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Item 7. Management’s Discussion and Analysis

2025-12-22 compared with 2024-12-20 · 414 added, 380 removed, 466 unchanged (63% of the section changed)

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The following discussion should be read in conjunction with the consolidated financial statements and notes thereto included elsewhere in this Annual Report on Form 10-K.

This report contains forward-looking statements including, without limitation, statements regarding growth opportunities, including for and in our end markets, new product and service introductions, the position and strength of our businesses, products and services, market demand for and adoption of our products and solutions, the ability of our products and solutions to address customer needs and meet industry requirements, our focus on enhancing our customers' experience, delivering differentiated product solutions and driving productivity improvements, our investments, including in manufacturing infrastructure, research and development and expanding and improving our applications and solutions portfolios, expanding our position in developing countries and emerging markets, our contributions to our defined benefit plans, our hedging programs and other actions to offset the effects of foreign currency and interest rate movements, our future effective tax rate, unrecognized tax benefits, reimbursement incentives, our ability to satisfy our liquidity requirements, including through cash generated from operations, the potential impact of adopting new accounting pronouncements, indemnification obligations, our sales, our purchase commitments, our capital expenditures, the integration, effects and timing of our acquisitions and other transactions, expense reduction and other results from our restructuring programs and other cost saving initiatives, our stock repurchase program and dividends, macroeconomic and market conditions, the recovery and health of our end markets, seasonality, mix, future financial results, our operating margin, our geographical diversification, interest rates, inflationary pressures and local regulations and restrictions, that involve risks and uncertainties.

Our actual results could differ materially from the results contemplated by these forward-looking statements due to various factors, including those discussed in Part I Item 1A and elsewhere in this Form 10-K.

position in developing countries and emerging markets, our contributions to our defined benefit plans, our hedging programs and other actions to offset the effects of foreign currency and interest rate movements, our future effective tax rate, unrecognized tax benefits, reimbursement incentives, our ability to satisfy our liquidity requirements, including through cash generated from operations, the potential impact of adopting new accounting pronouncements, indemnification obligations, our sales, our purchase commitments, our capital expenditures, the integration, effects and timing of our acquisitions and other transactions, expense reduction and other results from our restructuring programs and other cost saving initiatives, our stock repurchase program and dividends, macroeconomic and market conditions, including relating to or arising from changes to tariffs, import/export or trade policies, the recovery and health of our end markets, seasonality, mix, future financial results, our operating margin, our geographical diversification, interest rates, inflationary pressures and local regulations and restrictions, that involve risks and uncertainties.

Overview and Executive Summary

Agilent Technologies, Inc.

("we", "Agilent" or the "company"), incorporated in Delaware in May 1999, is a global leader in life sciences, diagnostics and applied chemical markets, providing application focused solutions that include instruments, software, services and consumables for the entire laboratory workflow.

("we," "Agilent" or the "company"), incorporated in Delaware in May 1999, is a global leader in life sciences, diagnostics and applied markets, providing application focused solutions that include instruments, software, services and consumables for the entire laboratory workflow.

New Segment Structure

In the first quarter of fiscal year 2024, we announced a change in our operating segments to move our cell analysis business from our life sciences and applied markets segment to our diagnostics and genomics operating segment in order to further strengthen growth opportunities for both organizations.

Following this reorganization, we continue to have three business segments comprised of life sciences and applied markets, diagnostics and genomics and Agilent CrossLab, each of which continues to comprise a reportable segment.

We began reporting under this new structure with the Quarterly Report on Form 10-Q for the period ended January 31, 2024.

All historical financial segment information has been recast to conform to this new presentation in our consolidated financial statements and accompanying notes.

There was no change to our Agilent CrossLab business segment.

On September 20, 2024, we acquired 100 percent of the stock of BIOVECTRA for total consideration of $915 million in cash.

The acquisition expands our contract development and manufacturing organization.

As a result of the acquisition, BIOVECTRA became a wholly-owned subsidiary of Agilent.

The acquisition has been accounted for in accordance with the authoritative accounting guidance, and the results of BIOVECTRA are included in Agilent's consolidated financial statements from the date of acquisition.

2027 Senior Notes.

On September 9, 2024, we issued an aggregate principal amount of $600 million in senior notes ("2027 senior notes").

The 2027 senior notes were issued at 99.866% of their principal amount.

The notes will mature on September 9, 2027, and bear interest at a fixed rate of 4.20% per annum.

The interest is payable semi-annually on March 9th and September 9th of each year and payments will commence on March 9, 2025.

2034 Senior Notes.

On September 9, 2024, we issued an aggregate principal amount of $600 million in senior notes ("2034 senior notes").

The 2034 senior notes were issued at 99.638% of their principal amount.

The 2034 senior notes will mature on September 9, 2034, and bear interest at a fixed rate of 4.75% per annum.

The interest is payable semi-annually on March 9th and September 9th of each year and payments will commence on March 9, 2025.

In November 2024, we announced a change in our organizational structure to support our market-focused, customer-centric strategy.

Our former Diagnostics and Genomics segment combined with our liquid chromatography and liquid chromatography mass spectrometry instrument platforms to form our new Life Sciences and Diagnostics Markets segment.

Our chemistries and supplies, laboratory automation, and software and informatics divisions moved from our former Life Sciences and Applied Markets segment to our Agilent CrossLab segment.

The remaining divisions in our former Life Sciences and Applied Markets segment which includes our gas chromatography, gas chromatography mass spectrometry, remarketed instruments, spectroscopy and vacuum divisions formed our new Applied Markets segment.

Following this re-organization, we have three business segments - Life Sciences and Diagnostics Markets, Agilent CrossLab and Applied Markets, each of which comprises a reportable segment.

All historical financial segment information has been recast to conform to this new presentation.

Global Tariffs

Recent changes to tariffs and trade policies by the U.S.

and other countries have increased risk and uncertainty surrounding our future results of operations.

In the first half of fiscal year 2025, changes to tariffs and trade policies did not have a material impact on our results of operations.

In the second half of fiscal year 2025, the U.S.

government introduced additional measures related to tariffs, including certain increases, exemptions and pauses, and other countries have responded with preliminary agreements and retaliatory actions.

The ultimate impact of changes to tariffs and trade policies will depend on various factors, including the timing, amount, scope, and nature of any tariffs or trade policies implemented and our ability to respond to mitigate the impact of such tariffs and trade policies.

While the recent tariff changes adversely impacted our costs of revenue beginning in the second half of fiscal year 2025, we expect to substantially mitigate the impact during our fiscal year 2026.

With inflationary and tariff-related pressures remaining fluid, we are actively pursuing mitigation strategies through supply chain optimization, targeted pricing actions, and other cost-efficiency initiatives to protect margins and sustain long-term growth.

We continue to monitor these evolving trade dynamics closely, as they may influence future revenue and operational efficiency.

Actual Results

Agilent's net revenue of $6,510 million in 2024 decreased 5 percent when compared to 2023.

Foreign currency movements for 2024 had no overall impact on revenue growth when compared to 2023.

Net revenue declined in our life sciences and applied markets and diagnostics and genomics segments, mostly in the pharmaceutical market, due primarily to the overall pressures on our customers' capital expenditure spending which continued in 2024.

Agilent's net revenue of $6,948 million in 2025 increased 7 percent when compared to 2024.

The overall effect of foreign currency movements had no impact on revenue growth in the year ended October 31, 2025 when compared to 2024.

For the year ended October 31, 2025, net revenue growth came from all of our segments, all geographic regions we serve and most of our key end markets when compared to the same period last year.

Revenue from our BIOVECTRA acquisition contributed approximately 2 percentage points in 2025.

Revenue in the Life Sciences and Diagnostics Markets segment increased 11 percent in 2025 when compared to 2024.

The overall effect of foreign currency movements had a 1 percentage point favorable impact on revenue growth in 2025 when compared to 2024.

Revenue from our BIOVECTRA acquisition contributed approximately 5 percentage points in 2025.

Revenue in the Agilent CrossLab business increased 6 percent in 2025

when compared to 2024.

The overall effect of foreign currency movements had no impact on revenue growth in 2025 when compared to 2024.

Revenue in the Applied Markets segment increased 1 percent in 2025 when compared to 2024.

The overall effect of foreign currency movements had a 1 percentage point unfavorable impact on revenue growth in 2025 when compared to 2024.

Agilent's net revenue of $6,510 million decreased 5 percent in 2024 when compared to 2023.

The overall effect of foreign currency movements had no impact on revenue growth in 2024 when compared to 2023.

Net revenue declined in our Life Sciences and Diagnostics Markets and Applied Markets segments, mostly in the pharmaceutical market, due primarily to the overall pressures on our customers' capital expenditure spending which continued in 2024.

Revenue declines were partially offset by revenue growth in our Agilent CrossLab segment.

Revenue in the life sciences and applied markets business decreased 8 percent in 2024 when compared to 2023.

Foreign currency movements had no overall impact on revenue growth in 2024 when compared to 2023.

Revenue in the diagnostics and genomics business decreased 6 percent in 2024 when compared to 2023.

Foreign currency movements had no overall impact on revenue growth in 2024 when compared to 2023.

Revenue in the Agilent CrossLab business increased 5 percent in 2024 when compared to 2023.

Foreign currency movements had no overall impact on revenue growth in 2024 when compared to 2023.

Agilent's net revenue of $6,833 million was slightly down in 2023 when compared to 2022.

Foreign currency movements for 2023 had an overall unfavorable impact on revenue growth of 2 percentage points when compared to 2022.

Net revenue declined in our life sciences and applied markets segment, in the pharmaceutical market and in the Asia Pacific region primarily related to weaker demand in China and an overall pressure on our customers' capital expenditures compared to 2022.

The net revenue decline was partially offset by revenue growth from our other segments primarily in Agilent CrossLab.

Revenue in the life sciences and applied markets business decreased 3 percent in 2023 when compared to 2022.

Foreign currency movements had an overall unfavorable impact on revenue growth of 2 percentage points in 2023 when compared to 2022.

Revenue in the diagnostics and genomics business decreased 1 percent in 2023 when compared to 2022.

Foreign currency movements had an

overall unfavorable impact on revenue growth of 2 percentage points in 2023 when compared to 2022.

Revenue in the Agilent CrossLab business increased 8 percent in 2023 when compared to 2022.

Foreign currency movements had an overall unfavorable impact on revenue growth of 2 percentage points in 2023 when compared to 2022.

Revenue in the Life Sciences and Diagnostics Markets segment decreased 11 percent in 2024 when compared to 2023.

The overall effect of foreign currency movements had no impact on revenue growth in 2024 when compared to 2023.

Revenue in the Agilent CrossLab segment increased 3 percent in 2024 when compared to 2023.

The overall effect of foreign currency movements had a 1 percentage point unfavorable impact on revenue growth in 2024 when compared to 2023.

Revenue in the Applied Markets segment decreased 7 percent in 2024 when compared to 2023.The overall effect of foreign currency movements had no impact on revenue growth in 2024 when compared to 2023.

Net income was $1,303 million in 2025 compared to net income of $1,289 million and $1,240 million in 2024 and 2023, respectively.

Net income in 2025 was favorably impacted by several tax benefits that reduced our overall tax provision.

Net income in 2024 was impacted by cost-saving initiatives and higher interest income.

Net income in 2023 was impacted by the asset impairment charges primarily related to the exit of our Resolution Bioscience business and lower tax expense.

Net income in 2022 was impacted by higher sales volume partially offset by supply chain, logistics and inflationary pressures increasing our costs.

As of October 31, 2025 and 2024, we had cash and cash equivalents balances of $1,789 million and $1,329 million, respectively.

2021 Repurchase Program.

During the year ended October 31, 2022, we repurchased and retired 8.4 million shares for $1,139 million under this authorization.

During the year ended October 31, 2023, we repurchased and retired 661,739 shares for $99 million, excluding excise taxes, under this authorization.

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2023 Repurchase Program .

On January 9, 2023, we announced that our board of directors had approved a share repurchase program (the "2023 repurchase program") designed, among other things, to reduce or eliminate dilution resulting from issuance of stock under the company's employee equity incentive programs.

The 2023 repurchase program authorizes the purchase of up to $2.0 billion, excluding excise taxes, of our common stock at the company's discretion and has no fixed termination date.

The 2023 repurchase program does not require the company to acquire a specific number of shares and may be suspended, amended or discontinued at any time.

The 2023 repurchase program commenced on March 1, 2023, and also terminated and replaced the 2021 repurchase program.

The 2023 repurchase program commenced on March 1, 2023, and was completed in September 2025.

During the year ended October 31, 2023, we repurchased and retired 3.9 million shares for $476 million, excluding excise taxes, under this authorization.

During the year ended October 31, 2024, we repurchased and retired 8.4 million shares for $1,150 million, excluding excise taxes, under this authorization.

As of October 31, 2024, we had remaining authorization to repurchase up to approximately $374 million of our common stock under the 2023 repurchase program.

During the year ended October 31, 2025 we repurchased and retired 3.0 million shares for $374 million, excluding excise taxes, under this authorization.

As of October 31, 2025, we had no remaining authorization to repurchase our common stock under the 2023 repurchase program.

2024 Repurchase Program.

On May 29, 2024, we announced that our board of directors had approved a new share repurchase program (the "2024 repurchase program") designed, among other things, to reduce or eliminate dilution resulting from issuance of stock under the company's employee equity incentive programs.

