Agilent (A) 22 Nov 222022 Q4 Earnings call transcript

Ladies and gentlemen, welcome to the Agilent Technologies Q4 2022 Earnings Conference Call. My name is Bo and I will be coordinating your call today. [Operator Instructions] I will now hand you over to your host, Parmeet Ahuja, Vice President of Investor Relations. Mr. Ahuja, please go ahead.

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

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

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

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

not financial quarters. no changes mix reflects of note recast to on our that or These name quarter changed market. these market. have the reporting company's impact This Energy have this & in the Materials the better have affect Advanced this consolidated does in We business historical information statements. we segment to end our end changes. market Chemical It of the financial Please reflect Chemicals & prior change

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

everyone, quarter, Agilent today. our And team up performance. call of continued strong for the significantly revenue expectations. joining XX% an We excellent the $X.XX fourth and is thanks, Revenue its In core. Parmeet. billion Thanks, exceeding our more than earnings quarter, delivered

the last quarter The Our $X.XX fourth to per operating expand strong margins up strengthening basis dollar points XXX is These from This finish performance revenue QX and XX.X%. year another are XX%. mark operating Agilent’s top core line helped despite up continue share of deliver fiscal of strong revenue and inflationary were of on XX% of environment margins The XXXX. Earnings the core revenue delivered growth results top to outstanding growth of of XXXX. $X.XX an full we for billion, in year XX%. year.

and team. COVID-related the shutdowns demonstrate navigated on year to this and capabilities supply operating share, result the continue per logistics outstanding put growth margin for the XXX They years. for a $X.XX we in our increase per the also of uncertainties, inflation, the light Earnings strength shine up place continued diversified points. basis market constraints. ongoing over of XX% year. drivers the highlight multiple the XX.X% Agilent year, share a business up Our execution and the to of we Rx and Throughout chain year,

leading all, and Chemical it end growth was the largest All from year. digits by regions way, in in geographies three highlighted All our for Our Russia. two from expanded business groups Agilent. China and good in FY major markets, Advanced the growing was an after perspective, strength by led grew broad-based extremely adjusting double digits excellent is exit growing market an double XX%. with 'XX year Pharma all for This From Materials. markets all our &

at Let's now look take closer end market quarter highlights. our a fourth performance, with starting

COVID-related stellar in our of on growth top the Pharma, Materials growth robust China the & related demand saw Agilent Europe posted the low food our six with higher due start business broad markets. three Shanghai year for shutdown also a strong. growth our grew COVID deferred demand exceeded During expectations ago, and shutdowns. delivering other to including in batteries us secular in Chemicals basis, worked by QX, that regional with delayed in materials. chemicals, largest in in effectively quickly pharma. remains across have QX. last a growth end-of-year semiconductors, on Business demand along coming the with market, quarter, backlog led working in activity to growth led end than the been continued XX%-plus China shipments grew The double-digit Advanced XX%. strong down in of performance QX advanced team The XX% XX% markets, also by our and a by growth previously in delivering as highlighted XX% market XX% and XXs year. by way remaining We XX% recover to strength On

posted Science the and Looking XX% outstanding represents This its unit, Group of Applied XX% by performance Consumers with Applied XX%. and billion. at Markets growing and our Life business performance revenue business business growing our of $X.XX and instrument growth the continued

low and our continue was the low in instruments LSAG as growing We to also and XXs the our with resonate LC/MS business GC low our XXs the growth leadership customers. XXs. implied spectroscopy business with GC/MS markets to in build in solutions able saw excellent growing

Materials for in unique of strength for The to of its as ACG. across core our version growth also monitor and for of for with Americas. low long-term the NASD. imaging of way both were to engagement every growth broad-based and the strong support. understanding million Advanced on part entire as Group DGG's regional with relationships is Agilent led and into operations, Pharma environment maximize specifically CrossLab mid-teens the has strategic a double-digit continued released help year, $XXX delivered system. latest offerings. posted value This China and results up In portfolio $XXX is and ongoing X% and to services environmental ACG for to team Diagnostics that we provide lab recover. and core. led in ACG The doing demand Genomics build grew quarter XXXX delivered this chemical by its QX. ads ACG Agilent system growth revenue enterprise of XXs Group us On partnerships in revenue up Chemicals continues manage customers and the & deep million, optimized customers delivered basis, LDIR the large growth XXs been high microplastics in addition, XX% the analysis our Through business double-digit samples. in the has accelerate. continues microplastic customer This insights the

As expected, given delivered on last basis the business shutdown NASD our high a plant quarterly quarter. revenue sequential

portfolio results, grew regional basis, growing also and mid-single pathology growth solid delivered China. posted Our low DGG digits. in mid-XXs teens genomics also On a

leading manufacturing. new Network will we State at to for stem World is was highlights, announce during work The black a multimillion-dollar sustainability. number world of partnership advancing while extremely productivity, students driving increasing together with underrepresented geared pleased with Delaware fields. University, are a DSU university. towards do historically these Also, Economic in Agilent's in in In instruments, technologies recognition advanced we a entering the manufacturing Global the deploying this recognized the by Agilent received as group facility Singapore business of innovative addition scientific scale Forum leader Lighthouse QX, to manufacture

based Great the distinguishes countries In the as work global to future. had in and an another addition, excellent but Institute for workforce. Recap than its a This of successful independent recognition results, top the on Agilent is very place not by more certified we around in only survey world Place during to Work building financial regions the Agilent on a great as employer XX quarter. year, delivering XXXX,

