Why Is Agilent (A) Down 12% Since Last Earnings Report?

It has been about a month since the last earnings report for Agilent Technologies (A). Shares have lost about 12% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Agilent due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Agilent Technologies, Inc. before we dive into how investors and analysts have reacted as of late.Agilent Q4 Earnings Match Estimates, Revenues Up Y/YAgilent Technologies reported fourth-quarter fiscal 2025 earnings of $1.59 per share, which were in line with the Zacks Consensus Estimate. The figure increased 8.9% year over year.Revenues of $1.86 billion surpassed the Zacks Consensus Estimate by 1.49%. The top line increased 9.4% on a reported basis and 7.2% on a core basis (excluding acquisitions and divestitures) year over year.Agilent’s Q4 Top-Line DetailsThe company operates through three reporting segments—Life Sciences and Diagnostics Markets Group (“LDG”), Agilent CrossLab Group (“ACG”) and Applied Markets Group (“AMG”).LDG: The segment generated $755 million and accounted for 40.6% of the company’s total revenues. This represented a 15% increase on a reported basis and an 11% rise on a core basis year over year. ACG: Revenues from the segment were $755 million, accounting for 40.6% of the total revenues. The top line grew 7% on a reported basis and 6% on a core basis year over year.AMG: Revenues increased 4% year over year to $351 million on a reported and 3% on a core basis, accounting for the remaining 18.9% of the total revenues.Agilent’s Q4 Operating ResultsFor the fourth quarter of fiscal 2025, the LDG segment’s gross margin contracted 90 basis points (bps) year over year to 52.9%. ACG’s gross margin decreased 140 bps year over year to 54.9%, while AMG’s gross margin declined 40 bps year over year to 54.6%.Research and development (R&D) expenses on a non-GAAP basis were $116 million, up 6.4% from the prior-year quarter. Selling, general and administrative (SG&A) expenses on a non-GAAP basis rose to $386 million, marking a 6.6% increase from the prior-year quarter. As a percentage of revenues, Research and development expenses fell 20 bps year over year to 6.2%, while selling, general and administrative expenses fell 50 bps year over year to 20.7%.The non-GAAP operating margin of 27.1% for the fiscal fourth quarter contracted 30 bps on a year-over-year basis.Segment-wise, LDG operating margin increased 130 bps year over year to 22.7%. ACG’s operating margin fell 130 bps year over year to 32.5%. Meanwhile, AMG’s operating margin contracted 70 bps year over year to 24.7%.A’s Balance Sheet DetailsAs of Oct. 31, 2025, Agilent’s cash and cash equivalents were $1.78 billion, up from $1.54 billion as of July 31, 2025.The long-term debt was $3.05 billion as of Oct. 31, 2025, compared with $3.35 billion as of July 31, 2025.Agilent’s Q1 & FY26 GuidanceFor the first quarter of fiscal 2026, Agilent expects revenues in the range of $1.79-$1.82 billion, indicating a rise of 6% to 8% on a reported basis and 4% to 6% on a core basis.Non-GAAP earnings are expected to be between $1.35 per share and $1.38 per share. For fiscal 2026, Agilent expects revenues between $7.3 billion and $7.4 billion, implying an increase of 5-7% on a reported basis and 4-6% on a core basis. The company expects non-GAAP earnings between $5.86 per share and $6.00 per share. How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.VGM ScoresCurrently, Agilent has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Agilent has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? 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