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The 2024 repurchase program does not require the company to acquire a specific number of shares and may be suspended, amended or discontinued at any time.

The 2024 repurchase program became effective on August 1, 2024 and will commence upon the termination of our 2023 repurchase program.

The 2024 repurchase program became effective on August 1, 2024 and commenced upon completion of our 2023 repurchase program in September 2025.

During the year ended October 31, 2025 we repurchased and retired 381,670 shares for $51 million excluding excise taxes, under this authorization.

As of October 31, 2025, we had remaining authorization to repurchase up to approximately $1.9 billion of our common stock under the 2024 repurchase program.

Excise Taxes.

The Inflation Reduction Act of 2022, which was enacted into law on August 16, 2022, imposed a nondeductible 1% excise tax on the net value of certain stock repurchases made after December 31, 2022.

During the year ended October 31, 2024, we recorded the applicable excise taxes payable of approximately $10 million as an incremental cost of the shares repurchased and a corresponding liability for the excise tax payable in other accrued liabilities on our consolidated balance sheet.

In fiscal year 2023, we recorded excise taxes payable of approximately $3 million related to shares repurchased in 2023 and paid the tax in 2024.

We record the applicable excise taxes payable related to repurchases of our common stock as an incremental cost of the shares repurchased and a corresponding liability for the excise tax payable in other accrued liabilities on our consolidated balance sheet.

For share repurchases made during the year ended October 31, 2025, we recorded the applicable excise taxes payable of approximately $3 million.

During fiscal year 2024 and 2023, we recorded the applicable excise taxes payable of approximately $10 million and $3 million, respectively, which were paid in the fiscal year following the repurchases.

During the year ended October 31, 2025, cash dividends of $0.992 per share, or $282 million were declared and paid on the company's outstanding common stock.

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During the year ended October 31, 2023, cash dividends of $0.900 per share, or $265 million were declared and paid on the company's outstanding common stock.

On November 20, 2024, we declared a quarterly dividend of $0.248 per share of common stock, or approximately $71 million which will be paid on January 22, 2025, to shareholders of record as of the close of business on December 31, 2024.

On November 19, 2025, we declared a quarterly dividend of $0.255 per share of common stock, or approximately $72 million which will be paid on January 28, 2026, to shareholders of record as of the close of business on January 6, 2026.

The timing and amounts of any future dividends are subject to determination and approval by our board of directors.

Looking forward, our primary focus remains on enhancing our customers’ experience, delivering differentiated product solutions and driving productivity improvements.

While customer capital budgets continue to be constrained, we anticipate a gradual and steady recovery in the short-term.

We also remain optimistic about the long-term health of our key end markets.

Although inflationary pressures are uncertain, we will continue to mitigate their impact through targeted pricing strategies and various other cost-saving initiatives.

Looking Forward.

Our primary focus remains on enhancing our customers’ experience, delivering differentiated product solutions and driving productivity improvements.

After an extended period of constrained capital spending, many customers' ability to spend capital budgets has begun to normalize, with the exception of customers receiving funding from the U.S.

federal government.

We remain optimistic about the long-term health of our key end markets.

While the recent tariff changes adversely impacted our costs of revenue beginning in the second half of fiscal year 2025, we expect to substantially mitigate the impact during our fiscal year 2026.

Critical Accounting Policies and Estimates

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Software license revenue is recognized at the point in time when control has been transferred to the customer.

The revenue allocated to the software maintenance contract is recognized on a straight-line basis over the maintenance period, which is the contractual term of the contract, as a time-based measure of progress best reflects our performance in satisfying this obligation.

The revenue allocated to the software maintenance contract is recognized on a straight-line basis over the maintenance period,

which is the contractual term of the contract, as a time-based measure of progress best reflects our performance in satisfying this obligation.

Unspecified rights to software upgrades are typically sold as part of the maintenance contract on a when-and-if-available basis.

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For contracts with multiple performance obligations, we allocate the consideration to which we expect to be entitled to each performance obligation based on relative standalone selling prices and recognize the related revenue when or as control of each individual performance obligation is transferred to customers.

We estimate the standalone selling price by calculating the

average historical selling price of our products and services per geographic region for each performance obligation.

We estimate the standalone selling price by calculating the average historical selling price of our products and services per geographic region for each performance obligation.

Stand-alone selling prices are determined for each distinct good or service in the contract, and then we allocate the transaction price in proportion to those standalone selling prices by performance obligations.

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In 2025, discount rates for the U.S.

defined benefit plans and post-retirement benefit plans decreased compared to the previous year due to the decrease in the corporate bond rates.

post-retirement benefit plans decreased compared to the previous year due to the decrease in the corporate bond rates.

For 2025 and 2024, the discount rates for non-U.S.

defined benefit plans were generally based on published rates for high quality corporate bonds and in 2024, mostly decreased compared to the previous year.

defined benefit plans were generally based on published rates for high quality corporate bonds and in 2025, mostly increased compared to the previous year.

If we had changed our discount rate by 1 percent, the impact would have been approximately $1 million on U.S.

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For most non-U.S.

defined benefit plans and U.S.

post-retirement benefit plans, gains and losses are amortized over the average remaining future service period or remaining lifetime of participants depending upon the plan, using a separate layer for each year's gains and losses.

defined benefit plans

post-retirement benefit plans, gains and losses are amortized over the average remaining future service period using a separate layer for each year's gains and losses.

In the U.S., target asset allocations for our retirement and post-retirement benefit plans were approximately 50 percent to equities and approximately 50 percent to fixed income investments as of October 31, 2025.

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Our policy is to bring the actual allocation in line with the target allocation.

Equity securities include exchange-traded common stock and preferred stock of companies from broadly diversified industries.

Equity securities include exchange-traded common stock of companies from broadly diversified industries.

Fixed income securities include a global portfolio of corporate bonds of companies from diversified industries, government securities, mortgage-backed securities, asset-backed securities, derivative instruments and other.

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defined benefit plans expense for the year ended October 31, 2025.

The total net periodic pension and post-retirement benefit costs recorded were a $9 million benefit in 2024, $6 million expense in 2023 and $2 million benefit in 2022.

The total net periodic pension and post-retirement benefit costs recorded were a $24 million benefit in 2025, $9 million benefit in 2024 and $6 million expense in 2023.

These costs included a loss on settlement of $15 million, $2 million and $4 million, for the years ended October 31, 2025, 2024 and 2023, respectively.

In 2025, a settlement loss of $14 million was recognized in connection with the buy-out of our Netherlands defined benefit pension plan.

Goodwill and Purchased Intangible Assets.

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At the beginning of fiscal year 2025, in connection with the change in our segment reporting, we assessed goodwill impairment for our three reporting units which consisted of our three segments:

life sciences and applied markets, diagnostics and genomics and Agilent CrossLab.

We performed a quantitative test for goodwill impairment of the three reporting units as of November 1, 2023, due to the change in our segment structure.

As of November 1, 2023, there was no impairment of goodwill.

In fiscal year 2024, we again assessed goodwill impairment for our three reporting units which consisted of our three segments:

life sciences and applied markets, diagnostics and genomics and Agilent CrossLab.

We performed a qualitative test for goodwill impairment of the three reporting units as of September 30, 2024, our annual impairment test date.

Based on the results of our qualitative testing, there was no impairment of goodwill as of September 30, 2024.

Life Sciences and Diagnostics Markets, Agilent CrossLab and Applied Markets.

We performed a quantitative test for goodwill impairment of the three reporting units as of November 1, 2024, due to the change in our segment structure, and based on the results, there was no impairment of goodwill.

In fiscal year 2025, we again assessed goodwill impairment for our three reporting units which consisted of our three operating segments:

Life Sciences and Diagnostics Markets, Agilent CrossLab and Applied Markets.

We performed a

qualitative test for goodwill impairment of the three reporting units, as of September 30, 2025, our annual impairment test date.

Based on the results of our qualitative testing, we believe that it is more-likely-than-not that the fair values of these reporting units are greater than their respective carrying values.

Each quarter we review the events and circumstances to determine if goodwill impairment is indicated.

There was no impairment of goodwill during the years ended October 31, 2025, 2024 and 2023.

Purchased intangible assets consist primarily of acquired developed technologies, proprietary know-how, trademarks, and customer relationships and are amortized using the best estimate of the asset's useful life that reflects the pattern in which the economic benefits are consumed or used up or a straight-line method ranging from 6 months to 15 years.

Our determination of the fair value of the intangible assets acquired involves the use of significant estimates and assumptions.

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Our determination of the fair value of customer relationships acquired involves significant estimates and assumptions related to revenue growth rates, discount rates, and customer attrition rates.

Our determination of the fair value of the trade name acquired involves the

use of significant estimates and assumptions related to revenue growth rates, royalty rates and discount rates.

Our determination of the fair value of the trade name acquired involves the use of significant estimates and assumptions related to revenue growth rates, royalty rates and discount rates.

We value backlog using the discounted cash flows based on the estimated revenue from pending orders.

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An organization may choose to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to calculating its fair value.

As of October 31, 2024, we do not have any indefinite-lived intangible assets.

During fiscal year 2024, we recorded an impairment of in-process research and development of $6 million in research and development in the consolidated statement of operations related to a project in our life sciences and applied markets segment.

There were no impairments of indefinite-lived intangible assets during fiscal years 2023 and 2022.

As of October 31, 2025 and 2024, we do not have any indefinite-lived intangible assets.

During fiscal years 2025 and 2023, there were no impairments of indefinite-lived intangible assets.

Restructuring.

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If the amounts and timing of cash flows from restructuring activities are significantly different from what we have estimated, the actual amounts of restructuring and other related charges could be materially different, either higher or lower, than those we have recorded.

"Restructuring and Other Related Costs" to the consolidated financial statements for additional information.

See Note 16, "Restructuring and Other Related Costs" to the consolidated financial statements for additional information.

Accounting for Income Taxes.

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On a quarterly basis, we provide for income taxes based upon an estimated annual effective tax rate.

The effective tax rate is highly dependent upon the geographic composition of worldwide earnings, tax regulations governing each region, availability of tax credits and the effectiveness of our tax planning strategies.

The effective tax rate is highly dependent upon the geographic composition of worldwide earnings, tax regulations governing each region, availability of tax credits and

the effectiveness of our tax planning strategies.

We monitor the changes in many factors and adjust our effective income tax rate on a timely basis.

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Although the guidance on the accounting for uncertainty in income taxes prescribes the use of a recognition and measurement model, the determination of whether an uncertain tax position has met those thresholds will continue to require significant judgment by management.

In accordance with the guidance on the accounting for

uncertainty in income taxes, for all U.S.

In accordance with the guidance on the accounting for uncertainty in income taxes, for all U.S.

and other tax jurisdictions, we recognize potential liabilities for anticipated tax audit issues based on our estimate of whether, and the extent to which, additional taxes and interest will be due.

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Summary of Restructuring Plans.

In fiscal year 2025, we announced a restructuring plan designed to optimize our management structure to better serve our customers.

In fiscal years 2024 and 2023, we announced restructuring plans that were both designed to reduce costs and expenses in response to macroeconomic conditions.

These actions impact all three of our business segments.

The costs associated with these restructuring plans were not allocated to our business segments' results;

however, each business segment will benefit from the future cost savings from these actions.

When completed, the restructuring programs are expected to result in the reduction in annual cost of sales and operating expenses over the three business segments.

A summary of our aggregate liability related to both restructuring plans and the total restructuring expense since inception of those plans are shown in the table below:

These actions impact all three of our operating segments.

The costs associated with these restructuring plans were not allocated to our operating segments' results;

however, each operating segment will benefit from the future cost savings from these actions.

When completed, the restructuring programs are expected to result in the reduction in annual cost of sales and operating expenses over the three operating segments.

A summary of our aggregate liability related to the restructuring plans and the total restructuring expense since inception of those plans are shown in the table below:

Reduction Consolidation of Excess Facilities Total

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Cash payments (60) — (60)

Currency translation impact 1 — 1

Balance at October 31, 2025 $ 18 $ — $ 18

Total restructuring expense since inception of all plans $ 122

Restructuring expense since inception of all plans:

Fiscal Year 2025 Plan $ 81

Fiscal Year 2024 Plan $ 73

Fiscal Year 2023 Plan $ 50

Non-cash settlements include accelerated share-based compensation expense related to workforce reductions and accelerated depreciation expense of right-of-use and machinery and equipment assets related to the consolidation of excess facilities.

The aggregate restructuring liability of $18 million at October 31, 2025, was recorded in other accrued liabilities on the consolidated balance sheet and reflects estimated future cash outlays.

A summary of the charges in the consolidated statement of operations resulting from the restructuring plans are shown below:

A summary of the charges in the consolidated statement of operations resulting from the restructuring plans is shown below:

2025 2024 2023

(in millions)

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Fiscal Year 2025 Plan ("FY25 Plan")

In the second quarter of fiscal year 2025, we announced a restructuring plan designed to optimize our management structure to better serve our customers.

The expense associated with this workforce reduction includes severance and other personnel-related costs.

We expect to substantially complete these restructuring activities by the second quarter of fiscal year 2026.

In connection with the FY25 Plan, we recorded restructuring expenses of $81 million in fiscal year 2025.

When completed, the restructuring program is estimated to result in the reduction of approximately $75 million to $80 million in annual cost of sales and operating expenses over our three business segments.

