AGILENT TECHNOLOGIES, INC.

Previous wording

Global Tariffs. Recent changes to tariffs and trade policies by the U.S. and other countries have increased risk and uncertainty surrounding our future results of operations. While these changes had no material impact on our results in the first half of fiscal year 2025, we observed increased demand for laboratory consumables in the second quarter which we believe is attributable to customers seeking to mitigate the potential impact of the proposed changes to tariffs and trade policies announced in April 2025. This increased demand in laboratory consumables was offset by customs-related delays in instrument shipments. We continue to monitor these evolving trade dynamics closely, as they may influence future revenue and operational efficiency.

Current wording

Global Tariffs. Recent changes to tariffs and trade policies by the U.S. and other countries have increased risk and uncertainty surrounding our future results of operations. In the first half of fiscal year 2025, changes to tariffs and trade policies did not have a material impact on our results of operations. In the second half of fiscal year 2025, the U.S. government introduced additional measures related to tariffs, including certain increases, exemptions and pauses, and other countries have responded with preliminary agreements and retaliatory actions. The ultimate impact of changes to tariffs and trade policies will depend on various factors, including the timing, amount, scope, and nature of any tariffs or trade policies implemented and our ability to respond to mitigate the impact of such tariffs and trade policies. We continue to monitor these evolving trade dynamics closely, as they may influence future revenue and operational efficiency.

Previous wording

Net revenue of $1,668 million and $3,349 million for the three and six months ended April 30, 2025 increased 6 percent and 4 percent, respectively, when compared to the same periods last year. Foreign currency movements for the three and six months ended April 30, 2025 had an overall unfavorable impact on revenue growth of 2 percentage points and 1 percentage point, respectively, when compared to the same periods last year. Net revenue for the three and six months ended April 30, 2025, increased in our Life Sciences and Diagnostics Markets and Agilent CrossLab segments partially offset by decreased revenue in our Applied Markets segment. Revenue from our BIOVECTRA acquisition contributed approximately 2 percentage points in both the three and six months ended April 30, 2025. Revenue generated by our Life Sciences and Diagnostics Markets segment for the three and six months ended April 30, 2025 increased 8 percent and 6 percent, respectively, when compared to the same periods last year. Foreign currency movements for the three and six months ended April 30, 2025 had an overall unfavorable impact on revenue growth of 2 percentage points and 1 percentage point, respectively, when compared to the same periods last year. Revenue generated by our Agilent CrossLab segment for the three and six months ended April 30, 2025 increased 7 percent and 4 percent, respectively, when compared to the same periods last year. Foreign currency movements for the three and six months ended April 30, 2025 had an overall unfavorable impact on revenue growth of 2 percentage points for both periods when compared to the same periods last year. Revenue generated by our Applied Markets segment for the three and six months ended April 30, 2025 decreased 1 percent and 3 percent, respectively, when compared to the same periods last year. Foreign currency movements for the three and six months ended April 30, 2025, had an overall unfavorable impact on revenue growth of 1 percentage point and 2 percentage points, respectively, when compared to the same periods last year.

Current wording

Net revenue of $1,738 million and $5,087 million for the three and nine months ended July 31, 2025 increased 10 percent and 6 percent, respectively, when compared to the same periods last year. The overall effect of foreign currency movements on revenue growth for the three and nine months ended July 31, 2025 had a 2 percentage point favorable impact and no impact, respectively, when compared to the same periods last year. For the three and nine months ended July 31, 2025, revenue growth came from all of our segments, all geographic regions we serve and most of our key end markets when compared to the same periods last year. Revenue from our BIOVECTRA acquisition contributed approximately 2 percentage points in both the three and nine months ended July 31, 2025. Revenue generated by our Life Sciences and Diagnostics Markets segment for the three and nine months ended July 31, 2025 increased 14 percent and 9 percent, respectively, when compared to the same periods last year. The overall effect of foreign currency movements on revenue growth for the three and nine months ended July 31, 2025 had a 2 percentage point favorable impact and no impact, respectively, when compared to the same periods last year. Revenue generated by our Agilent CrossLab segment for the three and nine months ended July 31, 2025 increased 8 percent and 5 percent, respectively, when compared to the same periods last year. The overall effect of foreign currency movements on revenue growth for the three and nine months ended July 31, 2025 had a 3 percentage point favorable impact and 1 percentage point unfavorable impact, respectively, when compared to the same periods last year. Revenue generated by our Applied Markets segment for the three and nine months ended July 31, 2025 increased 7 percent and was flat, respectively, when compared to the same periods last year. The overall effect of foreign currency movements on revenue growth for the three and nine months ended July 31, 2025, had a 2 percentage point favorable impact and no impact, respectively, when compared to the same periods last year.

Previous wording

Net income for the three and six months ended April 30, 2025 was $215 million and $533 million, respectively, compared to net income of $308 million and $656 million for the corresponding periods last year. In the six months ended April 30, 2025, cash provided by operations was $652 million compared to cash provided by operations of $818 million in the same period last year.

Current wording

Net income for the three and nine months ended July 31, 2025 was $336 million and $869 million, respectively, compared to net income of $282 million and $938 million for the corresponding periods last year. In the nine months ended July 31, 2025, cash provided by operations was $1,014 million compared to cash provided by operations of $1,270 million in the same period last year.

Previous wording

Dividends. During the three and six months ended April 30, 2025, we paid cash dividends of $0.248 per common share or $70 million and $0.496 per common share or $141 million, respectively, on the company's common stock. During the three and six months ended April 30, 2024, we paid cash dividends of $0.236 per common share or $69 million and $0.472 per common share or $138 million, respectively, on the company's common stock.

