Agilent (A) 25 May 222022 Q2 Earnings call transcript

Good afternoon and thank you for attending today's Agilent Technologies Inc. Q2 2022 Earnings Conference Call. My name is Selena, and I will be your moderator. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. [Operator Instructions] I would now like to pass the conference over to our host, Parmeet Ahuja, Vice President of Investor Relations. ahead. go Please

McMahon, and the Selena, me to conference and Agilent's Mike CFO. President Thank quarter welcome, of for Bob CEO; and second Agilent With Senior fiscal call Vice McMullen, and you, President everyone, Agilent year are XXXX.

Mike of Q&A Group; President financial the live. Sam and of Agilent investor Agilent today's non-GAAP in Raha, Jacob the to release comments webcast Genomics be recording and This available Today's presentation news Group. for and Diagnostics The measures. with Padraig financial by website along CrossLab of Mike and our of President supplement Agilent after Joining Bob Life McDonnell, Group; Bob's second to will Sciences and our will quarter webcast being are www.investor.agilent.com. Thaysen, on the results, refer Markets President and information this a Applied presentation at discussion the is comments

within and rates are past directly decreases is You our revenue in core most or basis. completed the references months. will excludes of are XX otherwise find financial increases website. to the financial metrics comparable year-over-year reconciliations all to growth Unless and on noted, and references as exchange revenue metrics of a any April and based divestitures growth on currency Guidance acquisitions on impact Core the XXth. GAAP

structure. of quarter implemented As to first segment beginning fiscal XXXX, we previously reporting the in announced, certain changes our

statements. impact information historical our recast have these These financial have segment our reflect on We changes. changes Company's consolidated to no

to for complete the at call of to subject them. about like are uncertainties SEC to recent assumes Company. make of of statements We risks a Mike. over I'd And only Please today. are our the update Company's the no other Company and statements forward-looking obligation factors. and performance and financial The also to will turn more valid as the now, picture look risks These filings

QX, in-line revenue in everyone and the EPS the lockdowns navigating demonstrated including for strength macro expanded today. business core margins, joining forecast, in COVID-related resilience Ukraine expectations. Agilent our and our And our In of and did growth conflict again the with call environment, dynamic our We China. a delivered thanks this while Thanks, to exceeded Parmeet. operating team We model.

Our This QX $X.XX even are up ago. Order is QX on billion. year growing core top revenues XX% X% of stronger, and is digits core growing a basis. was a performance double on in

up our last operations XX.X% at was XXX results in core revenue COVID-related despite Shanghai, Earnings roughly this late April. margins these March estimate growth We quarter. expand, the and starting month of point continue XX%. We from closed headwind through points that to per basis operating XXX-basis quarter that the in a $X.XX the our for continuing entire lockdowns of Second year. up achieved are to share

As end-market our perspective, May we Bob for Most he is the pharma chemical again when the led and logistics Shanghai. through expected an details, year. our to the China takes calendar is factory will lost and in limited rest recovered the and of indicate the safe you not in is center markets this be in at team through and From energy importantly, business restarted and operations us. GC way

XX% overcoming with expectations, our year. growth and in and last The the business delivering rate continued our energy top pharma quarter XX% builds led Our growth momentum market, Agilent’s Shanghai performed through China This of expectations market. primary lockdowns. exited with year. XX% growth driven on but quarter, with by revenues well consecutive basis, were a our conflict our pharma represents led top the on the also XX%, GC of of we the coming Americas and again chemicals. of facility X% line Europe largest the seventh shutdown growth track built growth Ukraine. last business, COVID-related It stellar was in advanced given double-digit a a growing On at ago. the geographic March, XXs. by grew biopharma year in growth chemical also way production this also in Growth on and XX% quarter materials X% growth following with the down high in X% in

in the demand were China revenues the very remains affected While by robust. temporary overall in shutdowns quarter,

We In remain ongoing fastest of in in QX China. about order the about up from growing fact, region the strength very our was China business an perspective, confident XX%.

Group our an performance at of on million, generated X% unit, a of Looking business $XXX by core Sciences Markets increase revenue Applied basis. and Life the

of China, footprint manufacturing there. performance our cell continue the the our perspective, LC/MS COVID two excluding products. be and lines, Orders solidly To strong Bio-LC by Given in led provide business products, adoption to high in growing by product quarter, new major our particularly Orders impacted additional in LSAG LC analysis for grew and some mid-XX’s shutdowns with mid-teens. related in disproportionately relative the globally all was GC grew strong. strength related

several the portfolio. the offerings will front, On we conference to upcoming new forward ASMS look that exciting LC/MS announcing at our expand

of across million. continue XX% education we’ve continues delivered value year. the the drive our our ACG pressures. up markets core. and compliance, the growth core marked Growth services. Genomics and LSAG preventive This inflationary margin services enterprise customers to $XXX regions. QX business is growth face versus quarter across informatic quarter Diagnostics proposition expansion was million, last resonate in and of straight of and and The exited all breadth The sixth delivered Group CrossLab XX% contracts, even of revenue The posted maintenance, revenue portfolio backlog. with and with services again services Our of scale in up Group Agilent broad-based record to $XXX XX%

team generating yet record Our genomics. excellent and revenue growth quarter, NASD was led by The NASD and strong another profitability. delivered

also remain to customer build capacity. on extremely million for expansion. work coming and with future Train about future NASD’s I Colorado $XXX B excellent B and meeting yet our and adding we’re in Train XXXX, the growth progress in in first-hand bullish made with quarter, chance line needs see continuing plus We our the another to During a being visit had team the underway that’s current in

across the Agilent our company, focus stronger. has on Looking and One approach been never our customers

we one Management two in ranked in industry ranking, in developed quarter, by XXX number customer number the satisfaction Drucker During were overall our The and the institute.