We to team Build customers our to Buy focused supporting outgrow innovation the strategy and to continue The drive market. executing and deliver. Agilent continues on our

investments on company for areas. We a multiple and drivers high-growth target focused have resilient built growth with

an team take execute any We extremely and high that level. on unstoppable One at an have Agilent can challenge

are to with uncertain I environment. quarter share to us joining and remarks, continuing economic along his to we and comments our rejoin will After initial XXXX. the for over view these for the look add on expectations qualities fiscal year year formula now, to final Thank detail Bob, As winning you. ahead now more XXXX, you in some increasingly on for an today. a will perspective. Bob deliver believe we And

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

We pleased expectations basis. our $X.XX was a are very year up and exceeding core finished both with performance and QX XX.X% the our QX on on revenue and note, per strong on billion, earnings a share. extremely revenue XX.X% reported

million. headwind we During growth saw $XXX Currency point reported adding expected, The strengthen. or exchange contribution M&A rates the a X.X were X.X from quarter, as dollar was to to point the continue growth. to

chain execution again performance markets from grew also while order during quarter, the broad-based and and during to backlog. supply quarter. end regions down working teams enabled was start our us grew again as all outstanding Orders fulfillment our Our the record

visibility backlog forward. enter helps elevated and is good outlook 'XX, in and we As provide FY still going our our confidence

end Now quarter. on XX% were I'd and small strong. grew This the market XX% was like details our of additional XX%. pharma Results our share up grew to XX% and molecule in revenue Agilent's markets. in market very Biopharma largest represents

market with for end at growth year. 'XX. last and in Looking XX%. forward, All This three grew Advanced during materials, in to batteries, secular Energy the the XX% strong led Advanced us in regions single Chemicals, expect Demand had compares high growth FY Materials Materials investments in by Chemicals All semiconductors. of growth driven as QX we be in growth grow the pharma and continues digits quarter. led well, and energy by opportunities advanced to driving alternative China. submarkets, quarter

While led continue as continue, in to due delivered this mid-single-digit in COVID-related recovery growth growth uncertainties, these of in We market to market secular year. XX% we results Advanced not the immune from to our shutdowns drivers next delays of for revenue food will believe to China by QX. benefit the helping macro Materials drive

be expect governmental after by strong market result grow digits the market driven to to drive was FY double-digit We posted growth particular normalize this Environmental also & continuing China the see food to in Forensics XX% the and with and refresh next low the a This testing. Europe mid-single-digit funding end very for During impressive growth and increased helping PFAS Americas. single two applications driver of quarter. The posted years expect like 'XX, market in technology and spending year. PFAS-related we strength in for newer growth demand growth.

grew in the Americas compare Growth by business against was diagnostics and grew clinical digits. low market X% last Europe single an year. Our and while China, led XX%

demand growth forward, FY and QX. phenomenal year Government to XXXX. geographic end to deferred this XX% by by On from in continued market in the X%, recover mid-single-digit market quickly markets grew led underlying QX, also ability with looking continued X% We see service in and led This growth Academia market business. our The growth we across expect for & similar in the as China in basis, our well; a revenue expect 'XX. grew overall driven way strength multiple

China have into this future team ramp quarters. testament deferred this to discussed true our last production we million QX, We earlier QX. China's an and and in entire recovery to revenue worked work million a shipments $XX lockdowns fully This We've full in than now mid-single-digit impact originally team. quarter, quickly the to in in positive deferred China QX revenue quarters, estimate earlier anticipated two recovery this As in back quarter the from COVID-related continued to through outstanding a estimated had their a growth. year the last QX started $XX

was QX very even this, business our strong. So in excluding performance

year, key expect continue growth as very for driver we solid looking us. expectations. Europe which mentioned, to ahead China XX%, a Now a exceeded Mike grew to And be next our will

growth partially the lastly, by Forensics Environmental X% by driven Chemicals And & posted Government. market, XX%. the Materials & Americas, and Asia strong grew We of in also Pharma, Advanced growth offset rest & the Academia in

the the Now turning to of rest P&L.

very costs. leverage, higher a XX logistics pressures at quarter Our team Fourth basis up to margin continues continued from gross execute XX.X%, high points along pricing, year a and helped ago. level. with overcome was inflationary Volume

points up XXX basis Putting from QX, $X.XX Our outstanding. ago, XX.X% per Mike year. margin up for mentioned. last the had operating as quarter, Below together, the a was and earnings our from it quarter we XX% million diluted in line, all rate expected, was tax were as shares XXX the for year share XX%

ended line had So summary, revenue growth and XX%. very core EPS XX% with the and finish to in EPS strong a where QX growth XX% XX% we of growth top of growth, year,

some balance shares $XX $XXX flow million also paid generated expansion. by of sheet. $XX flow scale-up expenditures. out and Now And while on NASD our $XXX our million operating quarter, cash in valued at B QX, cash for the investing metrics continued and our million. in is The CapEx we spending in driven we repurchased million, of dividends Train capital In

And more $XXX billion repurchases. long-term the we've believe represent very indicated these ongoing shareholders to bit repurchases For share we than before, the and million given strength in of year, $X.X we billion business, good almost investment. share dividends a $X.X as in returned the a through

