Agilent Technologies
A
$146.93
+2.66%
Agilent Technologies Inc. is a leading life sciences and diagnostics company that provides measurement instruments, consumables, and services to customers in biopharmaceutical, chemical, and applied markets. Spun out of Hewlett-Packard in 1999, Agilent has established itself as a market leader in analytical instrumentation, particularly in chromatography and mass spectrometry, serving a diverse customer base across academia, government, and industry. The current investor narrative centers on Agilent's strategic pivot toward high-growth areas like pathology and its ability to sustain double-digit revenue growth, as evidenced by recent quarterly results and a raised full-year forecast. The stock has also benefited from broader market tailwinds, including a strong S&P 500 rally and positive sentiment around life sciences tools, though concerns about China exposure and macroeconomic headwinds persist.…
A
Agilent Technologies
$146.93
Related headlines
Investment Opinion: Should I buy A Today?
Rating: Buy. Agilent's accelerating revenue growth, margin expansion, and raised guidance justify a positive outlook, supported by a consensus Buy rating and average target of $175.45, implying 16.3% upside. The company's leadership in life sciences tools and strategic pathology expansion provide a solid growth runway.
Sign up to view all
A 12-Month Price Forecast
Agilent's operational momentum and strategic positioning in life sciences tools support a bullish stance, but the premium valuation and China exposure temper confidence. The stock is likely to outperform if growth continues, but any miss could trigger a sharp correction. I would upgrade to high confidence if revenue growth exceeds 12% and China stabilizes, or downgrade to neutral if growth falls below 7%.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Agilent Technologies's 12-month outlook, with a consensus price target around $174.95 and implied upside of +19.1% versus the current price.
Average Target
$174.95
0 analysts
Implied Upside
+19.1%
vs. current price
Analyst Count
—
covering this stock
Price Range
$155 - $190
Analyst target range
Agilent is covered by 20 analysts, with a consensus recommendation of 'Buy' and a mean rating of 1.73 (where 1 is Strong Buy and 5 is Sell). The average price target is $175.45, implying a 16.3% upside from the current price of $150.86. The distribution is bullish, with no Sell ratings and a majority of Buy or Overweight ratings. Recent actions include upgrades from B of A Securities (Neutral to Buy) and reaffirmations from Evercore ISI, Barclays, and RBC Capital, indicating positive sentiment. The target range spans from $155 (low) to $190 (high), with the high target suggesting potential for further multiple expansion if Agilent sustains its growth trajectory. The relatively wide spread of $35 between low and high targets reflects moderate uncertainty, likely due to macroeconomic factors and China exposure. Overall, the analyst community is confident in Agilent's growth story, as evidenced by the recent earnings beat and raised guidance.
Drowning in data?
Find the real signal!
Bulls vs Bears: A Investment Factors
Agilent presents a compelling growth story with accelerating revenue, margin expansion, and strong analyst endorsement. However, the stock's premium valuation and elevated PEG ratio suggest much of the good news is priced in. The bull case currently holds stronger evidence due to operational momentum and raised guidance, but the key tension is whether sustained double-digit growth can justify the premium multiple. If growth decelerates or China weakens, the stock could face significant de-rating.
Bullish
- Accelerating Revenue Growth: Q2 FY2026 revenue grew 10.0% YoY to $1.835B, up from 7.4% in the prior quarter, indicating strengthening demand across biopharma and applied markets.
- Raised Full-Year Guidance: Agilent raised its full-year profit forecast after a strong quarterly beat, signaling management confidence in sustained operational momentum.
- Strong Analyst Support: 20 analysts rate it a Buy with a mean rating of 1.73, average target $175.45 (16.3% upside), and no Sell ratings, reflecting broad optimism.
- High Gross Margin Expansion: Gross margin improved to 54.99% in Q2 FY2026 from 51.9% a year ago, driven by mix shift and cost controls, boosting profitability.
Bearish
- Elevated Valuation vs. Peers: Trailing PE of 31.9x and forward PE of 22.3x exceed the industry average of 25x, implying a 28% premium that may limit upside.
- High PEG Ratio Signals Overvaluation: PEG ratio of 9.4x suggests the stock is expensive relative to its near-term earnings growth, raising risk of multiple compression.
- China Exposure and Macro Risks: China is a major market; geopolitical tensions and slower Chinese spending could pressure revenue, as noted in the analysis.
- Integration Execution Risk: The Biocare acquisition carries integration risks that could distract management and fail to deliver expected synergies.
A Technical Analysis
Agilent's stock is in a robust uptrend, with a 1-year price change of +17.4% and a 6-month gain of +31.1%. The current price of $150.86 sits at 92% of its 52-week range (low: $108.35, high: $163.75), indicating strong momentum and proximity to recent highs. This positioning suggests the market is rewarding the company's operational execution, though it also raises the risk of short-term overextension. The stock has outperformed the S&P 500 over the past 6 months by 16.6 percentage points, underscoring its relative strength in the healthcare sector.