resilient In for addition, well point new and is and changing organization already we’ve Agilent’s successfully can company a strong customers. still Commercial our another built environment resonating that the yet Agilent results. QX post quickly are for adjust proof results to how a delivering

core our our strength, order to growth results with and we full continued EPS guidance. revenue and along year backlog Given our date, again are raising

outlook will the with year. we Bob? to and the core more off concluding Bob the X% call will on being questions, year, After your expecting what detail now you for for the our revenue along $X.XX. $X.XX the today rejoining expect call on Thank For to are Bob’s on more growth X% remarks. EPS QX comments I some hand we to information rest and of of be Bob. will and the I we call before take for provide now,

on other everyone. otherwise third our my noted, on some through Mike, income I In non-GAAP and you I’ll and key the focus with results. remarks some remarks financial and guidance details will up year. revenue good today, my finish Thanks the metrics. then take for will quarter Unless additional statement provide the and afternoon, fiscal

lockdowns topline reported added overcoming a COVID-related QX results M&A difficult As quarters, basis the revenue $X.XX We growth. posted to QX a impacting quarter, X.X%, despite X.X growth billion, Mike in we described, of environment. future China, affected estimate roughly while while was Core primarily business in macro in million XX the of In of deferred in growth in points was with Revenue the headwind solid by current us up lockdowns some was challenges $XX in million expectations, up which the X.X%. points into basis XXX points. currency line April. $XX

In roughly revenues a one-point in were headwind the quarter. addition, testing-related COVID

this remained Our year and our continued to continues of business. This COVID-related the and started, but our it strength quarter and revenues the in NASD. pharma specialty XX% main represented demand materials led critical growing perspective, Biopharma to of despite XX% demonstrates growth results, not for trend also markets of market, of energy top the of conflict the chemicals. XX% in be just the by during impact Results represented investments Pharma how market, were instrumentation, only continued quarter. year-on-year, this strong. on innovation pharma, that our of resilience in Chemical driver growth before led largest China growing and consumables Investments in the and in advanced year. in grew highlights QX Ukraine. and double-digit its pandemic XX% strong during by growth components and one the higher lockdowns effectively strong the pay in positive results, To put R&D programs overall last XX% of quarter, XXXX, off. X%

growing strong was X% expect as revenues market market more to an for of in top of in demand labs battery growth students in Diagnostics increase We surprise up muted this on year. XX% year and energy us, to areas, learning. and and growth capacity in continue last in academia the temporary as year-on-year particularly as technologies results. semiconductors X% The in industry-wide nice on spending a QX these clean university clinical and in declines and XX% and grew our China We opened expands. government saw shutdowns last returned on-campus top COVID-related

and Americas to grew environment digits for XX% operations environmental X%, while the food business all drove single X% in the On we for decline and a in China last Asia, to manufacturing our logistics And excluding In the the quarter over as funding strong The XX%, of rounding affected sales low our In X%, continues due basis, concentration healthy. across food a lockdowns year. China grew of saw higher versus China addition, out growth regions last very shutdowns. be activity segment geographic year. growth X% the month. to comparison the except growth declined grew segment, food and X% against end-markets, Europe a China the forensics an grew

to I’d on China, we quarter progress. some see recovery additional how the like the detail to how evolved Regarding expect and provide

First, the as Mike lockdowns. with despite temporary about said, growth strong the COVID remains XX%, of order demand

Shanghai China. were was to in to able the and China partially with very logistics through by the lockdown of shut our remained April. down shifting hub closed where main of business tracking production in well adjusting when out were late into impact We March other and factories routes production reduce expectations and and the throughout possible our our Second, shipping

$XX it is to be rest of expect $XX to year, the the calendar deferred, million the in throughout lost. recovered We million so revenue not

ramp to of impact QX and to phasing, expect modest in anticipate our continue we QX. In the of operations recovery terms

fiscal in fiscal phasing November with occur We to which quarter is XXXX. guidance. some of spillover December, QX our our into updated of into expect baked first the majority the recovery and This is

very Now to turning continues execute The to P&L. a the high level. at team

Second logistics XX.X%, basis costs. expense quarter up to ago as helped cost actions helped margin delivered up and from and XX and ongoing points XXX healthy constraints supply higher we points a was as an drive offset chain operating incremental gross last pricing XX.X%, inflationary tied strong very management improvements of from pressures productivity year. basis Operating leverage year margin

forecast, exceeding tax the earnings year, basis points than up and was last per rate XX% helping $X.XX, versus expectations. share Our of XX us for deliver quarter our better

expenditures in at supply $XX flow flow fulfill primarily Cash to to of million in inventory of the impacted sheet, cash operating QX, million the logistics COVID-related balance transitory and strong our flow as year-on-year capital demand in and by investing the quarter we the Looking environment, quarter challenging $XXX with in as as the increase chain well impact related generated in while was expansion. during expected. China in a increased NASD lockdowns cash

the We deliver year. flow track to cash are our for still forecast on

advantage of worth repurchase During market million $XXX shares. took to the quarter, volatility we of again

paid also out to dividends, $XX shareholders. a We of million returning total million combined in $XXX

no until month, Our in opportunistically, of XXXX. long-term times. $XXX this have debt with and balance X.X a million sheet continues to we healthy net notes maturing And ratio refinanced earlier senior leverage be now

conditions to continue aggressive to As given we deploying in our stated current last is market quarter, approach our be capital.

in strong Given repurchases future, M&A in look opportunities. actively sheet and while QX to balance our million we confidence the share $XXX at continuing another intend in opportunistic deploy to

guidance improved let’s our outlook Now, the to year our third full move quarter. for and

core X% in the of raising business and expected the of full backlog, to order up strong year we performance the the to year million, X%, first an full or well are point conflict revenue Given growth half a our guide. revenue from due in core $XX the our in account takes XX previous recovery headwind This Ukraine. into to a basis-point China, as phasing as range

the the M&A our considerably year. has headwinds currency again increased us guide, strengthened expectations, $XXX our up revenue range impact since last reported the the full of $XX in unchanged. While for dollar estimated remains of year, And last million of guidance resulting million growth to we’ve full our our since billion guide. $X.XX for in This year results $X.XX maintaining billion core