Our as healthy end to fiscal the of continues ratio with net balance sheet X.X. leverage we remain a year

to our the for move quarter. and year let's first upcoming outlook fiscal Now

we to healthy with the and XXXX, business Now a year entered looking very momentum backlog. forward

uncertain also what that environment, interest on today. acknowledge the macro rising our based headwinds reflected have thinking know currency and rates increasingly We we and in

during with of range X.X%, For currency long-range million XXX is Currency $XXX reported are in basis group billion expansion the expecting with fiscal mid- headwinds as single-digit to mid-single-digit spoke. FY high currency growth line points 'XX. to fiscal expect ongoing year business the the headwinds year-end for growth continued in to by significantly will And growth inflationary rates. to level, we we Core revenue the $X last goals. in a we expected single-digit negatively guidance $X.X high ACG. operating based on growth our revenue X% a year and roughly since help margin or And range for we modeling affect for DGG assumes your this the XXXX, and be of core to growth have at despite greater billion LSAG, environment, for

and line, expect X.X% tax is expense, the which net shares net prior range expected below to percentage in of XXXX rate million below XXX million of million we $XX a non-GAAP XX.XX%, of $XX year Now outstanding. to EPS slightly is this Fiscal to activities. represents incorporates growth the due to rate currency an the and X% headwind range This versus our a $X.XX X point of of hedging $X.XX. year estimated to be

year $X.X million expecting next $X.X operating CapEx to also projects, $XXX NASD. are billion currently We billion for in Train B on roughly cash expansion primarily based of and approved

We $X.XX of a the the X.X timing impact the range to outlook XXXX, of of this providing incorporates growth will be to with we This Lunar the be And have revenue source New also X%, growth. Year reported expect billion. year. another $X.XX currency dividend QX for to the value. of our raising X%, range in shareholders our finally, billion point X.X% for expected in announced quarter to is Core while headwind of

to position in I have an over now a expected back XXXX full in produced the diversified $X.XX and First non-GAAP QX elements share comments. and turn year XXXX and business us the year. of And to again two key for just excellent to $X.XX. closing to some speak Mike? These they in this quarter earnings Mike Agilent. strength minute, put coming the Mike be results our per our but will assets strong are floor team further a an and for outstanding between deliver model will

that right to a culture strong delivering the strategies, Bob. Thanks, right results right results. indication and the Agilent has continue team growth are strong Today's

we reacting The extremely to customers resilient are reliable, know earn Our hard quick to work team meet in their needs. to and Agilent continues trust. their

are all we economic ahead, Looking uncertainty. increasing seeing

as done Agilent way Today's and challenges another company well the company. our are have we're we may proof yet stated navigate and economic we in on this yet. any this stronger point successfully that will Throughout not However, that to team journey, emerge built are we have encounter. pandemic, results a

investments prioritize to in growth. continue We

company a back will will to I quite on growth We react to are a capabilities. to changing the continue and unmatched resilient deliver high call. Thanks level. And as quickly drivers execution over I'm we at being Parmeet turn for confident your and with conditions multiple take now Parmeet? we things questions.

Thanks, Mike. could please the if you provide for Bo, instructions Q&A now?

Vijay And Kumar of ISI. we'll Instructions] [Operator afternoon from question our first this take Evercore

year 'XX the really X% et chemicals Mike that's your end about of to a comps. off year, for the which on assumptions to I talk materials, fiscal for X.X% start markets expecting forma or high-level finish Bob, impressive question. coming the some cetera. could organic maybe with just tough guidance Congratulations here. and for advanced Maybe if you're

orders commentary on and the backlog, start your to seems like X% given it reasonably Just looks it X.X%, conservative.

Why that? take don't you

appreciate of those the business. with FY continued I other yes, Chemicals when in are with in seen And FY the to what in we've end single-digit into pharma Vijay, about and Materials. growth business we're 'XX to grow this and across momentum. of strength the We're two and the 'XX. seen really Yes, growth secular really, Advanced FY areas we've that some both Broad-based 'XX, results the range year. we our our well. as mid- as expecting & high given markets markets, in And expecting into think comments all mentioned, drivers to moving the we led those, And year Pharma largest the are really of on continue and our by we business

year. of the guide uncertainty long long-term the we for our I at our the 'XX is initial the two model QX there. [AID] in look times guide This coming off point Vijay. aspirations We're economic a would full But end number. Hey, straight probably were of at double-digit Bob, growth at out given growth the year, than growth its out rate years hear if the last they guide would top of higher that assumptions, prudent And of I laid And growth. few you our you actually just increasing the too. being add, terms core out is initial year the

coming headwinds, assuming Mike, despite could expansion on. what's prudent that comment. margins, I And from the Street are came Street for I looks one about it And like inflation? On follow-up models. if about What FX you the pricing just EPS guide? implied guide appreciate in have in models in margin

to that, want take You Bob?

Yes. Yes.

So next And look at And of we to good X%, are less we X.X% ended our the Vijay, QX over across we our business. roughly currency. margin next seeing little X% we are strength effective with time. that's over we hedge, year, about position kind year. expansion, price a here that very of absorbing unprecedented headwind. when throughout do a X-point in forecasting and and we're in that we're a over And has become book hedges a little but assuming is X% what And year in ramped --

added that to in, back to you it growth. if So XX% would EPS be closer XX.X%

Matt We'll with Sachs. Goldman go now next to Life

I margins. Maybe into a little it. Appreciate to just bit more dig want the

talk and expectations group level where But upside see where felt? basis? there's a to for You mentioned or those impact do at the next end an margin Where those bit you a market operating margins coming feel basis maybe will segment maybe little the on about expand more you from, be guys drivers expansion year.

