Agilent Technologies
A
$131.46
-3.41%
Agilent Technologies Inc., spun out of Hewlett-Packard in 1999, is a leading life science and diagnostics firm providing measurement technologies across three segments: life sciences and diagnostics, cross lab operations (consumables and services), and applied end markets. The company holds a strong competitive position as a diversified supplier to the biopharmaceutical, chemical, and advanced materials end markets, which are considered sticky and recurring. The current investor narrative centers on Agilent's ability to sustain growth momentum following a strong fiscal Q2 2026 earnings beat and raised full-year profit forecast, while also navigating near-term macroeconomic headwinds and integrating its recent Biocare Medical acquisition to bolster pathology innovation.…
A
Agilent Technologies
$131.46
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A 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Agilent Technologies's 12-month outlook, with a consensus price target around $159.32 and implied upside of +21.2% versus the current price.
Average Target
$159.32
0 analysts
Implied Upside
+21.2%
vs. current price
Analyst Count
—
covering this stock
Price Range
$135 - $185
Analyst target range
Agilent is covered by 19 analysts, with a consensus recommendation of 'Buy' (mean recommendation 1.62 on a 1-5 scale, where 1 is Strong Buy). The average target price is $159.32, implying approximately +21.2% upside from the current price of $131.46. The distribution shows a bullish lean, with recent actions including upgrades from B of A Securities (Neutral to Buy) and a downgrade from Piper Sandler (Overweight to Neutral), indicating some mixed sentiment but overall positive. The target price range spans from $135.00 (low) to $185.00 (high). The high target of $185 assumes strong execution on growth initiatives, margin expansion, and successful integration of the Biocare acquisition, potentially driving multiple expansion. The low target of $135 suggests risks from macroeconomic headwinds, competitive pressures, or slower-than-expected growth. The spread between low and high ($50) is moderate, reflecting reasonable uncertainty. The recent pattern of mostly reaffirmations and upgrades supports a constructive outlook, though the Piper Sandler downgrade warrants monitoring.
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Bulls vs Bears: A Investment Factors
Agilent presents a compelling bull case driven by accelerating revenue growth, expanding margins, and a strong balance sheet, supported by a consensus Buy rating with 21% upside to the average target. However, the stock's elevated trailing P/E and high PEG ratio suggest it is priced for perfection, leaving it vulnerable to macro headwinds or integration missteps. The single most important tension is whether the company can sustain its double-digit revenue growth and margin expansion to justify the premium valuation. If growth decelerates, the stock could face significant multiple compression; if it accelerates further, the stock could re-rate toward the analyst high target of $185. Currently, the bull case has stronger evidence given the recent earnings beat and raised guidance, but the bear risks warrant caution.
Bullish
- Strong Revenue Acceleration: Q2 2026 revenue grew 10.01% YoY to $1.835B, accelerating from 6.9% in Q1 2026 and 4.1% in Q4 2025. This indicates robust demand across life sciences and diagnostics end markets.
- Significant Margin Expansion: Gross margin improved to 54.99% in Q2 2026 from 51.92% a year ago, while operating margin expanded to 21.74% from 17.99%. Net margin rose to 18.47% from 12.89%, demonstrating strong operating leverage.
- Healthy Balance Sheet and Cash Flow: Debt-to-equity is a conservative 0.50, current ratio is 1.96, and TTM free cash flow is $1.256B, providing ample liquidity for organic growth and acquisitions like Biocare Medical.
- Analyst Consensus Buy with Upside: 19 analysts rate the stock a Buy (mean 1.62 on 1-5 scale) with an average target of $159.32, implying 21.2% upside from the current price of $131.46. The high target of $185 suggests even greater potential.
Bearish
- Elevated Trailing P/E vs. Peers: Trailing P/E of 31.89x is at a premium to the Medical-Diagnostics & Research sector average (typically low 20s). This leaves the stock vulnerable to multiple compression if growth disappoints.
- High PEG Ratio Suggests Overvaluation: PEG ratio of 9.44x is elevated, indicating that the current price already prices in substantial future growth. Any deceleration could lead to a sharp re-rating.
- Macroeconomic and Geopolitical Sensitivity: With a beta of 1.255, the stock is 25.5% more volatile than the market. Recent news highlights sensitivity to US-Iran tensions and Fed hawkishness, which could pressure growth stocks.
- Integration Risk from Biocare Acquisition: The Biocare Medical acquisition, while strategically sound, introduces execution risk. Integration challenges or slower-than-expected synergies could weigh on margins and growth.
