Agilent Technologies A · USD

SEGMENT INFORMATIONOur President and Chief Executive Officer is the chief operating decision maker ("CODM"). The three operating segments were determined based primarily on how the CODM views and evaluates our operations. The CODM uses segment net revenue and income from operations to assess the performance of the segments by reviewing budget to actual variances on a monthly basis. The CODM also uses segment net revenue and income from operations when making decisions about allocating capital and personnel resources predominantly during the annual strategic planning process. The CODM does not evaluate the segments using asset or liability information.Description of Segments. We are 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. 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.A description of our three reportable segments is as follows: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.

REVENUEThe following table presents the company’s total revenue and segment revenue disaggregated by geographical region: Life Sciences and Diagnostics MarketsAgilent CrossLabApplied MarketsTotal(in millions)Year Ended October 31, 2025:Americas$1,337 $1,095 $374 $2,806 Europe786 811 326 1,923 Asia Pacific603 1,002 614 2,219 Total$2,726 $2,908 $1,314 $6,948 Year Ended October 31, 2024:Americas$1,157 $1,048 $368 $2,573 Europe723 741 306 1,770 Asia Pacific586 958 623 2,167 Total$2,466 $2,747 $1,297 $6,510 Year Ended October 31, 2023:Americas$1,333 $1,003 $396 $2,732 Europe729 701 324 1,754 Asia Pacific718 952 677 2,347 Total$2,780 $2,656 $1,397 $6,833 The following table presents the company’s total revenue disaggregated by end markets and by revenue type: Years Ended October 31,202520242023(in millions)Revenue by End MarketsPharmaceutical and Biopharmaceutical$2,507 $2,242 $2,433 Chemicals and Advanced Materials1,561 1,495 1,543 Diagnostics and Clinical1,029 964 966 Food637 592 628 Academia and Government540 567 601 Environmental and Forensics674 650 662 Total$6,948 $6,510 $6,833 Revenue by TypeInstrumentation$2,427 $2,354 $2,742 Non-instrumentation and other4,521 4,156 4,091 Total$6,948 $6,510 $6,833 Revenue by region is based on the ship to location of the customer. Revenue by end market is determined by the market indicator of the customer and by customer type. Instrumentation revenue includes sales from instruments, remarketed instruments and third-party products. Non-instrumentation and other revenue include sales from contract and per incident services, our companion diagnostics and our nucleic acid solutions businesses as well as sales from spare parts, consumables, reagents, vacuum pumps, subscriptions, software licenses and associated services.Contract BalancesContract Assets Contract assets (unbilled accounts receivable) primarily relate to the company's right to consideration for work completed but not billed at the reporting date. The unbilled receivables are reclassified to trade receivables when billed to customers. Contract assets are generally classified as current assets and are included in "Accounts receivable, net" in the consolidated balance sheet. The balances of contract assets as of October 31, 2025 and 2024, were $329 million and $247 million, respectively.

18. COMMITMENTS AND CONTINGENCIESOther Purchase Commitments. Typically, we can cancel contracts with professional services suppliers without penalties. For those contracts that are not cancelable without penalties, there are termination fees and costs or commitments for continued spending that we are obligated to pay to a supplier under each contract's termination period before such contract can be cancelled. Our contractual obligations with these suppliers under "other purchase commitments" were approximately $146 million. Contingencies: We are involved in lawsuits, claims, investigations and proceedings, including, but not limited to, intellectual property, commercial, real estate, environmental and employment matters, which arise in the ordinary course of business. There are no matters pending that we currently believe are reasonably possible of having a material impact to our business, consolidated financial condition, results of operations or cash flows.

LONG-TERM DEBTSenior NotesThe following table summarizes the company's long-term senior notes: October 31, 2025October 31, 2024 AmortizedPrincipalAmortizedPrincipal (in millions)2026 Senior Notes$— $299 2027 Senior Notes597 596 2029 Senior Notes497 496 2030 Senior Notes498 497 2031 Senior Notes845 845 2034 Senior Notes593 593 Total Senior Notes$3,030 $3,326 2026 Senior NotesOn September 22, 2016, we issued aggregate principal amount of $300 million in senior notes ("2026 senior notes"). The 2026 senior notes were issued at 99.624% of their principal amount. The notes will mature on September 22, 2026 and bear interest at a fixed rate of 3.05% per annum. The interest is payable semi-annually on March 22nd and September 22nd of each year and payments commenced March 22, 2017. In 2025, we reclassified the 2026 senior notes to short-term debt.In February 2016, we executed three forward-starting pay fixed/receive variable interest rate swaps for the notional amount of $300 million in connection with future interest payments to be made on our 2026 senior notes issued on September 15, 2016. The swap arrangements were terminated on September 15, 2016 with a payment of $10 million, and we recognized this as a deferred loss in accumulated other comprehensive income (loss) which is being amortized to interest expense over the life of the 2026 senior notes. The remaining loss to be amortized related to the interest rate swap agreements at October 31, 2025 was $1 million. 2027 Senior NotesOn 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 commenced on March 9, 2025. 2029 Senior NotesOn September 16, 2019, we issued an aggregate principal amount of $500 million in senior notes ("2029 senior notes"). The 2029 senior notes were issued at 99.316% of their principal amount. The notes will mature on September 15, 2029, and bear interest at a fixed rate of 2.75% per annum. The interest is payable semi-annually on March 15th and September 15th of each year and payments commenced on March 15, 2020.