activities, the what see been year. And leveraging operating the expenses. to in the with inflation have -- we what we've of increase in we X Yes, that time, think saw investments effort expansion, margin is is been And as over that that do our as display we've a through what margin in cover I did also the as that's you continuation you benefits of through to we've a in of have but then where saw well expense. able operating operating And that mentioned, do Agilent able gross around associated really expansion this the here full would pricing costs Mike think the One the continued the focus. digital but you making been majority the in I

rates So would kind business leverage instrumentation well that you we at also performing will is continue and the in are to Train next that X And costs then see able start-up I would organization. year, as do looking think that are as would provide business, peel And of would start-up across I outside to both on of attach half that continue I we scale certainly, think if consumables, DGG year. Diagnostics, do up next look would I business, with running the investing our that of in the profit. our of that that footprint. say B have our improvement we more expect side I expect there to margin then the our growth areas also be some fundamentally, to the to kind bringing services increase have the onetime we we the of the to drive that facing our you been service those business continue will businesses. our I train are benefits attach in continue 'XX. onion, well year. businesses -- costs some are very we've but more the second us into our which And of of if the highest say, But profitable And in higher in we in, to

Then a Materials. Got the maybe on Chemicals & Advanced it. question

through drivers guys deck increased You QX. the about as that? you energy are, about what 'XX? during the expectations your business And specifically Could we the in the behind for energy move made comment a in slide market talk demand

Yes.

make HPI businesses. And going really of what investments segments seeing segment, their here lot across is the strength CAM that all the of was three you're that we growth. it wanted of we clear a in So given sure to industry on saw the

over to deferred think money lot years, on well. have -- new of a but the have ability and and I'll So I with and the as invest a as investments going lot renewable this energy of well, businesses green into jump also they initiatives their Jacob

you're think I Yes, right, Mike.

some I there you pause think the years, that we're and coming been definitely mentioned, the in we're investment equipment has seeing capital seeing, back. over as

renewable we will and in but and forward. also in So that HPI, see energy, of believe continue the strength, we continue both to lot -- a the

Yes, we're to trend expecting that 'XX. into continue

Ladies and to next SVB gentlemen, we'll go now of Securities. Puneet Souda

the Mike, Bob, taking thanks I for a to this impressive times. quarter of understatement mean is say in uncertain sort as question. the an is

all, on booked you So were the impressive looks they're results fully also I -- a first Can of or congrats is in quarter. gas Mike, revenues are and chromatography bit? so on this that you there. booked quarter food those about given Could there, order there parse know visibility out talked going it you China, markets like for delays the just for just the that Lunar in longer-term are in and Year? you forward have And talk well the in impressive. growth China expectation working China, multiple expectations quarter? book growth end about what the despite you the overall is maybe your so also, and the

the only quarter on sure, I tag of here. I with results year. can were shutdowns. China, to types the again, Bob Puneet. when catch-up about earlier respond important that But points eventually, and happen, to deferred due a your again, print and and didn't room the wasn't from lose pleased it's business. business things in lot the know of the fact again, COVID; quite smiles it do have had we comments, Happy not the think for for materialize. Yes, you to We the revenue see And probably team Yes, QX but brought And we to those just any thanks this. does in for the in XX%

strength will renewable the normalize we end continues food by traditional really the pharma, kind and that business expecting of pharma markets, expect particular, and the the chemical. on been multiple to the across China. probably of energy well. as growth think there of to then strong, lot market CAM we business And think rates I HPI lot a of be side marketplace led the in -- in a in be to But China

talking in for going for maybe So that thinking? high growth next China Materials in Is think we But lot we've China about, Advanced 'XX. kind sustain at of been is year. segment, I we're the singles think a our looking initial to

was across technology right. instrument And was as consumables saw the really major And QX. you in China the board platforms we come services activity we said strong across back would I Puneet, incredibly all that's Yes, within back, the business the QX then The business. well. say recall the that fully in in business, that was strength in QX, fully if back hadn't

And so strong Diagnostics we our very and had in not saw as there. growth And DGG. double-digit to We business forget, Genomics well.

And into are orders as place. still was the And think about growth those half this continue the So secular really of in And broad-based. certainly about talked drivers, very visibility, in year. to it you we -- grow China. we have good first in visibility

about materials expect that drivers biotechnology And year would so next technologies actually investments and into and think we lithium-ion some in to around you the batteries secular for sure. and in production that continue the advanced forth. but areas, If increasingly the are made of around

think to comment have just to I DGG business. your Bob, the about

we to Puneet scale have for the you with growth came saw China starting DGG, in add of felt into this our to to the the to our was idea we structure business, happen our underrepresented, leader. as rate parts example. the Just unique as and year, one single we put Really, payoff already of part which a businesses all we created reminder, one into a of commercialization

great. That's

what's I long Just molecules quick one Can this bit mean I in pharma. small growing elaborate you time a saw on faster quarter that a dynamic? than when was the first biomolecules. behind

a And a rate, been growth you it I LC/MS I much that second. molecules here lately about continue one molecule. that thought really of still just continue And of in quarter. also molecule was good higher the will It's the the I'll think because fact too the have have that our Jacob, inherently in LC to biopharma talking to quarter. and will we've it while we pointing we've small few add small particularly that large strength been have I overread in believe newsprint some to business wouldn't particular speaks comments growth.

would molecule and we think a and in I expect And but rates to growth. continue see got small Jacob. portfolio think I we've molecule, a to is it's an opportunity by means there, biopharma for dead the over growth between time great small no differentiation

Yes. was I Right, mute Oh, sorry, on here. Mike.

absolutely some was this sorry, Mike. with you're right, Jacob So coming But comments.