A summary of the FY25 Plan activity is shown in the table below:

Workforce Reduction

(in millions)

Balance at October 31, 2024 $ —

Income statement expense 81

Non-cash settlements (18)

Cash payments (46)

Currency translation impact 1

Balance at October 31, 2025 $ 18

Total restructuring expense since inception of FY25 Plan $ 81

Non-cash settlements include accelerated share-based compensation expense related to workforce reductions.

Fiscal Year 2024 Plan ("FY24 Plan")

In the third quarter of fiscal year 2024, we initiated a new restructuring plan designed to further reduce costs and expenses in response to current macroeconomic conditions.

The plan includes a reduction of our total headcount by approximately 500 regular employees, representing approximately 3 percent of our global workforce.

In connection with the FY24 Plan, we have recorded restructuring expenses of $ 72 million in fiscal year 2024.

The costs associated with this workforce reduction include severance, accelerated share-based compensation expense and other personnel-related costs.

The timing and scope of the workforce reductions will vary based on local legal requirements.

While the majority of the workforce reduction was completed in fiscal year 2024, we expect to substantially complete the remaining restructuring activities by the end of the second quarter of fiscal year 2025.

When completed, the restructuring program is expected to result in the reduction of approximately $100 million in annual cost of sales and operating expenses over our three business segments.

In connection with the FY24 Plan, we recorded restructuring expenses of $1 million and $72 million in fiscal years 2025 and 2024, respectively.

The costs associated with this workforce reduction included severance, accelerated share-based compensation expense and other personnel-related costs.

We have completed all workforce management actions and payments in connection with the FY24 Plan.

A summary of the FY24 Plan activity is shown in the table below:

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Balance at October 31, 2024 $ 11

Income statement expense $ 1

Cash payments $ (12)

Balance at October 31, 2025 $ —

Total restructuring expense since inception of FY24 Plan $ 73

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Fiscal Year 2023 Plan ("FY23 Plan")

In the fourth quarter of fiscal year 2023, we initiated the restructuring plan designed to reduce costs and expenses in response to the macroeconomic conditions.

In the fourth quarter of fiscal year 2023, we initiated a restructuring plan designed to reduce costs and expenses in response to the macroeconomic conditions.

The plan included a reduction of our total headcount by approximately 400 regular employees, representing approximately 2 percent of our global workforce, and the consolidation of our excess facilities, including some site closures.

In connection with the FY23 Plan, we recorded restructuring expenses of $ 4 million in 2024 and $ 46 million, in 2023.

The restructuring plan expenses include severance, accelerated share-based compensation expense and other personnel costs associated with the workforce reduction.

The consolidation of excess facilities includes accelerated depreciation expenses of right-of-use and machinery and equipment assets, and other facilities-related costs.

The timing and scope of the workforce reductions will vary based on local legal requirements.

While the majority of the workforce reduction was completed in 2024, we expect to substantially complete the remaining restructuring activities by the end of the first quarter of fiscal year 2025.

When completed, the restructuring program is expected to result in the reduction of approximately $80 million in annual cost of sales and operating expenses over our three business segments.

In connection with the FY23 Plan, we recorded restructuring expenses of $4 million and $46 million in 2024 and 2023, respectively.

The restructuring plan expenses included severance, accelerated share-based compensation expense and other personnel costs associated with the workforce reduction.

The consolidation of excess facilities included accelerated depreciation expenses of right-of-use and machinery and equipment assets, and other facilities-related costs.

We have completed all workforce management actions and payments in connection with the FY23 Plan.

A summary of the FY23 Plan activity is shown in the table below:

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Balance at October 31, 2024 $ 2 $ — $ 2

Income statement expense 3 1 4

Non-cash settlements — ( 1 ) ( 1 )

Cash payments (2) — (2)

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Total restructuring expense since inception of the FY23 Plan $ 50

Non-cash settlements include accelerated depreciation expense of right-of-use and machinery and equipment assets related to the consolidation of excess facilities.

Foreign Currency

Our revenues, costs and expenses, and monetary assets and liabilities and equity are exposed to changes in foreign currency exchange rates as a result of our global operating and financing activities.

Foreign currency movements had no overall impact on revenue growth in the year ended October 31, 2024 when compared to the same period last year.

Foreign currency movements for the year ended October 31, 2023, had an overall unfavorable impact on revenue of 2 percentage points when compared to 2022.

The overall effect of changes in foreign currency exchange rates had no impact on revenue growth in the year ended October 31, 2025 when compared to the same period in 2024.

The overall effect of changes in foreign currency exchange rates had no impact on revenue growth in the year ended October 31, 2024 when compared to the same period in 2023.

When movements in foreign currency exchange rates have a negative impact on revenue, they will also have a positive impact by reducing our costs and expenses.

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% of total net revenue:

Products 72 % 74 % 76 % (2) ppts.

Services and other 28 % 26 % 24 % 2 ppts.

Products 71 % 72 % 74 % (1) ppt.

Services and other 29 % 28 % 26 % 1 ppt.

Total 100 % 100 % 100 %

Agilent's net revenue of $6,510 million for the year ended October 31, 2024, decreased 5 percent when compared to 2023.

Foreign currency movements had no overall impact on revenue growth in 2024 when compared to 2023.

For the year ended October 31, 2024, net revenue declined in our life sciences and applied markets and diagnostics and genomics segments, mostly in the pharmaceutical market, due primarily to the overall pressures on our customers' capital expenditure spending which continued in 2024.

Agilent's net revenue of $6,948 million for the year ended October 31, 2025, increased 7 percent when compared to 2024.

The overall effect of foreign currency movements had no impact on revenue growth in the year ended October 31, 2025 when compared to 2024.

For the year ended October 31, 2025, net revenue growth came from all of our segments, all geographic regions we serve and most of our key end markets when compared to the same period last year.

Revenue from our BIOVECTRA acquisition contributed approximately 2 percentage points in 2025.

Agilent's net revenue of $6,510 million decreased 5 percent in 2024 when compared to 2023.

The overall effect of foreign currency movements had no impact on revenue growth in 2024 when compared to 2023.

For the year ended October 31, 2024, net revenue declined in our Life Sciences and Diagnostics Markets and Applied Markets segments, mostly in the pharmaceutical and chemical and applied materials markets, due primarily to the overall pressures on our customers' capital expenditure spending which continued in 2024.

Revenue declines were partially offset by revenue growth in our Agilent CrossLab segment.

Agilent's net revenue of $6,833 million was slightly down in 2023 when compared to 2022.

Foreign currency movements had an overall unfavorable impact on revenue growth of 2 percentage points in 2023 when compared to 2022.

For the year ended October 31, 2023, net revenue declined in our life sciences and applied markets segment in the pharmaceutical market and in the Asia Pacific region primarily related to weaker demand in China and an overall pressure on our customers' capital expenditures compared to the same period last year.

The net revenue decline was partially offset by revenue growth from our other segments primarily in Agilent CrossLab.

Product revenue includes revenue generated from the sales of our analytical instrumentation, software and consumables.

Revenue from products increased 6 percent for the year ended October 31, 2025, when compared to 2024.

Product revenue was primarily driven by increases in our contract development and manufacturing organization, liquid chromatography, liquid chromatography mass spectrometry, and consumables businesses partially offset by decreases in our cell analysis and vacuum businesses when compared to 2024.

Revenue from products decreased 7 percent for the year ended October 31, 2024, when compared to 2023.

The product revenue decline was primarily driven by decreases in our liquid chromatography, mass spectrometry, cell analysis and nucleic acid solutions businesses partially offset by increases in our consumables and pathology businesses when compared to 2023.

Overall, product revenue declined due to our customers' continued capital expenditure pressures and mostly impacted the pharmaceutical market within our life sciences and applied markets and diagnostics and genomics segments.

Revenue from products decreased 3 percent for the year ended October 31, 2023, when compared to 2022.

The decrease in product revenue in the year ended October 31, 2023, was primarily due to significant declines in our mass spectrometry, genomics, gas chromatography and cell analysis businesses partially offset by strong growth in our nucleic acid solutions and pathology businesses, and modest growth in our spectroscopy business.

Overall, product revenue declined due to our customers' capital expenditure pressures and mostly impacted the pharmaceutical market within our life sciences and applied markets segment.

Overall, product revenue declined due to our customers' continued capital expenditure pressures and mostly impacted the pharmaceutical market within our Life Sciences and Diagnostics Markets and our Applied Markets segments.

Services and other revenue consist of contract repair, preventative maintenance, compliance services, relocation services, installation services, and consulting services related to the companion diagnostics and nucleic acid solutions businesses.

Services and other revenue increased 9 percent in 2025 as compared to 2024.

Services and other revenue reflected strong growth from contract repair and preventative maintenance services partly offset by declines in installation services related to the decline of the product revenues.

Services and other revenue increases reflected strong growth from contract repair and preventative maintenance services and modest revenue growth in per incident services including relocation and education and compliance services.

Services and other revenue increased 3 percent in 2024 as compared to 2023.

Service revenue increases reflected strong growth from contract repair services, consultative services, per incident repair and maintenance services, and relocation services in all key end markets.

Net Revenue By Segment

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Net revenue by segment:

Life sciences and applied markets $ 3,215 $ 3,510 $ 3,630 (8)% (3)%

Diagnostics and genomics $ 1,651 $ 1,755 $ 1,766 (6)% (1)%

Life Sciences and Diagnostics Markets $ 2,726 $ 2,466 $ 2,780 11% (11)%

Agilent CrossLab $ 2,908 $ 2,747 $ 2,656 6% 3%

Applied Markets $ 1,314 $ 1,297 $ 1,397 1% (7)%

Total net revenue $ 6,948 $ 6,510 $ 6,833 7% (5)%

Revenue in the life sciences and applied markets business decreased 8 percent in 2024 when compared to 2023.

Foreign currency movements had no overall impact on revenue growth in 2024 when compared to 2023.

For the year ended October 31, 2024, revenue declined in all of our end markets.

We saw a significant decline in revenue in the pharmaceutical, chemical and advanced materials, food and academia and government markets when compared to 2023.

Revenue in the life sciences and applied markets business decreased 3 percent in 2023 when compared to 2022.

Foreign currency movements had an overall unfavorable impact on revenue growth of 2 percentage points in 2023 when compared to 2022.

For the year ended October 31, 2023, we saw a significant decline in revenue in the pharmaceutical and the diagnostics and clinical markets partially offset by strong growth in the academia and government market when compared to 2022.

Revenue in the diagnostics and genomics business decreased 6 percent in 2024 when compared to 2023.

Foreign currency movements had no overall impact on revenue growth in 2024 when compared to 2023.

In 2024, we saw a significant decline in revenue in the pharmaceutical market due to lower sales in our nucleic acid solutions, cell analysis and genomics businesses when compared to 2023.

Revenue in the diagnostics and genomics business decreased 1 percent in 2023 when compared to 2022.

Foreign currency movements had an overall unfavorable impact on revenue growth of 2 percentage points in 2023 when compared to 2022.

Revenue declined in the academia and government and pharmaceutical markets partially offset by revenue growth in the diagnostics and clinical market when compared to 2022.

Revenue in the Agilent CrossLab business increased 5 percent in 2024 when compared to 2023.

Foreign currency movements had no overall impact on revenue growth in 2024 when compared to 2023.

For the year ended October 31, 2024, we saw revenue growth across all of our end markets led by strong revenue growth in the pharmaceutical, diagnostics and clinical and environmental and forensics markets when compared to 2023.

Revenue generated by Agilent CrossLab increased 8 percent in 2023 when compared to 2022.

Foreign currency movements had an overall unfavorable impact on revenue growth of 2 percentage points in 2023 when compared to 2022.

For the year ended October 31, 2023, we saw revenue growth across all of our end markets led by strong revenue growth in the pharmaceutical, academia and government, diagnostics and clinical and chemical and advanced materials markets when compared to 2022.

Revenue in the Life Sciences and Diagnostics Markets segment increased 11 percent in 2025 when compared to 2024.

The overall effect of foreign currency movements had a 1 percentage point favorable impact on revenue growth in 2025 when compared to 2024.

In 2025, we saw strong revenue growth in the pharmaceutical market led by revenue from our contract development and manufacturing organization, liquid chromatography and liquid chromatography mass spectrometry businesses.

We also saw strong revenue growth in the diagnostics and clinical market led by revenue from our companion diagnostics and pathology businesses partially offset by a decline in revenue in the academic and government markets when compared to 2024.

Revenue in the Life Sciences and Diagnostics Markets segment decreased 11 percent in 2024 when compared to 2023.

The overall effect of foreign currency movements had no impact on revenue growth in 2024 when compared to 2023.

In 2024, we saw revenue decline in all our end markets, most significantly in the pharmaceutical market, due to lower sales in our liquid chromatography, nucleic acid solutions and cell analysis businesses when compared to 2023.

Revenue in the Agilent CrossLab segment increased 6 percent in 2025 when compared to 2024.

The overall effect of foreign currency movements had no impact on revenue growth in 2025 when compared to 2024.

For the year ended October 31, 2025, we saw revenue growth across most of our end markets led by strong growth in the pharmaceutical, chemical and advanced materials and food markets when compared to 2024.

Revenue in the Agilent CrossLab segment increased 3 percent in 2024 when compared to 2023.

The overall effect of foreign currency movements had a 1 percentage point unfavorable impact on revenue growth in 2024 when compared to 2023.

For the year ended October 31, 2024, we saw revenue growth across all of our end markets led by strong revenue growth in the chemical and advanced materials and environmental and forensics markets when compared to 2023.

