Revvity (RVTY) Financials

Revvity’s second-quarter 2026 results show improving operating momentum, although profitability remains mixed. Revenue increased to $729.7 million from $720.3 million in Q2 2025 and $711.1 million in Q1 2026. Gross profit rose 6.2% year over year to $416.9 million, lifting the gross margin to approximately 57.1% from 54.5% in Q2 2025. However, operating income declined slightly year over year to $89.3 million, while net income fell 4.0% to $51.8 million. Earnings per share still improved to $0.47 from $0.46, helped by a lower share count.

Cash generation was a notable strength. Operating cash flow increased to $191.9 million in Q2 2026 from $134.3 million in the year-ago quarter and $115.2 million in Q1 2026. After $11.1 million of capital expenditures, approximate free cash flow was $180.9 million. Revvity ended the quarter with $1.02 billion of cash, up from $860.3 million in Q1, despite spending on dividends and share repurchases.

The balance sheet remains liquid but highly dependent on intangible assets and goodwill. Current assets of $2.30 billion exceeded current liabilities of $1.28 billion, producing a current ratio of roughly 1.8. Total debt was approximately $3.21 billion, leaving net debt of about $2.18 billion. Goodwill and intangible assets totaled approximately $8.83 billion, or nearly three-quarters of total assets, which creates impairment risk if business performance weakens.

• Gross-margin expansion: Q2 2026 gross margin improved to approximately 57.1%, the strongest level among the recent quarters provided, versus 54.5% in Q2 2025.
• Stronger cash generation: Operating cash flow grew approximately 43% year over year to $191.9 million, while approximate free cash flow reached $180.9 million.
• Sequential recovery: Revenue increased 2.6% from Q1 2026, operating income rose approximately 17.7%, and net income increased approximately 27.2%.
• Improved liquidity: Cash and equivalents increased to $1.02 billion from $860.3 million at the end of Q1 2026, while current assets remained comfortably above current liabilities.
• Share-count reduction: Weighted-average diluted shares declined to 111.6 million in Q2 2026 from 117.5 million in Q2 2025, supporting per-share earnings.
• Revenue growth remains modest: Q2 revenue was only 1.3% above the year-ago quarter, indicating that margin improvement and cost management are currently more important earnings drivers than top-line growth.
• Quarterly volatility is significant: Revenue ranged from $698.9 million in Q3 2025 to $772.1 million in Q4 2025, suggesting that investors should evaluate several quarters rather than rely on a single period.
• Operating and net margins remain under pressure: Despite higher gross profit, operating income declined year over year and net income fell 4.0% in Q2 2026.
• Interest expense remains substantial: Revvity recorded $25.8 million of interest expense in Q2 2026, absorbing nearly 29% of operating income and limiting bottom-line conversion.
• High goodwill and intangible concentration: Goodwill and intangible assets represented approximately 73% of total assets, increasing the potential impact of future write-downs or weaker returns from acquired businesses.