Current wording

Dividends. During the three and nine months ended July 31, 2025, we paid cash dividends of $0.248 per common share or $71 million and $0.744 per common share or $212 million, respectively, on the company's common stock. During the three and nine months ended July 31, 2024, we paid cash dividends of $0.236 per common share or $68 million and $0.708 per common share or $206 million, respectively, on the company's common stock. The timing and amounts of any future dividends are subject to determination and approval by our board of directors.

Previous wording

2023 Repurchase Program. On January 9, 2023, we announced that our board of directors had approved a share repurchase program (the "2023 repurchase program") designed, among other things, to reduce or eliminate dilution resulting from issuance of stock under the company's employee equity incentive programs. The 2023 repurchase program authorizes the purchase of up to $2.0 billion, excluding excise taxes, of our common stock at the company's discretion and has no fixed termination date. The 2023 repurchase program does not require the company to acquire a specific number of shares and may be suspended, amended or discontinued at any time. The 2023 repurchase program commenced on March 1, 2023. During both the three and six months ended April 30, 2024, we repurchased and retired 1.594 million shares for $230 million, excluding excise taxes of $1 million, under this authorization. During the three and six months ended April 30, 2025, we repurchased and retired 1.347 million shares for $165 million, excluding excise taxes of approximately $2 million and 1.997 million shares for $255 million, excluding excise taxes of approximately $2 million, respectively, under this authorization. As of April 30, 2025, we had remaining authorization to repurchase up to approximately $119 million of our common stock under the 2023 repurchase program.

Current wording

2023 Repurchase Program. On January 9, 2023, we announced that our board of directors had approved a share repurchase program (the "2023 repurchase program") designed, among other things, to reduce or eliminate dilution resulting from issuance of stock under the company's employee equity incentive programs. The 2023 repurchase program authorizes the purchase of up to $2.0 billion, excluding excise taxes, of our common stock at the company's discretion and has no fixed termination date. The 2023 repurchase program does not require the company to acquire a specific number of shares and may be suspended, amended or discontinued at any time. The 2023 repurchase program commenced on March 1, 2023. During the three and nine months ended July 31, 2024, we repurchased and retired 4.397 million shares for $585 million, excluding excise taxes of $5.4 million and 5.991 million shares for $815 million, excluding excise taxes of $6.4 million, respectively, under this authorization. During the three and nine months ended July 31, 2025, we repurchased and retired 737,474 shares for $85 million, excluding excise taxes of approximately $0.4 million and 2.734 million shares for $340 million, excluding excise taxes of approximately $2 million, respectively, under this authorization. As of July 31, 2025, we had remaining authorization to repurchase up to approximately $34 million of our common stock under the 2023 repurchase program.

Previous wording

Looking Forward. Our primary focus remains on enhancing our customers’ experience, delivering differentiated product solutions and driving productivity improvements. While customer capital budgets, including those of customers receiving funding from the U.S. federal government, continue to be constrained, we anticipate a steady recovery. We also remain optimistic about the long-term health of our key end markets. While we anticipate the recent tariff changes to adversely impact our costs of revenue in the second half of fiscal year 2025, we expect to substantially mitigate the impact by the end of our fiscal year. While inflationary and tariff-related pressures remain fluid, we are actively pursuing mitigation strategies through supply chain optimization, targeted pricing actions, and other cost-efficiency initiatives to protect margins and sustain long-term growth.

Current wording

Looking Forward. Our primary focus remains on enhancing our customers’ experience, delivering differentiated product solutions and driving productivity improvements. While customer capital budgets, including those of customers receiving funding from the U.S. federal government, continue to be constrained, we are seeing signs of a steady recovery. We also remain optimistic about the long-term health of our key end markets. While the recent tariff changes adversely impacted our costs of revenue in the third quarter, we expect to substantially mitigate the impact during our fiscal year 2026. With inflationary and tariff-related pressures remaining fluid, we are actively pursuing mitigation strategies through supply chain optimization, targeted pricing actions, and other cost-efficiency initiatives to protect margins and sustain long-term growth.

Previous wording

The aggregate restructuring liability of $52 million at April 30, 2025, is recorded in other accrued liabilities on the condensed consolidated balance sheet and reflects estimated future cash outlays.

Current wording

The aggregate restructuring liability of $23 million at July 31, 2025, is recorded in other accrued liabilities on the condensed consolidated balance sheet and reflects estimated future cash outlays.

Previous wording

In connection with the FY25 Plan, we have recorded approximately $56 million in restructuring and other related costs in both the three and six months ended April 30, 2025.

Current wording

In connection with the FY25 Plan, we have recorded approximately $17 million and $73 million in restructuring and other related costs in the three and nine months ended July 31, 2025, respectively.

Previous wording

Fiscal Year 2024 Plan ("FY24 Plan"). In the third quarter of fiscal year 2024, we announced a restructuring plan designed to reduce costs and expenses in response to macroeconomic conditions. The expense associated with this workforce reduction includes severance and other personnel-related costs. As of April 30, 2025, we have substantially completed all workforce management actions and expect to settle the remaining payments by the end of fiscal year 2025. When completed, the restructuring program is expected to result in the reduction of approximately $100 million in annual cost of sales and operating expenses over our three business segments.

Current wording

Fiscal Year 2024 Plan ("FY24 Plan"). In the third quarter of fiscal year 2024, we announced a restructuring plan designed to reduce costs and expenses in response to macroeconomic conditions. The expense associated with this workforce reduction includes severance and other personnel-related costs. As of July 31, 2025, we have completed all workforce management actions and payments in connection with the FY24 Plan. The restructuring program is expected to result in the reduction of approximately $100 million in annual cost of sales and operating expenses over our three business segments.

Previous wording

In connection with the FY24 Plan, we have recorded approximately $1 million in restructuring and other related costs due to changes in estimates in the six months ended April 30, 2025.

Current wording

In connection with the FY24 Plan, we have recorded approximately $1 million in restructuring and other related costs due to changes in estimates in the nine months ended July 31, 2025.