$X.XX year is from have range to We also fiscal guidance This versus up EPS for XX% to $X.XX XX% our to share. per the now represents and to XXXX. year the share, increased of per $X.XX full $X.XX previous growth

revenue range $X.XXX X%. X% and to represents billion billion. to expecting core $X.XXX we’re growth from QX, For This between

the ramp and and in continue operations to quarter fully expect We end China accelerate the into QX. be of to before operational

points have negative the are Closing be expected versus our out prior XXX performed I turn expected This rates XX% well in in through X.X XX% confident year. tax again strengthening some extremely to deliver strong, impact once EPS growth million time, is our quarter. The reported business and At over very the the will the Agilent $X.XX QX same results comments. the remains for rest to to strong of is under circumstances. $X.XX, team in QX Given and non-GAAP I’m to about the exchange the some continue rate based Mike, a challenging guidance, it of up outstanding. on the the range you to diluted on of and to concluding will X% With that, we QX shares of dollar, in a in year.

Thanks Bob.

we take I share environment. to thoughts Before some like questions, your the you on would current with

we’re know, you As living very times. in dynamic

remain markets strong. end our However,

challenging is team and What the the also working. a continue buy is external deliver Agilent strategy in to to environment. Our very ability build is growth clear of

come that business our challenges people and this, our Agilent during continuing unstoppable delivered lockdown time-after-time, continued market. We our increased growing or in a moving they In model points remain of margins times exceeded deliver, resilient inline growth, basis team have can the of growth time expectations our team. like effects resourceful, our EPS shown quick has obstacles We we built chain and again-and-again, that a supply that any rapidly address successfully XXX by inflation, customers key in with the confident way. and power on. to works companies to advantage, COVID-related a challenges strategy and to can and want One I This a the rely work and in a of

strong future. Our business remain back remain drivers into as And you. Parmeet? and growth intact, Parmeet questions. our take your the Thank prospects we and now, now, to

Thanks, now. Mike. Selena, Q&A for instructions provide please

Kumar [Operator Instructions] Vijay comes from Evercore first question with The ISI.

Mike, lockdowns. given Hey, guys. question. on is fears performance mention Thanks impressive certainly, my taking on you for the did from relative the China Street this impact an

portfolio instrument talk did growth that impact were Agilent's within So, instruments lockdown perform? maybe I the and any could trends for there guess, to trends order how peers, at Maybe and mass instruments, please? specific spec. one, you very Were when strong segment your Q? the What across within about you look LC instruments

the Vijay, dealing pleased external We're Yes. thanks comments. the really environment. teams performance given with in we're the for the all with

we're to tag going here and the So, myself team Jacob. with response

I was received have a we experienced And So, side, analysis highlighted -- And in think pull the that disproportionately Jacob's cell as COVID we tried shutdowns Jacob absolutely, the and the on LC/MS, business out impacted the a add some few bio growth. We and in specifics. in nature areas of is China. business we the order I to by is I'll an our doing remarks, well. about very the LC particularly where talked call, story instrument business, outstanding

the very strength been and record, LSAG we're about what's the our don't Jacob, the about So, business, And you why backlog. of bullish exiting quarter going about you're excited with why record future? on talk

Absolutely. Yes.

our with strong with to to continue quarter in some -- GC/MS that in, in year think growth connected course, we orders which that the due also ago with LC, alluded see Of be strong NPIs business, approximately aspect. continue and I of business. coming in a to particularly in the spec, strong to very strong. the very LC/MS to came in Mike we challenging LC China the the was challenged was Shanghai situation. or the year mass growth overall, And positioning lockdown. with very very Clearly, out But our with in we see this this But the overall, orders GC quarter continue

is have science for now. So, I'm that. spectroscopy strength the that, us a the not business also concerned for I about material really we besides think And that right seen

very the overall, portfolio. So performance strong across

Vijay, Bob. hey, is And this Yes.

kind to was the XX% of dimensionalize to LSAG-related. disproportionate, when due of talk impact to that we about -- lockdowns Just impact roughly instrument COVID the XX

GC -- maybe China? are in $XX an you production on Because million there assuming What back And And China. that facility we I GC have is a markets on up be Bob. is China. you could second the impact Like perhaps running? the this half? some there The helpful, to the been That's questions the and out half. have is in in lockdown Have one top in your million confidence where shipments manufacturing guidance of back gives impact second coming that comes know facility, in $XX reopened? and

-- Vijay, we how the I why the response about ties into and lead would outlook. this have confidence off here? So

now some operating logistics in we've in-country limited and and Shanghai, our shipments. albeit started are facilities And we capacity. production on actually So, are international XX% up and limited capacity. back up Both running to

the that's opportunity to to at factory ease asked living of call coming operational that team assumption be the a Bob the quarter. this modest start and is and just to starting to fully we a QX. why are in we'll So don't want the like I have think our being controls end get to the ahead actually fairly to And weeks to to out, too here, in do not But we and out camped is also far to will over of recovery our ourselves that do describe and by lockdown move. take Shanghai, view -- I'd who product shout expect will volunteering that.

confidence I've this in know outlook got can team also because do. what So, I the

backlog we've mean, thoughts. Yes. build a Vijay, couple on And order to point, that closely. I the watched of very

