Agilent Technologies Inc (NYSE:A) shares climbed 19% on Thursday after the company posted stronger-than-expected fiscal second quarter results and received an upgrade from Bank of America, which pointed to improving demand trends and continued market share gains in key instrument categories.
Bank of America upgraded Agilent to ‘Buy’ from ‘Neutral,’ saying the company is showing “strong execution” despite uneven conditions across several end markets.
The analysts highlighted durable demand for gas chromatography (GC) and liquid chromatography (LC) instruments, supported by replacement cycles, new product platforms, and competitive wins.
Agilent reported 6.3% core revenue growth for the quarter, above the high end of its guidance range.
Operating margin also exceeded expectations by 80 basis points, while adjusted earnings per share beat consensus estimates by $0.08.
According to the Bank of America analysts, the instruments segment delivered high-single-digit growth, with continued low double-digit expansion in LC/LC-MS and GC businesses. Management said Agilent is seeing some of the strongest market share trends in recent years, driven by innovation-led displacement of competitors and growing adoption of new platforms across existing customer accounts.
The analysts also noted that demand appears to be increasingly supported by more than just replacement activity alone, suggesting a broader improvement in customer spending patterns.
Agilent’s chemicals and advanced materials (CAM) segment was another area of strength, posting 8% core growth. Bank of America said results and management commentary in the segment were “better than feared,” particularly given broader concerns about slowing chemicals demand across the analytical tools industry.
Strength was seen in both semiconductor and chemicals markets, with spectroscopy remaining a standout in semiconductor, high-purity chemicals, and advanced materials workflows.
The company also benefited from GC replacement activity tied to aging instrument fleets, particularly in the Americas and Asia excluding China, though Europe also showed strength.
Agilent raised its full-year guidance roughly in line with the scale of the quarterly beat. While the analysts noted that comparisons become more challenging in the second half of the year, Bank of America said the company’s outlook for revenue and margin progression appears achievable given the momentum seen in the second quarter.