costs. These actions impact all three of our business segments. The costs associated with this restructuring plan were not allocated to our business segments' results; however, each business segment will benefit from the future cost savings from these actions. When completed, the restructuring program is estimated to result in the reduction of approximately $90 million to $95 million in annual cost of revenue and operating expenses over our three business segments.

Previous wording

In connection with the FY25 Plan, we have recorded approximately $20 million in restructuring and other related costs in the three months ended January 31, 2026. The restructuring liability of $16 million at January 31, 2026, is recorded in other accrued liabilities on the condensed consolidated balance sheet and reflects estimated future cash outlays. We expect to substantially complete these restructuring activities by the end of fiscal year 2026.

Current wording

In connection with the FY25 Plan, we have recorded approximately $8 million and $28 million, respectively, in restructuring and other related costs in the three and six months ended April 30, 2026. The restructuring liability of $5 million at April 30, 2026, is recorded in other accrued liabilities on the condensed consolidated balance sheet and reflects estimated future cash outlays. We expect to substantially complete these restructuring activities by the end of fiscal year 2026.

Previous wording

(1) For thethree months ended January 31, 2025, selling, general and administrative expense includes restructuring expense of $1 million related to the fiscal year 2024 restructuring plan that was completed in fiscal year 2025.

Current wording

(1) For thesix months ended April 30, 2025, selling, general and administrative expense includes restructuring expense of $1 million related to the fiscal year 2024 restructuring plan that was completed in fiscal year 2025.

Previous wording

Our revenue, costs and expenses, and monetary assets and liabilities and equity are exposed to changes in foreign currency exchange rates as a result of our global operating and financing activities. The overall effect of changes in foreign currency exchange rates had a 3 percentage point favorable impact on revenue growth for the three months ended January 31, 2026 when compared to the same period last year. Typically, when movements in foreign currency exchange rates have a positive impact on revenue, they will also have a negative impact by increasing our costs and expenses or vice versa. We calculate the impact of movements in foreign currency exchange rates by applying the actual foreign currency exchange rates in effect during the last month of each quarter of the current year to both the applicable current and prior year periods. We hedge revenue, expenses and balance sheet exposures that are not denominated in the functional currencies of our subsidiaries on a short term and anticipated basis. We do experience some fluctuations within individual lines of the condensed consolidated statement of operations and balance sheet because our hedging program is not designed to offset the currency movements in each category of revenue, expenses, monetary assets and liabilities. Our hedging program is designed to hedge currency movements on a relatively short-term basis (up to a rolling twelve-month period). We may also hedge equity balances denominated in foreign currency on a long-term basis. To the extent that we are required to pay for all, or portions, of an acquisition price in foreign currencies, we may enter into foreign exchange contracts to reduce the risk that currency movements will impact the U.S. dollar cost of the transaction.

Current wording

Our revenue, costs and expenses, and monetary assets and liabilities and equity are exposed to changes in foreign currency exchange rates as a result of our global operating and financing activities. The overall effect of changes in foreign currency exchange rates had a 3 percentage point favorable impact on revenue growth for the six months ended April 30, 2026 when compared to the same period last year. Typically, when movements in foreign currency exchange rates have a positive impact on revenue, they will also have a negative impact by increasing our costs and expenses or vice versa. We calculate the impact of movements in foreign currency exchange rates by applying the actual foreign currency exchange rates in effect during the last month of each quarter of the current year to both the applicable current and prior year periods. We hedge revenue, expenses and balance sheet exposures that are not denominated in the functional currencies of our subsidiaries on a short term and anticipated basis. We do experience some fluctuations within individual lines of the condensed consolidated statement of operations and balance sheet because our hedging program is not designed to offset the currency movements in each category of revenue, expenses, monetary assets and liabilities. Our hedging program is designed to hedge currency movements on a relatively short-term basis (up to a rolling twelve-month period). We may also hedge equity balances denominated in foreign currency on a long-term basis. To the extent that we are required to pay for all, or portions, of an acquisition price in foreign currencies, we may enter into foreign exchange contracts to reduce the risk that currency movements will impact the U.S. dollar cost of the transaction.

Previous wording

Net revenue for the three months ended January 31, 2026 increased 7 percent when compared to the same period last year. The overall effect of foreign currency movements on revenue growth for the three months ended January 31, 2026 had a 3 percentage point favorable impact when compared to the same period last year. For the three months ended January 31, 2026, revenue growth came from all of our segments, all geographic regions we serve and most of our key end markets when compared to the same period last year.