We with Shanghai, up have in to we also as the And haven't be factory this. any manufacturing the dual provide seen we're United up GC continue and to here and GC/MS. States to also ramping ramp the associated in cancellations capabilities, we factory able

those said, being So, very we and million the in December. and it spilling Mike of cancelled, the a And little so. like modest into a then pretty then of COVID, in back. happened we feel $XX November $XX China quickly, majority dropped that we substantially that in the back definitely back orders million initial if came we down haven't the will of phases over any are seen of get expecting, and recovery backlog But as fairly QX, to fact product go the and what given we QX to

comes Sachs. Matt question from Goldman next The with Sykes

just little a more instrument up Maybe on tough quarter bit on a a kind of question, Congrats following C&E. in environment. into we dig the

highly size I within of in could of into but when quarter actually just you traditionally, C&E? battery, of cyclical secular been more sector, semis. looked And And this seeing maybe it from this terms instrument of called of Could at segment materials, the mean, good advanced in a Another has that kind what durable think next within sort sort cyclicality drivers you're as a growth over things course there. seems the sort non-cyclicality of those and out year? growth I of couple less help versus year cyclical. an standpoint be far us that subsegments, you

this So, of agree question. Bob. team off with completely again premise I'm with and we your Jacob going with your tag to But lead and then

and batteries. just we move have. the by in We're about They're fact, the than important I that's need happening All supply to talked In what's to fully on that our side you I relative high may I audience segment to mid-XXs energy chemical more semiconductor grew automobile in three we the and elements for I'll side, X% segment. a C&E in that for -- you see But grew, -- is of have driven the size capacity presentations business. that. will. industry. Agilent's investments appreciated. commentary And you, you expansion of think new been of pass being to the advanced to think, if And mind were you think remind The of to segments down recall where less teens. those that historically energy over cyclical that's revenues. element keep the it's the think some do part us. some there's materials than less in here Jacob, We materials, concerns, chain of aren't I earlier total And Bob it of X% whole perhaps of buckets, the And

Yes. very has mention science. in historically I that can been actually material also strong Agilent

So, other have strong batteries very market with GC, the business. and our GC semicon speaking, the both also energy presence especially but renewable our IC-PMS generally in industry, in with portfolio, and materials, in we a with

see we think Bob? in potential that. great I So a

Yes.

other thing. Just one

I was disproportionately that one in impacted couple That the China well. think on down. things. -- Energy just area is as of was a

had So, we impact. also that

it you and wasn't was grew. -- advanced chemicals also -- it it And a the materials, temporary they was China So, -- speak impacting phenomenon can to then was there. and still

kind strength -- these of speaks to that our of areas it's are mean I second-largest market. markets. the those So, And

think the there. a batteries fraction of lithium-ion capacity that's you We in we're be say the for to just capacity needed starting. And of needs about amount just at as an leadership have areas. a example, presence that I would it's these When only

at are the just side. to And So, today million-plus that you on cars having here these the develop $XXX that's and battery continue opportunities just are markets a long those. probably look to runway, the if

the opportunity at a look significant forward, are going this leader. that, for us definitely we is and very you If

much. very are the appreciate mentioned quickly Bob, this of then, Thanks Great. you And on the you realizing of how on that margin of remind us pricing. from side. color. of last pressure you pricing the year, those of Can just the just higher And you I some kind gross offsets then secondly, pricing coming terms did are expectations prices for year? place? put what of actions some your the in that in some you

good a to It's we price the pleased than initially by the in be the And had what recognized continue for be had beginning Yes. ability really higher the question. our actually value having to proposition and at we marketplace year. of

this that. you QX, pricing about most QX, the price strength we say were If year X-point and accelerated given fall year-on-year January in of roughly for And beyond took just recall, of our were took that see that in the actions had last of actions that year realizing we're most of we we realization. that. actually the to of a ahead I we we today the talked In of just starting some would backlog.

good our entire about to have of the our So, that, that the to because It able and shipping. above certainly continue would higher ability higher needed our feel well being as higher it new we QX, was in very portfolio. being which than to logistics oil price actually guide But higher given of more across feel terms in we to been that. cost able that optimistic costs in our we X%. was about that costs manage be -- than say have we of I

pleased think Bob, I also realization it's We feel net about the that's well. really very occurred. price

We as also continue well. productivity to drive

and combination we're it's productivity pricing the Company. across having So, improvements of a

right, That's right. Mike. That's

with Jefferies. next question Brandon The from Couillard comes

again second quarter. the Mike, strong biotech end market, in very

talk specifically sustainability trends impact of Just biotech and of NASD perhaps segment the about there the on growth.

Yes.

and And that Bob. analytical quite you'll the market, in have bullish in I hear in the So, remain story biopharma on is biopharma. Bob both of with We the our what lab broad-based strong you a notes. I'll know from I think that's growth really sides call NASD. out, outlook it's

about In have fact, actually new space. the gain we're we accounts We've And biopharma continue in serving in business. talk second. I'll actually, to of expanded actually a number the Padraig

about really the feeling now. aspects biopharma good growth we're right long-term business impact on as the having well as So it's the of

few over You of you growth about And before Bob, heard it to was? me me prepared a can crone comments, what remarks. Padraig remind our I for in it numbers the pass some

Yes.

continues greater continues be proportion to the of overall a first biopharma -- pharma all, Our Brandon, to of market.

So we're the growing market continues not bigger in disproportionately XX%. but be fastest-growing to bigger. grew only It and pharma,

you out If NASD, XX%. was number still took that

says we very and growth we So, have there, it still strong backlog. that grew

feel about I also and instrumentation so, across of portfolio the good And we across products very offerings our both the but that entire then solutions have.

in how this the Bob. commercial space. to further fiscal us Yes. And gain our thought I of start the Padraig, of penetration year Thanks, given biopharma comments of one organization, maybe you helping some think

with instrument that in we're really we in with rate that helps focus biopharma with accounts our really of longer And attach as course, so attach focus application the seeing well on smaller strong large tail accounts trend the it a on, the absolutely And us players. rate. Mike, or and helps of business. have was support that bigger Yes. as biopharma

lot I we services very biopharma think the So see a been a overall, consumer and within more enabler course, getting we're, in both and to. accounts, -- which strong access has of very play strong

sustainable this That's helpful. or about that as DGG going XX% you. Got quite now? should Is strong. are think mid-XXs we the for a pricing? at business And forward And mix dynamic margin gross then,

you ahead. one let that Go Sam out, I'll and hash Bob.

