Agilent Technologies Inc. U.S. All Stars Conference

Yeah. Thanks, Casey. Thanks for having us. As you see markets steadily improving, what we've been doing over the last two years is really compounding our capability with Ignite, which has moved from a transformation to an overall operating system change. That's how we're allocating resources within the company, how we're at all facets around our operational business and also how we're looking at innovation. That is really showing true in the numbers. I think if you go back and you look at the two-year stack, if you look at our growth rates, and two years ago it was literally flat, but now we're up to almost 10% growth or 11% growth. Our operating margin expansion is over 100 basis points. Again, that's in the face of a lot of tariff headwinds. Again, that's driven by the capability we've driven.

EPS, again, if you go back two years ago, it was a 3% decline, 2025 was 6% growth, and now we're 10% on the EPS side. Again, we had a tax headwind on that side. If you look at that and you see the progression over the two years, you see that we're compounding our capability in a very different way. I would say that it's not only end market improving, but we're seeing it through our share gains. You're seeing it through the innovation we're getting, and of course, you're seeing replacement cycles, et cetera, driving this growth. In the next phase, as we built a company in the last two years with our capabilities, the next phase is where we bring this, right?

That is largely around this idea of what we would think was going to be defining the next decade in our tool space around autonomous lab and scientific intelligence, and how we are putting our capabilities to bear on that. We have an extremely strong right to win on how we are putting our dollars on innovation on that side. Then you look across our markets. Our markets have been really improving, continue to be very strong. We are in really good sections of our markets, whether it is pharma, chem, and our diagnostics is doing extremely well. So what I would say is we are extremely well set up for the next phase by the choices we made in the last two years.

Just having come back from China a few months ago, it is great to talk about it. It is perfect timing. We have a decades long history in China. We have a huge install base in China. We have had manufacturing in China for almost three decades, so we had a lot of capabilities. I am just back from China where I opened a new innovation center that is going to be really at the heart of where you see physical automation that is going to really help. China for us, it was broad-based strength. You saw it across all our markets, small molecule biopharma, and also testing laboratories in food and environmental, which is core for us. The things that, again, when you look back on why we are doing well in China with improving conditions, but we are not calling an inflection point yet.

Why we are doing so well in China, it is because of the capabilities we have put in place. We have not gone indirect. We have kept our technical teams there really close to our customers. So as budgets are released and so on outside stimulus, we can take share, and that played out very well in the quarter. We are extremely excited about the future of China. China long term is going to be a mid-high single digit grower for us. Just the pace of innovation, and I am sure you saw the announcement on the 15 five-year plan as it relates to pharma. Just to put it into context, the pharma market in China or the pharma overall business in China for the macros is about $250 billion, and they expect to grow that by two over the next number of years. How are they going to grow that?

They're going to grow that through manufacturing, innovation, but also thinking about laboratories over those times. If you're a trusted partner in China with these type of macros going forward, it's really positive. I think we're going to continue to invest there. Then you look at chemical and advanced materials where there's a lot of investment, semiconductor, and other areas, battery over time, and then our testing areas. We're very broad-based, but we're really excited about the future in China.

Yeah. It's another opportune time. We just arrived from Germany last night. We were in our R&D center for LC.

You're everywhere. We're everywhere, yeah.

We were in our R&D center where the InfinityLab was developed and where it was developed over a number of years. Of course, we have some cell analysis products there. What really struck me was how our innovations are resonating. I'm talking to the teams about how the InfinityLab was really around customer productivity. If you see in the world of productivity and AI, you need the tools that are highly productive around this. The replacement cycle, I would say, if you can think, we're less than halfway through that. You can see our quarters over the last number of quarters doing extremely well, double-digit growth in the last quarter on LC over a tough compare. We're less than halfway through that.