RVTY

Revvity has delivered a strong 57.5% return over the past year, while valuation checks send mixed signals. The Discounted Cash Flow (DCF) intrinsic value estimate suggests the stock is roughly in line with fair value, and market-based multiples point to a richer price. Revvity’s 57.5% 1 year return sets a high bar for new buyers, who now need the fundamentals to justify a much higher share price base. The key support for the current valuation can come from the company’s ability to convert revenue into steady cash flows. Any disappointment in cash generation or margin quality may weigh on what already screens as a premium multiple. The broader valuation checks are cautious, with Revvity scoring 1 out of 6. This points to a stock that currently leans expensive rather than a clear bargain. The issue now is whether Revvity’s cash flow profile and growth outlook are strong enough to support the recent share price gains without leaving investors exposed to a valuation squeeze. Scan how Revvity’s premium-looking valuation compares by lining it up against 54 high quality undervalued stocks that currently combine solid cash flows with more conservative pricing. The Discounted Cash Flow (DCF) approach values Revvity based on the cash it is expected to generate for shareholders. Revvity produced about $545.6 million of free cash flow over the last twelve months, and the model assumes these cash flows continue to grow rather than contract over the coming years. On that basis, the 2 Stage Free Cash Flow to Equity model points to an estimated intrinsic value of around $135 per share. That is only slightly above the current share price, implying roughly a 3.1% discount. The DCF output indicates that Revvity’s recent cash generation and the growth assumptions used in the model already support most of the share price, so there is not a wide margin between price and estimated value. Overall, the DCF analysis indicates Revvity stock appears to be approximately fairly valued under the current cash flow assumptions used in the model. Revvity is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Revvity. The P/E ratio is a useful way to see how much investors are paying for each dollar of Revvity’s earnings. It gives a quick read on how the market is pricing the stock relative to its profit base. Revvity currently trades on a P/E of about 61.6x. That is above the Life Sciences industry average of around 37.3x and also higher than the peer group average of roughly 41.3x. The modelled fair P/E for Revvity is 27.0x based on its profile, which is less than half of the current multiple. This gap indicates that investors are paying a sizeable premium to both industry norms and what the fair ratio suggests for the company. That premium can persist when the market is comfortable with the earnings outlook, but it also leaves less room for any disappointment in reported profits. On the P/E multiple, Revvity stock currently looks overvalued compared with both its sector and the modelled fair ratio. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where this Revvity valuation puzzle leaves off, and explain which assumptions on growth, margins and earnings would need to hold for the stock to be worth materially more or less than today’s price on the Community page. Each Narrative links a fair value estimate to a specific story about Revvity's potential catalysts and risks so you can track over time which version appears to be taking shape. Community views on Revvity are wide apart, with one camp seeing meaningful upside potential and another focused on valuation risk. Bull case: 8% undervalued Read the full Bull Case to see why Revvity could be undervalued Bear case: 31% overvalued Read the full Bear Case to see why Revvity could be overvalued Do you think there's more to the story for Revvity? Head over to our Community to see what others are saying! Revvity looks roughly fairly valued on a Discounted Cash Flow (DCF) view, with the intrinsic value estimate close to the current share price. The earnings multiple tells a different story and points to a stock that appears overvalued relative to both peers and the modelled fair P/E. That gap reflects investors paying a premium for growth expectations and margin resilience that are not fully captured by cash flow based models. The key question from here is whether Revvity can sustain the cash generation and earnings quality that would keep the current premium from becoming a liability if sentiment cools. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RVTY. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Revvity’s second quarter demonstrated year-over-year growth in both revenue and non-GAAP earnings, yet the market responded negatively, likely reflecting concerns about underlying segment dynamics and external factors. Management highlighted continued strength in its Diagnostics franchise, supported by robust organic growth and consistent performance in reproductive health and immunodiagnostics outside China. CEO Prahlad Singh pointed to "tangible signs of a more constructive spending environment," with notable improvement in pharma and biotech end markets, and emphasized accelerating demand for tools that enable AI-driven science, particularly high-content screening instruments like the Opera Phenix OptIQ. He noted that these trends contributed to an elevated instrument backlog exiting the quarter, indicating strong underlying demand despite some delivery timing effects. Is now the time to buy RVTY? Find out in our full research report (it’s free). Revenue: $711.1 million vs analyst estimates of $707.2 million (4.5% year-on-year growth, 0.6% beat) Adjusted EPS: $1.41 vs analyst estimates of $1.22 (15.9% beat) The company slightly lifted its revenue guidance for the full year to $2.85 billion at the midpoint from $2.83 billion Management raised its full-year Adjusted EPS guidance to $5.35 at the midpoint, a 1.9% increase Operating Margin: 12.6%, in line with the same quarter last year Organic Revenue rose 3% year on year (beat) Market Capitalization: $12.94 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Dan Brennan (TD Cowen) asked about the size and impact of the Life Science instrument backlog and its implications for second-half growth. CEO Prahlad Singh and CFO Maxwell Krakowiak explained that the backlog is at its highest in three to four years, primarily due to timing of shipments and accelerating orders for complex instruments like OptIQ, positioning the company for stronger platform growth in the second half. Vijay Kumar (Evercore ISI) inquired about non-traditional AI customer orders and whether this shifts medium-term outlook for Life Science Solutions. Singh detailed that new demand is coming from AI-focused organizations and non-profits building drug discovery infrastructure, expanding Revvity’s addressable market. Michael Ryskin (Bank of America) questioned the slower-than-expected growth in reagents and the competitive environment. Krakowiak stated that reagent growth was low single digits in the first half, with expectations of a step-up in the fourth quarter as instrument placements convert to reagent usage. Puneet Souda (Leerink) sought clarity on the visibility of high-content analysis demand and confidence in software recovery. Singh emphasized that most instrument backlog is driven by high-content screening, while software growth should rebound due to contract renewals and new AI integrations. Jack Meehan (Operon Research) asked about the durability of newborn screening growth amid declining birth rates. Krakowiak responded that high single-digit reagent growth is sustained by geographic expansion and broader test menus, and further instrument placements support longer-term reagent sales. In coming quarters, our team will be monitoring (1) the pace at which AI-driven demand translates into actual instrument and reagent revenue, (2) the timing and magnitude of Signals software recovery and customer adoption of new AI-enabled features, and (3) ongoing momentum in Diagnostics, particularly in reproductive health and newborn screening. Progress on manufacturing capacity expansion and the successful integration of recent acquisitions will also be important indicators of sustained operational execution. Revvity currently trades at $120.91, up from $115.22 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 7:30 a.m. ET President and Chief Executive Officer - Prahlad Singh Senior Vice President and Chief Financial Officer - Maxwell Krakowiak SVP, Investor Relations - Stephen Willoughby Operator: Ladies and gentlemen, thank you for joining us, and welcome to the Q2 2026 Revvity Earnings Conference Call. [Operator Instructions] I will now hand the conference over to Steve Willoughby, SVP, Investor Relations. Steve, please go ahead. Stephen Willoughby: Thank you, operator. Good morning, everyone, and welcome to Revvity's Second Quarter 2026 Earnings Conference Call. On the call with me today are Prahlad Singh, our President and Chief Executive Officer; and Max Krakowiak, our Senior Vice President and Chief Financial Officer. Before we begin, I'd like to remind you that today's call may include forward-looking statements that are subject to risks and uncertainties. Actual results may differ materially from our expectations. Please refer to the safe harbor statements in our earnings release and to our SEC filings for a detailed discussion of these risk factors. We assume no obligation to update these forward-looking statements in the future. Additionally, we will refer to certain non-GAAP financial measures during this call. Reconciliations to the most directly comparable GAAP measures are available in our earnings release. I'll now turn it over to our President and Chief Executive Officer, Prahlad Singh. Prahlad? Prahlad Singh: Thank you, Steve, and good morning, everyone. I'm pleased to report that Revvity delivered strong results in the second quarter with pro forma organic growth of 3%, resulting in total revenue being above the high end of our expectations. Our pro forma adjusted earnings per share of $1.41 was well above the high end of our guidance due to better-than-expected underlying operating performance, tax planning timing and the unanticipated contribution of tariff refunds we received in the quarter, which Max will touch on more in a bit. These results reflect the continued strength and resilience of our Diagnostics franchise, the third consecutive quarter of improving conditions across our pharma and biotech end markets, growing customer demand for tools that enable AI-driven science and the continued momentum of our Signals software business. Given the stronger performance and our improved optimism for the second half, we are raising our pro forma guidance for organic growth, adjusted operating margin and adjusted EPS for the full year, which Max and I will provide additional detail on in a bit. Before I provide more detail on the operational progress we are making, I want to share a brief update on the status of the divestiture of our China immunodiagnostics business, which we first announced last quarter. We have now signed a definitive agreement with the buyer on terms consistent with our initial expectations, and we continue to anticipate the transaction closing by the end of 2027. This divestiture is a deliberate strategic decision as China has represented a structurally more challenging environment for this part of our business of late, and we are confident this transaction allows us to sharpen our focus on the end markets where our differentiated capabilities generate the highest and most durable returns for our shareholders. While our reported GAAP results will continue to include the contribution from this business until the transaction is completed next year, all of our non-GAAP and organic performance, commentary and guidance are provided on a pro forma basis, which excludes the immunodiagnostics business in China that we have agreed to divest. Now turning to our end markets. I'm increasingly encouraged by what we continue to see. The gradual improvement in demand from our pharma and biotech customer base that we began to observe in recent quarters continued into the second quarter, and we are now seeing tangible signs of a more constructive spending environment. In particular, we are seeing a definitive and progressively larger increase in orders directly related to AI, reflecting demand from both traditional pharma and biotech customers as well as emerging demand from non-traditional customers that have not historically purchased from us. These organizations are building AI-driven drug discovery platforms and are seeking capabilities that sit squarely within Revvity's portfolio. That is why we are especially well positioned, because AI may accelerate hypothesis generation, but those hypotheses still need to be tested, validated and advanced through real-world biological data generation, lab-based experimentation and software-enabled collaboration. Together, this improving demand from existing customers and new demand from customers outside of our historical base contributed to a higher-than-normal level of instrument backlog exiting the second quarter, positioning us very well as we enter the second half of the year. While we have touched on this over the past several quarters, demand