Revenue in the Applied Markets segment increased 1 percent in 2025 when compared to 2024.

The overall effect of foreign currency movements had a 1 percentage point unfavorable impact on revenue growth in 2025 when compared to 2024.

For the year ended October 31, 2025, we saw significant revenue growth in the food and pharmaceutical markets partially offset by a decline in revenue in the chemical and advanced materials and academic and government markets when compared to 2024.

Revenue in the Applied Markets segment decreased 7 percent in 2024 when compared to 2023.

The overall effect of foreign currency movements had no impact on revenue growth in 2024 when compared to 2023.

For the year ended October 31, 2024, revenue declined in most of our end markets.

We saw a significant decline in revenue in the chemical and advanced materials, food and environmental and forensics markets when compared to 2023.

Costs and Expenses

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Gross margin on products 54.8 % 56.7 % 51.9 % (2) ppts.

Gross margin on services and other 48.3 % 47.3 % 46.8 % 1 ppt.

Gross margin on services and other 46.7 % 48.3 % 47.3 % (2) ppts.

Total gross margin 52.4 % 54.3 % 50.7 % (2) ppts.

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Operating margin 21.3 % 22.9 % 19.8 % (2) ppts.

Total gross margin for the year ended October 31, 2025 decreased 2 percentage points when compared to 2024.

Total gross margin was unfavorably impacted by higher tariffs and shipping costs, unfavorable business mix (including lower gross margin from our specialty CDMO business), higher wages, restructuring expenses and variable pay partially offset by higher

sales volume, targeted pricing increases, lower warranty costs and amortization of intangible assets when compared to 2024.

Total gross margin for the year ended October 31, 2024 increased 4 percentage points when compared to 2023.

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In addition, total gross margin was favorably impacted by targeted price increases, lower shipping costs and intangible amortization expense partially offset by lower sales volume, higher share-based compensation expense, higher wages and restructuring charges.

Total gross margin for the year ended October 31, 2023 decreased 4 percentage points when compared to 2022.

Total gross margin as well as gross

margin on products for the year ended October 31, 2023 was significantly impacted by asset impairment charges of $253 million primarily related to the exit of our Resolution Bioscience business.

Excluding these asset impairment charges, total gross margin for the year ended October 31, 2023 was relatively flat when compared to 2022.

Total gross margin was also impacted by targeted price increases, lower shipping and logistics costs, variable pay expenses and intangible amortization expense offset by the unfavorable impact of currency movements, higher wages, restructuring and other related costs and inventory charges.

Gross inventory charges were $45 million in 2025, $45 million in 2024 and $40 million in 2023.

Sales of previously written down inventory were $15 million in 2025, $16 million in 2024 and $9 million in 2023.

Research and development expenses for the year ended October 31, 2025 decreased 5 percent when compared to 2024.

Research and development expenses decreased due to lower restructuring expenses and salary expense related to workforce reduction activities partially offset by higher variable pay when compared to 2024.

Research and development expenses for the year ended October 31, 2024 were flat when compared to 2023.

Research and development expenses slightly decreased due to lower salary expense related to workforce reduction activities mostly offset by restructuring charges and an impairment of in-process research and development when compared to 2023.

Research and development expenses for the year ended October 31, 2023 increased 3 percent when compared to 2022.

Research and development expenses increased due to higher wages, program costs in our life sciences and applied markets and diagnostics and genomics businesses and restructuring and other related costs partially offset by the lower variable pay expenses and favorable impact of currency movements.

Selling, general and administrative expenses decreased 4 percent in 2024 when compared to 2023.

Selling, general and administrative expenses increased 9 percent in 2025 when compared to 2024.

Selling, general and administrative expenses increased primarily due to higher transformational initiatives, corporate infrastructure expenses, variable pay and restructuring expenses.

Selling, general and administrative expenses decreased 4 percent in 2024 compared to 2023.

Selling, general and administrative expenses decreased due to lower intangible amortization expenses, transformational initiatives, advertising expenses, variable pay and salary expense related to workforce reduction activities partially offset by higher restructuring charges and share-based compensation expense.

Selling, general and administrative expenses were flat in 2023 compared to 2022.

Selling, general and administrative expenses in 2022 included a decrease in expenses of $25 million related to the change in the fair value of contingent consideration.

Excluding this amount, selling, general and administrative expenses decreased 2 percent when compared to 2022.

The decrease was due to lower variable pay, intangible amortization expense, sales commissions and the favorable impact of currency movements partially offset by higher wages, restructuring and other related costs and asset impairment charges primarily related to the exit of our Resolution Bioscience business.

Total operating margin for the year ended October 31, 2025 decreased 2 percentage points when compared to 2024.

Total operating margin for the year ended October 31, 2025 was impacted by higher tariffs and shipping costs, unfavorable product mix, higher transformational initiatives, wages and variable pay partially offset by higher sales volume and targeted pricing increases.

Total operating margin for the year ended October 31, 2024, increased 3 percentage points when compared to 2023.

Total operating margin for the year ended October 31, 2024 increased mostly due to lower impairment charges in 2024 compared to 2023 partially offset by restructuring charges.

Total operating margin for the year ended October 31, 2023, decreased 4 percentage points when compared to 2022.

Total operating margin for the year ended October 31, 2023 decreased mainly due to asset impairment charges primarily related to the exit of our Resolution Bioscience business and restructuring and other related costs.

Interest income for the years ended October 31, 2025, 2024 and 2023 was $62 million, $80 million and $51 million, respectively.

The increase in interest income in 2024 and 2023 was primarily due to higher cash balances and increases in interest rates related to our cash and cash equivalents.

Interest expense for the years ended October 31, 2024, 2023 and 2022 was $96 million, $95 million and $84 million, respectively, and primarily relates to the interest charged on our senior notes, term loan, credit facilities, commercial paper and the amortization of the deferred loss recorded upon termination of the forward starting interest rate swap contracts partially offset by the amortization of deferred gains recorded upon termination of interest rate swap contracts.

The increase in interest expense from 2022 is primarily related to higher interest rates on short-term commercial paper and the variable rate on the term loan facility.

The decrease in interest income in 2025 was primarily due to lower cash balances.

The increase in interest income in 2024 was primarily due to higher cash balances and increases in interest rates related to our cash and cash equivalents.

Interest expense, net of capitalized interest for the years ended October 31, 2025, 2024 and 2023 was $112 million, $96 million and $95 million, respectively, and primarily relates to the interest charged on our senior notes, term loan, credit facilities and commercial paper.

The increase in interest expense in 2025 is primarily related to additional interest from our new senior notes.

Our headcount was approximately 18,100 at October 31, 2025 and 17,900 at October 31, 2024.

Other income (expense), net

For the year ended October 31, 2024, other income (expense), net of $49 million income includes $8 million of income related to foreign currency translation reclassified out of accumulated comprehensive income (loss) and $12 million income related to the provision of site service costs to, and lease income from, Keysight Technologies, Inc.

("Keysight").

For the year ended October 31, 2025, other income (expense), net of $6 million income includes a net loss of $36 million on equity securities, $15 million loss on impairment of investments, and $40 million income related to the defined benefit retirement and post-retirement benefit plans (interest cost, expected return on assets, amortization of net actuarial (gain) loss, prior service credits and settlement loss).

Other income (expense), net also includes expense of $14 million related to the settlement loss of our Netherlands defined benefit pension plan.

The provision of site service costs to, and lease income from Keysight Technologies, Inc.

("Keysight") contributed income of $12 million.

The costs associated with these services are reported within income from operations.

Other income (expense), net also includes $25 million income related to the defined benefit retirement and post-retirement benefit plans (interest cost, expected return on assets, amortization of net actuarial (gain) loss, prior service credits and settlement loss).

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The costs associated with these services are reported within income from operations.

Other income (expense), net also includes $10 million income related to the defined benefit retirement and post-retirement benefit plans (interest cost, expected return on assets, amortization of net actuarial (gain) loss, prior service credits and settlement loss) partially offset by the net loss on the fair value of equity securities of approximately $41 million.

For the year ended October 31, 2022, other income (expense), net of $39 million expense includes the net loss on the fair value of equity securities of approximately $67 million and a $9 million loss on extinguishment of debt partially offset by income of $25 million income related to the defined benefit retirement and post-retirement benefit plans and $11 million related to the provision of site service costs to, and lease income from, Keysight.

The costs associated with these services are reported within income from operations.

Other income (expense), net also includes income of $10 million income related to the defined benefit retirement and post-retirement benefit plans (interest cost, expected return on assets, amortization of net actuarial (gain) loss, prior service credits and settlement loss) partially offset by the net loss on the fair value of equity securities of approximately $41 million.

Years Ended October 31,

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For 2025, our income tax expense was $132 million with an effective tax rate of 9.2 percent.

For the year ended October 31, 2024, our effective tax rate and the resulting provision for income taxes were impacted by the tax benefit of $47 million related to foreign-derived intangible income.

For the year ended October 31, 2025, our effective tax rate and the resulting provision for income taxes were impacted by the federal tax benefit of $57 million related to the intra-entity transfer of assets.

The income taxes for the year ended October 31, 2025, also include the tax benefit of $29 million related to foreign-derived intangible income along with the tax benefit of $28 million related to the release of tax reserves due to a remeasurement of the liability.

For 2024, our income tax expense was $232 million with an effective tax rate of 15.3 percent For the year ended October 31, 2024, our effective tax rate and the resulting provision for income taxes were impacted by the tax benefit of $47 million related to foreign-derived intangible income.

For 2023, our income tax expense was $99 million with an effective tax rate of 7.4 percent.

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due to the settlement of the audit with the Internal Revenue Service ("IRS") for tax years 2018 and 2019.

For 2022, our income tax expense was $250 million with an effective tax rate of 16.6 percent.

For the year ended October 31, 2022, our effective tax rate and the resulting provision for income taxes were impacted by the tax benefit of $46 million related to foreign-derived intangible income.

We have negotiated a tax holiday in Singapore.

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The benefit of the tax holiday on net income per share (diluted) was approximately $0.36, $0.29, and $0.18 in 2025, 2024 and 2023, respectively.

The Organization for Economic Co-operation and Development.

("OECD") has introduced rules to establish a global minimum tax rate of 15 percent, commonly referred to as the Pillar Two rules.

We have considered the impact of currently enacted Pillar Two rules and determined that we became subject to such rules starting in fiscal year 2025 in some jurisdictions, and it did not have a material impact on our consolidated financial results for the periods presented.

Additionally, the United States enacted the One Big Beautiful Bill Act ("OBBBA") on July 4, 2025, including adjustments to effective tax rates on certain types of income and an elective deduction for domestic Research and Development (R&D), which are generally applicable to Agilent in fiscal years 2026 and 2027.

We expect our income taxes to increase in fiscal year 2026 due to top-up taxes under Pillar Two along with the implementation of the OBBBA rules.

In the U.S., tax years remain open back to the year 2022 for federal income tax purposes and 2021 for significant states.

In other major jurisdictions where we conduct business, the tax years generally remain open back to the year 2014.

With these jurisdictions and the U.S., it is reasonably possible that some tax audits may be completed over the next twelve months.

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The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax law and regulations in a multitude of jurisdictions.

Although the guidance on the accounting for uncertainty in income taxes prescribes

the use of a recognition and measurement model, the determination of whether an uncertain tax position has met those thresholds will continue to require significant judgment by management.

In accordance with the guidance on the accounting for uncertainty in income taxes, for all U.S.

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Segment Overview

Following this reorganization, we continued to have three business segments comprised of life sciences and applied markets, diagnostics and genomics and Agilent CrossLab, each of which continued to comprise a reportable segment.

All historical financial segment information has been recast to conform to this new presentation in our consolidated financial statements and accompanying notes.

There was no change to our Agilent CrossLab business segment.

Life Sciences and Applied Markets

Our life sciences and applied markets business provides application-focused solutions that include instruments, consumables and software that enable customers to identify, quantify and analyze the physical and biological properties of substances and products, as well as enable customers in the clinical and life sciences research areas to interrogate samples at the molecular and cellular level.

Key product categories include:

liquid chromatography ("LC") systems and components;

liquid chromatography mass spectrometry ("LCMS") systems;

gas chromatography ("GC") systems and components;

gas chromatography mass spectrometry ("GCMS") systems;

inductively coupled plasma mass spectrometry ("ICP-MS") instruments;

atomic absorption ("AA") instruments;

microwave plasma-atomic emission spectrometry ("MP-AES") instruments;

inductively coupled plasma optical emission spectrometry ("ICP-OES") instruments;

raman spectroscopy;

laboratory software for sample tracking;

information management and analytics;

laboratory automation and robotic systems;

dissolution testing;

vacuum pumps and measurement technologies.

Our consumables portfolio is designed to improve customer outcomes.

Most of the portfolio is vendor neutral, meaning Agilent can serve and supply customers regardless of their instrument purchase choices.

Solutions range from chemistries to supplies.

Key product categories in consumables include GC and LC columns, sample preparation products, custom chemistries, and a large selection of laboratory instrument supplies.

In November 2024, we announced a change in our organizational structure to support our market-focused, customer-centric strategy.

Our chemistries and supplies, laboratory automation, and software and informatics divisions moved from our former Life Sciences and Applied Markets segment to our Agilent CrossLab segment.

Following this re-organization, we have three business segments - Life Sciences and Diagnostics Markets, Agilent CrossLab and Applied Markets, each of which comprises a reportable segment.