Previous wording

Fiscal Year 2023 Plan ("FY23 Plan"). We have substantially completed all workforce management actions and payments in connection with the FY23 Plan. During the three and six months ended April 30, 2025, we settled cash payments of $1 million and $2 million, respectively.

Current wording

Fiscal Year 2023 Plan ("FY23 Plan"). We have completed all workforce management actions and payments in connection with the FY23 Plan. During the nine months ended July 31, 2025, we settled cash payments of $2 million.

Previous wording

Our revenues, costs and expenses, and monetary assets and liabilities and equity are exposed to changes in foreign currency exchange rates as a result of our global operating and financing activities. Foreign currency movements for the six months ended April 30, 2025 had an overall unfavorable impact on revenue growth of 1 percentage point when compared to the same period last year. Typically, when movements in foreign currency exchange rates have a negative impact on revenue, they will also have a positive impact by reducing our costs and expenses or vice versa. We calculate the impact of movements in foreign currency exchange rates by applying the actual foreign currency exchange rates in effect during the last month of each quarter of the current year to both the applicable current and prior year periods. We hedge revenues, expenses and balance sheet exposures that are not denominated in the functional currencies of our subsidiaries on a short term and anticipated basis. We do experience some fluctuations within individual lines of the condensed consolidated statement of operations and balance sheet because our hedging program is not designed to offset the currency movements in each category of revenues, expenses, monetary assets and liabilities. Our hedging program is designed to hedge currency movements on a relatively short-term basis (up to a rolling twelve-month period). We may also hedge equity balances denominated in foreign currency on a long-term basis. To the extent that we are required to pay for all, or portions, of an acquisition price in foreign currencies, we may enter into foreign exchange contracts to reduce the risk that currency movements will impact the U.S. dollar cost of the transaction.

Current wording

Our revenue, costs and expenses, and monetary assets and liabilities and equity are exposed to changes in foreign currency exchange rates as a result of our global operating and financing activities. The overall effect of changes in foreign currency exchange rates had no impact on revenue growth for the nine months ended July 31, 2025 when compared to the same period last year. Typically, when movements in foreign currency exchange rates have a positive impact on revenue, they will also have a negative impact by increasing our costs and expenses or vice versa. We calculate the impact of movements in foreign currency exchange rates by applying the actual foreign currency exchange rates in effect during the last month of each quarter of the current year to both the applicable current and prior year periods. We hedge revenue, expenses and balance sheet exposures that are not denominated in the functional currencies of our subsidiaries on a short term and anticipated basis. We do experience some fluctuations within individual lines of the condensed consolidated statement of operations and balance sheet because our hedging program is not designed to offset the currency movements in each category of revenues, expenses, monetary assets and liabilities. Our hedging program is designed to hedge currency movements on a relatively short-term basis (up to a rolling twelve-month period). We may also hedge equity balances denominated in foreign currency on a long-term basis. To the extent that we are required to pay for all, or portions, of an acquisition price in foreign currencies, we may enter into foreign exchange contracts to reduce the risk that currency movements will impact the U.S. dollar cost of the transaction.

Previous wording

Services and other revenue for the three and six months ended April 30, 2025 increased 8 percent and 7 percent, respectively, when compared to the same periods last year. Services and other revenue consist of contract repair, preventative maintenance, compliance services, relocation services, installation services and consulting services related to the companion diagnostics and nucleic acid solutions businesses. For the three and six months ended April 30, 2025, service revenue increases reflected strong growth from contract repair and preventative maintenance services partially offset by declines in per incident services including consulting services, compliance and relocations.

Current wording

Services and other revenue for the three and nine months ended July 31, 2025 increased 11 percent and 9 percent, respectively, when compared to the same periods last year. Services and other revenue consist of contract repair, preventative maintenance, compliance services, relocation services, installation services and consulting services related to the companion diagnostics and nucleic acid solutions businesses. For the three months ended July 31, 2025, service revenue increases reflected strong growth from contract repair and preventative maintenance services and strong growth in per incident services including on demand repair and compliance services. For the nine months ended July 31, 2025, service revenue increases reflected strong growth from contract repair and preventative maintenance services and was flat in per incident services including relocation and education and compliance services.

Previous wording

Revenue in the Life Sciences and Diagnostics Markets segment for the three and six months ended April 30, 2025, increased 8 percent and 6 percent, respectively, when compared to the same periods last year. Foreign currency movements for the three and six months ended April 30, 2025 had an overall unfavorable impact on revenue growth of 2 percentage points and 1 percentage point, respectively, when compared to the same periods last year. For the three and six months ended April 30, 2025, revenue from our BIOVECTRA business contributed 6 percentage points and 5 percentage points, respectively. For the three and six months ended April 30, 2025, we saw strong revenue growth in the pharmaceutical market led by revenue from our BIOVECTRA business. We also saw strong revenue growth in the diagnostics and clinical market led by revenue from our companion diagnostics and pathology businesses partially offset by a decline in revenue in the academia and government market when compared to the same periods last year.

Current wording

Revenue in the Life Sciences and Diagnostics Markets segment for the three and nine months ended July 31, 2025, increased 14 percent and 9 percent, respectively, when compared to the same periods last year. The overall effect of foreign currency movements on revenue growth for the three and nine months ended July 31, 2025 had a 2 percentage point favorable impact and no impact, respectively, when compared to the same periods last year. For the three and nine months ended July 31, 2025, revenue from our BIOVECTRA business contributed 4 percentage points and 5 percentage points, respectively. For the three and nine months ended July 31, 2025, we saw strong revenue growth in the pharmaceutical market led by revenue from our CDMO, liquid chromatography and liquid chromatography mass spectrometry businesses. We also saw strong revenue growth in the diagnostics and clinical market led by revenue from our companion diagnostics and pathology businesses partially offset by a decline in revenue in the academic and government and environmental and forensics markets when compared to the same periods last year.