for our high-content screening instruments, particularly our recently introduced new flagship instrument, the Opera Phenix OptIQ, remains extremely robust with continued double-digit growth year-over-year despite more difficult year ago comparisons. Demand for high-content screening further accelerated during the second quarter with order velocity outpacing near-term production capacity despite dedicating additional resources as the quarter progressed to support customer demand. As a result, while we may have left some further incremental upside on the table in the quarter, it positions us even better as we move into the third quarter and back half of the year. It is important to note that this build-out by our customers of additional capacity will also result in future improvements in demand for our related high-content screening reagents. Because high content screening is commonly used by customers to both generate new data and to validate existing hypotheses, it plays an increasingly important role in AI-driven discovery workflows, where lab-generated insights can be fed back into AI models over time. This acceleration in high content screening demand is a tangible example of the AI adoption cycle I discussed with you last quarter beginning to play out. At that time, I described how we expect AI to move from solely being in an infrastructure build-out phase to eventually a value creation phase where the real opportunity comes from generating, validating and translating new biological data. We are now beginning to see that dynamic show up directly in customer behavior as AI enables customers to identify and design more therapeutic compounds and molecules that still need to be tested, screened and validated in the lab. That is where Revvity is especially well positioned, because the need for high-quality biological data, physical validation and integrated scientific workflows plays directly to our core strengths. This concept where AI models become part of the experimental cycle itself, continuously learning from results, suggesting next steps and compressing the time between hypothesis and insight, but importantly, generating more unique data than ever possible in the past is increasingly being referred to by customers as a Lab-in-the-Loop workflow. Revvity's instruments and reagents generate the data. Signals One manages and structures it and our recently released Signals AI capabilities and our newly introduced Anthropic MCP connector now allows scientists to close that loop in ways that were simply not possible before. These examples highlight how Revvity helps power scientific intelligence as we support customers throughout this new discovery process, reinforcing why we are one of the best positioned companies in the entire industry to benefit from the AI-driven transformation of pre-clinical R&D that is only just beginning to take place. Against this backdrop, our Signals software business remains a critical part of how we enable customers to manage and apply scientific data across their workflows. In the second quarter, Signals performed in line with our expectations against a very difficult year ago comparison with organic revenue declining approximately 20% year-over-year. We continue to expect a return to strong double-digit growth in the second half of the year in our software business as its APV continues to grow in the double digits. As you have seen from our many new product announcements so far this year, the level of innovation in this business is robust and has only begun accelerating. Our large molecule workflow offering, BioDesign, is now commercially available and beginning to gain traction. Our AI models as a service platform, Synthetica, began rolling out to initial beta customers last month and our novel workflow coordination layer offering, which spans discovery through manufacturing, LabGistics remains on track to be released later this year. In the meantime, we also recently launched Signals AI, which embeds leading LLM capabilities throughout our Signals platform, allowing users to leverage AI capabilities within the core platform itself where their proprietary data already exists. In early July, we also announced a new connector with Anthropic, enabling customers to use their data along with other outside programs and data sets directly within Claude and Claude Science itself. These 2 new capabilities are complementary to each other and both expand the functionality of the core Signals platform, while creating greater stickiness, driving increased retention along with adding new consumption-based revenue streams over time. Finally, just 2 weeks ago, we announced a new initiative called Signals for Startups, which is a new commercial program designed to make our Signals platform accessible to even the smallest of biotechs. This allows these customers to adopt and incorporate our Signals platform with its predefined workflows right from the outset of their corporate journey, so they can more easily scale as their businesses take off. I look forward to sharing more with you on all the exciting developments occurring within Signals at our upcoming Investor Day on November 13 in New York City. The strength across our portfolio is also reflected in our Diagnostics business, which again delivered exceptional performance. Overall, Diagnostics grew 11% organically in the quarter, a further step-up from the high single-digit organic growth we saw from the segment in the first quarter. It is important to highlight that this strong performance was broad-based and remains impressive even when excluding the incremental contribution from our Genomics England sequencing contract, which also continues to perform well. The consistency and durability of this franchise continues to be a defining strength of Revvity's overall business model as both reproductive health and immunodiagnostics performed well, driven by ongoing strength in newborn screening and strong growth in immunodiagnostics outside of China. Reproductive health again grew in the mid-teens and immunodiagnostics growth outside of China accelerated into the high single digits, despite continued latent TB pressures. As it pertains to our ongoing corporate transformation, I'm proud of the progress we are making with strong execution in a number of areas. First, the integration of the recently acquired ACD/Labs software business is progressing faster than anticipated with early momentum in synergy realization and product interoperability across the combined offerings. Second, we continue to drive our ongoing operational efficiency initiatives with implementation well underway. These initiatives will benefit us more here in the second half as well as into next year. We are also doing a good job managing our balance sheet as we generated significant cash in the quarter with exceptional cash flow conversion of our adjusted net income of 117%. In mid-July, we also paid off a EUR 500 million note we had coming due, which we expect will result in our gross leverage being below 3x by the end of the year and our net leverage approaching 2x overall. Finally, I'm proud to share that we recently published our 2026 annual Impact Report. This report reflects the meaningful progress Revvity has made across our environmental, social and governance commitments, including continued absolute year-over-year reductions in our emissions, improvement in our internal employee mobility metrics and our first-ever disclosure of our material Scope 3 emissions, which will allow us to have our targets verified by SBTi in the coming months. The nature of our products inherently enables Revvity to make a meaningful positive contribution to society on a global scale, but we also remain committed to operating, innovating and creating long-term value in a sustainable way, while also providing attractive opportunities for our employees. As we look ahead to the second half of the year, given the strong diagnostic trends we have seen so far, when combined with what appears to be continuing improvement in pharma and biotech end market conditions, we are now more optimistic compared to 90 days ago. Consequently, we are now expecting total company organic growth this year of 4% to 5%, up from our prior 3% to 4% outlook. We expect to be able to generate adjusted operating margins of approximately 28.7% this year due to the stronger organic growth we now expect for the year, combined with the impact of the tariff refunds we've received, which is being partially offset by incremental reinvestments we are making in our strategic initiatives, supply chain and in our people, which should allow us to capitalize on the end market recovery that we believe is now underway. This all results in our updated full year adjusted EPS outlook to now be in a range of $5.30 to $5.40, which is up $0.10 from our prior guidance. So in closing, the second quarter reinforced that Revvity is in a strong and increasingly differentiated position. Our Diagnostics business continues to perform extremely well with consistency and resilience. Our Life Science end markets are showing signs of improvement and the investments we've made internally over the last few years are beginning to bear fruit, as we are delivering new innovations to our customers at an accelerating rate. We are extremely well positioned to deliver over the remainder of the year, while capitalizing on the new opportunities presenting themselves as preclinical science is redefined in the new AI world. I believe that the true potential of Revvity is beginning to be realized and shine through. With that, I will now turn the call over to Max. Maxwell Krakowiak: Thanks, Prahlad, and good morning, everyone. We are clearly seeing improving momentum across the business, which is evident in both our performance in the quarter and our stronger outlook for the full year. Both of our Diagnostic businesses continued to perform extremely well and improving activity from our pharma and biotech customers supported solid Life Sciences performance and increased backlog heading into the second half of the year. As discussed, it is exciting to see tangible and accelerating signs of demand from customers tied to their increasing data generation needs as AI unlocks new ways to operate preclinical R&D labs. We are increasingly optimistic that not only is Revvity extremely well positioned to capitalize on the fundamental shift in how preclinical R&D is conducted, but also that we are currently only seeing the very initial stages of that transformation. We continue to execute very well in the quarter from an operational standpoint as evidenced by our margin, earnings and cash flow performance, even when excluding the $16 million of tariff-related refunds we received in the quarter, which drove about half of the adjusted EPS upside, our pro forma adjusted operating margins were still above the 27% assumption in our guidance. With what appears to be an improvement in end market conditions underway, we have chosen to reinvest about half of this one-time benefit back into our strategic initiatives, supply chain and people to ensure we are well positioned to capitalize on the opportunities we see emerging as we head into the second half of the year and into 2027. Given the significant actions we've taken over the last few years to mitigate and offset the various pressures we faced without having to resort to passing on material price increases to our customers, we are excited we now have this opportunity to further invest in the business to drive even stronger performance over the longer term, while still being able to deliver upside to our financial commitments for this year. Finally, it was great to see that we executed a definitive agreement to divest our immunodiagnostics business in China on terms consistent with our initial expectations. With separation planning already well underway, we and the buyer are well positioned to complete the transaction by the end of 2027. Now turning to the specifics of our second quarter performance. As a reminder, given the pending divestiture of our immunodiagnostics business in China, all of the following commentary and our updated guidance is provided on a pro forma basis, which excludes the impact of this business we expect to divest next year. Overall, we generated total revenue of $711 million in the quarter, resulting in strong 3% organic growth, which was slightly above the high end of our guidance. FX had an immaterial impact on reported growth and our recent software acquisition, ACD/Labs, contributed approximately 75 basis points to growth, which was in line with our expectations. As it relates to our P&L, we delivered strong operational performance in the quarter, while also benefiting from the impact of tariff refunds. Overall, our adjusted operating margins were 29.3% in the quarter, well above our 27% outlook. While the majority of this outperformance was driven by the tariff refunds, operationally, our margins also came in better than we had anticipated. Looking below the line, our adjusted net interest and other expenses were $22 million in the quarter, in line with our expectations. Our adjusted tax rate was 16%, a couple of hundred basis points lower than expected due to the timing of discrete items being realized in the quarter that were previously anticipated