Current wording

Net revenue for the three and six months ended April 30, 2026 increased 10 percent and 8 percent, respectively, when compared to the same periods last year. The overall effect of foreign currency movements on revenue growth for the three and six months ended April 30, 2026 had a 4 percentage point and a 3 percentage point favorable impact, respectively, when compared to the same periods last year. For the three and six months ended April 30, 2026, revenue growth came from all of our segments, all geographic regions and most of our key end markets we serve when compared to the same periods last year.

Previous wording

Revenue from products for the three months ended January 31, 2026 increased 6 percent when compared to the same period last year. In the three months ended January 31, 2026, product revenue increased in most of our businesses led by strong revenue growth in our consumables, liquid chromatography and specialty contract development and manufacturing organization ("CDMO") businesses when compared to the same period last year.

Current wording

Revenue from products for the three and six months ended April 30, 2026 increased 10 percent and 8 percent, respectively, when compared to the same periods last year. In the three months ended April 30, 2026, product revenue increased in most of our businesses led by strong revenue growth from our liquid chromatography, pathology, spectroscopy and Agilent Advanced Therapeutics businesses (formerly known as our specialty contract development and manufacturing organization ("CDMO") business) when compared to the same period last year. In the six months ended April 30, 2026, product revenue increased in most of our businesses led by strong revenue growth in our liquid chromatography, spectroscopy, pathology, consumables and Agilent Advanced Therapeutics businesses when compared to the same period last year.

Previous wording

Services and other revenue for the three months ended January 31, 2026 increased 9 percent when compared to the same period last year. Services and other revenue consist of contract repair, preventative maintenance, compliance services, relocation services, installation services and consulting services related to the companion diagnostics and nucleic acid solutions businesses. For the three months ended January 31, 2026, service revenue increases reflected strong growth from contract repair and preventative maintenance services and compliance services.

Current wording

Services and other revenue for the three and six months ended April 30, 2026 increased 10 percent in both periods when compared to the same periods last year. Services and other revenue consist of contract repair, preventative maintenance, compliance services, relocation services, installation services and consulting services related to the companion diagnostics and our Agilent Advanced Therapeutics businesses. For the three and six months ended April 30, 2026, service revenue increases reflected strong growth from contract repair, consulting and preventative maintenance services.

Previous wording

Revenue in the Life Sciences and Diagnostics Markets segment for the three months ended January 31, 2026, increased 5 percent when compared to the same period last year. The overall effect of foreign currency movements on revenue growth for the three months ended January 31, 2026 had a 2 percentage point favorable impact when compared to the same period last year. For the three months ended January 31, 2026, we saw strong revenue growth in the pharmaceutical market led by revenue from our CDMO, liquid chromatography and liquid chromatography mass spectrometry businesses and strong revenue growth in the diagnostics and clinical market led by revenue from our pathology and companion diagnostics businesses, partially offset by declines in revenue in the academia and government and applied markets when compared to the same period last year.

Current wording

Revenue in the Life Sciences and Diagnostics Markets segment for the three and six months ended April 30, 2026 increased 12 percent and 8 percent, respectively, when compared to the same periods last year. The overall effect of foreign currency movements on revenue growth for the three and six months ended April 30, 2026 had a 3 percentage point and a 2 percentage point favorable impact, respectively, when compared to the same periods last year. For the three and six months ended April 30, 2026, revenue growth was strong in the pharmaceutical and the diagnostics and clinical markets partially offset by declines in revenue in the academia and government market when compared to the same periods last year. Within applied markets, we saw strong revenue growth in the chemical and advanced materials market partially offset by moderate declines in the food market when compared to the same periods last year.

Previous wording

Revenue in the Agilent CrossLab segment for the three months ended January 31, 2026, increased 9 percent when compared to the same period last year. The overall effect of foreign currency movements on revenue growth for the three months ended January 31, 2026 had a 3 percentage point favorable impact when compared to the same period last year. For the three months ended January 31, 2026, we saw revenue growth across all of our end markets led by strong growth in the pharmaceutical and chemical and advanced materials markets when compared to the same period last year.

Current wording

Revenue in the Agilent CrossLab segment for the three and six months ended April 30, 2026 increased 6 percent and 8 percent, respectively, when compared to the same periods last year. The overall effect of foreign currency movements on revenue growth for the three and six months ended April 30, 2026 had a 4 percentage point favorable impact in both periods when compared to the same periods last year. For the three and six months ended April 30, 2026, we saw revenue growth across all of our end markets led by strong growth in the pharmaceutical and chemical and advanced materials markets when compared to the same periods last year.