our course, being of molecule We that's -- seriously continue solutions for small take is business the for LC/MS opportunity, the a growth small coming particularly full great see build LC to to we where from. part continue the it's and see largest space, but and biopharma business, workflow while molecule that, very of we as and still the the

Jacobs. Thanks,

We to Couillard from next Brandon to go Jefferies. now

Mike remember. or I Bob, can't

times us a U.S.-centric of world You and mentioned in or as parts prepared a Can several other the in relative ballpark developing maybe well? right the is now, give big of size market growth PFAS just the how if it's that remarks. market primarily market you rates it's whether

to a double the this, you So is some the in a I I growth perhaps team U.S., market, strong think, and million the lot be growing this? while about Jacob, on tag We in going in very think also China. and if there's digit. there's -- how centered We're $XXX U.S. of growth viewing

and that Jacob? me this in got see and Europe legs of as story the growing with a initial So in sort I right, we if a U.S. let China. global big actually But see interest

for testing. market. infrastructure huge testing, you're was but obviously, right, analytical absolutely not PFAS billion more for Yes, It's build instrument, overall in X in put the Mike. aside than fact, PFAS for only And a there

is opportunity. opportunity issues you instruments for you very your easily very it's seriously. it's -- very this don't need a you us this So into requires a sample, particularly great high-sensitivity as perhaps that and run take have great And in

opportunity it in just and solution So We And well something all works we customers of really works regulations on so that, building them top to the very GC/MS here. a flow for ways testing the solutions speaks see energy as And and the lot sophisticated the and to and love starting spend out opportunity. just a fact, every our because EPA very the now to that volatile, of which plug We're for PFAS space. our look on extremely LC/MS have to most an time. molecules also in while the it up year that opportunity it's in that. and of the well doing of sits at all lives play, have of business

marketplace my the for build. the government we've of this where this Jacob, Thanks, tenure in, first U.S. kind in support. seen time Yes. is coming those money the with in that And

be So it's we into that with trend, very going encouraging think is us a trend to and 'XX.

a That's great. Bob. Then for couple

like quarter as Just which sounds a are impact number it loosening, quantify in first through they capital basis. the just for move year-over-year the chain And year? Year one, the in can on working Lunar with the you New implications you what balance that are, then supply terms the of of

little for a February year roughly New headwind the in Yes, Lunar Yes. is had our for the It Brandon, Year year-on-year last mid-January point quarter. of year. over impact starts first the versus X.X this in first thanks questions.

slight to think the half material say into around that of it materials we And over some time. across that. that -- But of -- half maybe also back think expect don't terms logistics for and but then is were supply quarter. any but those increased ensure of customers, I And being the changes kind -- get of think the able of the of that as to in the and go chain, in will raw in come improve in changes both pre-COVID so products our we year. standpoint would I it get the the -- going to of ability how will certainly it it's it just we is procuring think back challenges changes to to the supplies. And that's pre-COVID us to levels, back stocks with do world. need We to but do that we associated and when costs the any terms not we critical improving, year if to improving, first running levels have to wouldn't is I then I back there we're flex second on -- we've think

of Cowen. Brennan Daniel to now next go We'll

Congrats the LSAG. the just one, first on quarter. Maybe just on

XX% growth Another the instruments. on quarter really impressive with

just notable maybe of the have comps, is comps? up then against Or And it healthy for you're And guide? tough walk obviously, guys drove guide, of really degree in kind from does through the mid-single-digit Agilent the strength but you just a the doing. baked this quarter what of there kind it what of So specific? end just slowdown bit reflect tough market been conservatism a little is versus

the expectation Materials think, that is beginning, faster-than-expected QX of building the China continue the as Dan, I to that the was say, that say prudent repeat element we from Yes. a the there I down tough guide. second PFAS backlog certainly the the the as & there, fundamentally, across said, Environmental of the markets, particularly Mike there's been an out markets half But just end testing. at we're the And that's Forensics and -- which beginning I demand the in is year year comps, uncertainties I into our of in Advanced & for year, Chemical year. China, of growth, us at of are the deferral for still would beginning way what second think strong. it's would and the will in with a would say Pharma have I taking lead I'd half

Bob, But Maybe maybe here, continue well. we of have additional couple as just to you improving share. Jacob, see a comments market thoughts

platforms. So green all -- industry the stats all across us from showed latest

any in recognize kind all that So But on in number accelerated an or we've to that plus, lot it's think -- cycle growth of where element up in not debate to kind for we've replacement this an also row seen A of it's been also a about kind in XX it environment share. some picking tied of unprecedented a very should plus. here our technologies. whether and markets, calls -- been an XXs and we've of bring of in instrument transparent rates I in we're quarters that some end of

perhaps up we've rates in certain be should normalized rate you we're 'XX, going seen. there, not we guide more markets replacement growth don't there, the thoughts to though, end same Jacob. assume for at I some to if And know the but set as we additional but So thinking return there's have any

think I we’re No, Mike. good,

I X Cool. right. Okay. for I'm it X today. got

follow-up. strong. And then And I'm And Materials, Advanced that to three Advanced mid-single It give guide kind grow us Material chemical in that's in a outlook. how of kind is is digit. 'XX. strong some then quarter. know really that discussed the Maybe the on wondering Chemical about would just think should the in impact the anything expected maybe there mid-single-digit about flavor side how like you're obviously, from subcomponents thinking just of the a the on for for Or just portion baked reflect energy of we of like & economy? a the just already you've business. a selling like side really I the X/X sounds that

happened HPI to their chemical to base outlook on cautious this separate very the input having work chemical maybe Europe, to relates customers production. on to as too the this. -- it and from relative I in want industry I'm to because what renewable are with a But going large higher team costs to that our energies. Padraig in business, and his he's through particularly But working we're the closely taking invite

Europe. So team in that part know and from as well. been you'd this we're Padraig of the add? world, to assuming talking I segment that Anything particular you outlook I you've from are about cautious that our know And a

scrutiny quotes Europe. No, that on being lot is as seeing what that orders pressures converting across, there Mike. we're a well. there's seeing I we're in macroeconomic Yes. course, to think And cautious, played of I particularly think quite it's And there's of additional

I you're one. So spot-on think on that

an opportunity say, I we're would continue potential Bob, in -- us, this market, seeing. to add area the way only upside Dan, there The an strength things the is end upside? they for given thing is ask would are, be sometimes If is that would people that of this be this an this area

Absolutely, Bob.