to occur in the fourth quarter. This change is just timing related as our full year tax rate outlook of 18% is unchanged. We averaged 111.6 million diluted shares in the quarter as we continue to benefit from our share repurchase activity over the last 12 months. Following the end of the quarter, in mid-July, we retired the EUR 500 million note we had maturing, which resulted in a meaningful drop in our gross leverage overall. Our pro forma adjusted earnings per share in the quarter was $1.41, which was well above the high end of our guidance due to the stronger top line, better-than-expected underlying margin performance, tax timing and the tariff-related refunds. To quantify the moving pieces for you, approximately half of the upside in the quarter was from the tariff refunds, roughly 1/3 was from the lower tax rate we saw, which will have an offsetting impact in the fourth quarter, and the remainder was from the combination of stronger revenue and underlying operating margins. Moving beyond the P&L, we generated robust free cash flow of $184 million in the quarter, resulting in an outstanding 117% conversion of our adjusted net income. On a year-to-date basis, we've now generated nearly $300 million in free cash flow with a conversion rate of 108% of our adjusted net income. Our balance sheet remains strong as we finished the quarter with a net debt-to-adjusted EBITDA leverage ratio of 2.5x. As mentioned, we retired our Eurobond in July and are still targeting a gross leverage ratio of below 3x as we exit the year. Following this recent repayment, our outstanding debt stack continues to remain very well positioned as 100% of our long-term debt remains fixed rate with a weighted average interest rate of 2.3% and a weighted average maturity out another 6 years. I will now provide some commentary on our second quarter business trends, which are also highlighted in the quarterly slide presentation on our Investor Relations website. Again, these results are on a pro forma basis and exclude our immunodiagnostics business in China and are comparable to the guidance we provided 90 days ago. The 3% growth in total company organic revenue in the quarter was comprised of 11% organic growth in our Diagnostics segment and a 3% organic decline in our Life Sciences segment. Geographically, Europe continued its double-digit growth. APAC grew in the low single digits, and the Americas experienced a low single-digit decline due to software comps and continued latent TB pressures. From a segment perspective, Life Sciences generated revenue of $359 million in the quarter. This was down 2% on a reported basis and 3% on an organic basis. From a business perspective, the decline in Life Sciences was driven by the approximately 20% decline in our Signals software business as we had expected due to contract timing and comps from a year ago. Outside of these comp dynamics, the business continued to perform well as its APV again grew in the double digits and ARR was in the mid-20s. Life Sciences Solutions grew low single digits organically in the quarter with both reagents and instrumentation growing in that range as stronger instrument performance was held back by timing of shipments, which is leading to the stronger backlog we have entering the second half of the year. From a customer perspective, sales into pharma and biotech declined in mid-single digits due to difficult comp we had in our software business in the quarter. Excluding software, sales into pharma and biotech grew in the low single digits. As software returns to stronger growth in the second half of the year and as more of the instrument orders translate to revenue, we expect to see improved performance from this customer base over the remainder of the year. Sales to academic and government customers were down low single digits year-over-year due to software-related year ago comparisons. In our Diagnostics segment, we generated $352 million of revenue in the quarter, which was up 12% on a reported basis and 11% on an organic basis. From a business perspective, both our immunodiagnostics and reproductive health businesses performed exceptionally well and grew above our expectations. Immunodiagnostics grew in the high single digits organically in the quarter with broad-based strength. Reproductive health again grew in the double digits organically as it benefited from another strong quarter in newborn screening and from the incremental contribution from our work with Genomics England. Now moving to our updated guidance for the year. Again, our updated guidance is on a pro forma basis, excluding the business we are planning to divest as this is the most appropriate way to view the company and its performance going forward. Overall, many things appear to be moving in the right direction across the business. Right now is our organic growth, operating margins and EPS, all came in solidly above our expectations in the second quarter, even when excluding the impact of the tariff refund. Given this momentum, we are now more optimistic about our expected performance over the remainder of the year as compared to a quarter ago. We now expect our organic growth for the year to be in the 4% to 5% range, up from our prior 3% to 4% outlook. FX is still expected to contribute approximately 50 basis points for the full year, while the ACD/Labs acquisition is still on track to add another 75 basis points to our revenue growth this year. We expect this to now result in our 2026 pro forma total revenue being in the range of $2.83 billion to $2.86 billion. We now anticipate our pro forma adjusted operating margins this year to be 28.7%, which is up 30 basis points from our prior guidance. This improved outlook is due to two primary drivers. First, the impact from tariff refunds, partially offset by reinvestments we are making; and second, leverage from our stronger organic growth outlook for the year, of which a portion was realized in the second quarter. We continue to make good progress on our major cost initiatives and still expect their impact to be realized starting here in the third quarter. As we have already received the majority of the tariff refunds we applied for in the second quarter, any additional refunds we may receive are anticipated to be immaterial to our results overall. We still anticipate net interest and other expense to be approximately $90 million, and our full year adjusted tax rate assumption also remains unchanged at approximately 18% as the favorability we experienced in the second quarter was timing related and is expected to be offset in the fourth quarter. We also still expect our diluted average share count to be approximately 112 million. This all results in us now expecting that our adjusted earnings per share this year will be in the range of $5.30 to $5.40, up $0.10 from our prior outlook. This $0.10 increase to our full year adjusted EPS guidance is roughly half from the net impact of tariff refunds, offset by planned reinvestment spending and half from stronger revenue and underlying operating margins compared to our prior outlook as our full year tax rate remains the same. For the third quarter, we expect our organic growth to be in the 4% to 6% range. Assuming FX rates as of the end of June and the incremental contribution from the ACD/Labs acquisition, this puts our expected revenue for the third quarter in the range of $685 million to $700 million. We continue to look for approximately 29% pro forma adjusted operating margins in the third quarter, which is unchanged from our prior outlook despite some incremental reinvestment spending now being planned. We expect net interest and other expense to be approximately $23 million and our adjusted tax rate to be 19%. This should all result in our pro forma adjusted EPS in the third quarter to be approximately 24% of our full year outlook. In closing, we had a strong second quarter with increasing momentum as we head into the second half of the year. It appears that our pharma and biotech customers are beginning to return to more normalized patterns, while increasing AI-related work is creating incremental demand, which did not exist in the past. Our Diagnostic business performance remains robust and software continues to grow its annualized portfolio value in the double digits with a return to robust organic growth starting this quarter. Our execution on our operational initiatives remain strong and our recent capital deployment and portfolio rationalization actions will benefit us over the longer term. As Prahlad mentioned, we believe the true potential of what Revvity has become is only now beginning to be realized, while we know that we have a lot of additional opportunity still in front of us. With that, operator, we would now like to open up the call for questions. Operator: [Operator Instructions] Your first question comes from the line of Dan Brennan with TD Cowen. Daniel Brennan: Can you hear me all right? Prahlad Singh: Yes. Daniel Brennan: Terrific. Great. Maybe first question, I was hoping you can just -- congrats on the quarter, guys. Maybe just unpack the Life Science business in the quarter and the outlook. So you referenced several times this instrument backlog, kind of what can that -- how big is that? What can that contribute? And as we think about the outlook in the back half, you talked a lot about pharma and biotech demand getting better. I'm just wondering how we might think within your new guide, what instruments and reagents do in the back half? Prahlad Singh: Yes. So Dan, let me just give you sort of -- from an order perspective, we definitely started seeing an acceleration in orders as the quarter progressed. I would say starting 3Q from probably the strongest position that we have seen in terms of backlog we've had in the past 3 to 4 years. Obviously, there's been some timing of deliveries that were pushed into 3Q. As you know, we launched OptIQ a few months ago, and it's one of the more complex instruments, and you can't turn these $1 million-plus instruments around quickly. So from that perspective, on the instrument side, we've had a strong backlog. And -- but also on the reagent side, we've started seeing backlog build due to some larger screening-related orders, which won't get fulfilled until here in 3Q. So I think both of these are great signs though, of what is happening in the market now. Max, do you want to add anything? Maxwell Krakowiak: Yes. I would just say for some of the numbers specifics, if you look at the second quarter performance from a Life Sciences perspective, we had positive growth in both our reagents and platforms business. I think as you look at the full year outlook, we are now anticipating an uptick in our platforms performance for the full year. Previously, we were assuming positive low single-digit growth for our platforms business. But now given the incremental commentary and performance from an orders perspective, we are increasing that to positive mid-single-digit growth for the full year. And so that's really, I would say, our updated second half outlook assumptions. Daniel Brennan: And the platforms business, that's the Instrument side or that's the total Life Science Solutions? Maxwell Krakowiak: That's the Instrument side. That's correct. Daniel Brennan: Got it. Okay. And then maybe just a follow-up, just kind of moving over to Diagnostics, another really strong quarter, like obviously, ImmunoDx is keeping the momentum going. Just could you unpack reproductive health a little bit? I know in the initial guide, it looks like you guys were assuming a decel in the back half of the year on that business, although the results have been really strong. So just kind of in the quarter, how big was GEL? And kind of what do you guys assume in the back half for reproductive health? Maxwell Krakowiak: Yes. I would say, again, as you mentioned, Dan, reproductive health continued to perform incredibly well in the quarter. I think it's not only the contribution from Genomics England, but our newborn screening business continues to perform extremely well. I think as you look at the first half versus second half splits, first half, reproductive health was kind of in a mid-teens organic growth performance. I think as we look at the back half, no real change to our previous assumptions as we did anticipate that slowing down to the low to mid-single digits growth for the second half. I think it's really a timing of two things. One, you start to pick up the GEL comps year-over-year in the back half. And then two, it was a little bit of a heavier instrument placement cycle in the first half for that business, which obviously bodes well for us in the long term as those platforms or instruments will continue to get utilized over the coming years. Operator: Your next question comes from the line of Vijay Kumar with Evercore ISI. Vijay Kumar: Prahlad, my first one is on -- related to your comments on orders coming in from non-traditional customers. Could you elaborate on who these customers are? And does it change your LSS outlook in the medium term, just given it feels like something has changed here? And sort of like how do you tie this, right, that optimism versus the second quarter performance when we look at your peers, Life Sciences in general, be it and it looks like you guys had some timing element