Yes.

start-up the QX NASD you mix, to that of I starting Train to team so productivity number And from in the up recall, I think have we for did benefit in we our strong continued is put but and second costs certainly the necessarily business that there. benefited QX drive wouldn't in for are things Sam in from because an We do there. year and half of and extremely the one it the -- performance B if ramp facility forth.

a great has our that payoff $XXX -- capacity. that margin. million-plus So that hits in obviously, and 'XX with gross But

would mix. pressure They're the activities. will say had say and see of team So, second productivity because some start-up in we I that probably I on year, some benefit But working of half of would a the of that costs. the

completely Bob, with it's you said. everything -- agree

So, By is also benefited volume. price. it we just from way, is mix, the it affirm

performance some go market, able in after. leadership we good to positions We though. And absolutely have are which the continued expected,

you going the a As to little coming tougher board. Train B expectation said, with on is be NASD

Puneet with The comes Securities. SVB next Souda from question

obviously. reason in it's shouldn't pharma, around you strong peers is But your more mean, first Any half, the strong deliver U.S. why seeing I in we're continue So, rate pharma. second pharma. and question one, to very the focusing America -- just and see around really instrumentation, on North that growth too?

if think So, here. we element any a pharma? sort growth see should is seeing rate pull-forward sustained U.S. of when And America about we of there wondering you're North and

in that to this phenomena. We're remains Puneet, very, and U.S., same year. the happy of seeing answer remainder bullish strong the Pharma the question. outlook very for remains our very

-- just capacity, a there But to won't instrumentation asking give we're in standout. strong And going particularly be our a strong performance, twice pharma against we're what were seeing -- continuing That you the as Train is us that in very some say, -- the do we overall NASD because that we business the should about. ramping been provide. still have business. To that up I performance as in performance, we Americas grew has is I fast which Yes. post B mean, help a perspective, great comps the as strong you to pharma will

bit a growth and was just government the you -- sort just Okay, the elements there that what great. And the we driving what's little on are Maybe in what expect elaborate should Thank continue And briefly some that? year? could another smaller strong of to academic quarter. then segment, you, of for you. that of through

And is this Mike. nice Yes. Bob That us. surprise as mentioned was -- a for

compare think X%. and off I came still a grew we XX%

even though seems had funding in be healthy. So, area some academia we're in we quite some China, positive the to seeing even The developments. environment segment headwinds was strong. that COVID-related And

funding we environment. So, be it's continuing healthy think to a

the those as had funding the COVID some I areas. years society we in the of last importance over of think several has the perhaps challenges reinforced

others or labs As well, to lab activity in return we're students well. as access the for seeing and

access. it's healthy as funding a of well think I as lab So, environment that combination

Yes.

I our had seeing February quarter first that across go to throughout think, back second -- about, in board. build course results, We just we was activity Puneet, January to coming in you going on to Mike we starting what increased January, were and our Omicron were our and really of if continue about Omicron. wave back quarter, talking first the of -- as school. just was as saw the the talking late And quarter early kids that in of February off

that I kind -- nice that was think, after recovery really in the broad-based, speak value Omicron to the have So, in the a business probably our and in strongest one it And of it's first cell think of proposition particularly cell wave of pretty that I analysis area analysis. continues saw there. we to

America. of De Derik Bruin from comes Bank question with next The

It's Thanks taking Hey. Derik. the for questions.

on things some of follow-up Puneet sort asked. Just

a anything catch-up sort of you the get shipped a in strong across budget patterns? just So, I been like seeing or anything to still that because be sector is orders for worried like the sort didn't of of the that investors year? about mean, this. Just so like getting could -- are been didn't year supply XXXX from the instrumentation unusual any of XXXX like questions this we've delays still instrumentation asking have because get chains sorry, suggesting pull-forward flush order products, Or are earlier that's if numbers from is group. the in basically what seeing lot customers it

No.

haven't challenges, better, are you will, seen no supply no that. the chain indication And if think worse. I any We of

chain there's I from would that product. a standpoint won't would customers. I a be nothing that get supply to So, -- now or encouraging my book order got be get

I earlier this marketplace. if I more funding of of had well some that And COVID So overall we do environment biopharma. increase the long-term think positive our challenges seeing pharma, have in to actually we're that. have think aspects rate, mentioned their of particularly the don't you some thoughts We that know led seen markets We not an or... actually as inherent have Bob, some in a growth on

Yes.

the order pull-forward just faster a to you standpoint order budget And if there's right? the grow our actually perspective, growth, counts from product, from says, if it standpoint, growth necessarily they and -- than it's only get continues revenue, the hey, at think I so, which of not demand. from look robust

Got it.

