Revvity NYSE: RVTY reported second-quarter results above its expectations and raised its full-year outlook, citing continued strength in diagnostics, improving demand from pharmaceutical and biotechnology customers, and growing orders tied to artificial intelligence-enabled drug discovery workflows.
Chief Executive Officer Prahlad Singh said pro forma organic revenue rose 3% in the quarter, while adjusted earnings per share reached $1.41. The company’s non-GAAP results and outlook exclude its China Immunodiagnostics business, which Revvity has agreed to sell. Singh said the company has signed a definitive agreement with the buyer and continues to expect the transaction to close by the end of 2027.
“The second quarter reinforced that Revvity is in a strong and increasingly differentiated position,” Singh said, pointing to the resilience of diagnostics and signs of improvement in Life Sciences end markets.
Second-Quarter Financial Performance
Chief Financial Officer Max Krakowiak said second-quarter revenue totaled $711 million, including 3% pro forma organic growth. Foreign exchange had an immaterial effect on reported growth, while the recently acquired ACD/Labs software business contributed about 75 basis points to growth.
- Pro forma adjusted operating margin was 29.3%, above the company’s 27% outlook.
- Pro forma adjusted EPS was $1.41.
- Free cash flow totaled $184 million, representing 117% conversion of adjusted net income.
- Year-to-date free cash flow approached $300 million, with conversion of 108% of adjusted net income.
Krakowiak said Revvity received $16 million in tariff-related refunds during the quarter, which accounted for about half of the adjusted EPS upside. About one-third of the upside came from a lower-than-expected 16% adjusted tax rate, driven by the timing of discrete items that had previously been expected in the fourth quarter. The company maintained its full-year adjusted tax-rate assumption of about 18%.
Revvity also retired a €500 million note in July. The company ended the quarter with net debt-to-adjusted EBITDA leverage of 2.5 times and said it expects gross leverage to be below three times by year-end. Krakowiak said all of the company’s long-term debt is fixed rate, with a weighted average interest rate of 2.3% and a weighted average maturity of about six years.
Diagnostics Drives Broad-Based Growth
The Diagnostics segment generated $352 million in second-quarter revenue, rising 12% on a reported basis and 11% organically. Both Immunodiagnostics and Reproductive Health exceeded the company’s expectations, Krakowiak said.
Immunodiagnostics grew at a high-single-digit organic rate, supported by broad-based performance outside China despite continued pressures in latent tuberculosis testing. Reproductive Health grew in the double digits, benefiting from Newborn Screening demand and the contribution from Revvity’s work with Genomics England.
Singh said Reproductive Health grew in the mid-teens during the quarter, while Immunodiagnostics outside China accelerated to high-single-digit growth. Management said Newborn Screening reagents grew in the high single digits despite declining birth rates, supported by geographic expansion into markets without screening programs and broader menu adoption in countries that already have programs.
For the second half, the company expects Reproductive Health growth to moderate to low- to mid-single digits, reflecting more difficult comparisons related to Genomics England and a heavier instrument-placement cycle in the first half.
Life Sciences Sees Improving Orders and AI-Related Demand
Life Sciences revenue was $359 million, down 2% on a reported basis and down 3% organically. The decline was driven primarily by an approximately 20% year-over-year decrease in the Signals software business, which Revvity attributed to contract timing and difficult comparisons from the prior year.
Outside of software comparisons, Life Sciences Solutions grew in the low single digits, with both reagents and instruments posting growth. Management said instrument shipment timing restrained second-quarter revenue but contributed to a higher-than-normal backlog entering the second half.
Singh said order activity accelerated as the quarter progressed, leaving Revvity in what he described as its strongest backlog position in three to four years. He highlighted sustained double-digit growth in demand for high-content screening instruments, including the recently introduced Opera Phenix OptIQ platform. Order velocity in that category exceeded near-term production capacity, according to the company.
Management linked part of the demand to customers building AI-driven drug-discovery capabilities. Singh said AI can accelerate the creation of scientific hypotheses and potential drug candidates, but those candidates still require lab-based testing, biological data generation and validation. He described the emerging customer workflow as “lab-in-the-loop,” in which experimental results are used to inform AI models over time.
Revvity said it is seeing orders from traditional pharma and biotech customers as well as nontraditional organizations, nonprofits and companies building AI-related datasets and platforms. However, executives said it remains too early to quantify the full scale of the opportunity.
The company now expects its instruments business to deliver positive mid-single-digit growth for the full year, compared with its prior expectation for positive low-single-digit growth. It expects reagents to remain in low-single-digit growth in the third quarter before accelerating to a mid-single-digit growth rate exiting the year.
Software Strategy and Updated Outlook
Although Signals revenue declined in the second quarter, management said annualized portfolio value grew in the double digits and annual recurring revenue was in the mid-20s. Revvity expects Signals to return to strong double-digit organic growth in the second half as contracts renew.
The company highlighted several software initiatives, including the commercial availability of BioDesign for large-molecule workflows, a beta rollout of the Xynthetica AI models-as-a-service platform, and the planned release of LabGistics later this year. Revvity also launched Signals AI, which incorporates large language model capabilities into its Signals platform, and announced an Anthropic connector that lets customers use their data with Claude and Claude Science.
For 2026, Revvity raised its pro forma organic growth outlook to 4% to 5% from 3% to 4%. It now expects pro forma revenue of $2.83 billion to $2.86 billion, adjusted operating margin of approximately 28.7%, and adjusted EPS of $5.30 to $5.40, up $0.10 from its prior guidance.
For the third quarter, the company expects organic growth of 4% to 6%, revenue of $685 million to $700 million, and pro forma adjusted operating margin of approximately 29%.
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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
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