impacting second quarter. Maybe just square the second quarter performance versus this optimism that you're expressing. Prahlad Singh: Yes. So let me break it down into a couple of pieces here, Vijay. A great question. So I think let me start first on the trend. As we -- in response to Dan's question, as we said, we clearly saw an acceleration in orders as the quarter progressed. And from a backlog perspective, as I mentioned, it's the strongest position we've been in the last 3 to 4 years. Obviously, it's an issue of timing, and it spilled into the 3Q. But I think the more important question is that, we clearly are seeing a trend, which is a strong indicator of drug candidates that are now coming from -- being created by AI. And as they move into the validation phase, customers are building out the infrastructure that they would require for data generation and for validation of these drug candidates. In addition to our traditional pharma biotech customers, we are also now seeing orders coming directly tied to this AI data generation during the first quarter, which is now becoming a clear trend. Orders specific from AI customers who are building out these massive data sets, non-profits focused on AI, pharma companies that are directly saying that they are now trying to figure out how this Lab-in-the Loop workflow model works. So there are -- it's not just one avenue that we could point to and saying that this is the strong pipeline, but there are several avenues that are open -- that have opened up for customers wanting to create this data. Vijay Kumar: That's helpful, Prahlad. And Max, maybe one for you on this EPS raise here. And it looks like you just carried forward the tariff refunds, right? Your organic expectations for the year were raised. Why aren't we seeing a little bit stronger fall through to the bottom line? Maxwell Krakowiak: Yes, Vijay, so I think as you look at the EPS guidance for the full year, again, we took up $0.10 at the midpoint. That $0.10 raise is half of the net tariff of reinvestments that we are flowing through for the full year. And then the other half is due to the incremental contribution from the higher organic growth for the full year. And I think when you do the math on the incremental margins there, you're right around 40 -- low 40s percentage-wise, which is kind of right in line with our historical average. Operator: Your next question comes from the line of Michael Ryskin with Bank of America. Michael Ryskin: Hope you guys can hear me. I want to follow up on the Life Science Solutions performance. The Life Sciences results, especially in reagents, you kind of kept alluding to it grew, it grew. But if software declined 20%, by our math, it kind of comes down to the rest of that segment was maybe a 1% growth number. So I can understand some of the instrument backlog and timing there. But that reagents is kind of -- we kind of thought there'd be a little bit more acceleration as you go through the year. Just would love if you could discuss that a little bit, whether that's competitive dynamics or if there are any timing effects there, just sort of unpack the performance in the quarter and expectations for reagents through the rest of the year. Maxwell Krakowiak: Yes. Mike, look, I think as we look at the reagents performance, I think we remain incredibly encouraged by what we're hearing and seeing from our customers. I think as you look at the progression of our organic growth as we move throughout the year, the reagents business was low single digits here in the first half of this year. And then I think as you look in the third quarter, we expect a similar sort of low single-digit growth performance. But then we do expect a step-up in the performance in the fourth quarter, kind of exiting this year at a mid-single-digit organic growth rate. Michael Ryskin: Okay. And then maybe I'll ask a follow-up on GEL, Genomics England. You kind of -- I think you made some remarks of performance was good, but results would have been ahead even excluding that. It would just be great to unpack that. What was GEL in the quarter, how that trended? And just any expectations -- updated expectations for the rest of the year? Maxwell Krakowiak: Yes. I think when you look at it from a genomic sequencing standpoint, it came in line with expectation in the second quarter, so similar performance to what it was for the first quarter of this year. I think from a full year perspective, we now probably anticipate it being closer to $25-ish million of full year revenue for us. And then we expect it to continue contractually through the first half of this year. And as we have sort of previously discussed, we are in active discussions in terms of expanding that partnership, extending the agreement here from a genomic sequencing standpoint. And I think we'll remain focused in execution of the partnership. Operator: Your next question comes from the line of Puneet Souda with Leerink. Puneet Souda: I'll wrap it in one. First of all, on the backlog, could you outline how much of that is high content analysis, Opera Phenix and related instruments? Obviously, those are the ones that are being utilized in Lab-in-the-Loop workflow and bioFMs and foundation models that are being built out there. Could you maybe just elaborate sort of what's the visibility you have into that order book? And lastly, on the software side, what gives you the confidence on recovery in the second half? Maybe just talk to us about the integration of Signals with the leading LLMs and other AlphaFold and other programs and other tools that are meaningful in the marketplace today for the scientists? Prahlad Singh: Puneet, a lot to unpack here. Let me at least hopefully, I recall on the starting with the -- on the platform side. We really -- most of what we sell on the instrumentation side are non-commoditized products and instrumentation, which are, as you pointed out, high content screening being the primary one of them. Now obviously, these are big ticket items, and they are complex to make and they take time. But we have a very good and a strong and robust pipeline on that, as I mentioned, and some of that did spill into 3Q. In regards to the software side, the second half, the confidence comes from, obviously, the contract renewals, which are up for renewal in the second half. So it's a natural progression of the bumpiness that we see quarter-over-quarter in the organic growth, and that's reflected in our guidance. And in regards to our partnerships, as you saw, we announced the Connector with Claude. We announced the launch of Signals AI, and we've got LabGistics coming to fore in the second half of the year. So we have a very active pipeline. We continue to try and work with all LLM providers and those that are developing models and put them on the Signals platform because that is the natural place for all of these to reside and to be used by researchers and research scientists for the work that they are doing. Operator: Your next question comes from the line of Josh Waldman with Cleveland Research. [Operator Instructions] Joshua Waldman: Can you hear me? Stephen Willoughby: Yes, we can. Joshua Waldman: Prahlad, I wondered if you could comment on -- more on the types of products you're seeing benefits from customer AI investments. And then I guess, do you think this is something that really kind of only impacts instruments? Or are you starting to see reagent pull through? And then I guess, any way to start to frame the potential magnitude of the opportunity? For example, if you look at the magnitude of order growth, on the Opera Phenix, is that a good framework? Are there other kind of ways you're starting to put bookends around the AI infrastructure build-out opportunity for you guys? Prahlad Singh: Yes, Josh. I think the way to look at it is you look at some of our industry peers that went out a few days ago, those that are at the more front end of developing drug candidates, right? As you see the growth coming into them, that sort of builds the pipeline for those drug candidates that will need to go into the validation phase for testing, for looking at the cellular analysis. And I think with OptIQ, the new NPI that we launched, it's sort of the instrumentation itself gives a whole lot more data in a much shorter period of time. And with using AI, you are able to get a more comprehensive look at the cellular analysis and the performance of these drug candidates as to how viable they are for the therapeutics that they are being looked for. So from a trend perspective, I think we sort of are right behind what you are seeing from some of the earlier companies that are now seeing that growth phase come in because of AI. And I think that's why I'm saying we are at the very early innings of this growth trajectory that has just started. Joshua Waldman: And the reagent component... Prahlad Singh: Sorry, Josh. Just to -- your second part of the question was on the reagents. And the reagents is a follow-up that as soon as these CapEx are put in place, the natural requirement will be for the reagents that will go through these flow-through because without reagents, those instruments are not going to be of any use anyway. Joshua Waldman: Got it. Okay. And Prahlad, do you think it's still too early to start to, again, kind of put bookends around how impactful this could be for you guys, I guess, be it either on the instrument side, the initial instrument build-out or the reagent pull-through? Prahlad Singh: Honestly, Josh, I think it's so early, and it is -- the growth spurt is just at the very beginning so that it's very -- going to be very tough even for us to put our arms around it and try to say what the magnitude and scope of it is. Joshua Waldman: Yes, makes sense. Okay. Fair enough. And then, Max, I mean, it sounds like pharma/biotech is improving more broadly. I guess, is this something that you guys have factored into your guide? I mean, do you think this hits revenue in '26 or more likely to be a '27 driver? Maxwell Krakowiak: Yes, it's a great question. Look, I think maybe I can take a second to just break down the different pieces of the updated full year guide. So if you look at the full year guide for us, we've got 4% to 5% organic growth now overall, which is up 100 basis points from our previous outlook. I think when you look at the different segments, we are anticipating Life Sciences to grow low single digits for the full year and Diagnostics to grow high single digits. Within the Life Sciences, I already talked through sort of our back half assumptions on Dan's question. But we are anticipating now a stronger performance across both reagents, but also on the instrumentation side of things within Life Sciences. I would say the market assumptions there are still what we're seeing today. That's not anticipating a further acceleration of end market environment. So if this momentum continues to build and improve from today, that's not what is assumed within our guidance on the Life Sciences side. Operator: Your next question comes from the line of Luke Sergott with Barclays. [Operator Instructions] Luke Sergott: I kind of want to talk about -- more about the software side. And so you continue to build out the software suite and you have all these different applications in different customer bases and end markets. Can you talk a little bit more about the cohesion that you're trying to build in there so that some of these pieces can start talking to each other? I know it's not going to be a perfect like Microsoft Office suite, because of the way that the industry is structured. But any other type of investment or launches that you guys would come up over the next year that you can have this stuff have greater adoption and more synergy? Prahlad Singh: Luke, I think Signals AI and the Anthropic Connector are actually the start of the complementary capabilities that we are building to sort of expand the functionality and value of the core Signals platform in itself. For example, Signals AI now allows customers to use leading capabilities of LLMs directly within the Signals environment. And that can be done now without even moving the proprietary pre-clinical data outside of the platform. So I think that's the benefit that the core Signal platforms brings to fore. And there are many such examples with the connector that allows the leveraging of Claude capabilities within the data sets of the platform. And I think as LabGistics comes to fore, that allows our research scientists to use that, again, as a connector across different workflows that they are working on. So I mean, I could go on and take up all the time, but I think the capabilities that we are building allows for the vision of Signals being the core functionality that one will need to use in the new AI world. Luke Sergott: Great. And then a follow-up there on the AI side. It seems like things are starting to pick up there. We hear a lot about the LLMs. Can you just give us a sense of how many AI customers you guys have right now that are either foundational model or LLM plug-ins, however you want to cut it. But then -- give us a sense of what that pipeline or funnel could looks like so we get some idea how that continues to build. Maxwell Krakowiak: No. Luke, I'd say, look, as we mentioned on the previous one, we are at the very