Previous wording

Revenue in the Applied Markets segment for the three months ended January 31, 2026 increased 7 percent when compared to the same period last year. The overall effect of foreign currency movements on revenue growth for the three months ended January 31, 2026 had a 3 percentage point favorable impact when compared to the same period last year. For the three months ended January 31, 2026, we saw significant revenue growth in the chemical and advanced materials markets partially offset by a decline in the food market when compared to the same period last year.

Current wording

Revenue in the Applied Markets segment for the three and six months ended April 30, 2026 increased 14 percent and 10 percent, respectively, when compared to the same periods last year. The overall effect of foreign currency movements on revenue growth for the three and six months ended April 30, 2026 had a 3 percentage point favorable impact in both periods when compared to the same periods last year. For the three months ended April 30, 2026, we saw significant revenue growth in the chemical and advanced materials and environmental and forensics markets when compared to the same period last year. Within life sciences markets, we saw strong revenue growth in the pharmaceutical market when compared to the same period last year. For the six months ended April 30, 2026, we saw significant revenue growth in the chemical and advanced materials and environmental and forensics markets partially offset by a decline in the food market when compared to the same period last year.

Previous wording

Total gross margin for the three months ended January 31, 2026 decreased 1 percentage point when compared to the same period last year. Gross margin for the three months ended January 31, 2026 was unfavorably impacted by higher tariffs, unfavorable business mix (including lower gross margin from our specialty CDMO business), wage increases, higher variable pay and restructuring costs partially offset by higher sales volume, targeted price increases, savings from restructuring programs and lower intangible amortization expense.

Current wording

Total gross margin for the three and six months ended April 30, 2026 increased 2 percentage points and 1 percentage point, respectively, when compared to the same periods last year. Gross margin for the three months ended April 30, 2026 was overall favorably impacted by higher sales volume, targeted price increases, lower restructuring expense and lower intangible amortization expense partially offset by wage increases and higher variable pay when compared to the same period last year. Gross margin for the six months ended April 30, 2026 was overall favorably impacted by higher sales volume, targeted price increases, lower restructuring expense and lower intangible amortization expense partially offset by higher tariffs, unfavorable business mix (including lower gross margin from our Agilent Advanced Therapeutics business), wage increases and higher variable pay when compared to the same period last year.

Previous wording

At January 31, 2026, our headcount was approximately 18,000 as compared to approximately 17,900 at January 31, 2025.

Current wording

At April 30, 2026 and 2025 our headcount was approximately 18,000 employees.

Previous wording

For the three months ended January 31, 2025, other income (expense), net of $4 million income includes a net gain of $1 million on equity securities and income of $13 million related to the defined benefit retirement and post-retirement benefit plans (interest cost, expected return on assets, amortization of net actuarial (gain) loss and prior service credits). The provision of site service costs to, and lease income from Keysight Technologies, Inc. contributed income of $3 million. The costs associated with these services are reported within income from operations. For the three months ended January 31, 2025, other income (expense), net also includes expense of $14 million related to the settlement loss of our Netherlands defined benefit pension plan.

Current wording

For the six months ended April 30, 2025, other income (expense), net of $21 million expense includes a net loss of $27 million on equity securities, $15 million loss on impairment of investments and income of $26 million related to the defined benefit retirement and post-retirement benefit plans (interest cost, expected return on assets, amortization of net actuarial (gain) loss and prior service credits). The provision of site service costs to, and lease income from Keysight Technologies, Inc. contributed income of $6 million. The costs associated with these services are reported within income from operations. For the six months ended April 30, 2025, other income (expense), net also includes expense of $14 million related to the settlement loss of our Netherlands defined benefit pension plan.

Previous wording

For the three months ended January 31, 2026, our income tax expense was $59 million with an effective tax rate of 16.2 percent. For the three months ended January 31, 2026, there were no significant discrete items.

Current wording

For the three and six months ended April 30, 2026, our income tax expense was $69 million with an effective tax rate of 16.9 percent and $128 million with an effective tax rate of 16.6 percent, respectively. For the three and six months ended April 30, 2026, there were no significant discrete items.