SHORT-TERM DEBTCredit FacilitiesOn 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. The credit facility replaced the existing credit facility which was terminated on the closing date of the new facility. During the year 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 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.Commercial PaperUnder our U.S. commercial paper program, we may issue and sell unsecured, short-term promissory notes in the aggregate principal amount not to exceed $1.5 billion with up to 397-day maturities. At any point in time, the company intends to maintain available commitments under its revolving credit facility in an amount at least equal to the amount of the commercial paper notes outstanding. Amounts available under the program may be borrowed, repaid and re-borrowed from time to time. The proceeds from issuances under the program may be used for general corporate purposes. 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.

INCOME TAXES The domestic and foreign components of income before taxes are: Years Ended October 31, 202520242023 (in millions)U.S. operations$292 $391 $614 Non-U.S. operations1,143 1,130 725 Total income before taxes$1,435 $1,521 $1,339 The provision for income taxes is comprised of: Years Ended October 31, 202520242023 (in millions)U.S. federal taxes: Current$103 $182 $117 Deferred(105)(104)(84)Non-U.S. taxes: Current148 87 26 Deferred(16)60 38 State taxes, net of federal benefit: Current11 27 12 Deferred(9)(20)(10)Total provision for income taxes$132 $232 $99 The differences between the U.S. federal statutory income tax rate and our effective tax rate are: Years Ended October 31, 202520242023 (in millions)Profit before tax times statutory rate$301 $319 $281 State income taxes, net of federal benefit3 7 2 Non-U.S. income taxed at different rates(40)(14)20 Change in unrecognized tax benefits(37)(8)(35)Foreign-derived intangible income deduction(29)(47)(41)Realized loss on divestiture of business— — (104)Intra-entity transfer of assets(57)— — Other, net(9)(25)(24)Provision (benefit) for income taxes$132 $232 $99 Effective tax rate9.2 %15.3 %7.4 %For 2025, our income tax expense was $132 million with an effective tax rate of 9.2 percent. 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. For the year ended October 31, 2023, our effective tax rate and the resulting provision for income taxes were impacted by the federal tax benefit of $104 million related to the realized loss on the divestiture of a business.

SHARE-BASED COMPENSATIONAgilent accounts for share-based awards in accordance with the provisions of the accounting guidance which requires the measurement and recognition of compensation expense for all share-based payment awards made to our employees and directors including restricted stock units, employee stock options, employee stock purchases made under our employee stock purchase plan and performance share awards granted to selected members of our senior management under the long-term performance plan ("LTPP") based on estimated fair values. Description of Share-Based PlansEmployee Stock Purchase Plan. Effective May 1, 2020, we adopted the 2020 Employee Stock Purchase Plan ("ESPP") which replaced our previous Employee Stock Purchase Plan. The ESPP allows eligible employees to contribute up to 10 percent of their base compensation to purchase shares of our common stock at 85 percent of the closing market price at purchase date. There are 31 million shares authorized for issuance in connection with the ESPP.Under our ESPP, employees purchased 566,815 shares for $57 million in 2025, 576,467 shares for $58 million in 2024 and 487,735 shares for $57 million in 2023. As of October 31, 2025, the number of shares of common stock authorized and available for issuance under our ESPP was 23,234,771. This includes 223,241 shares for $28 million of common stock to be settled in November 2025 to participants in consideration of the aggregate participant contributions as of October 31, 2025.Incentive Compensation Plans. On November 15, 2017 and March 21, 2018, the Board of Directors and the stockholders, respectively, approved the Agilent Technologies, Inc. 2018 Stock Plan (the "2018 Plan") which amends, including renaming and extending the term of, the Agilent Technologies, Inc. 2009 Stock Plan (the "2009 Plan" and, together with the 2018 Stock Plan, the "Stock Plans"). On November 14, 2018 and March 20, 2019, the Board of Directors and the stockholders, respectively, approved the reservation of an additional 25 million shares of common stock under the 2018 Plan. The 2018 Plan provides for the grant of awards in the form of stock options, stock appreciation rights, restricted stock, restricted stock units ("RSUs"), performance shares and performance units with performance-based conditions on vesting or exercisability, and cash awards. The 2018 Plan has a term of ten years.

LEASESAs a lessee, we have various non-cancelable operating lease agreements for office space, warehouses, distribution centers, research and development facilities, manufacturing and production locations as well as vehicles, personal computers and other equipment. Our real estate leases have remaining lease terms of one to thirty years, which represent the non-cancelable periods of the leases and include extension options that we determined are reasonably certain to be exercised. We exclude options that are not reasonably certain to be exercised from our lease terms, ranging from six months to twenty years. Our lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms. We often receive incentives from our landlords, such as rent abatement periods, which effectively reduce the total lease payments owed for these leases. Vehicle, personal computer and other equipment operating leases have terms between three and five years. The components of lease cost for operating leases were as follows:Year Ended October 31, 202520242023(in millions)Operating lease cost$55 $58 $68 Short-term lease cost1 — 2 Variable lease cost (a)12 15 16 Sublease income(17)(17)(16)Total lease cost$51 56 70 (a) Variable lease cost includes cancelable leases, non-fixed maintenance costs and non-recoverable transaction taxes.In the fourth quarter of fiscal year 2023, we initiated a new restructuring plan ("FY23 Plan") designed to reduce costs and expenses in response to the current macroeconomic conditions. In 2024 and 2023, the consolidation of excess facilities under the FY23 Plan resulted in $1 million and $8 million, respectively, of accelerated depreciation of our ROU assets.During fiscal year 2025 and 2024, there were no ROU asset impairments. During fiscal year 2023, we recorded ROU asset impairments of $8 million primarily related to the exit of our Resolution Bioscience business.