Agilent Technologies Inc. (NYSE: A), a global leader in life sciences, diagnostics, and applied chemical markets, has released its financial results for the fourth quarter and full fiscal year 2024, along with a bold new organizational structure designed to enhance growth and operational efficiency in FY2025. The company delivered steady financial performance amid recovering markets and set ambitious targets for the coming fiscal year.

Fourth Quarter FY2024 Highlights

• Revenue: $1.70 billion, up 0.8% on a reported basis and down 0.3% core(1) year-over-year.
• GAAP Net Income: $351 million ($1.22 per share), a 25% decline from Q4 FY2023.
• Non-GAAP(2) Net Income: $418 million ($1.46 per share), a 6% increase from Q4 FY2023.

Agilent’s revenue performance reflects stable demand and operational efficiencies, offset by a challenging macroeconomic environment. Non-GAAP earnings growth highlights the company’s ability to optimize profitability through cost controls and strategic investments.

Full-Year FY2024 Performance

• Revenue: $6.51 billion, a decline of 4.7% year-over-year on both reported and core(1) bases.
• GAAP Net Income: $1.289 billion ($4.43 per share), an increase of 6% from FY2023.
• Non-GAAP(2) Net Income: $1.539 billion ($5.29 per share), a 3% decline from FY2023.

While overall revenue contracted due to market pressures, Agilent delivered improved GAAP earnings, reflecting its operational resilience and disciplined approach to cost management.

Segment Performance Analysis

1. Life Sciences and Applied Markets Group (LSAG):

   • Q4 Revenue: $833 million (-1% reported and core(1) year-over-year).
   • Full-Year Revenue: $3.22 billion (-8% reported and core(1) year-over-year).
   • Operating Margin: 28.0% for Q4 and 27.3% for the full year.

   LSAG faced challenges in the pharmaceutical and applied markets but maintained strong margins through efficiency initiatives.

2. Agilent CrossLab Group (ACG):

   • Q4 Revenue: $426 million (+5% reported and core(1) year-over-year).
   • Full-Year Revenue: $1.64 billion (+5% reported and core(1) year-over-year).
   • Operating Margin: 32.6% for Q4 and 31.9% for the full year.

   ACG’s strong growth highlights its success in service offerings, consumables, and automation, supporting customer productivity.

3. Diagnostics and Genomics Group (DGG):

   • Q4 Revenue: $442 million (-1% reported and -3% core(1) year-over-year).
   • Full-Year Revenue: $1.65 billion (-6% reported and core(1) year-over-year).
   • Operating Margin: 21.2% for Q4 and 19.4% for the full year.

   Despite headwinds in diagnostic and genomics markets, DGG continues to invest in future growth opportunities.

FY2025 and Q1 FY2025 Outlook

• Full-Year FY2025 Revenue: $6.79 billion to $6.87 billion, reflecting growth of 4.3% to 5.5% on a reported basis and 2.5% to 3.5% core(1).
• Full-Year FY2025 Non-GAAP(3) EPS: $5.54 to $5.61.
• Q1 FY2025 Revenue: $1.65 billion to $1.68 billion, representing a decline of 0.5% to an increase of 1.3% reported and a decline of 2.0% to 0.2% core(1).
• Q1 FY2025 Non-GAAP(3) EPS: $1.25 to $1.28.

The FY2025 outlook reflects Agilent’s confidence in market recovery and its ability to leverage its strategic initiatives for growth.

Strategic Transformation: A Customer-Centric Approach

Agilent unveiled a new organizational structure designed to streamline operations and better align with customer needs. The restructuring, effective immediately, reorganizes the company into three focused business groups:

1. Life Sciences and Diagnostics Markets Group (LDG):

   • Represents 38% of Agilent’s revenue.
   • Serves pharmaceutical, biopharma, clinical, and diagnostics markets.
   • Includes technologies such as liquid chromatography, mass spectrometry, genomics, and companion diagnostics.

   Leadership: Simon May, previously president of DGG and EVP at Bio-Rad Laboratories.

2. Applied Markets Group (AMG):

   • Represents 20% of Agilent’s revenue.
   • Focuses on food, environmental, forensics, chemicals, and advanced materials markets.
   • Includes gas chromatography, spectroscopy, and vacuum technologies.

   Leadership: Mike Zhang, promoted from VP and GM of gas chromatography and mass spectrometry.

3. Agilent CrossLab Group (ACG):

   • Represents 42% of Agilent’s revenue.
   • Focuses on services, software, informatics, and consumables across all markets.

   Leadership: Angelica Riemann, a 25-year Agilent veteran.

CEO Padraig McDonnell

"Agilent delivered solid results in the fourth quarter as markets continued to recover," said Agilent President and CEO Padraig McDonnell. "Our new market-based, customer-first strategy combined with our transformation – which includes the new organizational structure announced today – will position us to capture even more growth opportunities as the market improves. This transformation sharpens our focus on customer-first priorities while leveraging our market leadership to drive future growth. I look forward to sharing more about these exciting developments during our Analyst and Investor Day in December."

Agilent Technologies ended FY2024 with a mix of challenges and successes, delivering solid non-GAAP earnings growth and maintaining profitability in a recovering market. The company’s bold restructuring and ambitious FY2025 outlook underscore its commitment to innovation, customer focus, and long-term value creation. As Agilent embarks on its next chapter, it is well-positioned to capture emerging opportunities and sustain leadership across its core markets.