JPMorgan. now next to go we'll Vatnsdal at Rachel And

were So first up guys you that manufacturing some supply quarter, you delays up Train B. said chain that as on Last guys line. were building there

expansions Train this. still So beyond just the to come that about fiscal can for beyond And year.? latest hinted give mid at track you if have online you guys capacity timing on on B, us thinking you're then potential

us when thinking and capacity update on you can give could we expansions there? latest So hear those an the your on

Yes.

part? I'll close the So the and Sam, don't why you first second take part, with

for the report B spoke go since last live changes up the question, there year to and Yes. about to you happy We're It sounds good. thank middle Rachel, and coming on in we Train timing. any been haven't in calendar track XXXX. of the

that more in repetitive, letters being we're of alphabets risk A&B. the at And on there's record Rachel, the saying than

yet revenue have to So 'XX. But same plans, expansion and running we the focused in announce yet, at up Train continue B stay time, and getting nothing possible explore and it we're tuned. to on generating but

food. more on then just And follow-up one Great.

was all China But of single So year digits that guiding sounds next that forward that and there. of year to comps. from some It food you're tough recovery in, stacked two XX% quarter. this grew like pull off low

through at the and us this normalize walk how this more really we going Do typical guide market just a single just think XXXX, is the more about food be that you low accelerated you Or to on it's in digit? can So comp. market thinking year forward? should going is

function a two low investments the Rachel, here to has it was it's is you are difficult And the think of a up And catch it it trending Yes, years it do question. being terms grower. got a proportion bigger of say that comps. And a would in of would pull growth I rate is wasn't so mid-single-digit the this was because still food as good of made I And it I China very this know, -- some Bob. is there. market. there say with strong having is of performance up But and forward,

where example, part U.S., I for we also mid-single-digit in is or the cannabis to Jacob? think our ability reinforce rates, we see continued of to strength low our just so, of testing kind what hit growth business mid-single reported, to right that

very to them laboratories. and and Yes, the us business that lot to the equip cannabis looking we owners in well, of lab correct. do And full see help to a is for continues come

So But in alternative both also Asia. space picking really is a in but that's also big particularly for protein in U.S., up, here opportunity us. the

that going for I growth is to believe food. secular do So a in driver us be to continue

come we And China. drivers We're we those new Right. diversified mix lot highlight historically as forward. of from has wanted much growth I secular a to a more that of sure business make growth really because move actually seeing

America. now next Bank of of Bruin to go Derik De We

said covering Mike, these, demand you which and unprecedented been So just We've long instrumentation I at numbers, such. and are these it’s markets for a time, these looking amazing you instrument really environment an and just numbers. are and

get in XXXX embedded for through covered to guide? new instrument is this be how your have by of what's the going in your already growth what's And much backlog to So or versus year?

Yes.

moderate there's I that rates. rates in fair have start market while over being replacement long-term the growth actually mid-singles? think business to elements and eye-popping what really a looking at But think past. in you joining LSAG, rates, in thanks, yes, cycle assume love I That relative these we've said, seen So in to also I And been I do we Derik. the the we're and Bob, that the increased will this some these it's we've of for been have -- what, growth that's accelerated why time. growth think seen

Mid-single. That's correct.

the And there. the pick you of I'll let second question part

Yes, yes.

And going book order side. there. in our we instrument to is business. the backlog contribution mid-single that, given Derik, is the pretty just healthy primarily the we talked can first is just the way What year visibility trends into I amount you it happened. It's on that that have way that we of half would not backlog good of our for about imagine the we're the digits. So disclose just But say,

Got it. strong single Low a low tracking actually -- like sort know mean, actually relative is I you market genomics but your doing footprint, in know the was you're business what don't about How expectations? the your Can there the I single-digit demand. little huge -- seeing I there? we they that in bit academic was academic digits and did quarter, quarter. talk to have of a quite actually

in of seeing if wondering what's talk pressures sort you market of just on and could there? through you any sort going that are I'm So

Yes.