Previous wording

Revenue in the Agilent CrossLab segment for the three and six months ended April 30, 2025, increased 7 percent and 4 percent, respectively, when compared to the same periods last year. Foreign currency movements for the three and six months ended April 30, 2025 had an overall unfavorable impact on revenue growth of 2 percentage points for both periods when compared to the same periods last year. For the three and six months ended April 30, 2025, we saw revenue growth across most of our end markets led by strong growth in the pharmaceutical, chemical and advanced materials and food markets when compared to the same periods last year.

Current wording

Revenue in the Agilent CrossLab segment for the three and nine months ended July 31, 2025, increased 8 percent and 5 percent, respectively, when compared to the same periods last year. The overall effect of foreign currency movements on revenue growth for the three and nine months ended July 31, 2025 had a 3 percentage point favorable impact and 1 percentage point unfavorable impact, respectively, when compared to the same periods last year. For the three and nine months ended July 31, 2025, we saw revenue growth across most of our end markets led by strong growth in the pharmaceutical, chemical and advanced materials and food markets when compared to the same periods last year.

Previous wording

Revenue in the Applied Markets segment for the three and six months ended April 30, 2025 decreased 1 percent and 3 percent, respectively, when compared to the same periods last year. Foreign currency movements for the three and six months ended April 30, 2025 had an overall unfavorable impact on revenue growth of 1 percentage point and 2 percentage points, respectively, when compared to the same periods last year. For the three months ended April 30, 2025, we saw a modest decline in revenue in the chemical and advanced materials market and a significant decline in revenue in the academia and government market partially offset by significant revenue growth in the pharmaceutical market when compared to the same period last year. For the six months ended April 30, 2025, we saw a significant decline in revenue in the chemical and advanced materials and academia and government markets partially offset by significant revenue growth in the food market when compared to the same period last year.

Current wording

Revenue in the Applied Markets segment for the three and nine months ended July 31, 2025 increased 7 percent and was flat, respectively, when compared to the same periods last year. The overall effect of foreign currency movements on revenue growth for the three and nine months ended July 31, 2025 had a 2 percentage point favorable impact and no impact, respectively, when compared to the same periods last year. For the three months ended July 31, 2025, we saw significant revenue growth in the pharmaceutical and chemical and advanced materials markets partially offset by a modest decline in the environmental and forensics market when compared to the same period last year. For the nine months ended July 31, 2025, we saw significant revenue growth in the food and pharmaceutical markets partially offset by a significant decline in revenue in the chemical and advanced materials and academic and government markets when compared to the same period last year.

Previous wording

Total gross margin for the three and six months ended April 30, 2025 decreased 2 percentage points in both periods when compared to the same periods last year. Gross margin for the three and six months ended April 30, 2025 was unfavorably impacted by product mix, impact of currency movements, higher shipping, customs and duties costs, restructuring expenses, higher wages and variable pay partially offset by targeted price increases and lower warranty costs when compared to the same periods last year.

Current wording

Total gross margin for the three and nine months ended July 31, 2025 decreased 3 percentage points and 2 percentage points, respectively, when compared to the same periods last year. Gross margin for the three months ended July 31, 2025 was unfavorably impacted by higher tariffs and shipping costs, unfavorable product mix, higher wages, variable pay and the unfavorable impact of currency movements partially offset by higher sales volume, lower warranty and restructuring expenses when compared to the same period last year. Gross margin for the nine months ended July 31, 2025 was unfavorably impacted by higher tariffs and shipping costs, unfavorable product mix, higher wages, restructuring expenses and variable pay partially offset by higher sales volume and lower warranty costs when compared to the same period last year.

Previous wording

Research and development expenses for the three and six months ended April 30, 2025 decreased 1 percent and 7 percent, respectively, when compared to the same periods last year. Research and development expenses for the three and six months ended April 30, 2025 decreased due to lower salary expense related to prior year workforce reduction activities partially offset by higher restructuring expenses and variable pay when compared to the same periods last year. Research and development expenses in the six months ended April 30, 2024 also included an impairment of in-process research and development of $6 million.

Current wording

Research and development expenses for the three and nine months ended July 31, 2025 decreased 13 percent and 9 percent, respectively, when compared to the same periods last year. Research and development expenses for the three and nine months ended July 31, 2025 decreased due to lower restructuring expenses and salary expense related to workforce reduction activities partially offset by the favorable impact of currency movements when compared to the same periods last year. Research and development expenses in the nine months ended July 31, 2024 also included an impairment of in-process research and development of $6 million.

Previous wording

Selling, general and administrative expenses for the three and six months ended April 30, 2025 increased 19 percent and 11 percent, respectively, when compared to the same periods last year. Selling, general and administrative expenses for the three and six months ended April 30, 2025, increased due to higher restructuring expenses, transformational initiatives, corporate infrastructure costs and variable pay partially offset by lower salary expense related to prior year workforce reduction activities, favorable impact of currency movements and lower share-based compensation expense when compared to the same periods last year.

Current wording

Selling, general and administrative expenses for the three and nine months ended July 31, 2025 increased 6 percent and 9 percent, respectively, when compared to the same periods last year. Selling, general and administrative expenses for the three months ended July 31, 2025, increased due to higher corporate infrastructure costs, transformational initiatives and variable pay partially offset by lower restructuring expenses, the favorable impact of currency movements and lower share-based compensation expense when compared to the same period last year. Selling, general and administrative expenses for the nine months ended July 31, 2025 increased due to higher transformational initiatives, corporate infrastructure costs, variable pay and restructuring expenses, partially offset by the favorable impact of currency movements and lower share-based compensation expense when compared to the same period last year.