beginning of this AI momentum. And I think it would be a little bit too early to call to start sizing up how much opportunities. I think we're incredibly excited about what we're hearing from customers. I think as we've reiterated, we believe Revvity is perfectly positioned to take advantage of this across the instrumentation, reagent and software pieces of our portfolio. And so I think we'll continue to be focused on executing it and delivering for our customers. Operator: Your next question comes from the line of Jack Meehan with Operon Research. Jack Meehan: I wanted to follow up on Josh's questions. And I was just looking for a little bit more commentary around the high-content screening business. So you talked about orders outpacing manufacturing capacity there. I was wondering if you could just flag like what was the growth rate of that business? And what are the plans to expand manufacturing capacity for it? Maxwell Krakowiak: Jack, look, I think as we look at the high-content screens, as we mentioned, this is one of the areas that's benefiting the most from the sort of AI drug discovery build-out here. So again, for this quarter, it was double-digit order and organic growth performance for that business. I think as we look in the future, we expect, again, to continue to have momentum around our high-content screening. I think when you go back and look at some of the areas that we are looking for investments on some of the tariff refunds that we did receive in the second quarter, the capacity build-out relating to both, I would say, the screening instrumentation, but also from a screening reagent standpoint and making sure we're ready to meet the building customer demand is one of the areas we'll look to invest in. Jack Meehan: Okay. And then on the Diagnostics side, just as I was looking at the quarter, newborn -- or I'm sorry, reproductive health was clearly better than I was expecting. I understand the GEL dynamics, but can you talk about what you're seeing in terms of newborn screening in terms of birth rates and menu expansion? Like how durable is performance you're seeing there? Maxwell Krakowiak: Yes. So look, I think even when you look at things from a newborn screening side, it continued to perform well in the period, grew double digits. As I mentioned in one of the other responses, there was some instrument timing where we did have some additional instrument placements in the first half. But if you even look at just the reagent growth performance on newborn screening and what is still a declining birth rate environment, reagents grew high single digits for our newborn screening business here in the second quarter, which was consistent with its performance in the first quarter of the year as well and a trend that we really expect to continue over the back half of this year. I think when you look at the drivers of the reagent performance, it's really a combination of, one, again, continued geographic expansion into areas that didn't have screening program; and two, further menu adoption from those countries that are already running screening programs today. Prahlad Singh: And just to add to that, Jack, as Max said earlier, the more of these instruments we place, the more it bodes well for the future of the newborn screening business because they eventually end up using our reagents on those, and that's why the instrument placements happen. And congrats, by the way, for kicking off Operon. Operator: That is all the time today we have for questions. I will now turn the call back to Steve for closing remarks. Stephen Willoughby: Thank you, Karina, and thank you, everyone, for this morning. I know it's a busy morning. And so we look forward to catching up with you later on today and in the coming days. Take care. Before you buy stock in Revvity, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Revvity wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Revvity. The Motley Fool has a disclosure policy. Revvity (RVTY) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Revvity Inc.? Here are five stocks we like better. Revvity exceeded second-quarter expectations, reporting $711 million in revenue, 3% pro forma organic growth, adjusted EPS of $1.41 and a 29.3% adjusted operating margin. Strong diagnostics performance and $184 million in free cash flow supported the results. Diagnostics drove growth with 11% organic revenue expansion, while Life Sciences showed improving orders and a stronger backlog, particularly for high-content screening instruments tied to AI-enabled drug-discovery workflows. The company raised its 2026 outlook to 4%–5% pro forma organic growth, $5.30–$5.40 in adjusted EPS and revenue of $2.83 billion–$2.86 billion, while expecting Signals software growth to rebound in the second half. 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. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling “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. 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. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High 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. → No Hangover: Revisiting Microsoft One Week After Earnings 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 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. 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%. 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 [email protected]. The article "Revvity Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the Q2 performance beat to a constructive spending environment in pharma and biotech, marking the third consecutive quarter of improving end-market conditions. A definitive increase in orders is being driven by both traditional and non-traditional customers building AI-driven drug discovery platforms, which require physical validation through biological data generation. The 'Lab-in-the-Loop' workflow is emerging as a critical strategic framework where AI models suggest experiments that generate proprietary data, which is then fed back into the models to compress discovery timelines. High-content screening demand for the new Opera Phenix OptIQ instrument remains robust, with order velocity currently outpacing near-term production capacity despite additional resource allocation. The Diagnostics franchise continues to serve as a foundational strength, with broad-based growth in newborn screening and immunodiagnostics outside of China offsetting macro birth rate pressures. Strategic divestiture of the China immunodiagnostics business is progressing with a definitive agreement signed, allowing the company to exit a structurally challenging environment and focus on higher-margin differentiated capabilities. Full-year organic growth guidance was raised to 4% to 5%, reflecting increased optimism regarding the sustainability of the pharma and biotech recovery observed in the first half. Management expects a return to strong double-digit growth in the Signals software business in the second half of the year, driven by a heavy schedule of contract renewals and new product launches like LabGistics. The company plans to reinvest approximately half of the $16 million tariff refund benefit into strategic initiatives, supply chain capacity, and personnel to capitalize on emerging AI infrastructure demand. Guidance assumes reproductive health growth will moderate to low-to-mid single digits in the second half as the company laps difficult comparisons from the Genomics England contract. Gross leverage is targeted to fall below 3x by year-end following the retirement of a EUR 500 million note, providing increased balance sheet flexibility for future capital allocation. A $16 million one-time benefit from tariff-related refunds significantly impacted Q2 margins and EPS, though management noted underlying operating performance was also ahead of expectations. The divestiture of the China immunodiagnostics business is expected to close by the end of 2027, with pro forma reporting already excluding this segment to provide a clearer view of core operations. Instrument backlog has reached its strongest position in 3 to 4 years, partly due to the complexity of manufacturing high-end systems like the OptIQ, which creates a timing-related revenue shift into the second half. Latent TB pressures continue to act as a headwind in the Americas, though this is being mitigated by strength in other diagnostic categories. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed the backlog is primarily composed of non-commoditized, high-value instruments like the Opera Phenix OptIQ, which are essential for AI data generation. The backlog build is viewed as a positive indicator of a multi-year AI infrastructure cycle rather than a temporary supply chain bottleneck. Reagents grew in the low single digits in the first half, but management expects a step-up to mid-single-digit growth by the fourth quarter. The increase in instrument placements is expected to drive future reagent pull-through as customers transition from infrastructure setup to active screening and validation. Revvity is seeing demand from 'non-traditional' customers, including non-profits and tech-centric firms building massive biological data sets for AI training. Management believes they are in the 'very early innings' of this transformation, making it difficult to fully quantify the long-term magnitude of the AI-related opportunity.

Revvity (RVTY) came out with quarterly earnings of $1.41 per share, beating the Zacks Consensus Estimate of $1.23 per share. This compares to earnings of $1.18 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +14.63%. A quarter ago, it was expected that this maker of scientific instruments would post earnings of $1.02 per share when it actually produced earnings of $1.06, delivering a surprise of +3.92%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Revvity, which belongs to the Zacks Medical Services industry, posted revenues of $729.69 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.57%. This compares to year-ago revenues of $720.28 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Revvity shares have added about 19.1% since the beginning of the year versus the S&P 500's gain of 11%. While Revvity has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Revvity was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.30 on $678.78 million in revenues for the coming quarter and $5.25 on $2.84 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Services is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Auna S.A. (AUNA), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 18. This company is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of -27.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Auna S.A.'s revenues are expected to be $350.52 million, up 13.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Revvity Inc. (RVTY) : Free Stock Analysis Report Auna S.A. (AUNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Total Revenue: $711 million in Q2 2026, with pro forma organic growth of 3%. Adjusted EPS: $1.41, above the high end of guidance. Adjusted Operating Margin: 29.3% in the quarter, above the 27% outlook. Free Cash Flow: $184 million in Q2, with 117% conversion of adjusted net income. Life Sciences Revenue: $359 million, down 3% organically. Diagnostics Revenue: $352 million, up 11% organically. Signals Software Revenue: Declined approximately 20% organically year over year. Reproductive Health Growth: Grew in the mid-teens organically. Immunodiagnostics Growth (ex-China): Accelerated to high single digits organically. Full-Year Organic Growth Guidance: Raised to 4% to 5% (from 3% to 4%). Full-Year Adjusted EPS Guidance: Raised to $5.30 to $5.40 (up $0.10). Full-Year Adjusted Operating Margin Guidance: Approximately 28.7%. Warning! GuruFocus has detected 11 Warning Signs with RVTY. Is RVTY fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revvity Inc (NYSE:RVTY) delivered strong Q2 results with 3% pro forma organic growth, exceeding the high end of expectations. The company raised its full-year guidance for organic growth, adjusted operating margin, and adjusted EPS due to stronger performance and improved optimism. Diagnostics segment showed exceptional performance with 11% organic growth, driven by broad-based strength in reproductive health and immunodiagnostics. Demand for high-content screening instruments, particularly the Opera Phenix OptIQ, remains robust with double-digit growth and accelerating order velocity. The company is seeing tangible signs of AI-driven demand from both traditional and nontraditional customers, positioning it well for future growth. Life Sciences segment experienced a 3% organic decline in Q2, primarily due to a 20% drop in the Signals software business. The company faced continued latent TB pressures, impacting immunodiagnostics growth outside of China. Instrument backlog increased due to timing of shipments, leaving some potential upside unrealized in the quarter. Signals software business is expected to face difficult year-over-year comparisons, with organic revenue declining approximately 20% in Q2. The divestiture of the China immunodiagnostics business is not expected to close until the end of 2027, creating ongoing uncertainty. Q: Can you unpack the Life Sciences business performance in Q2 and the outlook