All historical financial segment information has been recast to conform to this new presentation.

Life Sciences and Diagnostics Markets

Our Life Sciences and Diagnostics Markets segment is comprised of seven areas of activity.

We provide active pharmaceutical ingredients for oligo-based therapeutics as well as solutions that include reagents, instruments, software and consumables, which enable customers in the clinical and life sciences research areas to interrogate samples at the cellular and molecular level.

First, our liquid chromatography and liquid chromatography mass spectrometry businesses enable customers in the clinical and life sciences research areas to interrogate samples at the molecular and cellular level.

Second, our cell analysis business includes instruments, reagents, software, and labware associated with unique live-cell analysis platforms in addition to mainstream flow cytometers, plate-readers, and plate washers/dispensers which are used across a broad range of applications.

Third, our specialty contract development and manufacturing organization ("CDMO") business provides services related to and the production of synthesized oligonucleotides under pharmaceutical good manufacturing practices conditions for use as active pharmaceutical ingredients in a class of drugs that utilize nucleic acid molecules for disease therapy.

BIOVECTRA capabilities include microbial fermentation, bioreagents, highly potent active pharmaceutical ingredients, peptide purification and biomanufacturing capabilities in several nucleic acid modalities.

Together, our BIOVECTRA and nucleic acid solutions businesses comprise our specialty CDMO offerings to our customers providing clinical-to-commercial scale production capabilities.

Fourth, our pathology solutions business is focused on product offerings for cancer diagnostics and anatomic pathology workflows.

The broad portfolio of offerings includes immunohistochemistry, in situ hybridization, hematoxylin and eosin staining and special staining.

This business further provides clinical flow cytometry reagents for routine cancer diagnostics.

This business also provides bulk antibodies as raw materials and associated assay development services to in vitro diagnostics manufacturers, biotechnology and pharmaceutical companies.

Fifth, we also collaborate with several major pharmaceutical companies to develop new potential tissue pharmacodiagnostics, also known as companion diagnostics, which may be used to identify patients most likely to benefit from a specific targeted therapy.

Sixth, our genomics business includes reagents to support next-generation sequencing workflows and arrays.

This business also includes solutions that enable clinical labs to identify DNA variants associated with genetic disease and help direct cancer therapy.

Finally, our biomolecular analysis business provides complete workflow solutions, including instruments, consumables and software, for quality control analysis of nucleic acid samples.

Samples are analyzed using quantitative and qualitative techniques to ensure accuracy in further genomics analysis techniques including next-generation sequencing, utilized in clinical and life science research applications.

Years Ended October 31, 2025 over 2024 Change 2024 over 2023 Change

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Net revenue $ 2,726 $ 2,466 $ 2,780 11% (11)%

Life sciences and applied markets business revenue in 2024 decreased 8 percent compared to 2023.

Foreign currency movements had no overall impact on revenue growth in 2024 when compared to the same period last year.

Life Sciences and Diagnostics Markets segment revenue increased 11 percent in 2025 compared to 2024.

The overall effect of foreign currency movements had a 1 percentage point favorable impact on revenue growth in 2025 when compared to the same period last year.

Revenue from our BIOVECTRA acquisition contributed approximately 5 percentage points in 2025.

Geographically, revenue increased 16 percent in the Americas with no currency impact, increased 9 percent in Europe with a 2 percentage point favorable currency impact and increased 3 percent in Asia Pacific with a 1 percentage point unfavorable currency impact.

The revenue increase in the Americas was primarily driven by revenue from the BIOVECTRA acquisition as well as strong growth from our nucleic acid solutions, liquid chromatography, liquid chromatography mass spectrometry and companion diagnostics businesses and moderate growth from our pathology business, partially offset by declines in our cell analysis, biomolecular analysis and genomics businesses.

Revenue increased in Europe due to strong growth from our liquid chromatography, liquid chromatography mass spectrometry, pathology and companion diagnostics businesses and moderate growth in our cell analysis and genomics businesses, partially offset by a decline in our biomolecular analysis business.

Revenue increased in Asia Pacific due to strong growth from our liquid chromatography, liquid chromatography mass spectrometry and genomics businesses and moderate growth from our pathology business, partially offset by a decline in our biomolecular analysis business.

In 2025, strong revenue growth in the pharmaceutical market was mainly due to the BIOVECTRA acquisition and strong growth in our nucleic acid solutions, liquid chromatography and liquid chromatography mass spectrometry businesses.

We saw strong revenue growth in the diagnostics and clinical market led by strong growth in our companion diagnostics, biomolecular analysis, liquid chromatography and liquid chromatography mass spectrometry businesses and moderate growth in our pathology business.

Revenue in the academic and government market declined across all of our businesses.

Within the applied markets, we saw strong revenue growth primarily within the chemicals and advanced materials markets.

Life Sciences and Diagnostics Markets segment revenue in 2024 decreased 11 percent compared to 2023.

The overall effect of foreign currency movements had no impact on revenue growth in 2024 when compared to 2023.

Geographically, revenue decreased 13 percent in the Americas with no currency impact, decreased 1 percent in Europe with a 1 percentage point favorable currency impact and decreased 18 percent in Asia Pacific with a 1 percentage point unfavorable currency impact.

The revenue decline in the Americas was driven by weakness in our liquid chromatography, liquid chromatography mass spectrometry, gas chromatography mass spectrometry and gas chromatography businesses partially offset by strength in the consumables business when compared to 2023.

The revenue decline in Europe was driven by weakness in our liquid chromatography, gas chromatography, automation and gas chromatography mass spectrometry businesses partially offset by strength in the consumables business when compared to 2023.

The revenue decline in Asia Pacific was driven by lower demand in China within our liquid chromatography, liquid chromatography mass spectrometry, gas chromatography mass spectrometry and spectroscopy businesses when compared to 2023.

All end market revenue declined in 2024.

Revenue in the pharmaceutical market declined significantly due to weakness in our liquid chromatography, liquid chromatography mass spectrometry and gas chromatography businesses when compared to 2023.

Revenue in the chemicals and advanced materials market declined significantly due to weakness in our liquid chromatography, gas chromatography and liquid chromatography mass spectrometry businesses partially offset by strength in our consumables business when compared to 2023.

Revenue in the food market declined significantly due to weakness in our liquid chromatography, gas chromatography mass spectrometry and spectroscopy businesses partially offset by strength in our consumables business when compared to 2023.

Revenue in the academia and government market declined significantly due to weakness in our liquid chromatography and liquid chromatography mass spectrometry businesses when compared to 2023.

Life sciences and applied markets business revenue in 2023 decreased 3 percent compared to 2022.

Foreign currency movements for 2023 had an overall unfavorable impact on revenue growth of 2 percentage points when compared to 2022.

Geographically, revenue decreased 1 percent in the Americas with no currency impact, increased 1 percent in Europe with a 1 percentage point unfavorable currency impact and decreased 7 percent in Asia Pacific with a 3 percentage point unfavorable currency impact.

The revenue decline in the Americas was driven by weakness in our liquid chromatography mass spectrometry and liquid chromatography businesses partially offset by strength in the consumables business when compared to 2022.

The revenue growth in Europe was driven by strength in our liquid chromatography business partially offset by weakness in the liquid chromatography mass spectrometry business when compared to 2022.

The revenue decline in Asia Pacific was driven by China with weakness in our liquid chromatography, gas chromatography and gas chromatography mass spectrometry businesses partially offset by strength in the spectroscopy business when compared to 2022.

End market revenue performance in 2023 was mixed as the pharmaceutical and diagnostics and clinical markets declined significantly, environmental and forensics market declined modestly, chemicals and advance materials and food markets remained relatively flat while the academia and government market delivered strong growth when compared to 2022.

Revenue decline in the pharmaceutical market was driven by weakness in our liquid chromatography, liquid chromatography mass spectrometry and gas chromatography businesses when compared to 2022.

Revenue decline in the diagnostics and clinical market was driven by weakness in our liquid chromatography mass spectrometry business partially offset by strength in our consumables business when compared to 2022.

Revenue decline in the environmental and forensics market was driven by weakness in our gas chromatography and spectroscopy businesses partially offset by strength in our liquid chromatography business when compared to 2022.

Revenue growth in the academia and government end market was mainly driven by strength in the liquid chromatography, spectroscopy, gas chromatography and liquid chromatography mass spectrometry businesses when compared to 2022.

Looking forward, we anticipate continued and steady market recovery and are optimistic about our long-term growth opportunities in the life sciences and applied markets as our broad portfolio of products and solutions are well suited to address customer needs.

We will continue to invest in expanding and improving our applications and solutions portfolio.

The revenue decline in the Americas was primarily driven by our liquid chromatography, liquid chromatography mass spectrometry, cell analysis, genomics and nucleic acid solutions businesses.

Revenue decreased in Europe due to declines in our cell analysis business partially offset by strong performance in our pathology, genomics and biomolecular analysis businesses.

The revenue decline in Asia Pacific was driven by our liquid chromatography, liquid chromatography mass spectrometry and cell analysis businesses partially offset by increased revenue in our pathology business.

In 2024, revenue performance in the pharmaceutical market declined significantly due to our liquid chromatography, liquid chromatography mass spectrometry, specialty CDMO and cell analysis businesses which were impacted by the continuing slow availability of customer capital budgets and by unfavorable mix in our nucleic acid solutions business when compared to the same period last year.

We also saw modest revenue growth in the diagnostics and clinical markets primarily from our pathology business which was partially offset by a decline in our liquid chromatography, liquid chromatography mass spectrometry, and genomics businesses.

Revenue in the academia and government markets declined due to our liquid chromatography, liquid chromatography mass spectrometry and cell analysis businesses.

Within the applied markets, revenue declined primarily due to lower sales from our liquid chromatography and liquid chromatography mass spectrometry businesses into the chemical and advanced materials markets partially offset by revenue growth in per and polyfluoroalkyl substances ("PFAS") into the environmental market.

Looking Forward.

While the recent tariff changes adversely impacted our costs of revenue for the second half of fiscal year 2025, we expect to substantially mitigate the impact during our fiscal year 2026.

Therefore, we remain optimistic about long-term growth in our end markets and continue investing to enhance our applications and solutions portfolio.

The rising demand for several of the modalities provided by our specialty CDMO business positions us well to serve expanding customer demand.

By leveraging our liquid chromatography and liquid chromatography mass spectrometry platforms, we are driving growth across key markets and remain optimistic about long-term life sciences opportunities.

Our diagnostic and clinical markets continue to grow with the OMNIS platforms.

We will continue investing in research and development, advancing our applications and solutions portfolio, and expanding our position in developing and emerging markets

Gross Margin and Operating Margin

The following table shows the life sciences and applied markets business' margins, expenses and income from operations for 2024 versus 2023, and 2023 versus 2022.

The following table shows the Life Sciences and Diagnostics Markets segment's margins, expenses and income from operations for 2025 versus 2024, and 2024 versus 2023.

Years Ended October 31, 2025 over 2024 Change 2024 over 2023 Change

1 unchanged sentence

(in millions, except margin data)

Total gross margin 59.7 % 60.3 % 60.1 % (1) ppt.

Total gross margin 52.3 % 54.5 % 56.7 % (2) ppts.

Research and development $ 248 $ 250 $ 269 (1)% (7)%

2 unchanged sentences

Income from operations $ 536 $ 484 $ 673 11% (28)%

Gross margin decreased 1 percentage point in 2024 compared to 2023.

Gross margin was impacted by lower sales volume, unfavorable impact of currency movements and higher warranty costs which were partially offset by lower salary expense related to workforce reduction activities and shipping costs when compared to 2023.

Gross margin was flat in 2023 compared to 2022.

Gross margin was impacted by lower revenue, the unfavorable impact of currency movements, higher wages and warranty costs which were fully offset by targeted price increases, lower variable pay, logistics and materials cost.

Gross margin decreased 2 percentage points in 2025 when compared to 2024.

Gross margin was impacted mainly by increased tariffs and shipping costs, unfavorable business mix (including lower gross margin from our specialty CDMO business) and increased variable pay which was partially offset by targeted pricing increases and lower warranty expenses.

Gross margin decreased 2 percentage points in 2024 when compared to 2023.

Gross margin was impacted by lower sales volume, product mix and higher infrastructure costs which were partially offset by lower salary expense related to workforce reduction activities and expenses attributed to business exit activities.

Research and development expenses decreased 1 percent in 2025 when compared to 2024.

Research and development expenses decreased due to lower salary expense related to workforce reduction activities, lower consumables costs and depreciation expenses partially offset by the unfavorable impact of currency movements when compared to 2023.

Research and development expenses increased 2 percent in 2023 when compared to 2022.

Research and development expenses increased due to higher wages and program investments in our software and informatics business partially offset by lower variable pay.

Selling, general and administrative expenses decreased 2 percent in 2024 compared to 2023.

Selling, general and administrative expenses decreased due to lower salary expense related to workforce reduction activities, variable pay and

marketing costs when compared to 2023.

Selling, general and administrative expenses decreased 3 percent in 2023 compared to 2022.

Selling, general and administrative expenses decreased due to lower variable pay, sales commissions, and marketing expenses, and the favorable impact of currency movements when compared to 2022.

Operating margin decreased 3 percentage points in 2024 compared to 2023.

Operating margin was impacted by lower sales volume and the unfavorable impact of currency movements partially offset by lower salary expense related to workforce reduction activities, and shipping costs when compared to 2023.

Operating margin was flat in 2023 compared to 2022.