Previous wording

Interest income for the three months ended April 30, 2025 and 2024 was $14 million and $19 million, respectively. Interest income for the six months ended April 30, 2025 and 2024 was $29 million and $37 million, respectively. The decrease in interest income in 2025 was primarily due to lower cash balances.

Current wording

Interest income for the three months ended July 31, 2025 and 2024 was $16 million and $19 million, respectively. Interest income for the nine months ended July 31, 2025 and 2024 was $45 million and $56 million, respectively. The decrease in interest income in 2025 was primarily due to lower cash balances.

Previous wording

At April 30, 2025, our headcount was approximately 18,000 as compared to approximately 17,600 at April 30, 2024.

Current wording

At July 31, 2025, our headcount was approximately 18,000 as compared to approximately 17,400 at July 31, 2024.

Previous wording

For the three months ended April 30, 2025, other income (expense), net of $25 million expense includes a net loss of $28 million on equity securities, $15 million loss on impairment of investments and income of $13 million related to the defined benefit retirement and post-retirement benefit plans (interest cost, expected return on assets, amortization of net actuarial (gain) loss and prior service credits). The provision of site service costs to, and lease income from Keysight Technologies, Inc. contributed income of $3 million. The costs associated with these services are reported within income from operations.

Current wording

For the three months ended July 31, 2025, other income (expense), net of $18 million income includes income of $15 million related to the defined benefit retirement and post-retirement benefit plans (interest cost, expected return on assets, amortization of net actuarial (gain) loss and prior service credits). The provision of site service costs to, and lease income from Keysight Technologies, Inc. contributed income of $3 million. The costs associated with these services are reported within income from operations.

Previous wording

For the six months ended April 30, 2025, other income (expense), net of $21 million expense includes a net loss of $27 million on equity securities, $15 million loss on impairment of investments, and income of $26 million related to the defined benefit retirement and post-retirement benefit plans (interest cost, expected return on assets, amortization of net actuarial (gain) loss and prior service credits). The provision of site service costs to, and lease income from Keysight Technologies, Inc. contributed income of $6 million. The costs associated with these services are reported within income from operations. For the six months ended April 30, 2025, other income (expense), net also includes expense of $14 million related to the settlement loss of our Netherlands defined benefit pension plan.

Current wording

For the nine months ended July 31, 2025, other income (expense), net of $3 million expense includes a net loss of $28 million on equity securities, $15 million loss on impairment of investments, and income of $41 million related to the defined benefit retirement and post-retirement benefit plans (interest cost, expected return on assets, amortization of net actuarial (gain) loss and prior service credits). For the nine months ended July 31, 2025, other income (expense), net also includes expense of $14 million related to the settlement loss of our Netherlands defined benefit pension plan. The provision of site service costs to, and lease income from Keysight Technologies, Inc. contributed income of $9 million. The costs associated with these services are reported within income from operations.

Previous wording

For the three months ended April 30, 2024, other income (expense), net of $12 million income includes a net gain of $1 million on equity securities and income of $8 million related to the defined benefit retirement and post-retirement benefit plans (interest cost, expected return on assets, amortization of net actuarial (gain) loss and prior service credits). The provision of site service costs to, and lease income from Keysight Technologies, Inc. contributed income of $3 million. The costs associated with these services are reported within income from operations.

Current wording

For the three months ended July 31, 2024, other income (expense), net of $13 million income includes a net gain of $2 million on equity securities and income of $5 million related to the defined benefit retirement and post-retirement benefit plans (interest cost, expected return on assets, amortization of net actuarial (gain) loss and prior service credits). The provision of site service costs to, and lease income from Keysight Technologies, Inc. contributed income of $3 million. The costs associated with these services are reported within income from operations.

Previous wording

For the six months ended April 30, 2024, other income (expense), net of $35 million income includes a net gain of $4 million on equity securities and income of $14 million related to the defined benefit retirement and post-retirement benefit plans (interest cost, expected return on assets, amortization of net actuarial (gain) loss and prior service credits). The provision of site service costs to, and lease income from Keysight Technologies, Inc. contributed income of $6 million. The costs associated with these services are reported within income from operations. For the six months ended April 30, 2024, other income (expense), net also includes $8 million of income related to foreign currency translation reclassified out of accumulated comprehensive income (loss).

Current wording

For the nine months ended July 31, 2024, other income (expense), net of $48 million income includes a net gain of $6 million on equity securities and income of $19 million related to the defined benefit retirement and post-retirement benefit plans (interest cost, expected return on assets, amortization of net actuarial (gain) loss and prior service credits). The provision of site service costs to, and lease income from Keysight Technologies, Inc. contributed income of $9 million. The costs associated with these services are reported within income from operations. For the nine months ended July 31, 2024, other income (expense), net also includes $8 million of income related to foreign currency translation reclassified out of accumulated comprehensive income (loss).

Previous wording

For the three and six months ended April 30, 2025, our income tax expense was $45 million with an effective tax rate of 17.3 percent and $94 million with an effective tax rate of 15.0 percent, respectively. For the three and six months ended April 30, 2025, there were no significant discrete items.

Current wording

For the three and nine months ended July 31, 2025, our income tax expense was $30 million with an effective tax rate of 8.2 percent and $124 million with an effective tax rate of 12.5 percent, respectively. For the three and nine months ended July 31, 2025, our effective tax rate and the resulting provision for income taxes were impacted by the tax benefit of $28 million related to the release of tax reserves due to a remeasurement of the liability.

Previous wording

For the three and six months ended April 30, 2024, our income tax expense was $66 million with an effective tax rate of 17.6 percent and $121 million with an effective tax rate of 15.6 percent, respectively. For the three and six months ended April 30, 2024, our effective tax rate and the resulting provision for income taxes were impacted by the tax expense of $12 million related to the settlement of an audit in Singapore.