Beta
1.24
1.24x market volatility
Max Drawdown
-29.9%
Largest decline past year
52-Week Range
$108-$164
Price range past year
Annual Return
+15.9%
Cumulative gain past year
| Period | A Return | S&P 500 |
|---|---|---|
| 1m | -0.9% | -1.1% |
| 3m | +13.2% | +3.0% |
| 6m | +31.8% | +15.4% |
| 1y | +15.9% | +16.2% |
| ytd | +6.5% | +12.1% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
A Fundamental Analysis
Agilent's revenue trajectory is accelerating, with Q2 FY2026 (ending April 30, 2026) revenue of $1.835 billion, up 10.0% year-over-year, compared to 7.4% growth in the prior quarter. The company has consistently grown revenue over the past five quarters, from $1.578 billion in Q3 FY2024 to the current level, driven by strength in its CrossLab and Applied Markets segments. This growth is broad-based, with the Life Sciences and Applied Markets segment contributing $732 million and CrossLab $759 million in the latest quarter. The acceleration suggests improving demand for Agilent's instruments and consumables, particularly in biopharmaceutical end markets.
Quarterly Revenue
$1.8B
2026-04
Revenue YoY Growth
+10.0%
YoY Comparison
Gross Margin
55.0%
Latest Quarter
Free Cash Flow
$1.3B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
Open an Account, get $2 TSLA now!
Valuation Analysis: Is A Overvalued?
Given Agilent's positive net income, the PE ratio is the primary valuation metric. The trailing PE stands at 31.9x, while the forward PE is 22.3x, implying the market expects significant earnings growth. This gap of 9.6x suggests investors are pricing in a strong recovery in profitability, which is supported by the company's recent margin expansion and raised guidance. Compared to the industry average PE of 25x (based on sector data), Agilent trades at a 28% premium, reflecting its superior growth profile and market leadership. However, the PEG ratio of 9.4x is elevated, indicating that the stock may be overvalued relative to its near-term earnings growth rate.
PE
31.9x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 16x~44x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
23.4x
Enterprise Value Multiple
Investment Risk Disclosure
Financially, Agilent carries moderate debt with a debt-to-equity ratio of 0.50, and its interest expense of $25M per quarter is manageable given operating income of $399M. The company generates positive free cash flow of $1.256B TTM, supporting dividends and investments. However, its net margin of 18.75% is sensitive to cost inflation and R&D spending, which could compress if revenue growth slows. The payout ratio of 21.6% is conservative, but any margin erosion could impact earnings quality.
FAQ
The key risks include: 1) China exposure, as a slowdown or geopolitical tensions could hurt revenue; 2) Integration risk from the Biocare acquisition, which may fail to deliver expected synergies; 3) Valuation risk, as the high PE and PEG ratios could lead to multiple compression if growth disappoints; 4) Macro risks, such as a global recession reducing lab spending. The most severe risk is a combination of China weakness and integration failure, which could drive the stock down to the 52-week low of $108.35, a 28% drop from current levels.
Analysts have an average price target of $175.45, with a range of $155 to $190, implying a 16.3% upside from the current price of $150.86. In a bull case (30% probability), the stock could reach $190 if growth accelerates and Biocare integration succeeds. In a base case (50% probability), it would trade around $175 as growth moderates. In a bear case (20% probability), it could fall to $155 or lower if China weakens or integration fails. The most likely scenario is the base case, assuming continued but moderating growth.
Agilent's trailing PE of 31.9x and forward PE of 22.3x are above the industry average of 25x, indicating a premium valuation. The PEG ratio of 9.4x is particularly high, suggesting the market expects substantial future growth. This premium is justified if Agilent can sustain double-digit revenue growth and margin expansion, but it leaves little room for error. Compared to its own history, the stock is trading near the higher end of its valuation range, implying investors are pricing in continued strong performance.
Agilent is a good buy for investors with a medium-to-long-term horizon, given its 16.3% upside to the average analyst target and strong growth trajectory. However, the stock trades at a 28% premium to its industry on a trailing PE basis, so entry timing matters. The main downside risk is a China slowdown or integration missteps, which could lead to a 10-15% correction. For those who believe in the life sciences growth story, it's a solid addition, but for value investors, the valuation may be too rich.
Agilent is better suited for long-term investment due to its growth stage and earnings visibility. The stock has a beta of 1.24, indicating higher volatility than the market, which may deter short-term traders. With a dividend yield of 0.68%, it offers minimal income, but the potential for capital appreciation is significant if the life sciences sector grows. A minimum holding period of 3-5 years is recommended to ride out cyclicality and benefit from the company's strategic initiatives.