Revvity Inc. (RVTY) Earnings & Analysis

Latest quarter

Revvity reported Q2 FY2026 revenue of $729.7 million, compared with the consensus of $704.5 million; the company’s revenue was 3.57% above the consensus. The company reported adjusted EPS, as the consensus counts it, of $1.41, versus the consensus of $1.23, or 14.6% above the consensus. The filing reports diluted EPS of $0.47, compared with $0.46 in Q2 FY2025.

The filing shows revenue increased 1.31% from a year earlier, as Diagnostics revenue rose 5% on growth in Reproductive Health and favorable foreign exchange, while Life Sciences revenue declined 2% because of lower Software revenue. Revvity reported gross margin of 57.1%, up 2.6 percentage points from Q2 FY2025, which the filing attributed primarily to tariff refunds and product mix shift. The filing shows operating margin of 12.2%, down 0.4 percentage points, primarily because of restructuring charges and digital investments. Revvity reported free cash flow of $183.9 million, compared with $115.5 million a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Prahlad Singh said Revvity delivered 3% pro forma organic growth in Q2 and that revenue exceeded the high end of the company’s expectations. Singh said Diagnostics grew 11% organically, with Reproductive Health growing in the mid-teens and immunodiagnostics outside China growing in the high single digits. He said the company saw gradual improvement in demand from pharmaceutical and biotechnology customers and a progressively larger increase in orders related to AI.

Singh said high-content screening order velocity exceeded near-term production capacity, and that instrument and reagent demand contributed to elevated backlog entering the second half. In response to analysts’ questions on orders and backlog, Singh said the company entered Q3 with its strongest backlog position in three to four years, including deliveries pushed into Q3 and larger screening-related reagent orders. Max Krakowiak said Revvity raised its full-year platform-business expectation to positive mid-single-digit growth from positive low-single-digit growth because of order performance.

Krakowiak said Life Sciences organic revenue declined 3% in Q2, driven by an approximately 20% decline in the Signals software business related to contract timing and year-ago comparisons. He said the company expects software to return to stronger organic growth in the second half, while sales into pharmaceutical and biotechnology customers excluding software grew in the low single digits. Krakowiak said the company expects reagents growth to remain low single digits in Q3 before stepping up in Q4 to exit the year at a mid-single-digit organic growth rate.

Krakowiak said tariff-related refunds totaled $16 million in the quarter and accounted for about half of the adjusted-EPS amount above guidance. He said Revvity planned to reinvest about half of that one-time benefit in strategic initiatives, supply chain and people, while the company continues cost initiatives expected to begin affecting results in Q3. Krakowiak said it was too early to size the AI-related opportunity. Singh said Revvity signed a definitive agreement to divest its China immunodiagnostics business and expects the transaction to close by the end of 2027.

Guidance

Revvity raised its FY2026 pro forma organic revenue-growth outlook to 4.00% to 5.00%, from 3.00% to 4.00%. The company raised its FY2026 pro forma adjusted operating-margin outlook to 28.7%, from 28.4%. Revvity raised its FY2026 pro forma adjusted EPS outlook to $5.30 to $5.40, from $5.20 to $5.30. The company forecasts FY2026 pro forma revenue of $2.8 billion to $2.9 billion, compared with its previous $2.8 billion to $2.8 billion range.