Current wording

For the three and nine months ended July 31, 2024, our income tax expense was $61 million with an effective tax rate of 17.8 percent and $182 million with an effective tax rate of 16.3 percent, respectively. For the three months ended July 31, 2024, there were no significant discrete items. For the nine months ended July 31, 2024, our effective tax rate and the resulting provision for income taxes were impacted by the tax expense of $12 million related to an audit settlement.

Previous wording

Geographically, revenue for the three months ended April 30, 2025 increased 12 percent in the Americas with a 1 percentage point unfavorable currency impact, increased 1 percent in Europe with a 2 percentage point unfavorable currency impact and increased 11 percent in Asia Pacific with a 1 percentage point unfavorable currency impact compared to the same period last year. For the three months ended April 30, 2025, the revenue increase in the Americas was primarily driven by revenue from the BIOVECTRA acquisition as well as strong growth from our pathology and companion diagnostics businesses. Revenue increased in Europe due to strong growth from our cell analysis and companion diagnostics businesses and moderate growth from our liquid chromatography mass spectrometry and pathology businesses, partially offset by declines in our liquid chromatography and biomolecular analysis businesses. Revenue increased in Asia Pacific due to strong growth from our liquid chromatography, liquid chromatography mass spectrometry, pathology and cell analysis businesses.

Current wording

Geographically, revenue for the three months ended July 31, 2025 increased 18 percent in the Americas with no currency impact, increased 14 percent in Europe with a 7 percentage point favorable currency impact and increased 10 percent in Asia Pacific with a 2 percentage point favorable currency impact compared to the same period last year. For the three months ended July 31, 2025, the revenue increase in the Americas was primarily driven by revenue from the BIOVECTRA acquisition as well as strong growth from our nucleic acid solutions, liquid chromatography, pathology and companion diagnostics businesses, partially offset by declines in our genomics, cell analysis and biomolecular businesses. Revenue increased in Europe due to strong growth from all of our businesses. Revenue increased in Asia Pacific due to strong growth from our liquid chromatography, liquid chromatography mass spectrometry, cell analysis and biomolecular businesses and modest growth in our pathology business, partially offset by a decline in our genomics business.

Previous wording

Revenue for the six months ended April 30, 2025 increased 11 percent in the Americas with a 1 percentage point unfavorable currency impact, increased 2 percent in Europe with a 1 percentage point unfavorable currency impact and increased 2 percent in Asia Pacific with a 2 percentage point unfavorable currency impact compared to the same period last year. The revenue increase in the Americas was primarily driven by revenue from the BIOVECTRA acquisition as well as strong growth from our liquid chromatography and companion diagnostics businesses and moderate growth from our liquid chromatography mass spectrometry and nucleic acid solutions businesses. Revenue increased in Europe due to strong growth from our liquid chromatography, genomics and companion diagnostics businesses, moderate growth in our liquid chromatography mass spectrometry business and modest growth in our pathology and cell analysis businesses, partially offset by declines in our biomolecular analysis business. Revenue increased in Asia Pacific due to strong growth from our liquid chromatography mass spectrometry, pathology and genomics businesses.

Current wording

Revenue for the nine months ended July 31, 2025 increased 13 percent in the Americas with a 1 percentage point unfavorable currency impact, increased 6 percent in Europe with a 1 percentage point favorable currency impact and increased 5 percent in Asia Pacific with no currency impact compared to the same period last year. The revenue increase in the Americas was primarily driven by revenue from the BIOVECTRA acquisition as well as strong growth from our nucleic acid solutions, liquid chromatography and companion diagnostics businesses, moderate growth from our pathology business and modest growth in our liquid chromatography mass spectrometry business, partially offset by declines in our cell analysis, biomolecular analysis and genomics businesses. Revenue increased in Europe due to strong growth from our liquid chromatography, genomics, cell analysis and companion diagnostics businesses and moderate growth in our liquid chromatography mass spectrometry and pathology businesses, partially offset by a decline in our biomolecular analysis business. Revenue increased in Asia Pacific due to strong growth from our liquid chromatography and liquid chromatography mass spectrometry businesses, moderate growth from our pathology and genomics businesses and modest growth from our cell analysis business, partially offset by a decline in our genomics business.

Previous wording

For the three months ended April 30, 2025, strong revenue growth in the pharmaceutical market was mainly due to the BIOVECTRA acquisition and our liquid chromatography mass spectrometry and nucleic acid solutions businesses. We saw strong revenue growth in the diagnostics and clinical market led by our pathology, companion diagnostics, liquid chromatography and biomolecular analysis businesses which was partially offset by a decline in our genomics business. Revenue in the academia and government market declined due to our biomolecular, cell analysis and genomics businesses, partially offset by strong growth in our liquid chromatography mass spectrometry business. Within the applied markets, we saw moderate revenue growth driven by strong growth within the food market.

Current wording

For the three months ended July 31, 2025, strong revenue growth in the pharmaceutical market was mainly due to the BIOVECTRA acquisition and strong growth in our nucleic acid solutions, liquid chromatography and liquid chromatography mass spectrometry businesses. We saw strong revenue growth in the diagnostics and clinical market led by our pathology, companion diagnostics, biomolecular analysis and liquid chromatography businesses, partially offset by a decline in our genomics business. Revenue in the academic and government market declined across all of our businesses with the exception of strong growth in our liquid chromatography business and moderate growth in our liquid chromatography mass spectrometry business. Within the applied markets, we saw strong revenue growth within the chemicals and advanced materials and food markets.

Previous wording

For the six months ended April 30, 2025, strong revenue growth in the pharmaceutical market was mainly due to the BIOVECTRA acquisition and our liquid chromatography mass spectrometry business and moderate growth in our nucleic acid solutions business. We saw strong revenue growth in the diagnostics and clinical market led by strong growth in our companion diagnostics, liquid chromatography and liquid chromatography mass spectrometry businesses, moderate growth in our biomolecular business and modest growth in our pathology and cell analysis businesses. Revenue in the academia and government market declined due to our biomolecular, cell analysis and genomics businesses, partially offset by strong growth in our liquid chromatography mass spectrometry business. Within the applied markets, we saw modest revenue growth primarily within the environmental and forensics and chemicals and advanced materials markets.