for the second half, particularly regarding instrument backlog and pharma/biotech demand?A: Prahlad Singh (CEO) noted a clear acceleration in orders as the quarter progressed, resulting in the strongest backlog position in three to four years entering Q3. This was partly due to timing of deliveries for complex instruments like the Opera Phenix OptIQ, which were pushed into Q3. CFO Max Krakowiak added that the full-year outlook for the platforms (instrument) business has been raised from positive low single-digit growth to positive mid-single-digit growth, reflecting the improved order momentum. Q: Could you elaborate on the orders coming from nontraditional customers and how this ties into the optimism versus the Q2 performance?A: Prahlad Singh (CEO) explained that the acceleration in orders is a strong indicator of AI-created drug candidates moving into the validation phase, prompting customers to build out data generation and validation infrastructure. This includes orders from traditional pharma/biotech, as well as new demand from AI-focused nonprofits and pharma companies building "lab in the loop" workflows. He emphasized that this is a clear trend that began in Q1 and is now accelerating, with multiple avenues of demand opening up. Q: Why wasn't the EPS guidance raised more given the higher organic growth outlook and the tariff refunds?A: Max Krakowiak (CFO) explained that the $0.10 increase to full-year adjusted EPS guidance at the midpoint is split evenly: half comes from the net impact of tariff refunds (offset by planned reinvestments) and half from the incremental contribution of higher organic growth. He noted the incremental margins on the higher growth are in the low 40% range, consistent with historical averages. Q: Can you unpack the Life Science Solutions performance, specifically the reagents business, and expectations for the rest of the year?A: Max Krakowiak (CFO) stated that the reagents business grew low single digits in the first half, with a similar performance expected in Q3. However, the company anticipates a step-up in Q4, exiting the year at a mid-single-digit organic growth rate. He remained encouraged by customer feedback and the progression of growth throughout the year. Q: What was the contribution from Genomics England (GEL) in the quarter, and what are the updated expectations for the rest of the year?A: Max Krakowiak (CFO) said the Genomics England sequencing contract performed in line with expectations in Q2, similar to Q1. The company now anticipates approximately $25 million in full-year revenue from this contract, which is expected to continue contractually through the first half of next year. They are in active discussions to expand and extend the partnership. Q: How much of the backlog is related to high-content screening instruments like Opera Phenix, and what gives you confidence in the software recovery in the second half?A: Prahlad Singh (CEO) confirmed that most of the instrumentation backlog is in non-commoditized products, with high-content screening being the primary driver. These are complex, high-value instruments with a robust pipeline. Regarding software, confidence in the second-half recovery comes from contract renewals scheduled for that period, which is a natural progression from the quarter-over-quarter volatility. He also highlighted new partnerships and launches, including the Anthropic connector and Signals AI, as part of an active pipeline. Q: Are you seeing benefits from customer AI investments across both instruments and reagents, and can you frame the potential magnitude of this opportunity?A: Prahlad Singh (CEO) explained that the AI-driven growth is creating a pipeline of drug candidates that need validation, which directly benefits their high-content screening instruments like OptIQ. He noted that as these capital expenditures are put in place, there will be a natural pull-through for reagents, as the instruments require them to function. However, he admitted it is still too early to quantify the magnitude and scope of the opportunity, as the growth spurt is just beginning. Q: Is the improving pharma/biotech environment factored into the 2026 guidance, or is it more of a 2027 driver?A: Max Krakowiak (CFO) clarified that the updated full-year guidance of 4% to 5% organic growth assumes the current market conditions, not a further acceleration. The guidance anticipates Life Sciences growing low single digits and Diagnostics growing high single digits for the full year. If the momentum builds and improves from today's levels, that would not be captured in the current guidance, suggesting potential upside. Q: Can you talk about the cohesion of the software suite and how the different applications will work together to drive adoption and synergy?A: Prahlad Singh (CEO) highlighted that Signals AI and the Anthropic connector are complementary capabilities that expand the functionality of the core Signals platform. Signals AI allows customers to use leading LLM capabilities directly within the platform without moving proprietary data, while the connector enables leveraging cloud capabilities within the platform's datasets. Upcoming launches like LabGistics will further connect different workflows, reinforcing the vision of Signals as the core functionality for the new AI world. Q: Can you provide more detail on the high-content screening business growth rate and plans to expand manufacturing capacity?A: Max Krakowiak (CFO) confirmed that high-content screening delivered double-digit order and organic growth in Q2, benefiting the most from the AI drug discovery build-out. He noted that a portion of the tariff refunds received in Q2 will be reinvested into capacity build-out for both screening instrumentation and reagents to meet the building customer demand. This investment is a key priority to capitalize on the momentum. Q: Can you discuss the durability of the newborn screening performance, given the declining birth rates?A: Max Krakowiak (CFO) stated that the newborn screening business grew double digits in Q2, with reagents growing high single digits despite the declining birth rate environment. This performance was consistent with Q1 and is expected to continue through the back half of the year. The drivers include continued geographic expansion into areas without screening programs and further menu adoption in countries with existing programs. Prahlad Singh (CEO) added that instrument placements bode well for future reagent use. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Revvity, Inc. RVTY reported second-quarter 2026 adjusted earnings per share (EPS) of $1.41, up 19.5% year over year. The bottom line surpassed the Zacks Consensus Estimate of $1.23 by 14.6%. GAAP EPS from continuing operations was 48 cents compared with 47 cents in the prior-year period. Quarterly revenues rose 1.3% to $729.7 million and beat the consensus mark of $704.5 million by 3.6%. Along with the earnings release, RVTY announced that it has recently entered into a definitive agreement to divest its Immunodiagnostics business in China (“China IDX”). The company posted second-quarter 2026 financial results on a reported and pro forma basis (excluding the China IDX business). Pro forma revenues totaled $711.1 million, up 4% from $680.5 million in the year-ago quarter. Organic growth contributed 3 percentage points, while acquisitions added 1 point. Foreign currency movements had no impact. The results benefited from broad-based Diagnostics strength, improved operating efficiency and tariff-related refunds. Pro forma organic revenues increased 3%, with Diagnostics organic growth partially offset by an organic decline in Life Sciences. Recurring products generated low-single-digit growth, while non-recurring products advanced in the high-single digits. Geographically, Asia-Pacific recorded low-single-digit growth, Europe posted double-digit gains and the Americas declined in the low-single digits. Revvity Inc. price-consensus-eps-surprise-chart | Revvity Inc. Quote Revvity’s Diagnostics Segment Drives the Upside Diagnostics revenues increased 4.7% year over year to $371 million. On a pro forma basis, revenues rose 12%, while organic revenues climbed 11%, supported by strength across both Immunodiagnostics and Reproductive Health. Immunodiagnostics delivered high-single-digit growth on broad-based demand. Reproductive Health posted double-digit growth, reflecting strength in newborn screening and partnerships. Management also highlighted favorable diagnostic trends outside China. RVTY’s Life Sciences Results Reflect Software Timing Life Sciences revenues declined 2% to $358.7 million. Pro forma revenues decreased 2%, while organic revenues fell 3% as weakness in software more than offset the growth in Life Sciences Solutions. Life Sciences Solutions recorded low-single-digit growth, with gains in both reagents and instruments. Software revenues declined at a double-digit rate due to contract-renewal timing and difficult comparisons. Pharma and biotech demand fell in the mid-single digits, while academic and government demand declined in the low-single digits. Pro forma adjusted gross margin rose 200 basis points to 62.3%. Selling, general and administrative expenses totaled $278.6 million, up 12.1% year over year. Research and development expenses amounted to $49.0 million, down 8.1% from the year-ago quarter’s reported figure. Adjusted operating income increased 10% year over year to $211 million. The adjusted operating margin expanded 230 basis points to 28.9%, while the pro forma adjusted operating margin improved 280 basis points to 29.3%. Results included $16 million of tariff-related refunds, which added approximately 11 cents to adjusted earnings. Diagnostics margin expanded 520 basis points to 30.4% on volume leverage, operational efficiencies and the refunds. Life Sciences margin contracted 50 basis points to 31.1% due to lower software volume and strategic investments. The company ended the quarter with $1.02 billion in cash and cash equivalents, up from $860.3 million at the end of the first quarter. Gross debt totaled $3.21 billion, producing a net debt-to-adjusted EBITDA ratio of 2.5 times. Revvity further strengthened its balance sheet by retiring a €500 million note in July. Cumulative net cash provided by operating activities of continuing operations totaled $317.8 million compared with $268.4 million in the year-ago quarter. Free cash flow during the second quarter totaled $183.8 million, representing 117% of adjusted net income. Year-to-date free cash flow reached $299 million, or 108% of adjusted net income. Revvity raised its outlook for full-year 2026 pro forma revenues and pro forma adjusted EPS. The company now expects pro forma revenues of $2.83-$2.86 billion compared with the previous guidance of $2.81-$2.84 billion. The forecast implies total growth of 5-6% and organic growth of 4-5%, with foreign currency expected to add 0.5% and acquisitions contributing 0.75%. Pro forma adjusted EPS is now expected to be between $5.30 and $5.40, up from the previous guidance of $5.20-$5.30. The company expects an adjusted operating margin of 28.7%. The outlook assumes adjusted net interest expense and other items of roughly $90 million, an adjusted tax rate near 18% and approximately 112 million diluted shares. The guidance excludes the China Immunodiagnostics business, which Revvity has agreed to divest in a transaction expected to be closed by the end of 2027. Revvity exited the second quarter of 2026 on a strong note, wherein both earnings and sales beat estimates. Both the top and bottom lines improved year over year. RVTY shares fell 3.5% in pre-market trading despite the earnings and revenue beats and the raised 2026 outlook. The decline may reflect investor concerns that tariff-related refunds contributed approximately 11 cents to adjusted quarterly earnings, while a drop in organic Life Sciences revenues has raised questions about the pace of underlying customer demand. The company’s share price improvement of 12.5% so far this year has outperformed the industry’s 0.2% decline and S&P 500 Index’s 11.4% gain. Image Source: Zacks Investment Research The quarter reflected solid execution, led by double-digit Diagnostics growth, margin expansion and strong cash generation. The higher full-year revenue and earnings ranges also point to management’s confidence in improving end-market demand during the second half. Revvity expects to complete the divesture of its China IDX business by the end of 2027. The business represented about 6% of 2025 revenues. The divestiture will remove a persistently weak business burdened by reimbursement reforms, pricing and volume pressure, localization demands and cash flow constraints. Exiting China IDX could improve Revvity’s margin profile and capital efficiency, though the long closing timeline means some execution and regulatory risk remains for investors. Revvity currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are West Pharmaceutical WST, McKesson MCK and Cardinal Health CAH, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank(Strong Buy) stocks here. West Pharmaceutical reported second-quarter 2026 adjusted earnings per share (EPS) of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%. West Pharmaceutical has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.4%. McKesson