Previous wording

For the three months ended January 31, 2025, our income tax expense was $49 million with an effective tax rate of 13.4 percent. For the three months ended January 31, 2025, there were no significant discrete items.

Current wording

For the three and six months ended April 30, 2025, our income tax expense was $45 million with an effective tax rate of 17.3 percent and $94 million with an effective tax rate of 15.0 percent, respectively. For the three and six months ended April 30, 2025, there were no significant discrete items.

Previous wording

The Organization for Economic Co-operation and Development. ("OECD") has introduced rules to establish a global minimum tax rate of 15 percent, commonly referred to as the Pillar Two rules. We have considered the impact of currently enacted Pillar Two rules, and our income taxes have increased due to top-up taxes. Additionally, the United States enacted the One Big Beautiful Bill Act ("OBBBA") on July 4, 2025, including adjustments to effective tax rates on certain types of income and an elective deduction for domestic Research and Development (R&D), which are applicable to Agilent in fiscal years 2026 and 2027. The OBBBA did not have a material impact on our effective tax rate or cash flow in the current quarter.

Current wording

The Organization for Economic Co-operation and Development ("OECD") has introduced rules to establish a global minimum tax rate of 15 percent, commonly referred to as the Pillar Two rules. We have considered the impact of currently enacted Pillar Two rules, and our income taxes have increased due to top-up taxes. Additionally, the United States enacted the One Big Beautiful Bill Act ("OBBBA") on July 4, 2025, including adjustments to effective tax rates on certain types of income and an elective deduction for domestic Research and Development (R&D), which are applicable to Agilent in fiscal years 2026 and 2027. The OBBBA did not have a material impact on our effective tax rate or cash flow for the three or six months ended April 30, 2026.

Previous wording

Our Life Sciences and Diagnostics Markets segment is comprised of seven areas of activity. We provide active pharmaceutical ingredients for oligo-based therapeutics as well as solutions that include reagents, instruments, software and consumables, which enable customers in the clinical and life sciences research areas to interrogate samples at the cellular and molecular level. First, our liquid chromatography and liquid chromatography mass spectrometry businesses enable customers in the clinical and life sciences research areas to interrogate samples at the molecular and cellular level. Second, our electrophoresis and cell phenotyping business delivers end-to-end workflow solutions (including instruments, reagents, consumables, and software) for nucleic acid quality control and multiparametric cell analysis. These offerings support next-generation sequencing accuracy and enable live-cell imaging, metabolism analysis, and flow cytometry across clinical and life science research applications. Third, our cell imaging and metabolism business provides integrated instruments, reagents, software, and labware for automated imaging, metabolic analysis, plate reading, and dispensing, supporting applications across immunology, oncology, drug discovery, and translational research. Fourth, our specialty contract development and manufacturing organization ("CDMO") business provides services related to and the production of synthesized oligonucleotides under pharmaceutical good manufacturing practices conditions for use as active pharmaceutical ingredients in a class of drugs that utilize nucleic acid molecules for disease therapy. BIOVECTRA capabilities include microbial fermentation, bioreagents, highly potent active pharmaceutical ingredients, peptide purification and biomanufacturing capabilities in several nucleic acid modalities. Together, our BIOVECTRA and nucleic acid solutions businesses comprise our specialty CDMO offerings to our customers providing clinical-to-commercial scale production capabilities. Fifth, our pathology solutions business delivers products for cancer diagnostics and anatomic pathology workflows, including immunohistochemistry, in situ hybridization, hematoxylin and eosin, and special staining. The portfolio also includes clinical flow cytometry reagents and bulk antibodies, as well as assay development services for in vitro diagnostics, biotechnology, and pharmaceutical customers. Sixth, we also collaborate with several major pharmaceutical companies to develop new potential tissue pharmacodiagnostics, also known as companion diagnostics, which may be used to identify patients most likely to benefit from a specific targeted therapy. Finally, our genomics business provides reagents for next-generation sequencing and array workflows, along with solutions that enable clinical labs to identify disease-associated DNA variants and inform cancer therapy.