So Bob, tag start. team can on maybe we I'll this, and

the of one case. always still first COVID this caution demand market and out We to of & is be demand to at in people proven all, Academia the our So be time, around and of that's coming level certain that aspects China NIH had is also will for good really of in we not portfolio. Government as recover, the slowest the saw as robust in But funding good CapEx. said a is same point hoped. really,

the as of just same. continuation So we've of our a and for more more 'XX of outlook tempered kind

down would well. kind as stronger but Yes. Derik, it I growth overall that's as expectations. in met and places And it we're said, right FY China, met our And in expectations the the in and U.S. our Mike say, we had expecting 'XX like line; how less of the so that

obligatory the ask M&A to question. have I And

is interest, choice on your market? anything obviously good right the to stragglers in of some share starting the peaking but a in Your now, valuation come

Yes.

early it part out and the that also these saw of businesses Agilent for as And you to -- moderate down. of public, in valuations recall, both really these were the when some finished the we in things out And the site. 'XX, of space. private starting but wow, calls actually are our may And of and in add is that, thanks of growth for we've sheet. new aspect and balance Derik. to strategy team use look our got you know, to So And for us as this through Buy great and Build opportunities one to

shareholders. here, So are would we're nothing see at the places active for you all getting to that that deals and work to announce, where activities say happening can are -- but we very I'd

Nephron. We'll go Jack next Meehan now of to

trends. keep on to you wanted could if instrument comment wondering was I the cancellation on going I side.

context anywhere showing up instrument is backlog? in So just of the your broader that in uncertainty, macro

one remain the elevated no very outlook the and of Yes, no the we a question order Jack, for healthy have to with Bob have significant because talks backlog. guided we backlogs, why change. confidence it's have cancellations, about we've low. we significant -- There's thanks that when that reasons In

will really So the we backlog. in -- ship orders the of our and we have about good the will, quality feel backlog you if

orders be of Yes, other the Jack, our just being -- on first out, seeing that to that piece we're pushed not and either. the piece even build that, would

orders not as cancellations. well out of any as we're So any seeing push

Awesome.

any pressure adjacent at I serve? And monitoring in of molecule. markets you markets destocking compete that the is kind know just the area large stocking of in activity the some been Are you Okay. on you other trends any these sort side, then bioprocessing more seeing customers. of we've to of

what No, question, were well, because no. print and Jack, the saying, we're some seeing we've not that Thanks well, as really been business. we for reading of all that's our with

what and which area, XX% low So you CSD. area saw -- you growth might see teens would Jacob, be We the double-digit posted in genomics saw things. growth we those in the

for concern so And business. our a not it's ongoing

We'll now Citi. go of Patrick to next Donnelly

one side. backlog. the you give following number aren't to the hard on instrument I going up another on know a Maybe

you quarters, the compared what geographic of have elevated, you just would order a out of into can like was maybe any outgrew year that, a growth, Mike, well, revenue called mean, still look like it basis and it helpful? feel what Obviously, few into if it as historicals? did some that year. to you just did to on the trying looks good obviously on for quarter? then I'm going And us mention the way frame gives get You next that nicely. kind in a today past visibility be I kind

sure. Yes,

carefully And more our backlog left I very the exit over gas in sure that up to So historic there's that's text know you elevated that chose the why in remains word make levels. think we to tank.

think did growth different out, see a compare. rate, will also you trend within it's we worth year QX our again give grew orders a quarter. a you the double-digit though, I off specific won't we While we pointing in prior tell I do that

customers make they to -- revenues product in sure around this the and the ordering by and the were So year-end our because quarter to in think year. really like confidence September, got earlier speaks fiscal I August through

different little if the story geographically. patterns, we And saw across that that I So I then was the Bob? a board only remember than historical thing think pretty much the correctly, probably bit was

Correct. Correct. Yes.

Yes. Same story.

sticking there? talk on And the And side. been geographic seeing the you helpful. point. second you're That's energy maybe order I just Europe, on there? then the there's you're what one Can the a then concerns mean, just maybe side. capital geopolitical Maybe tightening what about seeing about spend given environment,

flush, to at point. any I still tend be there Just little at guys the budget would indications have a but decent know bit helpful? this a early it's you it look away,

Yes.

think remind the we I'd So had print Europe, just relative quarter. I XX% to you, in a

for a us. The watch of to revenue to really the concerns world. the ability -- economy, the part business. we in it sending the prices our for area energy So having the are what But mean feel particularly out competition of economic may does our customers good want future this and streams to around really about relative happen performance that lot economic with the is and what they're profitable a the to for European for have demand their with they that -- deal

we're assuming Europe. of that what in side and taken why this the area we've prudent an guide will that's that's on watching, for So chemical example, happen

said, -- -- that say to an nothing going an was as I really Yes, area there's it's it's you area Mike, we're watching.

the any way operating there. change in We haven't are material things seen

ago Just a to add year against did Russia. in on revenue that that we XX% was have

you was XX% so And looked that forma pro than on basis. if that at a higher even it

So…

I would helpful. any quick thoughts budget on And be appreciate. Great. flush the

for our I What extended any the did year. Yes, stay QX market. that delivery end we're the there said, have and greater mean, kind say the book of assuming I flush in still us between is, of are order than given times we But some budget think of tuned. of we see that of I the Mike the normal not out rest would -- some in as

Correct.

will at We Waldman to Cleveland go Research. next Josh

couple A you. for

to the instrumentation, could lot ask on mix? here. you through benefit. Mike, I on a mean are the higher CrossLab. guys maybe of talk Anything A beyond of is price the I'll Is I First, quarter just acceleration? to so into you this adoption signs share the of a questions drivers wondered comps? starting seeing now nice just where come if category contracted service,

Yes, absolutely.

to those So factors with I'm between going the I are but know this but to consumables, for services, actually the services first I on talk team XX% in think important about all think and one, Padraig going and fourth time we're we that to tag crossed quarter. hitting, connect the it's over rate

your on at things we're some been talking here. of lot the really places the add a some and happening we've business here? We importance growth. hinted rates big we've on And an So of thoughts where centered the about doing you is But services connect seen is forward. your good why Padraig, acceleration question enterprise level. of Because going your is, well at side, which is of don't this the

Yes.

