Revvity NYSE: RVTY reported first-quarter 2026 results that came in ahead of its expectations and outlined a planned divestiture of its immunodiagnostics business in China, a move management said will sharpen the company’s focus and improve growth and profitability metrics going forward.
First-quarter results top internal outlook
President and CEO Prahlad Singh said Revvity posted “strong first quarter results” with 3% total company organic growth and 23.6% adjusted operating margin, which exceeded the company’s 23% outlook. Adjusted earnings per share were $1.06, above the $1.02–$1.04 outlook implied in prior guidance, Singh said.
Chief Financial Officer Max Krakowiak said quarterly revenue totaled $711 million, reflecting 3% organic growth, including an approximate 3% foreign exchange tailwind and a 75 basis point incremental contribution from the company’s ACD/Labs software acquisition. Krakowiak added that the company repurchased $86 million of shares during the quarter, and generated $115 million of free cash flow, which he said represented 97% conversion of adjusted net income.
On the balance sheet, Krakowiak said Revvity ended the quarter with a net debt-to-adjusted EBITDA leverage ratio of 2.8x, with 100% fixed-rate debt. He also noted plans to pay off roughly $600 million outstanding on a Eurobond due in mid-July.
China immunodiagnostics divestiture planned; pro forma reporting to change
Singh described the decision to divest Revvity’s immunodiagnostics business in China—which represented approximately 6% of total company revenue last year—as a “transformative strategic decision.” He cited “persistent policy-induced headwinds” in China’s diagnostics market that have impacted demand and pricing, and said maintaining the company’s position would require significant investment to localize manufacturing, supply chain, and regulatory capabilities.
Revvity has signed a letter of intent with a local, management-led buyer group and expects to reach a definitive agreement within the next two months, Singh said. The company anticipates the transaction will close by the end of next year to allow time for local manufacturing and regulatory approvals, and expects to retain a minority interest in the new company. Krakowiak said Revvity will exclude the business from guidance and reported organic growth going forward, and the company provided 2025 historical financials in a supplement on its investor relations website that exclude the divested unit.
On a pro forma basis excluding China immunodiagnostics, Singh said Revvity’s first-quarter organic growth would have been 6% and adjusted operating margin would have been 24%. Krakowiak added that on that basis, first-quarter revenue would have been $687 million and adjusted pro forma EPS would have been $1.04.
Management also detailed expected financial effects of the divestiture:
- Organic growth: Expected to improve 2026 organic growth by approximately 100 basis points, Singh and Krakowiak said.
- Margins: Singh cited an expected ~30 basis point margin lift; Krakowiak said updated 2026 adjusted operating margin guidance is 28.4%, up 40 basis points versus the prior outlook, with most of the improvement tied to excluding the China business.
- EPS: Singh said the updated EPS outlook includes a “20% reduction related to the planned divestiture,” partially offset by $0.05 from improved operational execution; Krakowiak quantified the net 2026 EPS reduction at approximately $0.15.
- Cash flow conversion: Krakowiak said that in fiscal 2025, excluding this China business would have lifted free cash flow conversion by approximately 300 basis points versus the company’s reported 87% conversion.
End-market trends: pharma/biotech improving; reproductive health strong
Singh said the quarter showed a “modestly improved” pharma and biotech spending environment, driving “positive low double-digit” year-over-year organic growth from those customers, which he characterized as the strongest growth for reagents and instrument sales to the group since the first half of 2023. He added that customer behavior remains measured as budgets are worked through, but said he is seeing early indicators that “should lead to future improvement.”
In academic and government markets, Singh pointed to “promising developments from a budget and policy perspective” and said Revvity delivered “positive mid-single-digit growth” from academic customers, including the first positive growth in the U.S. since the second quarter of 2023, while cautioning the company remains prudent given the potential for policy changes.
Within diagnostics, Singh said reproductive health delivered a “fantastic quarter,” growing low double digits organically, supported by newborn screening and a stronger-than-expected contribution from the company’s Genomics England contract. Krakowiak said sample volumes from Genomics England are now running “slightly ahead” of initial expectations, though Singh said the company’s full-year assumption remains about $20 million of contribution in its first year.
By contrast, Singh said immunodiagnostics faced challenging conditions in China as anticipated, while performance outside China was in line with expectations.
Software, AI, and cost actions shape outlook
Management highlighted several software launches and broader AI initiatives. Singh said the Signals software business introduced Xynthetica in December—an “AI models as a service platform”—and launched BioDesign, a cloud-native molecular design platform for biologics development, with LabGistics expected later in the year as an AI-first workflow offering.
In response to a question on software demand, Singh said customer engagement remains high and referenced the “Lilly TuneLab partnership” as a launchpad for Xynthetica. Krakowiak said the software business is better measured by annualized contract value (APV), noting APV was “strong double digits” in the first quarter, and said SaaS pipeline metrics included 40% ARR growth year-over-year. For cadence, he said the software business is expected to be down approximately 20% in the second quarter due to tougher comparisons, with expectations for “high teens” growth in the second half.
Krakowiak also said cost efficiency programs are underway and expected to be completed around mid-year, supporting margin expansion in the second half of 2026 and providing an annualization benefit in the first half of 2027.
Updated 2026 guidance (pro forma)
With the China immunodiagnostics business excluded, Krakowiak said Revvity now expects:
- Organic growth: 3%–4%
- Total revenue: $2.81 billion–$2.84 billion
- Adjusted operating margin: approximately 28.4%
- Adjusted EPS: $5.20–$5.30
For the second quarter, Krakowiak guided to pro forma organic growth of 2%–3%, total revenue of $699 million–$707 million, adjusted operating margin of approximately 27%, and said pro forma adjusted EPS for the quarter is expected to be approximately 23% of the full-year outlook.
Revvity also announced plans to host an Investor Day in New York City on Friday, November 13, with Singh saying software will be “a central theme” of the company’s long-term growth discussion.
About Revvity NYSE: RVTY
Revvity, Inc is a global provider of technology-enabled solutions for the life sciences, diagnostics and applied markets. The company develops and supplies a range of products and services, including reagents and consumables, laboratory instruments, workflow automation, software analytics and technical support. Its portfolio supports applications in drug discovery, genomics, cell biology research, environmental and food safety testing, industrial quality control and clinical diagnostics.
Tracing its heritage to Perkin-Elmer, founded in 1937, Revvity began trading on the New York Stock Exchange under the ticker symbol RVTY in January 2024 following a corporate rebranding.
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