Operating margin was impacted by lower sales volume and the unfavorable impact of currency movements offset by lower variable pay and logistics costs.

Research and development expenses decreased primarily due to lower salary expenses related to workforce reduction activities partially offset by additional expenses from our BIOVECTRA acquisition and higher variable pay.

Research and development expenses decreased 7 percent in 2024 when compared to 2023.

Research and development expenses decreased primarily due to lower expenses attributed to business exit activities and salary expenses related to workforce reduction activities.

Selling, general and administrative expenses increased 5 percent in 2025 when compared to 2024.

Selling, general and administrative expenses increased due to higher allocation of corporate infrastructure expenses, additional expenses from our BIOVECTRA acquisition, higher commission, travel and variable pay expenses.

Selling, general and administrative expenses decreased 4 percent in 2024 when compared to 2023.

Selling, general and administrative expenses decreased due to lower expenses attributed to business exit activities, lower variable pay and lower salary expense related to workforce reduction activities partially offset by higher infrastructure costs.

Operating margin was relatively flat in 2025 when compared to 2024.

Operating margin was flat due to lower salary expense related to workforce reduction activities and lower warranty costs offset by increased tariffs and shipping costs, unfavorable business mix and increased variable pay.

Operating margin decreased 5 percentage points in 2024 when compared to 2023.

Operating margin decreased due to lower revenue, higher infrastructure costs and higher wages partially offset by lower variable pay and salary expense related to workforce reduction activities and expenses attributed to business exit activities.

Income from Operations

Income from operations in 2024 decreased by $172 million or 16 percent when compared to 2023 on a revenue decrease of $295 million.

Income from operations in 2025 increased by $52 million or 11 percent when compared to 2024 on a revenue increase of $260 million.

Income from operations in 2024 decreased by $189 million or 28 percent when compared to 2023 on a revenue decrease of $314 million.

Diagnostics and Genomics

Our diagnostics and genomics business includes the cell analysis, advanced manufacturing partnerships contract manufacturing and research and development, pathology, companion diagnostics, reagent partnership, genomics and biomolecular analysis businesses.

Our diagnostics and genomics business is comprised of seven areas of activity providing active pharmaceutical ingredients ("APIs") for oligo-based therapeutics as well as solutions that include reagents, instruments, software and consumables, which enable customers in the clinical and life sciences research areas to interrogate samples at the cellular and molecular level.

First, our cell analysis business includes instruments, reagents, software, and labware associated with unique live-cell analysis platforms in addition to mainstream flow cytometers, plate-readers, and plate washers/dispensers which are used across a broad range of applications.

Second, our advanced manufacturing partnerships business is a contract and development manufacturing organization that provides services related to and the production of synthesized oligonucleotides under pharmaceutical good manufacturing practices ("GMP") conditions for use as API in a class of drugs that utilize nucleic acid molecules for disease therapy.

Together, our BIOVECTRA and nucleic acid solutions businesses offer a broad range of contract and development manufacturing services to our customers.

They provide clinical-to-commercial scale production capabilities focused mainly on mRNA manufacturing.

Third, our pathology solutions business is focused on product offerings for cancer diagnostics and anatomic pathology workflows.

The broad portfolio of offerings includes immunohistochemistry ("IHC"), in situ hybridization ("ISH"), hematoxylin and eosin ("H&E") staining and special staining.

Fourth, we also collaborate with a number of major pharmaceutical companies to develop new potential tissue pharmacodiagnostics, also known as companion diagnostics, which may be used to identify patients most likely to benefit from a specific targeted therapy.

Fifth, the reagent partnership business provides clinical flow cytometry reagents for routine cancer diagnostics.

This business also provides bulk antibodies as raw materials and associated assay development services to in vitro diagnostics ("IVD") manufacturers, biotechnology and pharmaceutical companies.

Sixth, our genomics business includes arrays and next generation sequencing ("NGS").

This business also includes solutions that enable clinical labs to identify DNA variants associated with genetic disease and help direct cancer therapy.

Finally, our biomolecular analysis business provides complete workflow solutions, including instruments, consumables and software, for quality control analysis of nucleic acid samples.

Samples are analyzed using quantitative and qualitative techniques to ensure accuracy in further genomics analysis techniques including NGS, utilized in clinical and life science research applications.

Agilent CrossLab

Our Agilent CrossLab segment provides an extensive services and consumables portfolio that spans the entire lab, in addition to software and laboratory automation solutions, which are designed to improve customer outcomes and represents a broad range of offerings designed to serve customer needs across end-markets and applications.

Our services portfolio includes repairs, parts, maintenance, installations, training, compliance support, software as a service, asset management, consulting and various other custom services to support the customers' laboratory operations.

Custom services are tailored to meet the specific application needs of various industries and to keep instruments fully operational and compliant with the respective industry requirem ents.

Our consumables portfolio is designed to improve customer outcomes.

Most of the portfolio is vendor neutral, meaning we can serve and supply customers regardless of their instrument purchase choices.

Solutions range from chemistries to supplies.

Key product categories in consumables include gas chromatography and liquid chromatography columns, sample preparation products, custom chemistries, and a large selection of laboratory supplies.

Software and informatics solutions include software for instrument control, data acquisition, data analysis, secure storage of results, and laboratory information and workflow management.

This software facilitates the compliant use of instruments in pharmaceutical quality assurance and quality control environments.

The OpenLab laboratory software suite is a scalable, open software platform that enables customers to capture, analyze, and share scientific data throughout the lab and across the enterprise.

Laboratory automation offers automated sample preparation solutions, including liquid handling, plate management, consumables and scheduling software.

These solutions range from standalone automation platforms to integrated workflow solutions with seamless integration to our instrumentation.

Years Ended October 31, 2025 over 2024 Change 2024 over 2023 Change

1 unchanged sentence

(in millions)

Net revenue $ 1,651 $ 1,755 $ 1,766 (6)% (1)%

Diagnostics and genomics business revenue decreased 6 percent in 2024 compared to 2023.

Foreign currency movements for 2024 had no overall impact on revenue growth when compared to the same period last year.

Geographically, revenue decreased 10 percent in the Americas with no currency impact, increased 4 percent in Europe with a 1 percentage point favorable currency impact and decreased 11 percent in Asia Pacific with a 2 percentage point unfavorable currency impact.

revenue decline in the Americas was primarily driven by our cell analysis, genomics and nucleic acid solutions businesses.

Revenue increased in Europe due to strong performance in our pathology, genomics and biomolecular analysis businesses partially offset by a decline in our cell analysis business.

The revenue decline in Asia Pacific was driven by our cell analysis business partially offset by increased revenue in our pathology business.

In 2024, revenue performance in the pharmaceutical market declined significantly due to our cell analysis business which was impacted by the continuing slow availability of the customer capital budgets and by unfavorable mix in our nucleic acid solutions business when compared to the same period last year.

We also saw a modest revenue increase in the diagnostics and clinical markets primarily from our pathology business which was partially offset by a decline in our genomics business.

Revenue in the academia and government markets declined due to our cell analysis business.

Diagnostics and genomics business revenue in 2023 decreased 1 percent compared to 2022.

Foreign currency movements had an overall unfavorable impact on revenue growth of 2 percentage points in 2023 when compared to 2022.

Geographically, revenue decreased 1 percent in the Americas with no currency impact, increased 3 percent in Europe with a 1 percentage point unfavorable currency impact and decreased 6 percent in Asia Pacific with a 5 percentage point unfavorable currency impact.

The decrease in the Americas was driven by a decline in our genomics and cell analysis businesses which was partially offset by strong growth in our nucleic acid solutions, reagent partnership and pathology businesses.

The increase in Europe was driven by growth in our pathology, reagent partnership and cell analysis businesses.

The revenue decline in Asia Pacific was driven by our biomolecular analysis and genomics businesses and an overall weakness in China.

In 2023, the decline in revenue in the pharmaceutical market was led by our cell analysis, biomolecular analysis and genomics businesses which was partially offset by strong revenue growth in our nucleic acid solutions business.

We saw moderate revenue growth in the diagnostics and clinical markets led by our pathology, reagent partnership and cell analysis businesses when compared to 2022.

Revenue in the academia and government markets declined due to softness in our cell analysis and genomics businesses.

Looking forward, despite the challenging market conditions, we are optimistic about our long-term growth opportunities in our end markets and continue to invest in expanding and improving our applications and solutions portfolio.

We remain positive about our growth in our end markets as our product portfolio around OMNIS and PD-L1 assays continues to gain strength with our customers in clinical oncology applications, and our next generation sequencing related solutions continue to be adopted.

Market demand in the advanced manufacturing partnerships business related to therapeutic oligo programs continues, and we are well positioned to serve more of the market demand.

We will also continue to invest in research and development and seek to expand our position in developing countries and emerging markets.

Total net revenue $ 2,908 $ 2,747 $ 2,656 6% 3%

Agilent CrossLab segment revenue increased 6 percent in 2025 when compared to 2024.

The overall effect of foreign currency movements had no impact on revenue growth in 2025 when compared to 2024.

Geographically, revenue increased 4 percent in the Americas with a 1 percentage point unfavorable currency impact, increased 9 percent in Europe with a 2 percentage point favorable currency impact and increased 5 percent in Asia Pacific with a 1 percentage point unfavorable currency impact.

During the year ended October 31, 2025 , revenue growth in Americas was driven by strength in repair, maintenance and compliance services, our lab automation and consumables businesses when compared to the same period last year.

Revenue growth in Europe was driven by strength across all our businesses when compared to the same period last year.

Revenue growth in Asia Pacific was driven by higher demand within our consumables business in China and higher growth in repair, maintenance and compliance services and our software and informatics business when compared to 2024.

Agilent CrossLab segment revenue increased 3 percent in 2024 when compared to 2023.

The overall effect of foreign currency movements had a 1 percentage point unfavorable impact on revenue growth in 2024 when compared to 2023.

Geographically, revenue increased 4 percent in the Americas with a 1 percentage point unfavorable currency impact, increased 6 percent in Europe with a 2 percentage point favorable currency impact and was flat in Asia Pacific with a 2 percentage point unfavorable currency impact.

During the year ended October 31, 2024, revenue in all three regions reflected consistent high demand for repair and maintenance services and consumables across the entire portfolio.

In Americas and Europe, revenue growth was partially offset by weakness in installation service, software and informatics and lab automation revenues.

In the Asia Pacific region, weakness in installation, service and software and informatics revenue offset the revenue growth seen from repair and maintenance services and consumables.

In 2025, revenue increased significantly in the pharmaceutical, chemicals and advanced materials, food, environmental and forensics and diagnostics and clinical markets, and revenue increased modestly in the academic and government market.

Strong revenue growth in the pharmaceutical market was driven by repair, maintenance and compliance service and our consumables and lab automation businesses when compared to the same period last year.

Strong revenue growth in the chemicals and advanced materials, food, environmental and forensics and diagnostics and clinical markets was driven by repair, maintenance and compliance services and our consumables business when compared to the same period last year.

Modest revenue growth in the academic and government market was driven by repair, maintenance and compliance services and our consumables business when compared to the same period last year.

In 2024, we saw strong revenue growth in the chemicals and advanced materials, diagnostics and clinical and environmental and forensics markets, mainly driven by our services and consumables businesses, when compared to 2023.

Looking Forward.

While the recent tariff changes adversely impacted our costs of revenue in the second half of fiscal year 2025, we expect to substantially mitigate the impact during our fiscal year 2026.

Agilent CrossLab is well positioned to continue its success in our key end markets by supporting a growing installed base of instruments.

Digital and remote capabilities will continue to be a key factor in improving the service quality and the customers' experience.

Geographically, the business is well diversified across all regions to take advantage of local market opportunities and to hedge against weakness in any one region.

Gross Margin and Operating Margin

The following table shows the diagnostics and genomics business' margins, expenses and income from operations for 2024 versus 2023, and 2023 versus 2022.

The following table shows the Agilent CrossLab segment margins, expenses and income from operations for 2025 versus 2024 and 2024 versus 2023.

Years Ended October 31, 2025 over 2024 Change 2024 over 2023 Change

7 unchanged sentences

Gross margin decreased 1 percentage point in 2025 when compared to 2024.

Gross margin was impacted by lower sales volume and higher infrastructure costs which were partially offset by lower salary expense related to workforce reduction activities and expenses attributed to business exit activities.

Gross margin decreased 2 percentage points in 2023 when compared to 2022.

Gross margin decreased due to volume decline in our cell analysis and genomics businesses resulting in unfavorable business mix.

Gross margin was also impacted by the unfavorable impact of currency movements, higher wages and infrastructure costs partially offset by lower variable pay.

Research and development expenses decreased 9 percent in 2024 when compared to 2023.

Research and development expenses decreased primarily due to lower expenses attributed to business exit activities and salary expenses related to workforce reduction activities.

Gross margin was impacted by higher tariffs and shipping costs, higher wages and variable pay partially offset by higher sales volume and targeted price increases.

Gross margin increased 2 percentage points in 2024 when compared to 2023.

Gross margin was impacted by targeted price increases, well-controlled variable costs, and l ower salary expense related to workforce reduction activities .

Research and development expenses were relatively flat in 2025 when compared to 2024.

Research and development expenses were flat primarily due to lower salary expenses related to workforce reduction activities partially offset by higher variable pay.

Research and development expenses increased 2 percent in 2024 when compared to 2023.