do than and and is some growing we strong. down enterprise to right which rates very, digits, be preventive I with continue we our offering customers. sticky business all very think, actually contract are very a all strong, services Mike, see from rates touch as to the maintenance much break/fix double And you it's of categories said, incredibly key more at

we of as service and course, saying able seeing solutions through enterprise also that increase very big we're their how and had labs We services business, have being quarter with that large I in we customers help the the and and that's provide close have and that go that, year. we where for the wins outcomes, different really and through been some productivity base to a will we see of installed about great. look really we by

these from Mike, updated Then could 'XX? thoughts a or cost of curious either assumes to whether and And guess, or entering improvement in supply your maybe chain guide chain your to component guide? availability represent what upside Bob you're on and improvements not I or get seeing the supply perspective if

second we're this of us. year, same improvement half we thing would the as us good say here to back have increase having QX incremental allow year. of if -- FY supply the of some -- 'XX. helped of continue a assuming the be that improvement I kind revenue do but to to happens half incremental QX And costs Yes. expect in be I our improvements next went we that of the us not of think would would and think in by and it's this But for we've through I that seen level that into in improve, to no to that normal QX. I means kind into it we're things but down have year seen there come moving to to back still customers. think in aftermarket I the do ensure able deliver we're purchase to that,

point us. we for would that go market, be Yes, of don't to upside into Josh's question, to the aspect where that to a if have we get

right. That's

Leonard of Suisse. Dan go now We'll next Credit to

on a follow-up have I Mike, Europe.

conservatism in chemical or about So else? Does hear anywhere other what you when I pharma But XXXX, you're for aca, framing Europe gov macro the the bleed or into end possibilities the the industry. uncertainty on markets? for

We think that will as in element an be there's also pharma well.

So the also you're the I that's of but Chemical of focusing was as part on right. specifically segment storyboard Europe, well.

large out do to XXXX. what trying You increased dealing with figure to want who they can pharma costs, accounts manage are in

earlier, of there's energy. a watch energy, I we will a source about talked of secular in make a more as the big that as some other us well. hydrogen for to that's of say, investments area But such renewable push drivers So

right of Agilent. in sweet spot plays this So the

end accounts large do in what two about are we and the in So those -- 'XX in but cautious markets. they may Europe

And then I unrelated follow-up. an have

you specific about that business, NASD to business service your And in is outlook the business in be what traditional offerings what opportunity that product your On for XXXX? expand the might offering? beyond your can be

but capacity thoughts we mean have B comes But a financial calendar for Yes. Sam I it as Bob our Bob, some year. then already, expectations. online, obviously and will jump new to mid-year believe reach you broadening expansion terms I and the of full just kind starts capacity we're might Train -- that know well. of year, take here that in And by on of lead end walk further in there's on the do do want portfolio. the both we the what the think opportunities maybe to through of you assuming

half some that would out early but is siRNA, a strong here. B ramp-up, I that we plus have CRISPR could mean of we're imagine our I run capacity in although Train end year. and million we to that business, we at touching And $XXX year do $XXX a primarily says B the Therapeutics roughly ended Train being than and -- less talked expect as you for business of capacity Yes. million when say to to be Mike probably this that this rate about going growing existing is fiscal the growth And by well. expect continue at facilities, on we've of that we would of grow

We next Arias now of Dan Stifel. to go

robust. Hey, quarter growth XX% GC/MS. Mike, a pretty question on is the for just

more those -- For the bit again? pharma of a like little side? from side, more 'XX, you there maybe similarly bit would think GC cyclicality Or just bit expect on LC a given portfolios track the a little that you on little do LC/MS it more there's feels a decoupling

the GC/MS the also, mentioned, in there. We've Jacob, LC/MS drivers to too. long advanced sure PFAS area, always expected I'm this. been of that in space. feel felt really an because about not But as higher have Jacob to about in we've well And some I run. term, plays secular to think 'XX the I felt -- than is jump always that play rates We've GC/MS. growth talking we'd long materials expect free we think and out

that divergence we're it's know about don't to much I if I thought a it. going So haven't see but in question. great 'XX,

you opportunity in we there. pickup of Mike. that innovations carrier as up can top GC/MS the alluded ASMS lithium GC/MS or portfolio very Yes. equation actually think the on completely of lot the some to also electrolytes particularly Thanks, helium, we the as both And you GC/MS which want also seeing nice a the have combined side, is hydrogen is including Materials set in Mike that, the been with has nice space. or some of with in of challenges at a really in batteries. really GC, we to addressing and our out battery the you look as part I here Advanced where at way And to, LC see your side, to spectroscopy that that And the side, on came measure are the gas use

the in continue a lot of we Materials, GC/MS particularly Advanced think I opportunities GC, see but for So to side.

Yes.

then, if strength, seeing the expected investments around? you this that's where in year you're thinking And Interesting. beyond might floating might like of are that Okay. resources given a of though. improve your uncertainty there you're Bob, not the at the just what be an just opportunity about year, add next growth Seems it areas that maybe positioning context there's sure sort of to way, time seeing

the But And that would the I say we've we been I we're this of of doing it's year. agree. in NASD say talked the areas, obviously, And out -- capacity we've No, building Yes. would one course for digital there last think that over places continue look significantly that's and we of that we're invest area we to in software. and strength increasing go 'XX. about extensively. into And investing FY also incrementally an would as to like us

Ladies we for closing and gentlemen, turn Mr. Ahuja, back this questions things comments. further to have you no I'll afternoon.

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

call. today's gentlemen, Ladies concludes you. and joining. Thank for Thank you that

now may You disconnect.