Revvity Q3 Earnings Call Highlights

Key Points

• Revvity beat its Q3 expectations, delivering 7% pro forma organic growth, a 29.4% adjusted operating margin and adjusted EPS of $1.37—$0.08 above the midpoint of its outlook.
• Growth broadened across the portfolio: Life Sciences revenue rose 9% organically and Diagnostics grew 5%. Management said AI-related demand is extending beyond high-content screening, with instrument backlogs expanding across nearly every category.
• Revvity raised its 2026 organic growth outlook to approximately 5%, from a prior range of 4% to 5%, and expects adjusted EPS of $5.40 to $5.45 for the year.

Revvity NYSE: RVTY reported third-quarter results that exceeded its expectations, supported by stronger demand in its Life Sciences segment, continued growth in Diagnostics and expanding interest in artificial intelligence-related research tools.

President and Chief Executive Officer Prahlad Singh said the company generated 7% pro forma organic growth during the quarter, above its prior mid-single-digit outlook. Pro forma adjusted operating margin reached 29.4%, while pro forma adjusted earnings per share totaled $1.37, or $0.08 above the midpoint of the company’s expectations.

“The most important dynamic we saw in the third quarter was that the end market improvements and AI-related incremental demand we have experienced over the past few quarters began to positively impact other parts of our portfolio beyond just our cellular analysis franchise,” Singh said.

Life Sciences Growth Broadens

Life Sciences revenue totaled $380 million, increasing 11% on a reported basis and 9% organically. The segment’s growth was driven by high-single-digit growth in reagents, strong mid-single-digit instrument growth and upper-teen organic growth in the Signals Software business.

Chief Financial Officer Max Krakowiak said the strength was broad-based across Life Sciences Solutions and Signals Software. Signals benefited from strong contract renewals and more than 20% annual recurring revenue growth, while annualized portfolio value increased in the low double digits.

Sales to pharmaceutical and biotechnology customers increased in the low double digits, while academic and government sales rose in the mid-single digits. Excluding the Signals business, pharma and biotech revenue still grew in the high single digits, according to Krakowiak.

Reagent performance also benefited from the fulfillment of bulk screening orders. Krakowiak said those orders contributed about 100 basis points to reagent growth during the quarter. Even excluding that contribution, management said reagent trends improved meaningfully compared with the first half of the year.

For the fourth quarter, the company expects reagent growth to moderate to the mid-single digits as the bulk-order contribution does not repeat. However, it raised its outlook for instrument growth to the high single digits, compared with strong mid-single-digit growth in the third quarter.

AI Demand Extends Beyond High-Content Screening

Management said AI-related demand continued to support high-content screening instruments, where revenue growth accelerated despite strong comparisons from the prior year. Backlog for high-content screening instruments also increased, prompting Revvity to expand capacity and build additional capability for potential further demand growth next year.

Singh said the AI opportunity is beginning to broaden into other parts of the portfolio. He identified reagents for high-content and high-throughput screening, along with detection, imaging and in vivo products, as areas that could see more impact as drug candidates advance through preclinical development.

Krakowiak said backlog expanded across nearly every instrument category during the quarter. He added that demand was not limited to high-content screening, citing improved momentum in the company’s detection and high-throughput offerings.

Revvity also continued to introduce new software products through its Signals business. During the quarter, the company launched Signals LabGistics, an AI-native offering intended to connect scientific workflows across discovery, development and manufacturing. Other recent launches include Xynthetica, BioDesign, Signals AI and an Anthropic connector.

Management said new product introductions are not expected to make a major contribution to 2026 results because of the time required for customer adoption and sales conversion. Still, Krakowiak said the company has received positive customer feedback and traction for the new offerings.

Diagnostics Delivers Mid-Single-Digit Growth

Diagnostics revenue was $330 million, up 4% on a reported basis and 5% organically. Immunodiagnostics grew at a high-single-digit organic rate, including more than 20% growth in the U.S., while Reproductive Health increased at a low-single-digit rate.

Newborn screening outside China grew in the mid-single digits. Management said Reproductive Health growth was limited by lower contributions from the Genomics England program and more challenging comparisons for instruments in the second half of the year. Birth rates in China also remained difficult, though the company said China Reproductive Health now represents about 1% of total revenue.

Revvity expects Diagnostics to grow at a mid-single-digit rate in the fourth quarter, with high-single-digit growth in immunodiagnostics and low-single-digit growth in Reproductive Health.

The company also launched a CE-IVDR-certified GSP T1D 3plex kit in Europe for early detection of type 1 diabetes. The test uses a dried blood spot sample on Revvity’s existing GSP platform and is designed to identify children at risk before symptoms emerge. Singh said the company is initially targeting adoption in European countries and is developing a broader type 1 diabetes assay with Sanofi.

Margins, Cash Flow and Updated Outlook

Revvity’s margin performance benefited from higher revenue, favorable mix and operational efficiency initiatives. Diagnostics adjusted operating margin was 29.9%, including a 160-basis-point headwind from the China immunodiagnostics operation that the company plans to divest next year. Excluding that business, Singh said Diagnostics margins exceeded 30% and improved more than 600 basis points from a year earlier.

The company generated $152 million in free cash flow during the quarter, equal to 99% of adjusted net income. Year-to-date free cash flow exceeded $450 million, with conversion equal to 105% of adjusted net income. Net debt to adjusted EBITDA stood at 2.3 times after Revvity retired a €500 million note during the quarter.

For 2026, Revvity raised its pro forma organic growth outlook to approximately 5%, compared with its prior range of 4% to 5%. It expects pro forma revenue of approximately $2.86 billion, including an expected 50-basis-point foreign-exchange contribution and a roughly 75-basis-point contribution from the ACD/Labs acquisition.

• Full-year pro forma adjusted operating margin is expected to be 28.8%.
• Full-year pro forma adjusted EPS is projected at $5.40 to $5.45.
• Fourth-quarter organic growth is expected to be about 5%.
• Fourth-quarter revenue guidance midpoint is approximately $755 million.
• Fourth-quarter pro forma adjusted EPS guidance midpoint is $1.60.

Revvity plans to provide further detail on its AI strategy, software business and outlook at its Investor Day in New York on Nov. 13.

About Revvity (NYSE:RVTY)

Revvity, Inc provides technology, products and services for the life sciences and diagnostics markets. The company supports pharmaceutical and biotechnology research, clinical laboratories and other healthcare organizations with tools used in drug discovery, biological research, disease detection and laboratory testing.

Its offerings include laboratory instruments, reagents, consumables, software and workflow solutions. Key areas include genomics, proteomics, cellular analysis, imaging, screening, automation and reproductive health, as well as newborn screening and other diagnostic applications.

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