Current wording

Our Life Sciences and Diagnostics Markets segment is comprised of seven areas of activity. We provide active pharmaceutical ingredients for oligo-based therapeutics as well as solutions that include reagents, instruments, software and consumables, which enable customers in the clinical and life sciences research areas to interrogate samples at the cellular and molecular level. First, our liquid chromatography and liquid chromatography mass spectrometry businesses enable customers in the clinical and life sciences research areas to interrogate samples at the molecular and cellular level. Second, our electrophoresis and cell phenotyping business delivers end-to-end workflow solutions (including instruments, reagents, consumables, and software) for nucleic acid quality control and multiparametric cell analysis. These offerings support next-generation sequencing accuracy and enable live-cell imaging, metabolism analysis, and flow cytometry across clinical and life science research applications. Third, our cell imaging and metabolism business provides integrated instruments, reagents, software, and labware for automated imaging, metabolic analysis, plate reading, and dispensing, supporting applications across immunology, oncology, drug discovery, and translational research. Fourth, our Agilent Advanced Therapeutics business (formerly known as our specialty contract development and manufacturing organization ("CDMO") business) provides good manufacturing practice compliant services and manufacturing of synthesized oligonucleotides used as active pharmaceutical ingredients in nucleic acid-based drugs, alongside capabilities in microbial fermentation, bioreagents, highly potent active pharmaceutical ingredients, peptide purification and broader nucleic acid biomanufacturing. Fifth, our pathology solutions business delivers products for cancer diagnostics and anatomic pathology workflows, including immunohistochemistry, in situ hybridization, hematoxylin and eosin, and special staining. The portfolio also includes clinical flow cytometry reagents and bulk antibodies, as well as assay development services for in vitro diagnostics, biotechnology, and pharmaceutical customers. Sixth, we also collaborate with several major pharmaceutical companies to develop new potential tissue pharmacodiagnostics, also known as companion diagnostics, which may be used to identify patients most likely to benefit from a specific targeted therapy. Finally, our genomics business provides reagents for next-generation sequencing and array workflows, along with solutions that enable clinical labs to identify disease-associated DNA variants and inform cancer therapy.

Previous wording

Geographically, revenue for the three months ended January 31, 2026 decreased 2 percent in the Americas with no currency impact, increased 7 percent in Europe with a 7 percentage point favorable currency impact and increased 17 percent in Asia Pacific with a 1 percentage point favorable currency impact compared to the same period last year. For the three months ended January 31, 2026, the revenue decrease in the Americas was primarily driven by declines in our cell imaging and metabolism, electrophoresis and cell phenotyping, liquid chromatography mass spectrometry and genomics businesses partially offset by strong growth in the BIOVECTRA, nucleic acid solutions and companion diagnostic businesses and moderate growth from our pathology and liquid chromatography businesses. Revenue increased in Europe due to strong growth from our pathology, liquid chromatography, electrophoresis and cell phenotyping and companion diagnostics businesses and modest growth in our genomics business partially offset by a decline in our liquid chromatography mass spectrometry and cell imaging and metabolism businesses. Revenue increased in Asia Pacific due to strong growth from our liquid chromatography, liquid chromatography mass spectrometry, pathology and companion diagnostics businesses partially offset by a decline in our genomics business.

Current wording

Geographically, revenue for the three months ended April 30, 2026 increased 12 percent in the Americas with a 1 percentage point favorable currency impact, increased 21 percent in Europe with a 10 percentage point favorable currency impact and increased 2 percent in Asia Pacific with a 2 percentage point favorable currency impact compared to the same period last year. For the three months ended April 30, 2026, the revenue increase in the Americas was driven by strong growth across almost all of our businesses with modest revenue growth in our cell imaging and metabolism; and electrophoresis and cell phenotyping businesses. Revenue increased in Europe driven by strong growth from all of our businesses. Revenue increased in Asia Pacific due to strong growth from our liquid chromatography, pathology and genomics businesses, and moderate growth in our electrophoresis and cell phenotyping; and liquid chromatography mass spectrometry businesses, partially offset by declines in our cell imaging and metabolism business.

Previous wording

Looking Forward. While the tariff changes adversely impacted our costs of revenue during the three months ended January 31, 2026, we expect to fully offset the current impact during our fiscal year 2026. We remain optimistic about long-term growth in our end markets and continue investing to enhance our applications and solutions portfolio. The rising demand for several of the modalities provided by our specialty CDMO business positions us well to serve expanding customer demand. By leveraging our liquid chromatography and liquid chromatography mass spectrometry platforms, we are driving growth across key markets and remain optimistic about long-term life sciences opportunities. Our diagnostic and clinical markets continue to grow with the OMNIS platforms. We will continue investing in research and development, advancing our applications and solutions portfolio, and expanding our position in developing and emerging markets.