reported a fourth-quarter fiscal 2026 adjusted EPS of $11.69, which beat the Zacks Consensus Estimate by 1.1%. Revenues of $96.3 billion missed the Zacks Consensus Estimate by 5.5%. McKesson has an estimated long-term earnings growth rate of 13.7%. MCK’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.1%. Cardinal Health reported a third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%. Cardinal Health has an estimated long-term earnings growth rate of 17%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Revvity Inc. (RVTY) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report McKesson Corporation (MCK) : Free Stock Analysis Report West Pharmaceutical Services, Inc. (WST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Revenue of $730 million; pro forma revenue of $711 million; 4% pro forma revenue growth; 3% pro forma organic revenue growth GAAP EPS from continuing operations of $0.48; adjusted EPS from continuing operations of $1.41; GAAP pro forma EPS from continuing operations of $0.52; pro forma adjusted EPS from continuing operations of $1.41 Enters into definitive agreement to divest China Immunodiagnostics business Raises full year guidance WALTHAM, Mass., August 04, 2026--(BUSINESS WIRE)--Revvity, Inc. (NYSE: RVTY), today reported financial results for the second quarter ended July 5, 2026. The Company reported GAAP earnings per share from continuing operations of $0.48, as compared to $0.47 in the same period a year ago. Revenue for the quarter was $730 million, as compared to $720 million in the same period a year ago. GAAP operating income from continuing operations for the quarter was $89 million (which includes $16 million of tariff related refunds), as compared to $91 million for the same period a year ago. GAAP operating profit margin from continuing operations was 12.2% as a percentage of revenue, as compared to 12.6% in the same period a year ago. Adjusted earnings per share from continuing operations for the quarter was $1.41, as compared to $1.18 in the same period a year ago. Adjusted operating income was $211 million, as compared to $192 million for the same period a year ago. Adjusted operating profit margin was 28.9% as a percentage of revenue, as compared to 26.6% in the same period a year ago. Enters into Definitive Agreement to Divest China Immunodiagnostics Business The Company recently entered into a definitive agreement to divest its Immunodiagnostics business in China ("China IDX"), which represented approximately 6% of the Company’s total revenue in fiscal year 2025. The transaction is expected to close by the end of 2027, subject to customary closing conditions and regulatory approvals. The Company is providing second quarter 2026 financial results on a reported and pro forma basis; forward-looking guidance is provided on a pro forma basis only and excludes China IDX. Pro forma earnings per share from continuing operations for the quarter was $0.52, as compared to $0.48 in the same period a year ago. Pro forma revenue for the quarter was $711 million, as compared to $681 million in the same period a year ago. Pro forma operating income was $94 million, as compared to $85 million in the same period a year ago. Pro forma operating profit margin was 13.2% as a percentage of pro forma revenue, as compared to 12.4% in the same period a year ago. On a pro forma adjusted basis, earnings per share for the quarter was $1.41 (which includes approximately $0.11 from tariff related refunds), as compared to $1.15 in the same period a year ago. Pro forma adjusted operating income was $209 million (which includes $16 million of tariff related refunds), as compared to $180 million for the same period a year ago. Pro forma adjusted operating profit margin was 29.3% as a percentage of pro forma revenue, as compared to 26.5% in the same period a year ago. Adjustments for the Company’s non-GAAP financial measures have been noted in the attached reconciliations. "Revvity delivered a strong second quarter, with results above our expectations and encouraging signs of increased demand across our customer base," said Prahlad Singh, president and chief executive officer of Revvity. "As we enter the second half of the year, given the clear momentum in our end markets, we are utilizing a portion of recently received tariff refunds to increase investments across the business, capitalize on emerging opportunities, and support future growth." Financial Overview by Reporting Segment Life Sciences Second quarter 2026 revenue was $359 million, as compared to $366 million in the same period a year ago. Pro forma revenue decreased 2% and pro forma organic revenue decreased 3% as compared to the same period a year ago. Second quarter 2026 adjusted operating income was $112 million, as compared to $115 million in the same period a year ago. Adjusted operating profit margin was 31.1% as a percentage of revenue, as compared to 31.6% in the same period a year ago. Diagnostics Second quarter 2026 revenue was $371 million, as compared to $354 million in the same period a year ago. Pro forma revenue increased 12% and pro forma organic revenue increased 11% as compared to the same period a year ago. Second quarter 2026 adjusted operating income was $113 million, as compared to $89 million in the same period a year ago. Adjusted operating profit margin was 30.4% as a percentage of revenue, as compared to 25.2% in the same period a year ago. Full Year 2026 Guidance For the full year 2026, on a pro forma basis, the Company forecasts total revenue of $2.83-$2.86 billion, pro forma organic revenue growth of 4-5%, and pro forma adjusted earnings per share of $5.30-$5.40. Guidance for the full year 2026 for pro forma organic revenue growth and pro forma adjusted EPS is provided on a non-GAAP basis and cannot be reconciled to the closest GAAP measures without unreasonable effort due to the unpredictability of the amounts and timing of events affecting the items the Company excludes from these non-GAAP measures. The timing and amounts of such events and items could be material to the Company’s results prepared in accordance with GAAP. Webcast Information The Company will discuss its second quarter 2026 results and its outlook for business trends during a webcast on August 4, 2026, at 7:30 a.m. Eastern Time. A live audio webcast and presentation will be available on the Investors section of the Company’s website, ir.revvity.com. Use of Non-GAAP Financial Measures In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings announcement also contains non-GAAP financial measures. The reasons that we use these measures, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these measures are included below following our GAAP financial statements. Factors Affecting Future Performance This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to estimates and projections of future earnings per share, cash flow and revenue growth and other financial results, developments relating to our customers and end-markets, and plans concerning business development opportunities, acquisitions and divestitures. Words such as "believes", "intends", "anticipates", "plans", "expects", "estimates", "projects", "forecasts", "will" and similar expressions, and references to guidance, are intended to identify forward-looking statements. Such statements are based on management's current assumptions and expectations and no assurances can be given that our assumptions or expectations will prove to be correct. A number of important risk factors could cause actual results to differ materially from the results described, implied or projected in any forward-looking statements. These factors include, without limitation: (1) markets into which we sell our products declining or not growing as anticipated; (2) fluctuations in the global economic and political environments, including as the result of recently implemented and recently threatened tariff increases; (3) our failure to introduce new products in a timely manner; (4) our ability to execute acquisitions and divestitures, license technologies, or to successfully integrate acquired businesses or licensed technologies into our existing businesses or to make them profitable; (5) our ability to compete effectively; (6) fluctuation in our quarterly operating results and our ability to adjust our operations to address unexpected changes; (7) significant disruption in third-party package delivery and import/export services or significant increases in prices for those services; (8) disruptions in the supply of raw materials and supplies; (9) our ability to retain key personnel; (10) significant disruption in our information technology systems, or cybercrime; (11) uncertainties related to the development and use of AI in our product offerings and internal operations; (12) our ability to realize the full value of our intangible assets; (13) our failure to adequately protect our intellectual property; (14) the loss of any of our licenses or licensed rights; (15) the manufacture and sale of products exposing us to product liability claims; (16) our failure to maintain compliance with applicable government regulations; (17) our failure to comply with data privacy and information security laws and regulations; (18) regulatory changes; (19) our failure to comply with healthcare industry regulations; (20) economic, political and other risks associated with foreign operations; (21) our ability to obtain future financing; (22) restrictions in our credit agreements; (23) significant fluctuations in our stock price; (24) reduction or elimination of dividends on our common stock; and (25) other factors which we describe under the caption "Risk Factors" in our most recent quarterly report on Form 10-Q and in our other filings with the Securities and Exchange Commission. We disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release. About Revvity At Revvity, "impossible" is inspiration, and "can’t be done" is a call to action. Revvity provides health science solutions, technologies, expertise and services that deliver complete workflows from discovery to development, and diagnosis to cure. Revvity is revolutionizing what’s possible in healthcare, with specialized focus areas in translational multi-omics technologies, biomarker identification, imaging, prediction, screening, detection and diagnosis, informatics and more. With 2025 revenue of $2.9 billion and approximately 11,000 employees, Revvity serves customers across pharmaceutical and biotech, diagnostic labs, academia and governments. It is part of the S&P 500 index and has customers in more than 160 countries. Stay updated by following our Newsroom, LinkedIn, X, YouTube, Facebook and Instagram. Explanation of Non-GAAP Financial Measures We report our financial results in accordance with GAAP. However, management believes that, in order to more fully understand our short-term and long-term financial and operational trends, investors may wish to consider the impact of certain non-cash, non-recurring or other items, which result from facts and circumstances that vary in frequency and impact on continuing operations. Accordingly, we present non-GAAP financial measures as a supplement to the financial measures we present in accordance with GAAP. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by adjusting for certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management’s ability to make useful forecasts. Management believes these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. In addition, management understands that some investors and financial analysts find this information helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors. We use the term "organic revenue" to refer to GAAP revenue, excluding the effect of foreign currency changes and revenue from recent acquisitions, divestitures and including purchase accounting adjustments for revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules. We use the related term "organic revenue growth" or "organic growth" to refer to the measure of comparing current period organic revenue with the corresponding period of the prior year. We use the term "adjusted gross margin" to refer to GAAP gross margin, excluding amortization of intangible assets and inventory fair value adjustments related to business acquisitions and asset impairments. We use the related term "adjusted gross margin percentage" to refer to adjusted gross margin as a percentage of revenue. We use the term "adjusted SG&A expense" to refer to GAAP SG&A expense, excluding amortization of intangible assets, purchase accounting adjustments, acquisition and divestiture-related expenses, transformation costs, significant litigation matters and settlements, asset impairments, significant environmental charges, and restructuring and other charges. We use the related term "adjusted SG&A percentage" to refer to adjusted SG&A expense as a percentage of revenue. We use the term "adjusted R&D expense" to refer to GAAP R&D expense, excluding amortization of intangible assets and purchase accounting adjustments. We use the related term "adjusted R&D percentage" to refer to adjusted R&D expense as a percentage of revenue. We use the term "adjusted net interest and other expense" to refer to GAAP net interest and other expense, excluding adjustments for mark-to-market