So, no I example, of over-ordering, for sign another guess that see? you can And Okay. question...

they continue about year-on-year, it a the because but at were basis. last cancellations on relative -- a prior one just we -- global real lower I order year. And China, and to last we that. think, talked lower other year, look the they're And year. we on again, at to regional than it they are were than quick look at just thing, Derik, Yes, on

they vendors very deliver is first. haven't It's the minimis continue and at amount. more de whoever be product seen can placing with something gets -- to multiple that So, we somebody a orders

I demand. across just think strong where industry seeing the we it consistent is are very

like said sounds of helpful. dynamics, it. it it talking And in hear you going I in Got I been mean, share of mean, your book changes on. doesn't region? did some have going mean, It the in order going on just That's companies of really in Thanks. correctly in the in about -- and space competitive customers some like of competitive the order markets like the the mid-XXs and any China? other shifts on I terms -- you still sound growth that change there's sort is I dynamics

least with At us. not

of for Yes. globally. technologies, our it's some going I was core to say mid-XXs

And Yes. win-loss we included this, analytics have with Derik, ratio. on

and through we can with rhetoric. on going the parse what's kind business, know we of the So,

from question Patrick with next comes Donnelly Citi. The

maybe that. Bob, up on following

guidance, of the conservative. are Just looking in the at typically terms obviously, -- pretty guys you guidance

So, year. confidence you about, Maybe see I coming into Is for historically obviously, order just It a talk level. conservative. about that? from visibility back, XXX you bp coming it's encouraging talked just bump confidence? growth, XQ Can gave just that exactly decent to Again, the the that the China you what there, ramp. obviously implies what pretty the guess, talk to

bump off talk an that maybe So, Thank you. just that quarter, a bit. through line XXX-bp little in

Patrick. you're No, Yes. on, spot

the strong outpace on our order revenue. continue conviction One in revenue You hit orders to two our our And fact will deferred book strength points. globally, is continued from on we that that China recover. then you key the we a build have the where

And so, in see that both, you QX and really QX.

the backlogs would see stacks. technology all particularly of in of record visibility step-up the business I the that You of say with strength. our remains high, across instrument our side because

one following questions cyclicality. And Mike, earlier on of Okay, the then, maybe great. on up

Sure.

We about and the a is a of lot thoughts questions get if like. where recession sensitivity companies there look about recession

just a the bit into across there. to saw you on then like portfolio cost the the bit guys how cyclical, quite what's You time have the And would resiliency portfolio just talk pullback. last look portfolio obviously we Bob, think Can the what's this if recession? a similarly, things then the And on about levers you what a about, just little since expand broadly, not again, transformed real maybe the entire a slow. would were of side,

a give at last Bob least different business. to set seen I at to model comments the the here. so business portfolio, make has some business such resilient which time he to if slides markets to business X total we'd going word share more service point, Bob, of, by comments over be in another even answer. a times my this insights business recessionary little was we've home consumables model, contract, company of this whole few pharma, than deeper pressure precise that some resiliency as that just be few you're really XX or is penetration -- change business, nice I'm tend keen been been use not I've think the our nature core that a a reference, must XX% also type But NASD in has the to XX% and here. of here. the our I example, as significantly because And affected So a can really script something what to And an more a Agilent He I is know happy revenue recessionary drive of student for biopharma, to to pressure a opening occur. business, posted doing point where we've Then doing that of my service growth on got revenues the and under or

Mike portfolio But is I about, and talking the Mike, my here. telling to pages was has all Yes. you're point, think, secrets changed. dramatically Patrick, Thanks, secret with as your -- really my this something

much they're was back 'XX, much It than probably went more the closer services mid-XXs our financial the the today. clinical 'XX, it's also in today, business if the And you greater it to it, to then, now you XX% probably of capital-intense, than in businesses, if look more XX% consumables. -- more which at And pharma great and of So, instrument-oriented crisis, are and terms entire was is XX%. company. probably recession-resistant,

had, close then, shocks just to look And X%. GDP. actually, of if XXXX, you what were happened the greatest in back so, And we we at one COVID we pretty still grew

then only a then, consumables But markets had in traditionally like And cyclical, longer-term contract, concentration, drivers. on those and them faster we model and talked business the that the consumables Mike growth types of have, we piece when the more and of got of before. about, as that the element greater a resilient about, as greater we the viewed And higher not talked diagnostics just the more the so, services look business of some more but some then we're -- proportion there's then because at even areas that of much than you of services, see a resilient business. products we've in can you and lot pharma the

are in things forth be semiconductors that to so people to in Those XXXX and are or Europe still chain. to electrical going places I there to them here capacity and around from the cars. think gas-powered and closer There's cars regionalization whether that markets, weren't still be in going transition U.S., investments to bring of that supply that XXXX-XXXX. to the other diversify -- a

So very business looks we've from a tailwinds some composition I think got perspective, different. the market and

Morgan. comes Vatnsdal JP next The with Rachel question from

an been area have slowdowns around obviously So, biopharma. Biotech concern. question of funding another

So, well? had seen customers from really if just you therapy operating related challenging then, Or all? could is concern concerns customers? that slowdown any about amongst at any funding expected you And you've to talk as as business have

Yes.

with customers or Jacob. on of no, leave you or cell therapy, it's our in some order and biopharma, up some But but order not showing we discussions seen the the and in me gene in seen jump maybe funnel. with it. thoughts to on let We've the our concerns, haven't publicized So, want book

the Padraig earlier there. pulled In because our expanding conversation into why fact, I in that's we're actually penetration

on environment still that then, going you've something services got remains now And the know from funding strong the with Lonza already cell... on right Agilent. the and I products for So, looking

LC/MS doubled a further biopharma, area. presence have launched period penetrating oligo, the Actually, that cell strong analysis was here Actually, time the where product same business new is and And were doing will over of we didn't -- for have where the the penetration we for that the a are and Seahorse, of have really and therapy into academia. cell Yes. for overall the penetration into of a time, we business we especially over high next biopharma. improve period which areas into the really one in last well, the we very the in a -- the our high balanced we is Also have really the -- our gene here. we the towards biopharma

in there can are our based Mike analysis actually in platform Lonza, used be of them QC technology. strength cell to settings. actually as to -- where methodologies on new bioreactor area. committed that are the that they we we be in lot improve a to can we out a working put with hospital see built that in still could And mentioned, So, have also a the that partnerships. And that

are continue in to -- this we So very space. be bullish

times. up that's number come Rachel, Hey a a thing, Yes. of other one it's question

and amount -- in done any really fair book to so even conversion terms speak, of to material in proposal the kind haven't haven't or order analysis. in slowdown So, of elongation, any we And the as a elongation, about, -- talked any we've in order of order. we from Mike the Jacob seen cycle, getting

services have we that market piece think from probably underappreciated other this The into the penetration I and consumables actually is a is base. that

and have biopharma those buy long so, in that. just they of service amount the some still go any we rates uptime as seen haven't have those customers our And that material in attach businesses that because of things. instruments of as And the bankrupt, they types of highest require. we probably And don't of the we'll any write-offs

instrument, to of people be about giving. continue So, to that will and the there's kind right too, of think but think and consumables big I go it a gift services component that there, keeps on

from more really That's then Thanks. helpful. me two And C&E. questions on Great.