Current wording

Looking Forward. While tariffs and the Middle East conflict remain dynamic, we have mitigated the adverse impact related to our costs of revenue during the three and six months ended April 30, 2026. We remain optimistic about long-term growth in our end markets and continue investing to enhance our applications and solutions portfolio. The rising demand for several of the modalities provided by our Agilent Advanced Therapeutics business positions us well to serve expanding customer demand. By leveraging our liquid chromatography and liquid chromatography mass spectrometry platforms, we are driving growth across key markets and remain optimistic about long-term life sciences opportunities. Our diagnostic and clinical markets continue to grow with the OMNIS platforms. We will continue investing in research and development, advancing our applications and solutions portfolio, and expanding our position in developing and emerging markets.

Previous wording

Gross margin for products and services for the three months ended January 31, 2026, decreased 2 percentage points when compared to the same period last year. Gross margin for the three months ended January 31, 2026 was impacted mainly by increased tariffs, unfavorable business mix (including lower gross margin from our specialty CDMO business), increased warranty expenses, wage increases and higher variable pay which was partially offset by increased volume and savings from restructuring programs.

Current wording

Gross margin for products and services for the three and six months ended April 30, 2026, increased 1 percentage point and decreased approximately 1 percentage point, respectively, when compared to the same periods last year. Gross margin for the three months ended April 30, 2026 was impacted mainly by higher sales volume, price increases, decreased tariffs, favorable business mix (net of lower gross margin from our Agilent Advanced Therapeutics business) and savings from restructuring programs partially offset by increased warranty expenses, wage increases and higher variable pay. Gross margin for the six months ended April 30, 2026 was impacted mainly by higher tariffs, unfavorable business mix (including lower gross margin from our Agilent Advanced Therapeutics business), increased warranty expenses, wage increases and higher variable pay which was partially offset by higher sales volume, price increases and savings from restructuring programs.

Previous wording

Research and development expenses for the three months ended January 31, 2026, increased 3 percent when compared to the same period last year. Research and development expenses for thethree months ended January 31, 2026 increased primarily due to wage increases, higher variable pay and the unfavorable impact of currency movements partially offset by savings from restructuring programs and lower contracted services.

Current wording

Research and development expenses for the three and six months ended April 30, 2026, increased 8 percent and 6 percent, respectively, when compared to the same periods last year. Research and development expenses for thethree and six months ended April 30, 2026 increased primarily due to wage increases, higher variable pay and the unfavorable impact of currency movements, partially offset by savings from restructuring programs.

Previous wording

Operating margin for products and services for the three months ended January 31, 2026 decreased 2 percentage points when compared to the same period last year. Operating margin for products and services for the three months ended January 31, 2026, decreased primarily due to increased tariffs, unfavorable business mix (including lower gross margin from our specialty CDMO business), increased warranty expenses and higher variable pay partially offset by increased volume and lower contracted services.

Current wording

Operating margin for products and services for the three and six months ended April 30, 2026 increased 2 percentage points and was relatively flat, respectively, when compared to the same periods last year. Operating margin for products and services for the three months ended April 30, 2026, was impacted mainly by higher sales volume, price increases, decreased tariffs, favorable business mix (net of lower gross margin from our Agilent Advanced Therapeutics business) partially offset by increased warranty expenses, wage increases and higher variable pay. Operating margin for products and services for the six months ended April 30, 2026, was impacted mainly by higher sales volume, price increases and savings from restructuring programs offset by increased tariffs, unfavorable business mix (including lower gross margin from our Agilent Advanced Therapeutics business), increased warranty expenses, wage increases and higher variable pay and higher commissions.

Previous wording

Income from operations for the three months ended January 31, 2026, increased $9 million or 10 percent on a corresponding revenue increase of $23 million.

Current wording

Income from operations for the three and six months ended April 30, 2026 increased $32 million or 25 percent and increased $24 million or 10 percent, respectively, on a corresponding revenue increase of $78 million and $110 million, respectively.

Previous wording

For the three months ended January 31, 2026, revenue growth was strong in the pharmaceutical, chemicals and advanced materials, food, academia and government, and diagnostics and clinical markets, and moderate in the environmental and forensics market. Strong revenue growth in the pharmaceutical market was driven by our repair, maintenance and compliance services, consumables, and software and informatics businesses when compared to the same period last year. Strong revenue growth in the chemicals and advanced materials market was driven by our repair, maintenance and compliance services, and consumables business when compared to the same period last year. Strong revenue growth in the food market was driven by our repair, maintenance and compliance services, and consumables business, partially offset by our software and informatics business when compared to the same period last year. Strong revenue growth in the academia and government and diagnostics and clinical markets was driven by our software and informatics and consumables businesses when compared to the same period last year. Moderate revenue growth in the environmental and forensics market was driven by our repair, maintenance and compliance services, and consumables business, partially offset by our software and informatics business when compared to the same period last year.

