Agilent Technologies (A) has just reported Q2 2026 results with revenue of US$1,835 million and basic EPS of US$1.20, alongside trailing twelve month revenue of US$7.2 billion and EPS of US$5.00 that sit against a one year earnings growth figure of 21.3%. Over recent quarters, revenue has ranged between US$1,668 million and US$1,861 million while quarterly EPS has moved between roughly US$0.75 and US$1.53, with net profit margin across the last year at 19.6% compared to 17.6% a year earlier. This sets up a story focused on how durable that margin profile looks from here.

See our full analysis for Agilent Technologies.

With the latest numbers on the table, the next step is to see how this margin driven story lines up against the widely followed bullish and cautious narratives around Agilent and where those views might need updating.

21.3% earnings growth versus 3.3% trend

• Over the last 12 months, earnings grew 21.3%, compared with a 3.3% average annual growth rate over five years, and trailing 12 month EPS sits at US$5.00 on about US$7.2b of revenue.
• Analysts' consensus view links this step up in profit growth to stronger demand in end markets like pharma and advanced materials. The more modest 3.3% five year average reminds you that recent earnings strength is much faster than the longer run trend, which could make future results more sensitive if those demand drivers cool.

Net margin at 19.6% supports bullish case

• Net profit margin over the last year was 19.6%, compared with 17.6% a year earlier, on trailing 12 month net income of about US$1.4b from US$7.2b of revenue.
• Consensus narrative argues that cost savings from the Ignite operating model and a higher mix of recurring items like consumables, software, and services can support stronger profitability. The move from 17.6% to 19.6% margins aligns with that bullish view, although tariff related cost pressures highlighted in the risks section show that efficiency gains and higher margin mix are having to work against rising input costs at the same time.
  • The recurring revenue focus in areas such as CrossLab and services fits with the higher trailing margin, which can help smooth earnings across cycles, yet the need to offset tariff driven costs means investors still need to watch whether margins stay near 19.6% if those headwinds persist.
  • Improved margin combined with trailing 12 month EPS of roughly US$5.00 gives bulls a profitability base to reference when thinking about the forecasts for earnings to grow around 12.9% per year, even though that forecast growth is slower than the 21.3% achieved in the last year.

Do you want to see how recent margin gains fit into the optimistic view around recurring revenue and cost savings, and where that story could run into trouble next 🐂 Agilent Technologies Bull Case

Valuation gap vs US$173.41 DCF fair value

• The current share price of US$135.38 sits below the indicated DCF fair value of US$173.41 and under the analyst price target of US$161.31, while the P/E of 27x is also below the 39.2x peer average and 32.8x industry average.
• Bears highlight that forecast revenue growth of about 6.4% per year and earnings growth of roughly 12.9% per year both sit below the cited broader US market growth rates. This slower expected growth helps explain why the stock trades at a discount to the DCF fair value and analyst target, even though the P/E is lower than peers, because some investors may see the growth profile as less compelling versus higher growth alternatives.
  • The combination of a 27x P/E and a current price below both the US$161.31 target and US$173.41 DCF fair value leaves room for different views on whether the discount reflects caution about growth or a potential opportunity if the forecasts play out as expected.
  • With earnings up 21.3% over the last year, the slower forecast rates versus the broader US market give skeptics a concrete reason to question whether that recent pace is sustainable, which directly feeds into how much weight to put on the valuation gap.

Skeptics think the lower growth forecasts justify a cheaper P/E, but the current discount to both DCF fair value and analyst target means the valuation debate is far from settled 🐻 Agilent Technologies Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Agilent Technologies on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Given the mix of bullish and cautious signals laid out above, it helps to look past the headlines and test the data yourself. If you want to see exactly which positives analysts are focused on, start with the 3 key rewards.

See What Else Is Out There

Agilent's slower forecast revenue and earnings growth versus the broader US market, alongside a lower P/E, leaves growth oriented investors questioning the stock's appeal.

If that gap between expected growth and valuation gives you pause, compare this setup with companies screened as 46 high quality undervalued stocks and see where the risk reward trade off looks sharper right now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.