accounting on post-retirement benefits, changes in foreign exchange and interest associated with acquisitions and divestitures, changes in the value of investments and debt extinguishment costs. We use the term "adjusted operating income" to refer to GAAP operating income, excluding amortization of intangible assets, purchase accounting adjustments, acquisition and divestiture-related expenses, transformation costs, significant litigation matters and settlements, significant environmental charges, asset impairments, and restructuring and other charges. We use the related terms "adjusted operating profit percentage," "adjusted operating profit margin," and "adjusted operating margin" to refer to adjusted operating income as a percentage of revenue. We use the term "free cash flow" to refer to net cash provided by (used in) operating activities of continuing operations, less payments for additions to property, plant and equipment from continuing operations ("capital expenditures") plus the proceeds from sales of plant, property and equipment from continuing operations ("capital disposals"). We use the term "adjusted net income" to refer to GAAP income from continuing operations, excluding amortization of intangible assets, debt extinguishment costs, purchase accounting adjustments, acquisition and divestiture-related expenses, transformation costs, significant litigation matters and settlements, significant environmental charges, changes in the value of investments, disposition of businesses and assets, net, changes in foreign exchange and interest associated with acquisitions and divestitures, asset impairments and restructuring and other charges. We also exclude adjustments for mark-to-market accounting on post-retirement benefits, therefore only our projected costs have been used to calculate this non-GAAP measure. We also adjust for any tax impact related to the above items and exclude the impact of significant tax events. We use the term "adjusted earnings per share from continuing operations," "adjusted earnings per share," "adjusted EPS," or "adjusted EPS from continuing operations" to refer to GAAP earnings per share from continuing operations, excluding amortization of intangible assets, debt extinguishment costs, purchase accounting adjustments, acquisition and divestiture-related expenses, transformation costs, significant litigation matters and settlements, significant environmental charges, changes in the value of investments, disposition of businesses and assets, net, changes in foreign exchange and interest associated with acquisitions and divestitures, asset impairments and restructuring and other charges. We also exclude adjustments for mark-to market accounting on post-retirement benefits, therefore only our projected costs have been used to calculate this non-GAAP measure. We also adjust for any tax impact related to the above items and exclude the impact of significant tax events. We use the term "pro forma organic revenue" to refer to organic revenue excluding revenue from probable dispositions. We use the related term "pro forma organic revenue growth", "pro forma organic revenue growth from continuing operations" or "pro forma organic growth" to refer to the measure of comparing current period pro forma organic revenue with the corresponding period of the prior year. We use the term "pro forma adjusted gross margin" to refer to adjusted gross margin, excluding gross margin from probable dispositions. We use the related term "pro forma adjusted gross margin percentage" to refer to pro forma adjusted gross margin as a percentage of pro forma revenue. We use the term "pro forma adjusted SG&A expense" to refer to adjusted SG&A expense, excluding SG&A expense from probable dispositions and gains(losses) on sale of probable dispositions. We use the related term "pro forma adjusted SG&A percentage" to refer to pro forma adjusted SG&A expense as a percentage of pro forma revenue. We use the term "pro forma adjusted R&D expense" to refer to adjusted R&D expense, excluding R&D expense from probable dispositions. We use the related term "pro forma adjusted R&D percentage" to refer to pro forma adjusted R&D expense as a percentage of pro forma revenue. We use the term "pro forma adjusted net interest and other expense" to refer to adjusted net interest and other expense, excluding net interest and expense from probable dispositions. We use the term "pro forma adjusted operating income" to refer to adjusted operating income, excluding operating income from probable dispositions. We use the related terms "pro forma adjusted operating profit percentage," "pro forma adjusted operating profit margin," and "pro forma adjusted operating margin" to refer to pro forma adjusted operating income as a percentage of pro forma revenue. We use the term "pro forma adjusted earnings per share from continuing operations," "pro forma adjusted earnings per share," "pro forma adjusted EPS," or "pro forma adjusted EPS from continuing operations" to refer to adjusted earnings per share from continuing operations, excluding net income from probable dispositions and gains (losses) on sale of probable dispositions. Management includes or excludes the effect of each of the items identified below in the applicable non-GAAP financial measure referenced above for the reasons set forth below with respect to that item: Amortization of intangible assets—purchased intangible assets are amortized over their estimated useful lives and generally cannot be changed or influenced by management after the acquisition. Accordingly, this item is not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred. Debt extinguishment costs—we incur costs and income related to the extinguishment of debt, including make-whole payments to debt holders, accelerated amortization of debt fees and discounts, and expense or income from hedges to lock in make-whole payments. We exclude the impact of these items from our non-GAAP measures because we believe they do not reflect the performance of our ongoing operations. Purchase accounting adjustments—accounting rules require us to adjust various balance sheet accounts, including inventory, fixed assets, deferred revenue and deferred rent balances to fair value at the time of the acquisition. As a result, the expenses for these items in our GAAP results are not the same as what would have been recorded by the acquired entity. Accounting rules also require us to estimate the fair value of contingent consideration at the time of the acquisition, and any subsequent changes to the estimate or payment of the contingent consideration and purchase accounting adjustments are charged to expense or income. We exclude the impact of any changes to contingent consideration from our non-GAAP measures because we believe these expenses or benefits do not accurately reflect the performance of our ongoing operations for the period in which such expenses or benefits are recorded. Acquisition and divestiture-related expenses—we incur legal, due diligence, stay bonuses, incentive awards, stock-based compensation, interest, foreign exchange gains and losses, integration expenses, rebranding expenses, and other costs related to acquisitions and divestitures. We exclude these expenses from our non-GAAP measures because we believe they do not reflect the performance of our ongoing operations. Transformation costs—transformation costs consist of external professional service costs related to transformation initiatives focused on business processes modernization, automation, and implementation of global systems to support the new Revvity Business Model. These costs are determined to be noncapitalizable in accordance with accounting standards. Management does not believe such costs accurately reflect the performance of our ongoing operations for the period in which such costs are reported. Asset impairments—we incur expenses related to asset impairments. Management does not believe such charges accurately reflect the performance of our ongoing operations for the periods in which such charges were incurred. Restructuring and other charges—restructuring and other charges consist of employee severance, other exit costs, abandonments or associated asset write-downs, cost of terminating certain lease agreements or contracts as well as costs associated with relocating facilities. Management does not believe such costs accurately reflect the performance of our ongoing operations for the period in which such costs are reported. Adjustments for mark-to-market accounting on post-retirement benefits—we exclude adjustments for mark-to-market accounting on post-retirement benefits, and therefore only our projected costs are used to calculate our non-GAAP measures. We exclude these adjustments because they do not represent what we believe our investors consider to be costs of producing our products, investments in technology and production, and costs to support our internal operating structure. Significant litigation matters and settlements—we incur expenses related to significant litigation matters, including the costs to settle or resolve various claims and legal proceedings. Management does not believe such charges accurately reflect the performance of our ongoing operations for the periods in which such charges were incurred. Significant environmental charges—we incur expenses related to significant environmental charges. Management does not believe such charges accurately reflect the performance of our ongoing operations for the periods in which such charges were incurred. Disposition of businesses and assets, net—we exclude the impact of gains or losses from the disposition of businesses and assets from our adjusted earnings per share. Management does not believe such gains or losses accurately reflect the performance of our ongoing operations for the period in which such gains or losses are reported. Impact of foreign currency changes on the current period—we exclude the impact of foreign currency associated with acquisitions and divestitures from these measures by using the prior period’s foreign currency exchange rates for the current period because foreign currency exchange rates are subject to volatility and can obscure underlying trends. Impact of significant tax events—we exclude the impact of significant tax events. Management does not believe the impact of significant tax events accurately reflects the performance of our ongoing operations for the periods in which the impact of such events was recorded. Change in fair value of investments—we exclude the impact of changes in the value of investments. Management does not believe such gains or losses accurately reflect the performance of our ongoing operations for the period in which such gains or losses are reported. The tax effect for discontinued operations is calculated based on the authoritative guidance in the Financial Accounting Standards Board’s Accounting Standards Codification 740, Income Taxes. The tax effect for amortization of intangible assets, inventory fair value adjustments related to business acquisitions, changes to the fair values assigned to contingent consideration, debt extinguishment costs, other costs related to business acquisitions and divestitures, transformation costs, loss from probable dispositions, significant litigation matters and settlements, significant environmental charges, changes in the fair value of investments, adjustments for mark-to-market accounting on post-retirement benefits, disposition of businesses and assets, net, and restructuring and other charges is calculated based on operational results and a blended jurisdictional tax rate, which contemplates tax rates currently in effect to determine our tax provision. The tax effect for the impact from foreign currency exchange rates on the current period is calculated based on a blended jurisdictional tax rate currently in effect to determine our tax provision. The non-GAAP financial measures described above are not meant to be considered superior to, or a substitute for, our financial statements prepared in accordance with GAAP. There are material limitations associated with non-GAAP financial measures because they exclude charges that have an effect on our reported results and, therefore, should not be relied upon as the sole financial measures by which to evaluate our financial results. Management compensates and believes that investors should compensate for these limitations by viewing the non-GAAP financial measures in conjunction with the GAAP financial measures. In addition, the non-GAAP financial measures included in this earnings announcement may be different from, and therefore may not be comparable to, similar measures used by other companies. Each of the non-GAAP financial measures listed above is also used by our management to evaluate our operating performance, communicate our financial results to our Board of Directors, benchmark our results against our historical performance and the performance of our peers, evaluate investment opportunities including acquisitions and discontinued operations, and determine the bonus payments for senior management and employees. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804711812/en/ Contacts Investor Relations: Steve [email protected] Media Relations: Chet Murray(781) [email protected]