Current wording

For the three months ended April 30, 2026, revenue growth was strong in the pharmaceutical, chemical and advanced materials, environmental and forensics, and diagnostics and clinical markets and modest in the food and academia and government markets. Strong revenue growth in the pharmaceutical market was driven by strength in our repair, maintenance and compliance services. Strong revenue growth in the chemical and advanced materials and environmental and forensics market was driven by our consumables business, and repair, maintenance and compliance services. Strong revenue growth in the diagnostics and clinical markets was driven by strength in all our businesses when compared to the same period last year. Modest revenue growth in the food market was driven by strength in our repair, maintenance and compliance services, partially offset by weakness in our consumables business. Modest revenue growth in the academia and government markets was driven by our software and informatics business when compared to the same period last year.

Previous wording

Looking Forward. While the tariff changes adversely impacted our costs of revenue during the three months ended January 31, 2026, we expect to fully offset the current impact during our fiscal year 2026. Agilent CrossLab is well positioned to continue its success in our key end markets by supporting a growing installed base of instruments. Digital and remote capabilities will continue to be a key factor in improving the service quality and the customers' experience. Geographically, the business is well diversified across all regions to take advantage of local market opportunities and to hedge against weakness in any one region.

Current wording

Looking Forward. While tariffs and the Middle East conflict remain dynamic, we have mitigated the adverse impact related to our costs of revenue during the three and six months ended April 30, 2026. Agilent CrossLab is well positioned to continue its success in our key end markets by supporting a growing installed base of instruments. Digital and remote capabilities will continue to be a key factor in improving the service quality and the customers' experience. Geographically, the business is well diversified across all regions to take advantage of local market opportunities and to hedge against weakness in any one region.

Previous wording

Gross margin for the three months ended January 31, 2026 decreased 1 percentage point when compared to the same period last year. Gross margin for the three months ended January 31, 2026 was impacted by wage increases, higher variable pay and higher tariffs partially offset by higher sales volume, price increases and savings from restructuring programs.

Current wording

Gross margin for the three and six months ended April 30, 2026 was flat and decreased approximately 1 percentage point, respectively, when compared to the same periods last year. Gross margin for the three months ended April 30, 2026 was impacted by higher sales volume, price increases, lower corporate infrastructure expenses and savings from restructuring programs offset by wage increases, higher variable pay and higher tariffs and shipping costs. Gross margin for the six months ended April 30, 2026 was impacted by wage increases, higher variable pay, higher tariffs and shipping costs partially offset by higher sales volume, price increases, lower corporate infrastructure expenses and savings from restructuring programs.

Previous wording

Selling, general and administrative expenses for the three months ended January 31, 2026 increased 6 percent when compared to the same period last year. For the three months ended January 31, 2026, selling, general and administrative expenses increased due to higher corporate infrastructure expenses, the unfavorable impact of currency movements, wage increases and higher variable pay partially offset by savings from restructuring programs.

Current wording

Selling, general and administrative expenses for the three and six months ended April 30, 2026 increased 9 percent and 7 percent, respectively, when compared to the same periods last year. For the three and six months ended April 30, 2026, selling, general and administrative expenses increased due to wage increases, higher variable pay, higher commissions and the unfavorable impact of currency movements partially offset by savings from restructuring programs.

Previous wording

Income from operations for the three months ended January 31, 2026 decreased $8 million or 7 percent on a corresponding revenue increase of $32 million.

Current wording

Income from operations for the three and six months ended April 30, 2026 increased $11 million or 5 percent and increased $30 million or 7 percent, respectively, on a corresponding revenue increase of $46 million and $108 million, respectively.