A Technical Analysis
Agilent's 1-year price change of +12.98% indicates a moderate uptrend, though the stock has experienced significant volatility. The current price of $131.46 sits at 38.4% of its 52-week range ($108.35 low to $160.27 high), reflecting a recovery from the March 2026 lows but still well below the highs. This positioning suggests the stock is in a recovery phase, not yet overextended, but also not at a deep value level. Over the past 1 month, the stock has gained 5.73%, and over 3 months it has risen 7.87%, showing accelerating short-term momentum. However, the 6-month change is -5.86%, indicating that the recent rally is a reversal from a prior downtrend. The divergence between the positive 1-month/3-month trends and the negative 6-month trend suggests a potential trend reversal or mean reversion, supported by a strong earnings catalyst in late May 2026. The 52-week low of $108.35 provides key support, while the 52-week high of $160.27 is the primary resistance. A breakout above $160.27 would signal a resumption of the long-term uptrend, while a breakdown below $108.35 could indicate further downside. With a beta of 1.255, Agilent is 25.5% more volatile than the S&P 500, meaning it amplifies market moves and requires careful risk management.
Beta
1.25
1.25x market volatility
Max Drawdown
-29.9%
Largest decline past year
52-Week Range
$108-$160
Price range past year
Annual Return
+13.0%
Cumulative gain past year
| Period | A Return | S&P 500 |
|---|---|---|
| 1m | +5.7% | -0.5% |
| 3m | +7.9% | +4.9% |
| 6m | -5.9% | +9.7% |
| 1y | +13.0% | +18.4% |
| ytd | -4.7% | +9.0% |
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A Fundamental Analysis
Agilent's revenue trajectory is solidly growing, with Q2 2026 revenue of $1.835 billion, up 10.01% year-over-year from $1.668 billion in Q2 2025. This marks an acceleration from the prior quarter's 6.9% YoY growth (Q1 2026: $1.798B vs Q1 2025: $1.681B). The Life Sciences and Applied Markets segment contributed $732 million, Agilent CrossLab $759 million, and Applied Markets $344 million, with CrossLab showing particular strength. The growth acceleration is a positive signal for the investment case, suggesting robust demand in core end markets. The company is highly profitable, with Q2 2026 net income of $339 million and a gross margin of 54.99%, up from 51.92% in Q2 2025. Operating margin expanded to 21.74% from 17.99% a year ago, reflecting operating leverage and cost discipline. Net margin improved to 18.47% from 12.89%, indicating strong earnings conversion. Agilent's balance sheet is healthy, with a debt-to-equity ratio of 0.50 and a current ratio of 1.96. Free cash flow (TTM) is $1.256 billion, providing ample liquidity for internal growth and acquisitions. The company generated $277 million in operating cash flow in Q2 2026, covering capital expenditures of $93 million. ROE stands at 19.33%, demonstrating efficient capital use. The FCF yield (based on market cap of $41.42B) is approximately 3.0%, reasonable for a growth-oriented healthcare company.
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
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Valuation Analysis: Is A Overvalued?
Given net income is positive ($339 million in Q2 2026), the primary valuation metric is the P/E ratio. The trailing P/E is 31.89x, while the forward P/E is 19.88x, implying the market expects significant earnings growth in the coming year. The gap between trailing and forward P/E suggests analysts anticipate a sharp earnings increase, likely driven by margin expansion and revenue growth. Compared to the industry (Medical - Diagnostics & Research), Agilent's trailing P/E of 31.89x is at a premium to the sector average (not provided, but typically in the low 20s). The forward P/E of 19.88x is more in line with the sector, indicating the premium may be justified by superior growth and profitability. Historically, Agilent's trailing P/E has ranged from ~15x (Q4 2023) to ~44x (Q3 2021). The current 31.89x is near the middle of this range, suggesting the stock is not excessively overvalued relative to its own history. The P/S ratio of 5.96x is also moderate compared to historical levels (range ~17x to ~29x), indicating the market is pricing in reasonable expectations.
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
Financial & Operational Risks: Agilent's trailing P/E of 31.89x is elevated relative to the sector, implying high growth expectations. While the company has low debt (D/E 0.50) and strong FCF ($1.256B TTM), any earnings miss could trigger a sharp de-rating. The PEG ratio of 9.44x suggests the stock is priced for above-average growth, leaving little room for error. Revenue concentration in biopharma (over half of sales) exposes the company to sector-specific downturns, though this is partially mitigated by recurring consumables revenue.
Market & Competitive Risks: With a beta of 1.255, Agilent is more volatile than the market and sensitive to macro factors like Fed policy and geopolitical tensions (e.g., US-Iran deal). The stock's 6-month decline of -5.86% prior to the earnings rally indicates vulnerability to sector rotation. Competition from Danaher and Thermo Fisher could pressure market share, though Agilent's niche in diagnostics and applied markets provides some insulation. The recent Piper Sandler downgrade (Overweight to Neutral) highlights mixed sentiment.
Worst-Case Scenario: A combination of macro headwinds (recession, sticky inflation), integration issues with Biocare, and a growth deceleration could drive the stock to its 52-week low of $108.35, representing a -17.6% decline from the current price. In a severe downturn, the stock could test the March 2026 lows near $110, implying a -16.3% loss. The historical max drawdown of -29.87% suggests a worst-case loss of approximately -30% to around $92, though this would require a fundamental deterioration.