Current wording

For the nine months ended July 31, 2025, strong revenue growth in the pharmaceutical market was mainly due to the BIOVECTRA acquisition and strong growth in our nucleic acid solutions and liquid chromatography businesses. We saw strong revenue growth in the diagnostics and clinical market led by strong growth in our companion diagnostics, biomolecular analysis, liquid chromatography and liquid chromatography mass spectrometry businesses and moderate growth in our pathology business, partially offset by a decline in our genomics business. Revenue in the academic and government market declined across all of our businesses with the exception of strong growth in our liquid chromatography mass spectrometry business and moderate growth in our liquid chromatography business. Within the applied markets, we saw strong revenue growth primarily within the chemicals and advanced materials markets.

Previous wording

Looking Forward. While we anticipate the recent tariff changes to adversely impact our costs of revenue in the second half of fiscal year 2025, we expect to substantially mitigate the impact by the end of our fiscal year. Therefore, we remain optimistic about our long-term growth opportunities in our end markets and continue to invest in expanding and improving our applications and solutions portfolio. We continue to leverage our liquid chromatography and liquid chromatography mass spectrometry platforms to maximize our growth via key vectors across our markets, making us optimistic about our long-term growth opportunities in the life sciences markets. We remain positive about the growth in our diagnostic and clinical markets around our OMNIS platforms. Market demand for therapeutic oligo continues to grow, and our CDMO business is well positioned to serve expanding customer requirements. We will also continue to invest in research and development, invest in expanding and improving our applications and solutions portfolio and seek to expand our position in developing countries and emerging markets.

Current wording

Looking Forward. While the recent tariff changes adversely impacted our costs of revenue in the third quarter, we expect to substantially mitigate the impact during our fiscal year 2026. Therefore, we remain optimistic about our long-term growth opportunities in our end markets and continue to invest in expanding and improving our applications and solutions portfolio. We continue to leverage our liquid chromatography and liquid chromatography mass spectrometry platforms to maximize our growth via key vectors across our markets, making us optimistic about our long-term growth opportunities in the life sciences markets. We remain positive about the growth in our diagnostic and clinical markets around our OMNIS platforms. Market demand for therapeutic oligo continues to grow, and our CDMO business is well positioned to serve expanding customer requirements. We will also continue to invest in research and development, invest in expanding and improving our applications and solutions portfolio and seek to expand our position in developing countries and emerging markets.

Previous wording

Gross margin for products and services for the three and six months ended April 30, 2025, decreased 2 percentage points in both periods when compared to the same periods last year. Gross margin for the three and six months ended April 30, 2025 was impacted mainly by unfavorable business mix, increased variable pay, increased logistical costs and the unfavorable impact of currency movements which was partially offset by lower warranty expenses and lower salary expense related to prior year workforce reduction activities.

Current wording

Gross margin for products and services for the three and nine months ended July 31, 2025, decreased 4 percentage points and 3 percentage points, respectively, when compared to the same periods last year. Gross margin for the three months ended July 31, 2025 was impacted mainly by increased tariffs and shipping costs, unfavorable business mix, increased warranty costs, increased variable pay and the unfavorable impact of currency movements. Gross margin for the nine months ended July 31, 2025 was impacted mainly by increased tariffs and shipping costs, unfavorable business mix and increased variable pay which was partially offset by lower warranty expenses.

Previous wording

Research and development expenses for the three and six months ended April 30, 2025, decreased 7 percent and 6 percent, respectively, when compared to the same periods last year. Research and development expenses for thethree and six months ended April 30, 2025 decreased primarily due to lower salary expenses related to prior year workforce reduction activities partially offset by increases in variable pay.

Current wording

Research and development expenses for the three and nine months ended July 31, 2025, increased 3 percent and decreased 3 percent, respectively, when compared to the same periods last year. Research and development expenses for thethree months ended July 31, 2025 increased primarily due to the BIOVECTRA acquisition, increased variable pay and the unfavorable impact of currency movements partially offset by lower salary expenses related to workforce reduction activities. Research and development expenses for the nine months ended July 31, 2025 decreased primarily due to lower salary expenses related to workforce reduction activities partially offset by increases in variable pay and additional expenses related to the BIOVECTRA acquisition.

Previous wording

Selling, general and administrative expenses for the three and six months ended April 30, 2025, increased 2 percent in both periods when compared to the same periods last year. Selling, general and administrative expenses for the three and six months ended April 30, 2025, increased due tohigher commission, travel and variable pay expenses partially offset by lower salary expenses related to prior year workforce reduction activities and the favorable impact of currency movements.

Current wording

Selling, general and administrative expenses for the three and nine months ended July 31, 2025, increased 10 percent and 4 percent, respectively, when compared to the same periods last year. Selling, general and administrative expenses for the three months ended July 31, 2025, increased due to higher commission, travel, the unfavorable impact of currency movements and variable pay expenses. Selling, general and administrative expenses for the nine months ended July 31, 2025, increased due to higher commission, travel and variable pay expenses.

Previous wording

Operating margin for products and services for the three and six months ended April 30, 2025 increased 1 percentage point and was flat, respectively, when compared to the same periods last year. Operating margin for products and services for the three months ended April 30, 2025, increased due to the lower salary expense related to prior year workforce reduction activities partially offset by unfavorable business mix, increased variable pay and increased commissions. Operating margin for products and services for the six months ended April 30, 2025 was flat due to lower salary expense related to prior year workforce reduction activities offset by unfavorable business mix, increased variable pay and increased commissions.