Research and development expenses increased due to higher wages, additional expenses related to a recent acquisition and higher infrastructure costs.

Selling, general and administrative expenses decreased 3 percent in 2024 when compared to 2023.

Selling, general and administrative expenses decreased due to lower expenses attributed to business exit activities and lower salary expense related to workforce reduction activities partially offset by higher infrastructure costs.

Selling, general and administrative expenses decreased 3 percent in 2023 when compared to 2022.

Selling, general and administrative expenses decreased due to lower variable pay, the favorable impact of currency movements and lower infrastructure costs.

Operating margin decreased 1 percentage point in 2024 when compared to 2023.

Operating margin decreased due to lower revenue, higher infrastructure costs and higher wages partially offset by lower salary expense related to workforce reduction activities and expenses attributed to business exit activities.

Research and development expenses i ncreased due to higher wages and program investments in our software and informatics business partially offset by lower salary expense related to workforce reduction activities.

Selling, ge neral and administrative expenses increased 5 percent in 2025 when compared to 2024.

Selling, general and administrative expenses increased due to a higher allocation of corporate infrastructure expenses and higher variable pay partially offset by lower salary expenses related to workforce reduction activities when compared to the same period in 2024.

Selling, general and administrative expenses increased 1 percent in 2024 when compared to 2023.

The increase was due to higher commissions partially offset by lower travel expenses and other discretionary spending and salary expense related to workforce reduction activities.

Operating margin decreased 1 percentage point in 2025 when compared to 2024.

The decrease in operating margin resulted from lower gross margins, the unfavorable impact of currency movements and additional costs related to a recent acquisition partially offset by lower variable pay.

Operating margin was impacted by higher tariffs and shipping costs, higher wages, variable pay and higher corporate infrastructure expenses partially offset by higher sales volume and targeted price increases when compared to 2024.

O perating margin increased 2 percentage points in 2024 when compared to 2023.

Operating margin i ncreased mostly driven by targeted price increases, well controlled variable costs and lower salary expense related to workforce reduction activities.

Income from Operations

Income from operations in 2024 decreased by $43 million or 12 percent when compared to 2023 on a revenue decrease of $104 million.

Income from operations in 2023 decreased by $27 million or 7 percent when compared to 2022 on a revenue decrease of $11 million.

Agilent CrossLab

The Agilent CrossLab business spans the entire lab with its extensive services portfolio, which is designed to improve customer outcomes and represents a broad range of offerings designed to serve customer needs across end-markets and regardless of instrument manufacturer.

The services portfolio includes repairs, parts, maintenance, installations, training, compliance support, software as a service, asset management, consulting and various other custom services to support the customers' laboratory operations.

Custom services are tailored to meet the specific application needs of various industries and to keep instruments fully operational and compliant with the respective industry requirements.

Income from operations in 2025 increased by $21 million or 2 percent when compared to 2024 on a revenue increase of $161 million.

Income from operations in 2024 increased by $86 million or 10 percent when compared to 2023 on a revenue increase of $91 million.

Applied Markets

Our Applied Markets segment provides application-focused solutions that include instruments and software that enable customers to identify, quantify and analyze the physical and biological properties of substances and products.

Our gas chromatography and gas chromatography mass spectrometry businesses enable customers to perform a wide variety of testing including measuring volatile and semi-volatile contaminants to assess the safety of our foods, quality of water and consumer products while also enabling testing of fuels and purity of chemicals.

Our inductively coupled plasma mass spectrometry, inductively coupled plasma optical emission spectrometry, atomic absorption and microwave plasma-atomic emission spectrometry instruments are vital for our customers to measure metals and elemental signatures in their samples and find uses in the food safety, environmental quality, chemicals manufacture, advanced materials, energy and forensics markets.

Our molecular spectroscopy business including the raman, fluorescence and infrared spectroscopy instruments offer both in-field and in-lab testing solutions in a diverse variety of applications including airport security, explosives testing, narcotics, food quality and chemical characterization.

Our vacuum business develops cutting edge products and technologies to test vacuum environments and find uses in a diverse variety of industries including semi-conductor, batteries, chemical manufacturing and advanced materials development.

Finally, our remarketed instruments business refurbishes and resells certified pre-owned instruments to value-oriented customers who would like Agilent quality and performance at a budget conscious price.

Years Ended October 31, 2025 over 2024 Change 2024 over 2023 Change

1 unchanged sentence

(in millions)

Total net revenue $ 1,644 $ 1,568 $ 1,452 5% 8%

Agilent CrossLab business revenue increased 5 percent in 2024 when compared to 2023.

Foreign currency movements for 2024 had no overall impact on revenue growth when compared to 2023.

Geographically, revenue increased 6 percent in the Americas with no currency impact, increased 8 percent in Europe with a 2 percentage point favorable currency impact and was flat in Asia Pacific with a 2 percentage point unfavorable currency impact.

During the year ended October 31, 2024 , revenue in all three regions reflected consistent high demand for repair and maintenance services across the entire portfolio.

In Americas and Europe, revenue growth was partially offset by weakness in installation revenue.

In the Asia Pacific region the weakness in installation revenue offset the revenue growth seen from repair and maintenance services.

Agilent CrossLab business revenue increased 8 percent in 2023 when compared to 2022.

Foreign currency movements had an overall unfavorable impact on revenue growth of 2 percentage points in 2023 when compared to 2022.

Geographically, revenue increased 12 percent in the Americas with a 1 percentage point favorable currency impact, increased 10 percent in Europe with no currency impact and increased 3 percent in Asia Pacific with a 5 percentage point unfavorable currency impact.

During the year ended October 31, 2023, revenue growth in all three regions was driven by contract repair services, per-incident repair services and consultative services, with installation related service in China partially offsetting the overall growth in Asia Pacific.

In 2024, we saw strong revenue growth in the environmental and forensics, diagnostics and clinical and pharmaceutical markets, mainly driven by our spectroscopy, gas chromatography and liquid chromatography businesses, when compared to the same period last year.

In 2023, we saw strong revenue growth in the pharmaceutical, academia and government, diagnostics and clinical and chemical and advanced materials markets, mainly driven by our spectroscopy, liquid and gas chromatography mass spectrometry and liquid chromatography businesses when compared to the same period the previous year.

Looking forward, Agilent CrossLab services are well positioned to continue their success in our key end markets by supporting a growing installed base of instruments.

Digital and remote capabilities will continue to be a key factor in improving the service quality and the customers' experience.

Geographically, the business is well diversified across all regions to take advantage of local market opportunities and to hedge against weakness in any one region.

Net revenue $ 1,314 $ 1,297 $ 1,397 1% (7)%

Our Applied Markets segment revenue in 2025 increased 1 percent compared to 2024.

The overall effect of foreign currency movements had a 1 percentage point unfavorable impact on revenue growth in 2025 when compared to the same period last year.

Geographically, revenue increased 1 percent in the Americas with a 1 percentage point unfavorable currency impact, increased 6 percent in Europe with a 1 percentage point favorable currency impact and decreased 1 percent in Asia Pacific with no currency impact.

Revenue growth in the Americas was driven by strength in our gas chromatography business partially offset by weakness in the vacuum business when compared to the same period last year.

The revenue growth in Europe was driven by strength in our gas chromatography, vacuum and spectroscopy businesses when compared to the same period last year.

The revenue decline in Asia Pacific was driven by lower demand in China within our gas chromatography, spectroscopy and vacuum businesses partially offset by strength in the gas chromatography mass spectrometry and remarketed instruments businesses in China when compared to the same period last year.

In 2025, revenue increased significantly in the food and pharmaceutical markets and increased moderately in the environmental and forensics market partially offset by significant revenue decline in the academic and government market and modest revenue decline in the chemicals and advanced materials market when compared to the same period last year.

Strong revenue growth in the food market was driven by strength in our gas chromatography mass spectrometry, gas chromatography, and remarketed instruments businesses when compared to the same period last year.

Strong revenue growth in the pharmaceutical market was driven by strength across all businesses when compared to the same period last year.

Moderate revenue growth in the environmental and forensics market was driven by strength in our spectroscopy and vacuum businesses partially offset by weakness in our gas chromatography mass spectrometry business when compared to the same period last year.

Revenue declined significantly in the academic and government market due to weakness in our gas chromatography, gas chromatography mass spectrometry and remarketed instruments businesses when compared to the same period last year.

Revenue declined modestly in the chemicals and advanced materials market due to weakness in our vacuum and spectroscopy businesses partially offset by strength in our gas chromatography mass spectrometry, gas chromatography and remarketed instruments businesses when compared to the same period last year.

Our Applied Markets segment revenue in 2024 decreased 7 percent compared to 2023.

The overall effect of foreign currency movements had no impact on revenue growth in 2024 when compared to 2023.

Geographically, revenue decreased 7 percent in the Americas with no currency impact, decreased 6 percent in Europe with a 1 percentage point favorable currency impact and decreased 8 percent in Asia Pacific with a 1 percentage point unfavorable currency impact.

The revenue decline in

the Americas was driven by weakness in our gas chromatography mass spectrometry and gas chromatography businesses when compared to 2023.

The revenue decline in Europe was driven by weakness in our gas chromatography, gas chromatography mass spectrometry and vacuum businesses partially offset by strength in the remarketed instruments business when compared to 2023.

The revenue decline in Asia Pacific was driven by lower demand in China within our gas chromatography mass spectrometry, spectroscopy and gas chromatography businesses partially offset by strength in the remarketed instruments business when compared to 2023.

End market revenue performance in 2024 declined in most of our end markets when compared to 2023.

Revenue in the chemicals and advanced materials market declined significantly due to weakness in our gas chromatography, gas chromatography mass spectrometry and vacuum businesses when compared to 2023.

Revenue in the food market declined significantly due to weakness in our gas chromatography mass spectrometry and spectroscopy businesses partially offset by strength in our remarketed instruments business when compared to 2023.

Revenue in the environmental and forensics market declined significantly due to weakness in our gas chromatography mass spectrometry, spectroscopy and gas chromatography businesses when compared to 2023.

Revenue in the pharmaceutical market declined significantly due to weakness in our gas chromatography and gas chromatography mass spectrometry businesses partially offset by strength in our remarketed instruments business when compared to 2023.

Looking Forward .

While the recent tariff changes adversely impacted our costs of revenue in the second half of fiscal year 2025, we expect to substantially mitigate the impact during our fiscal year 2026.

We also anticipate continued market recovery and are optimistic about our long-term growth opportunities in the applied markets as our broad portfolio of products and solutions are well suited to address customer needs.

We will continue to invest in expanding and improving our application-focused solutions that include instruments and software.

Gross Margin and Operating Margin

The following table shows the Agilent CrossLab business' margins, expenses and income from operations for 2024 versus 2023 and 2023 versus 2022.

The following table shows the Applied Markets segment margins, expenses and income from operations for 2025 versus 2024, and 2024 versus 2023.

Years Ended October 31, 2025 over 2024 Change 2024 over 2023 Change

1 unchanged sentence

(in millions, except margin data)

Total gross margin 50.9 % 49.3 % 47.6 % 2 ppts.

Total gross margin 54.4 % 55.2 % 56.0 % (1) ppt.

Research and development $ 93 $ 94 $ 100 (1)% (6)%

Selling, general and administrative $ 321 $ 311 $ 319 3% (3)%

Operating margin 31.9 % 29.5 % 25.5 % 2 ppts.

Operating margin 22.9 % 24.0 % 26.0 % (1) ppt.

Income from operations $ 301 $ 312 $ 363 (4)% (14)%

Gross margin increased 2 percentage points in 2024 when compared to 2023.

Gross margin was impacted by targeted price increases and well-controlled variable service delivery costs, offset by higher wages.

Gross margin increased 2 percentage points in 2023 when compared to 2022.

Gross margin was impacted by higher sales volume, targeted price increases and lower variable pay that improved margins, which were partially offset by higher wages, service delivery costs for logistics and parts and the unfavorable impact of currency movements.

Gross margin decreased 1 percentage point in 2025 compared to 2024.

Gross margin was impacted by higher tariffs and shipping costs, higher variable pay, and the unfavorable impact of currency movements partially offset by lower warranty cost and higher sales volume when compared to 2024.

Gross margin decreased 1 percentage point in 2024 compared to 2023.

Research and development expenses decreased 1 percent in 2025 when compared to 2024.

Research and development expenses decreased due to lower salary expense related to workforce reduction activities.

Research and development expenses increased 2 percent in 2023 when compared to 2022.

Research and development expenses increased due to higher wages, partially offset by lower variable pay and the favorable impact of currency movements.

Selling, general and administrative expenses increased 2 percent in 2024 when compared to 2023.

Selling, general and administrative expenses increased due to higher commissions partially offset by lower travel expenses and other discretionary spending and salary expense related to workforce reduction activities.

Selling, general and administrative expenses decreased 4 percent in 2023 when compared to 2022.

The decrease was primarily due to lower variable pay and a favorable impact of currency movements partially offset by higher wages.

Operating margin increased 2 percentage points in 2024 when compared to 2023.

Operating margin i ncreased mostly driven by targeted price increases, lower service delivery costs and salary expense related to workforce reduction activities.

Operating margin increased 4 percentage points in 2023 when compared to 2022.

Operating margin increased mostly due to higher sales volume, targeted price increases and lower variable pay that improved margins in addition to a reduction in expenses.

Research and development expenses decreased due to lower salary expenses related to workforce reduction activities partially offset by higher consumables costs and higher variable pay when compared to 2024.