Previous wording

Geographically, revenue for the three months ended January 31, 2026 increased 2 percent in the Americas with no currency impact, increased 17 percent in Europe with an 8 percentage point favorable currency impact and increased 4 percent in Asia Pacific with a 1 percentage point favorable currency impact when compared to the same period last year. The revenue growth in the Americas was driven by strength in our spectroscopy business partially offset by weakness in our gas chromatography and remarketed instruments businesses when compared to the same period last year. The revenue growth in Europe was driven by strength in our gas chromatography, gas chromatography mass spectrometry and spectroscopy businesses when compared to the same period last year. The revenue growth in Asia Pacific was driven by strength in our spectroscopy, remarketed instruments and vacuum businesses partially offset by weakness in the gas chromatography mass spectrometry business when compared to the same period last year.

Current wording

Revenue for the six months ended April 30, 2026 increased 17 percent in the Americas with a 1 percentage point favorable currency impact, increased 16 percent in Europe with an 8 percentage point favorable currency impact and increased 3 percent in Asia Pacific with a 1 percentage point favorable currency impact when compared to the same period last year. Revenue growth in the Americas was driven by strength in our spectroscopy, vacuum and remarketed instruments businesses. Revenue growth in Europe was driven by strength across all our businesses led by our gas chromatography business when compared to the same period last year. Revenue growth in Asia Pacific was driven by strength in our remarketed instruments, gas chromatography and vacuum businesses partially offset by weakness in our gas chromatography mass spectrometry business.

Previous wording

For the three months ended January 31, 2026, revenue growth was strong in the chemicals and advanced materials market and moderate in the environmental and forensics and pharmaceutical markets partially offset by revenue decline in the food market. Strong revenue growth in the chemicals and advanced materials market was driven by strength in our spectroscopy, gas chromatography, gas chromatography mass spectrometry and vacuum businesses when compared to the same period last year. Moderate revenue growth in the environmental and forensics market was driven by strength in our spectroscopy business partially offset by weakness in our gas chromatography mass spectrometry business when compared to the same period last year. Moderate revenue growth in the pharmaceutical market was driven by strength in our gas chromatography business when compared to the same period last year. Revenue decline in the food market was driven by weakness in our gas chromatography mass spectrometry and gas chromatography businesses when compared to the same period last year.

Current wording

For the three months ended April 30, 2026, revenue growth was strong in the chemical and advanced materials market, environmental and forensics and moderate in the food market. Strong revenue growth in the chemical and advanced materials market was driven by strength in all our businesses led by our spectroscopy business when compared to the same period last year. Strong revenue growth in the environmental and forensics market was driven by strength in our spectroscopy and gas chromatography businesses partially offset by weakness in our gas chromatography mass spectrometry business. Moderate revenue growth in the food market was driven by strength in our gas chromatography and remarketed instruments businesses partially offset by weakness in our gas chromatography mass spectrometry business. Within life sciences markets, we saw strong revenue growth in the pharmaceutical market driven by strength in our gas chromatography and remarketed instruments businesses when compared to the same period last year.

Previous wording

Looking Forward. While the tariff changes adversely impacted our costs of revenue during the three months ended January 31, 2026, we expect to fully offset the current impact during our fiscal year 2026. We also anticipate continued steady market recovery and are optimistic about our long-term growth opportunities in the applied markets as our broad portfolio of products and solutions are well suited to address customer needs. We will continue to invest in expanding and improving our application-focused solutions that include instruments and software.

Current wording

Looking Forward. While tariffs and the Middle East conflict remain dynamic, we have mitigated the adverse impact related to our costs of revenue during the three and six months ended April 30, 2026. We remain optimistic about our long-term growth opportunities in the applied markets as our broad portfolio of products and solutions are well suited to address customer needs. We will continue to invest in expanding and improving our application-focused solutions that include instruments and software.

Previous wording

Gross margin for the three months ended January 31, 2026, increased 1 percentage point when compared to the same period last year. Gross margin for the three months ended January 31, 2026 increased due to higher sales volume, favorable business mix, lower corporate infrastructure expenses and savings from restructuring programs partially offset by higher tariffs and wage increases.

Current wording

Gross margin for the three and six months ended April 30, 2026, increased 2 percentage points and 1 percentage point, respectively, when compared to the same periods last year. Gross margin for the three and six months ended April 30, 2026 increased due to higher sales volume, favorable business mix, lower corporate infrastructure costs, and savings from restructuring programs partially offset by higher tariffs, shipping costs and wage increases.

Previous wording

Our financial position as of January 31, 2026 consisted of cash and cash equivalents of $1,758 million as compared to $1,789 million as of October 31, 2025.

Current wording

Our financial position as of April 30, 2026 consisted of cash and cash equivalents of $1,807 million as compared to $1,789 million as of October 31, 2025.