single So, last for quarter, the listed C&E digits guide you high year to double-digit the at low growth.

of quarter? So, growth C&E. deeper can all you that kind into the give us then, at given on changed if has And an X% this outlook update diving

testing being So, traction. starting get battery you on touched and some peers really opportunity increasing have in an it's to that your and segment,

market you that can and could that meaningful through walk opportunity time? how be us over So

Yes.

QX kind for expectations the China-related of We guidance changed. in despite line the our So,, the were business. hasn't of some pushout C&E of for with

concentration grew a probably actually, If chemical energy still have and we you GC/MS higher GC into can business. the -- and And X%.

they're expecting digit. QX to and we're So, see on comes into back, primarily double QX business rebound a still track and nice as that QX, to that

by It also those C&E just C&E provided wasn't it's customers. China I where product Bob, globally was it think And say fair to in for is our China.

semiconductor the of areas think capacity I and battery of some kind and throw of would in expansion. the around technology in that and I technology, energy clean terms in and And

battery areas around for of technology. manufacturers several here. quarters an we've are the last a talked handful the on technology, world. emerging but capacity There's So significantly about only are now, that emerging right battery It's increasing they those still the

several a hundred of today it's and so, substantially. And growing opportunity quite kind million market dollar

Josh Waldman Research. from Cleveland The comes next with question

you questions. want I one instrument I a context Mike, one then curious the backlog backlog on for just bit the Bob. on for Mike, strength. mean, if could provide expand to more you, think and

tighter China sense supply, maybe fact. on GC a orders get of reflection facility a in to stronger shutdown is versus of trying the potentially this function Just how much a even of

from talked also Are ahead strength. -- cyclical applied like order run instrument you more orders industrial You and accounts biopharma expectations? on seeing of

Yes.

think got in I the build can questions backlog your the big demand continue we hey, so what's actually think outpace And a we recall transitory -- some on earlier impact and story it markets, And is China. But the of our We lockdowns happening. the plan. largest an macro in headline sits year two that's the this instrument our pharma what's -- story orders said, story revenue, in upside COVID-XX largest element I story big across markets. here C&E. two about, to for the strong is of

and continue build right Shanghai So meet continuing feeling that's and to to the expectations the C&E shift got to able of now our think from we're I our we've because be with -- some here orders. deliveries. satisfied is macro overall able our customers' see environment bit ability market the their be for to a in customers on ramp. I We of And factory, But again, to just really with strong deliver U.S., our to our think probably about site backlog albeit we larger to need Agilent. GCs relationship little story were production in really good

stands. monitor mentioned, comments. order you saw closely where that and of hit closing And in continue be that delighted as we to cancellations try me with I level my to very Bob then the think

this is is onetime million because for yes. higher backlog took of if Even last to Hey the the back kind out to the take majority it's year. you It's what you the million deferral $XX it at There times. it some we is because a was of $XX been of delivery of but China build to demand-driven. where kind backlog logistics, looked Bob of $XX -- delivery to not above times $XX peel say million LSAG, longer the the that. would out. if $XX on it's It's and million It kind the record onion to even be it's would peeled million mean, I Josh, than if out, I longer If Yes. hard still significantly you $XX out. took million it significantly even historically. have

beat $X.XX Bob, then, you you by high-end guide us EPS QX at by the new year can And to raise, I bridge the the Okay. mean full $X.XX. outlook?

curious new growth accounted being FX Just in strong share guide. and for other and are organic repo, margin how variables the like

a It's question. Yes. good

the it's helping FX. QX beat and prudent So, with for by us for QX guide. couple $X.XX repurchase basically of QX offset it's share say, and I $X.XX a a points, by would

Oh, guide. prudent

Okay.

in prudent Didn't we, today. to had We that get Bob?

The with Jack comes next Nephron question Research. Meehan from

just energy. going and I chemical keep to on wanted

how end manufacturing was food the maybe or the than end first, just X% of a Just headwind in elsewhere? environmental underlying was the stronger versus lot guessing for or headline I'm much market. market, this the

Yes.

three have impact market food, X an is and at if does less But was. it looked technology markets. stand a it's market. Your pharma. for well, that's that you there intuition, impact of about. Jack, a on than of this, kind is I where end just other look of on. didn't probably it China, as forensics but to purposes that's biggest talked energy We in -- and than the over-indexed most of spot looking were And the and at Environmental we the at Those actually most so more chemical rather that being

I quarter in we C&E had this couldn't to that some filled will get GCs past quarter. European this do we recall later orders larger -- because them be

following Got on it. That's helpful. just And NASD. up then,

expectations the year. in the Just back half the of

eking year? of the is capacity And the revenue about additional with A clarification are site. and what Train here from kind Train just for of the then, expectation the a the masters of guys You remainder talked quick have and today XXXX. more out for is flattish But Frederick you B,

if any just you into previously, time on be there's end but any much great. the reading just think -- year, I would too said that, this of comment know I'm don't line

want you one? the to first do take Bob,

take the yes. one, first I'll

it in doing to built been than able will out installation it So think continues some I tapped the guide. a in -- capacity. we flattish slightly we now job point new of we're strong what will we say revenue planned we've have to we're kind a team out was there. do That's capacity. maxed to you right at the as better as fantastic a have do shutdown which out temporarily QX, But Train of the as very if out, of that the is growth. B, as I do shutdown -- QX bring depress in into look

