Revvity Q2 Earnings Call Highlights

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. “The second quarter reinforced that Revvity is in a strong and increasingly differentiated position,” Singh said, pointing to the resilience of diagnostics and signs of improvement in Life Sciences end markets. Second-Quarter Financial Performance Chief Financial Officer Max Krakowiak said second-quarter revenue totaled $711 million, including 3% pro forma organic growth. Foreign exchange had an immaterial effect on reported growth, while the recently acquired ACD/Labs software business contributed about 75 basis points to growth. Pro forma adjusted operating margin was 29.3%, above the company’s 27% outlook. Pro forma adjusted EPS was $1.41. Free cash flow totaled $184 million, representing 117% conversion of adjusted net income. Year-to-date free cash flow approached $300 million, with conversion of 108% of adjusted net income. Krakowiak said Revvity received $16 million in tariff-related refunds during the quarter, which accounted for about half of the adjusted EPS upside. About one-third of the upside came from a lower-than-expected 16% adjusted tax rate, driven by the timing of discrete items that had previously been expected in the fourth quarter. The company maintained its full-year adjusted tax-rate assumption of about 18%. Revvity also retired a €500 million note in July. The company ended the quarter with net debt-to-adjusted EBITDA leverage of 2.5 times and said it expects gross leverage to be below three times by year-end. Krakowiak said all of the company’s long-term debt is fixed rate, with a weighted average interest rate of 2.3% and a weighted average maturity of about six years. Diagnostics Drives Broad-Based Growth The Diagnostics segment generated $352 million in second-quarter revenue, rising 12% on a reported basis and 11% organically. Both Immunodiagnostics and Reproductive Health exceeded the company’s expectations, Krakowiak said. Immunodiagnostics grew at a high-single-digit organic rate, supported by broad-based performance outside China despite continued pressures in latent tuberculosis testing. Reproductive Health grew in the double digits, benefiting from Newborn Screening demand and the contribution from Revvity’s work with Genomics England. Singh said Reproductive Health grew in the mid-teens during the quarter, while Immunodia...