Current wording

Operating margin for products and services for the three and nine months ended July 31, 2025 decreased 2 percentage points and was flat, respectively, when compared to the same periods last year. Operating margin for products and services for the three months ended July 31, 2025, decreased primarily due to increased tariffs and shipping costs, unfavorable business mix, increased warranty costs, increased variable pay and the unfavorable impact of currency movements which was partially offset by lower salary expenses related to workforce reduction activities. Operating margin for products and services for the nine months ended July 31, 2025 was flat due to lower salary expense related to workforce reduction activities and lower warranty costs offset by increased tariffs and shipping costs, unfavorable business mix and increased variable pay.

Previous wording

Geographically, revenue for the three months ended April 30, 2025 increased 4 percent in the Americas with a 2 percentage point unfavorable currency impact, increased 7 percent in Europe with a 2 percentage point unfavorable currency impact and increased 12 percent in Asia Pacific with a 2 percentage point unfavorable currency impact compared to the same period last year. For the three months ended April 30, 2025, revenue growth in the Americas was driven by strength in repair, maintenance and compliance services and our lab automation and consumables businesses partially offset by weakness in our software and informatics business when compared to the same period last year. Revenue growth in Europe was driven by strength in all services revenue categories and our lab automation and consumables businesses when compared to the same period last year. Revenue growth in Asia Pacific was driven by higher demand in China within our consumables business due to global tariffs when compared to the same period last year.

Current wording

Geographically, revenue for the three months ended July 31, 2025 increased 2 percent in the Americas with a 1 percentage point unfavorable currency impact, increased 15 percent in Europe with a 7 percentage point favorable currency impact and increased 8 percent in Asia Pacific with a 2 percentage point favorable currency impact compared to the same period last year. For the three months ended July 31, 2025, revenue growth in the Americas was driven by strength in repair, maintenance and installation services and our software and informatics business partially offset by weakness in our lab automation business when compared to the same period last year. Revenue growth in Europe was driven by strength in repair, maintenance and compliance services, and our consumables, lab automation and software and informatics businesses when compared to the same period last year. Revenue growth in Asia Pacific was driven by strength in our consumables business, repair, maintenance and compliance services and our software and informatics businesses when compared to the same period last year.

Previous wording

Revenue for the six months ended April 30, 2025 increased 4 percent in the Americas with a 1 percentage point unfavorable currency impact, increased 4 percent in Europe with a 2 percentage point unfavorable currency impact and increased 5 percent in Asia Pacific with a 2 percentage point unfavorable currency impact compared to the same period last year. Revenue growth in the Americas was driven by strength in repair, compliance, maintenance, and installation services and our lab automation business partially offset by weakness in our software and informatics business when compared to the same period last year. Revenue growth in Europe was driven by strength in repair, maintenance, and compliance services and our consumables business partially offset by weakness in our installation services business when compared to the same period last year. Revenue growth in Asia Pacific was driven by higher demand in China within our consumables business when compared to the same period last year.

Current wording

Revenue for the nine months ended July 31, 2025 increased 3 percent in the Americas with a 1 percentage point unfavorable currency impact, increased 8 percent in Europe with a 1 percentage point favorable currency impact and increased 6 percent in Asia Pacific with a 1 percentage point unfavorable currency impact compared to the same period last year. Revenue growth in the Americas was driven by strength in repair, maintenance and compliance services and our lab automation business when compared to the same period last year. Revenue growth in Europe was driven by strength in repair, maintenance, and compliance services, and our consumables, lab automation and software and informatics businesses when compared to the same period last year. Revenue growth in Asia Pacific was driven by higher demand within our consumables business in China and higher growth in repair, maintenance and compliance services and our software and informatics business when compared to the same period last year.

Previous wording

For thesix months ended April 30, 2025 revenue increased significantly in the chemicals and advanced materials, food, environmental and forensics and diagnostics and clinical markets. Revenue increased moderately in the pharmaceutical market and was flat in the academia and government market. Strong revenue growth in the chemicals and advanced materials market was driven by our consumables and services businesses when compared to the same period last year. Strong revenue growth in the food market and the environmental and forensics market was driven by our services, consumables and lab automation businesses when compared to the same period last year. Moderate revenue growth in the pharmaceutical market was driven by our services and consumables businesses when compared to the same period last year.

Current wording

For the three months ended July 31, 2025, revenue increased significantly in the pharmaceutical, chemical and advanced materials, food and environmental and forensics markets, and revenue increased moderately in the diagnostics and clinical and academic and government markets. Strong revenue growth in the pharmaceutical market was driven by our consumables, services, lab automation and software and informatics businesses when compared to the same period last year. Strong revenue growth in the chemicals and advanced materials and food markets was driven by our services, consumables and software and informatics businesses when compared to the same period last year. Strong revenue growth in the environmental and forensics market was driven by our services business when compared to the same period last year.

Previous wording

For the three months ended April 30, 2025, revenue increased significantly across all end markets. Strong revenue growth in the pharmaceutical market was driven by our consumables, services and lab automation businesses when compared to the same period last year. Strong revenue growth in the chemicals and advanced materials and food market was driven by our consumables and services businesses when compared to the same period last year. Strong revenue growth in the environmental and forensics market was driven by our services and consumables businesses when compared to the same period last year.

Current wording

For thenine months ended July 31, 2025 revenue increased significantly in the pharmaceutical, chemicals and advanced materials, food, environmental and forensics and diagnostics and clinical markets, and revenue increased moderately in the academic and government market. Strong revenue growth in the pharmaceutical and environmental and forensics markets was driven by our consumables, services and lab automation businesses when compared to the same period last year. Strong revenue growth in the chemicals and advanced materials, food and diagnostics and clinical markets was driven by our services and consumables businesses when compared to the same period last year.