And sequential slight but there of downturn, be a plan. all that's so, overall may part the

to mentioned in our chance Sam 'XX Bob remarks, we first new I into really they've production of a great and that I prepared them actually production, also chance with expansion this say job as a we've And winning start changes work. B. time is, great supporting to do question, think we'll and Train year. done it's their does of no our to we revenue. Jack, spend business And job there's I referring answer -- as see which go all, calendar also firsthand of there had for -- major thank my actually, been team would as down looked to had outlook not meeting We but to likely in a And and to the XXXX terms a a your both

the chain outlook But we Jack, have for supporting teams here, our were imagine, support can but as construction So, We've in great it's XXXX. from are early to most XXXX. had some prudent experienced also issues. calendar our you supply effort likely also some COVID-related initial

up may anything So, running, get and don't new plant it for up revenue the our the but to into and running, the beyond XXXX take unchanged. that a longer capacity us fact read remains bit outlook that little

but Super. couple still confirm, And come? was Mike, a just now best times wondering, you the prudent yet said to of could you is

come. best yet you, Jack. Thank The Absolutely. to is

for We’re after be might an I'll call this the Agilent team call, Agilent. that Right and video close. earnings doing

you much that, and thank Jack. So for -- very

comes The with from next Stifel. question Daniel Arias

be if question follow wanted areas go enough and on Bob, requote long the that really Or that? where how that or lead ask if and backlog of maybe you it environment. are to sort in have back portfolio for pricing I the you might is, in not are something is just the there where current play? pricing you to And doing the up in need that times successful to

colleague to look my Jacob, don't we I'll and when Yes. price. but requote we

the So the valid we quote commit that to the the was order. time at pricing or

January, flow the backlog. just that if of started given pricing take in in is, we we're what we seeing late here some And so, second through just seeing quarter the

see So, QX, take if pricing we anticipating really XXXX. now, really it's to late expect you'll terms sometime it in of in into

write, can Jacob? You

oh, And then, maybe Jacob. on Yes. NAS just sorry, --

I -- just was about no, No, sorry that.

is ask is XXXX. for more NASD point? for lines I building about of Is or just just reflection was out of sort the order just to book have a NASD that that the that customers at the going and acceptance way where one time you this backlog talking about

speak question. the you you time that? I don't to on Brian why with exact know spent Sam,

we're have a strong interest mean, new of I new but programs. well continues seeing clients listen, lot from them And making Well, we for are And the to be materials to. as market that existing seeing the clients Happy as demand. backdrop of both, Yes. right we we're now from as a for that pharma well.

So, XXXX, healthy very demand. look at when you it's

and significant outlook In And our the capacity already it. for of for in and fact, for opportunities and that's our maturity just positive we've I and think the the segment already this cycle on part sold very a XXXX and leadership beyond. XXXX working

at and is Dan, are really that big Sam kind multiple therapeutic think of pharma the build class to about mean areas with saying, effect. new say, looking a on I when I now I was going hey, what to areas mean, we and is -- this seeing is of products really market, this several you're technology. the the mid-cap proof on therapeutic pharma this just

standpoint And more that capacity, to We're our market leader really in. building opposed more add we'd capacity we as we're so the a really it from anything it And is is If a of function something of revenue. more capacity. have demand aggressively.

a now, those those are what in for orders in it just are to possible that on saying incremental maybe by on to is put be Or that, capacity? just bow So, of delivered you're XXXX XXXX? coming deliveries virtue

XXXX. capped much on pretty We're Yes.

able we're We process the have all to business this year.

So it's really about XXXX and at point. beyond this

Catherine from comes Baird. question with next The Schulte

with then guess, a have interest and I follow-up NASD, lot on I of of lot first clearly, on M&A. one NASD, a But a there, customers. demand from

I your be How that you about of beyond even from up expansions has coming we what in a B? Train think customers date think you do to hear should capacity on evaluating front? And expecting guys main one July. PDUFA

answer now. Yes. We're the to right actively working question on that

more there's the you be assure there'll to A So alphabet more yet can in and share, nothing I but B. letters -- than

can to expand this expect continue to you business. invest So and us

And you yes. mentioned right. then, All -- in comments Perfect. your

look comments give your your and You would opportunities. size latest us there in of at just mentioned and Can appetite of actively thoughts you substantial M&A applying? terms be you to continuing hurdles that

Yes.

a through historically. in of terms coming appetite and of make We've IPOs experienced part we it value the Buy M&A we indicated about have BioTek of the a matter shareholders. growth of as We've SPACs Build think the with the to sure last they find -- larger remains have that strategy. et an talked really of multiples create our previously our for making I It's us for disciplined done course, appetite what just that do we most acquisition. being sense our the that year making remained and And hype the out, of sure all the cetera. strategically, of we targets we and same

were forgotten little thought still in what price in Bob. they once market now a X has rational expectations, everybody becoming little the and think a not say I or terms they ago, more terms of bit is rational -- or were -- X is albeit I of more months

but very remains the remain do nothing active we not So Company. to just deals. announce, deals this going to for a we're do But priority to

that deals to shareholders. We our have sense for do makes

session. registered call. that I'll at further Q&A to this the There time. no to questions the conference concludes conclude are And the Parmeet pass back

that, With Thanks, for Selena. the day. we would Have of great wrap And a the to call today. rest like up joining. thanks, for everyone,

call. XXXX Technologies That Inc. participation. for QX earnings concludes Thank conference Agilent your the you

disconnect now your line. may You