Research and development expenses decreased 6 percent in 2024 when compared to 2023.

Research and development expenses decreased due to lower salary expense related to workforce reduction activities and lower consumables costs when compared to 2023.

Selling, general and administrative expenses increased 3 percent in 2025 compared to 2024.

Selling, general and administrative expenses decreased 3 percent in 2024 compared to 2023.

Selling, general and administrative expenses decreased due to lower salary expense related to workforce reduction activities and variable pay when compared to 2023.

Operating margin decreased 1 percentage point in 2025 compared to 2024.

Operating margin was impacted by higher tariffs and shipping costs, higher variable pay and the unfavorable impact of currency movements partially offset by lower warranty cost, lower salary expenses related to workforce reduction activities and higher sales volume when compared to 2024.

Operating margin decreased 2 percentage points in 2024 compared to 2023.

Income from Operations

Income from operations in 2024 increased by $61 million or 13 percent when compared to 2023 on a revenue increase of $76 million.

Income from operations in 2023 increased by $93 million or 25 percent when compared to 2022 on a revenue increase of $116 million.

Income from operations in 2025 decreased by $11 million or 4 percent when compared to 2024 on a revenue increase of $17 million.

Income from operations in 2024 decreased by $51 million or 14 percent when compared to 2023 on a revenue decrease of $100 million.

Financial Condition

8 unchanged sentences

Net cash paid for income taxes was approximately $318 million in 2025 compared to income taxes paid of $314 million in 2024 and $199 million, in 2023.

For the years ended October 31, 2024, 2023 and 2022, other assets and liabilities used cash of $49 million, provided cash of $47 million and used cash of $8 million, respectively.

In 2024, accounts receivable provided cash of $7 million, compared to cash provided of $132 million in 2023, and cash used of $321 million in 2022.

For the years ended October 31, 2025, 2024 and 2023, other assets and liabilities provided cash of $30 million, used cash of $49 million and provided cash of $47 million, respectively.

In 2025, accounts receivable used cash of $149 million, compared to cash provided of $7 million in 2024, and cash provided of $132 million in 2023.

Days' sales outstanding as of October 31, were 72 days in 2025, 70 days in 2024 and 69 days in 2023.

In 2024, the decrease in cash provided by accounts receivable was primarily due to lower collectible sales compared to 2023.

In 2023 cash provided in accounts receivable was driven by stronger collections compared to 2022.

The change in accounts payable provided cash of $103 million in 2024, used cash of $171 million in 2023 and provided cash of $121 million in 2022.

In 2024 the change was mainly due to less expenditures for direct materials as we continued optimizing our inventory levels and to timing of payments.

Cash provided by inventory was $34 million in 2024 compared to cash used of $33 million in 2023 and cash used of $248 million in 2022.

The use of cash from accounts receivable in 2025 was primarily due to strong revenue growth late in the year, which resulted in higher receivable balances and an increase in days’ sales outstanding compared to the prior year.

The change in accounts payable provided cash of $16 million in 2025, provided cash of $103 million in 2024 and used cash of $171 million in 2023.

The lower cash inflow in 2025 was mainly due to higher inventory purchases related to tariff mitigation and the timing of payments.

Cash used for inventory was $97 million in 2025 compared to cash provided of $34 million in 2024 and cash used of $33 million in 2023.

Inventory days on-hand decreased to 106 days in 2025 compared to 111 days in 2024 and 120 days in 2023.

The employee compensation and benefits liability used cash of $12 million in 2024 compared to cash used of $91 million in 2023 and cash used of $22 million in 2022.

The employee compensation and benefits liability provided cash of $69 million in 2025 compared to cash used of $12 million in 2024 and cash used of $91 million in 2023.

The change in 2025 was primarily due to higher accruals for variable and incentive pay programs compared to 2024 as well as an increase in the employee flexible time off liability.

In 2024, the change was largely due to a decrease in variable and incentive pay compared to 2023.

In 2023, the change was largely due to a lower accrual for variable pay compared to 2022.

We paid approximately $98 million in 2025 under our variable and incentive pay programs compared to $105 million in 2024 and $185 million in 2023.

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defined benefit plans are generally funded ratably throughout the year.

Our annual contributions are highly dependent on the relative performance of our assets versus our projected liabilities, among other factors.

Our annual contributions are highly dependent on the relative performance of our assets versus our

projected liabilities, among other factors.

We do not expect to contribute to our U.S.

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Some of our investment may be eligible to qualify for reimbursement incentives, which will not fully be known until the expansion is substantially complete.

In 2024, we invested $862 million primarily for our acquisition of BIOVECTRA and one other acquisition compared to $51 million for two acquisitions in 2023 and $52 million for our acquisition of Polymer Standards Service and advanced artificial intelligence technology in 2022.

In 2025, we received net cash of $4 million primarily related to a measurement period adjustment from our BIOVECTRA acquisition compared to $862 million cash used primarily for our acquisition of BIOVECTRA and one other acquisition in 2024 and $51 million for two acquisitions in 2023.

In 2023, proceeds from the divestiture of our Resolution Bioscience business were $50 million.

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Treasury Stock Repurchases.

In 2024, we repurchased and retired 8.4 million shares for $1,150 million, excluding excise tax liability of approximately $10 million compared to repurchases in 2023 of 4.6 million shares for $575 million, excluding excise tax liability of approximately $3 million which was paid in 2024 and 8.4 million shares for $1,139 million, in 2022.

In 2025, we repurchased and retired 3.4 million shares for $425 million, excluding excise tax liability of approximately $3 million compared to repurchases in 2024 of 8.4 million shares for $1,150 million, excluding excise tax liability of approximately $10 million which was paid in 2025 and repurchases in 2023 of 4.6 million shares for $575 million, excluding excise tax liability of approximately $3 million, which was paid in 2024.

The activity of our repurchases and remaining authorization by repurchase program follows:

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Shares Cost Shares Cost Shares Cost Authorization

Repurchase Program (in millions)

Repurchase Program (in millions) (in billions)

2021 Repurchase program — $ — — $ — 0.7 $ 99 $ —

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Total 3.4 $ 425 8.4 $ 1,150 4.6 $ 575

The 2024 repurchase program authorizes the purchase of up to $2.0 billion, excluding excise taxes, of our common stock at the company's discretion and has no fixed termination date.

The 2024 repurchase program does not require the company to acquire a specific number of shares and may be suspended, amended or discontinued at any time.

The 2024 repurchase program became effective on August 1, 2024 and will commence upon the termination of our 2023 repurchase program.

For the years ended October 31, 2025, 2024 and 2023, cash dividends of $282 million, $274 million and $265 million were paid on the company's outstanding common stock, respectively.

On November 20, 2024, we declared a quarterly dividend of $0.248 per share of common stock, or approximately $71 million which will be paid on January 22, 2025 to shareholders of record as of the close of business on December 31, 2024.

On November 19, 2025, we declared a quarterly dividend of $0.255 per share of common stock, or approximately $72 million which will be paid on January 28, 2026 to shareholders of record as of the close of business on January 6, 2026.

The timing and amounts of any future dividends are subject to determination and approval by our board of directors.

Short-term Debt

Short-term and Long-term Debt

Credit Facilities.

On June 7, 2023, we entered into a new credit agreement with a group of financial institutions which provides for a $1.5 billion five-year unsecured credit facility that will expire on June 7, 2028, and an incremental revolving credit facility in an aggregate amount of up to $750 million.

During 2024, we made no borrowings or repayments under these credit facilities compared to $360 million borrowed and repaid in 2023 and no borrowings or repayments in 2022.

On June 2, 2023, we entered into an Uncommitted Money Market Line Credit agreement with Societe Generale which provides for an aggregate borrowing capacity of $300 million.

During the years ended October 31, 2025 and 2024, we made no borrowings or repayments under these credit facilities.

As of both October 31, 2025 and 2024, we had no borrowings outstanding under either the credit facility or the incremental revolving credit facility.

On June 2, 2023, we entered into an Uncommitted Money Market Line Credit agreement with Societe Generale which

provides for an aggregate borrowing capacity of $300 million.

The credit facility is an uncommitted short-term cash advance facility where each request must be at least $1 million.

The interest rate is set by the lender at the time of the borrowing and is fixed for the duration of the advance.

During 2024, we borrowed and repaid $215 million under this credit facility compared to $61 million borrowed and repaid in 2023.

As of October 31, 2024, we had no borrowings outstanding under the credit facility.

During the year ended October 31, 2025, we made no borrowings or repayments under this credit facility.

During the year ended October 31, 2024, we borrowed and repaid $215 million under this credit facility.

As of October 31, 2025 and 2024, we had no borrowings outstanding under the credit facility.

We were in compliance with the covenants for the credit facilities during the year ended October 31, 2025.

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The proceeds from issuances under the program may be used for general corporate purposes.

During 2024, we borrowed $1.19 billion and repaid $1.15 billion compared to $1.67 billion borrowed and $1.70 billion repaid in 2023, and $1.29 billion borrowed and $1.26 billion repaid in 2022.

As of October 31, 2024, we had $40 million borrowings outstanding under our U.S.

commercial paper program and had a weighted average annual interest rate of 4.92 percent.

Other Loans .

In September 2024, we completed the BIOVECTRA acquisition and assumed two interest-free loans from the Strategic Innovation Fund ("SIF") in the amount of $20 million with $2 million recorded at fair value in short-term debt.

The loans are repayable in quarterly and yearly installments at a weighted average imputed interest rate of 4.7 percent.

In addition, we assumed two interest-free loans with the Atlantic Canada Opportunities Agency (“ACOA”) in the amount of $4 million with $3 million recorded at fair value in short-term debt.

The loans are repayable in monthly installments at a weighted average imputed interest rate of 4.5 percent.

Long-term Debt

During the year ended October 31, 2025, we borrowed $1.39 billion and repaid $1.43 billion under our U.S.

commercial paper program.

During the year ended October 31, 2024, we borrowed $1.19 billion and repaid $1.15 billion under our U.S.

commercial paper program.

As of October 31, 2025, we had no borrowings outstanding under our U.S.

commercial paper program .

As of October 31, 2024 , we had borrowings of $40 million outstanding under our U.S.

commercial paper program and had a weighted average interest rate of 4.92 percent.

In connection with the BIOVECTRA acquisition, we have two interest-free loans from the Strategic Innovation Fund ("SIF").

The loans are repayable in quarterly and yearly installments through 2040 at a weighted average imputed interest rate of 4.7 percent.

In addition, we have two interest-free loans with the Atlantic Canada Opportunities Agency ("ACOA").

The loans are repayable in monthly installments through 2029 at a weighted average imputed interest rate of 4.5 percent.

As of October 31, 2025 and 2024, the current portion of these loans of $4 million and $5 million, respectively, was recorded in short-term debt.

As of October 31, 2025 and 2024, the non-current portion of these loans of $20 million (including additional draw and measurement period adjustment) and $19 million, respectively, was recorded in long-term debt.

In 2024, proceeds from the issuance of long-term debt of $1,197 million related to the issuance of our 2027 and 2034 senior notes.

Repayments of long-term debt of $600 million related to the full payment of the outstanding principal amount of our term loan.

In 2022, we used the proceeds of $600 million from the term loan facility and repaid the $600 million outstanding aggregate principal amount of our 3.875% 2023 senior notes.

The total redemption price of approximately $609 million was computed in accordance with the terms of the 2023 senior notes as the present value of the remaining scheduled payments of principal and unpaid interest on the notes being redeemed.

In addition, $7 million of accrued interest, up to but not including the applicable redemption date, was paid.

Term Loan Facility.

On April 15, 2022, we entered into a term loan agreement with a group of financial institutions, which provided for a $600 million delayed draw term loan that will mature on April 15, 2025.

Loans under the term loan agreement bear interest, at our option, either at:

(i) the alternate base rate, as defined in the term loan agreement, plus the applicable margin for such loans or (ii) adjusted term SOFR, as defined in the term loan agreement, plus the applicable margin for such loans.

As of October 31, 2024, the term loan facility was terminated.

In September 2024, we completed the BIOVECTRA acquisition and assumed two interest-free loans from the Strategic Innovation Fund ("SIF") in the amount of $20 million with $18 million recorded at fair value in long-term debt.

The loans are repayable in quarterly and yearly installments through 2040 at a weighted average imputed interest rate of 4.7 percent.

In addition, we assumed two interest-free loans with the Atlantic Canada Opportunities Agency (“ACOA”) in the amount of $4 million with $1 million recorded at fair value in long-term debt.

The loans are repayable in monthly installments through 2029 at a weighted average imputed interest rate of 4.5 percent.

Senior Notes .

In 2025, we reclassified our 2026 senior notes to short-term debt.

All outstanding senior notes listed below are unsecured and rank equally in right of payment with all of our other senior unsecured indebtedness.

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Other loans - BIOVECTRA 4 5 3 11

Commercial paper 40 — — —

Interest expense 107 169 131 124

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Of these amounts, $28 million and $64 million related to uncertain tax positions as of October 31, 2025 and October 31, 2024, respectively.

We are unable to accurately predict when these amounts

will be realized or released.

We are unable to accurately predict when these amounts will be realized or released.

However, it is reasonably possible that there could be significant changes to our unrecognized tax benefits in the next twelve months due to either the expiration of a statute of limitations or a tax audit settlement.

As of October 31, 2024, the remaining $51 million included in other long-term liabilities relates to the U.S.

transition tax payment which is due within the next two years.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis