Financial Data and Key Metrics Changes - The company reported revenue of $720 million for Q2 2025, achieving 3% organic growth, with a 1% tailwind from foreign exchange (FX) [20][24] - Adjusted EPS for the quarter was $1.18, exceeding expectations by $0.04, with adjusted operating margins at 26.6%, down two basis points year over year [22][20] - Full year organic growth is now expected to be in the range of 2% to 4%, down 1% from prior expectations, with adjusted EPS projected between $4.85 and $4.95, also down 1% [9][30] Business Line Data and Key Metrics Changes - Life Sciences business grew 4% organically, driven by a 30% increase in the signals software franchise, while Diagnostics segment grew 2% organically [5][24] - Sales to pharma and biotech customers showed mid single-digit growth, while academic and government customer sales declined in the low single digits [6][24] - The immunodiagnostics business in China is expected to decline in the high teens for the full year due to new reimbursement policies impacting test volumes [17][18] Market Data and Key Metrics Changes - The Americas and Europe experienced mid single-digit growth, while Asia, including China, saw mid single-digit declines [24][27] - The company faced challenges in China due to the implementation of a new diagnosis-related groups (DRG) policy, affecting diagnostic panel sizes ordered by physicians [8][17] - The overall impact of FX is anticipated to be a 1% tailwind to revenue for the full year, compared to a previous assumption of a 50 basis point headwind [28] Company Strategy and Development Direction - The company continues to focus on cash flow generation, with $115 million in free cash flow for the quarter, and has been active in share repurchase activities, totaling nearly $450 million in the first half of the year [10][11] - The management remains disciplined in evaluating potential M&A targets, emphasizing the importance of financial profiles and expected returns [10][90] - The company is committed to innovation, with the launch of the IDS I 20 analytical platform expected to enhance growth in specialty testing automation [12][11] Management's Comments on Operating Environment and Future Outlook - The management acknowledged ongoing macroeconomic and regulatory challenges but expressed confidence in the company's ability to adapt and thrive [4][14] - The outlook for the second half of the year remains cautious, with expectations for continued stability in pharma and biotech customers, while anticipating ongoing headwinds in the academic and government sectors [17][18] - The company plans to implement structural cost actions to offset margin pressures and expects to enter next year with a baseline operating margin of 28% [30] Other Important Information - The company received an upgraded ESG rating from MSCI to AAA, reflecting its commitment to sustainability and governance [12] - The management highlighted the importance of addressing the DRG changes in China to mitigate impacts on patient care and business performance [66] Q&A Session Summary Question: Guidance change related to DRG and VBP - The majority of the guidance change is attributed to the DRG policy, which has impacted multiplex test volumes, with expectations for a shift towards more expensive single plex tests in the long run [34][35] Question: Margin change and typical range - The typical operating margin range is around 28%, with expectations for slight margin expansion based on organic growth levels [36][38] Question: Revenue pacing and guidance assumptions - The company expects normal seasonality in revenue pacing, with a high single-digit ramp in both Life Sciences and Diagnostics businesses [41][44] Question: Incremental reimbursement pricing headwinds in China - The impact of the DRG changes is expected to continue until the company anniversaries the policy, with IDX in China projected to represent less than 5% of total revenue by 2026 [46][46] Question: Trends in Life Sciences reagents and instruments - The Life Sciences reagents business has shown five consecutive quarters of growth, while capital equipment spending remains cautious [50][85] Question: Software growth and margin expectations - The signals software business achieved record orders and 32% organic growth, but overall margins are impacted by the volume drop in high-margin diagnostics [58][63] Question: Portfolio resiliency and diagnostics performance - The management remains confident in the overall portfolio, highlighting strong performance in Life Sciences and software, despite challenges in the diagnostics segment due to DRG [66][66]

Core Insights - Revvity (RVTY) reported quarterly earnings of $1.18 per share, exceeding the Zacks Consensus Estimate of $1.14 per share, but down from $1.22 per share a year ago, resulting in an earnings surprise of +3.51% [1] - The company achieved revenues of $720.28 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.27% and up from $691.68 million year-over-year [2] - Revvity has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Financial Performance - The earnings surprise for the previous quarter was +5.21%, with actual earnings of $1.01 per share compared to an expected $0.96 [1] - The current consensus EPS estimate for the upcoming quarter is $1.27, with projected revenues of $711.17 million, and for the current fiscal year, the EPS estimate is $4.82 on revenues of $2.85 billion [7] Market Position - Revvity shares have underperformed the market, losing about 7.1% since the beginning of the year, while the S&P 500 has gained 8.6% [3] - The Zacks Industry Rank places Medical Services in the top 37% of over 250 Zacks industries, indicating a favorable position compared to the bottom 50% [8] Future Outlook - The sustainability of Revvity's stock price movement will depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The estimate revisions trend for Revvity was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market [6]

Financial Performance - Revvity's Q2 2025 revenue reached $720 million, a 4% year-over-year increase[11] - Organic revenue growth was 3%, with a 1% positive impact from foreign exchange[11] - Adjusted operating margin was 266%, a decrease of 210 basis points year-over-year[11] - Adjusted EPS was $118, a 3% decrease year-over-year[11] - Free cash flow was $115 million for the quarter, with a year-to-date total of $234 million[11] Segment Performance - Life Sciences revenue was $366 million, with a 5% reported increase, including 4% organic growth and 1% from FX[13, 14] - Diagnostics revenue was $354 million, with a 3% reported increase, including 2% organic growth and 1% from FX[16, 17] - Life Sciences adjusted operating margin was 316%, a decrease of 220 basis points year-over-year[14] - Diagnostics adjusted operating margin was 252%, a decrease of 180 basis points year-over-year[17] 2025 Financial Guidance - Revvity projects full-year revenue between $284 billion and $288 billion, representing a 3% to 5% reported increase[18]

Financial Performance Summary This section summarizes Revvity's Q2 2025 financial performance, including key metrics and management's strategic commentary [Q2 2025 Overall Performance](index=1&type=section&id=Q2%202025%20Overall%20Performance) Revvity reported Q2 2025 revenue of $720 million with 4% reported growth, while GAAP EPS increased to $0.46 and adjusted EPS declined to $1.18, alongside a contracted adjusted operating margin Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Revenue | $720 million | $692 million | +4% Reported, +3% Organic | | GAAP EPS | $0.46 | $0.45 | +2.2% | | Adjusted EPS | $1.18 | $1.22 | -3.3% | | GAAP Operating Margin | 12.6% | 12.4% | +20 bps | | Adjusted Operating Margin | 26.6% | 28.8% | -220 bps | [Management Commentary](index=1&type=section&id=Management%20Commentary) The CEO noted that consistent execution and transformation efforts enabled the company to exceed expectations and position for long-term value creation in a challenging market - CEO Prahlad Singh stated that the company's transformation and consistent execution enabled it to exceed expectations in an evolving market environment[4](index=4&type=chunk) - The company is confident in its strong innovation pipeline, high-performing teams, and disciplined operational focus to deliver long-term shareholder value[4](index=4&type=chunk) Financial Overview by Reporting Segment This section details the financial performance of Revvity's Life Sciences and Diagnostics segments for Q2 2025, including revenue and operating margins [Life Sciences](index=1&type=section&id=Life%20Sciences) The Life Sciences segment achieved $366 million in Q2 2025 revenue with 5% reported growth, though its adjusted operating margin decreased to 31.6% Life Sciences Q2 2025 Performance | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Revenue | $366 million | $349 million | +5% Reported, +4% Organic | | Adjusted Operating Income | $115 million | $118 million | -2.5% | | Adjusted Operating Margin | 31.6% | 33.7% | -210 bps | [Diagnostics](index=1&type=section&id=Diagnostics) The Diagnostics segment reported Q2 2025 revenue of $354 million with 3% reported growth, experiencing declines in both adjusted operating income and margin to 25.2% Diagnostics Q2 2025 Performance | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Revenue | $354 million | $343 million | +3% Reported, +2% Organic | | Adjusted Operating Income | $89 million | $93 million | -4.3% | | Adjusted Operating Margin | 25.2% | 27.0% | -180 bps | Full Year 2025 Guidance This section outlines Revvity's updated financial guidance for the full year 2025, including revenue and adjusted EPS projections [Updated Outlook](index=2&type=section&id=Updated%20Outlook) Revvity raised its full-year 2025 revenue guidance to $2.84-$2.88 billion, projecting 2-4% organic growth and an adjusted EPS range of $4.85-$4.95 Full Year 2025 Guidance | Metric | Updated Guidance | | :--- | :--- | | Revenue | $2.84 - $2.88 billion | | Organic Growth | 2% - 4% | | Adjusted EPS | $4.85 - $4.95 | - The guidance for adjusted EPS and organic growth is provided on a non-GAAP basis and cannot be reconciled to GAAP measures without unreasonable effort[10](index=10&type=chunk) Financial Statements (GAAP) This section presents Revvity's condensed consolidated GAAP financial statements, including income statements, balance sheets, and cash flow statements [Condensed Consolidated Income Statements](index=4&type=section&id=Condensed%20Consolidated%20Income%20Statements) Revvity's Q2 2025 revenue increased to $720.3 million, with operating income growing to $90.8 million, while net income remained flat and diluted EPS decreased to $0.47 Q2 Income Statement Highlights (in thousands) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $720,284 | $691,685 | | Operating income from continuing operations | $90,760 | $85,724 | | Income from continuing operations | $55,222 | $72,606 | | Net income | $53,948 | $55,360 | | Diluted EPS (Net income) | $0.46 | $0.45 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 29, 2025, Revvity's total assets slightly decreased to $12.36 billion, with cash declining to $991.8 million, while total liabilities increased and stockholders' equity decreased Balance Sheet Summary (in thousands) | Account | June 29, 2025 | Dec 29, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $991,849 | $1,163,396 | | Total current assets | $2,236,183 | $2,349,608 | | Total assets | $12,362,789 | $12,392,478 | | Total liabilities | $4,806,621 | $4,725,604 | | Total stockholders' equity | $7,556,168 | $7,666,874 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 29, 2025, net cash from operating activities decreased to $262.5 million, with significant cash used in financing activities, primarily for common stock purchases Six Months Cash Flow Summary (in thousands) | Activity | Six Months Ended June 29, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $262,473 | $306,184 | | Net cash (used in) provided by investing activities | ($15,871) | $103,310 | | Net cash used in financing activities | ($466,139) | ($61,508) | | Net (decrease) increase in cash | ($171,462) | $335,055 | - The company used **$447.5 million** for purchases of common stock in the first six months of 2025, a significant increase from $30.3 million in the same period of 2024[27](index=27&type=chunk) Non-GAAP Financial Measures and Reconciliations This section provides reconciliations of GAAP to non-GAAP financial measures and explains the rationale for their use in assessing Revvity's performance [Reconciliation of GAAP to Non-GAAP Measures](index=5&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Detailed reconciliations show Q2 2025 GAAP EPS of $0.47 adjusted to $1.18, and reported revenue growth of 4% adjusted to 3% organic growth after accounting for foreign exchange Q2 2025 GAAP to Adjusted EPS Reconciliation | Description | Per Share Amount | | :--- | :--- | | GAAP EPS from continuing operations | $0.47 | | Amortization of intangible assets | $0.73 | | Restructuring and other, net | $0.10 | | Tax on above items | ($0.16) | | Other adjustments | $0.04 | | **Adjusted EPS from continuing operations** | **$1.18** | Q2 2025 Organic Revenue Growth Reconciliation | Description | Total Company | Life Sciences | Diagnostics | | :--- | :--- | :--- | :--- | | Reported Revenue Growth | 4% | 5% | 3% | | Less: Effect of foreign exchange | 1% | 1% | 1% | | **Organic Revenue Growth** | **3%** | **4%** | **2%** | [Explanation of Non-GAAP Financial Measures](index=14&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) Revvity utilizes non-GAAP measures like organic revenue and adjusted EPS to clarify operational performance by excluding non-recurring or non-cash items that may obscure underlying business trends - Management believes non-GAAP measures help investors understand financial trends by excluding certain non-cash, non-recurring, or other items[33](index=33&type=chunk) - Key non-GAAP terms defined include "organic revenue" (excluding currency and M&A impacts), "adjusted operating income" (excluding amortization, restructuring, etc.), and "adjusted EPS" (GAAP EPS excluding a similar set of items)[34](index=34&type=chunk)[39](index=39&type=chunk)[42](index=42&type=chunk) - These non-GAAP measures are used internally for performance evaluation, benchmarking, and determining bonus payments[47](index=47&type=chunk) Other Information This section includes important disclosures regarding forward-looking statements and the various risk factors that could impact Revvity's future performance [Factors Affecting Future Performance (Forward-Looking Statements)](index=2&type=section&id=Factors%20Affecting%20Future%20Performance%20%28Forward-Looking%20Statements%29) The press release contains forward-looking statements and outlines numerous risk factors, including market conditions, global economic fluctuations, and competition, that could impact future financial results - The company identifies forward-looking statements related to future earnings, revenue growth, and business development[13](index=13&type=chunk) - Key risk factors include market conditions, global economic and political environments, product innovation timeliness, M&A execution, competition, supply chain disruptions, and cybersecurity threats[13](index=13&type=chunk)

Core Viewpoint - Revvity (RVTY) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, supported by a strong history of surpassing expectations [1]. Earnings Performance - Revvity has consistently exceeded earnings estimates, averaging a 4.81% beat over the last two quarters [2]. - In the last reported quarter, Revvity achieved earnings of $1.01 per share, surpassing the Zacks Consensus Estimate of $0.96 per share by 5.21% [3]. - For the previous quarter, the company reported earnings of $1.42 per share against an expectation of $1.36 per share, resulting in a surprise of 4.41% [3]. Earnings Estimates and Predictions - Recent changes in earnings estimates for Revvity have been favorable, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [6]. - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced positive surprises nearly 70% of the time [7]. - Revvity currently has an Earnings ESP of +0.88%, suggesting increased analyst optimism regarding the company's earnings prospects [9]. Upcoming Earnings Report - The next earnings report for Revvity is expected to be released on July 28, 2025 [9].

Core Insights - Revvity, Inc. (RVTY) is expected to report second-quarter 2025 results on July 28, with a history of earnings surprises averaging 7.71% over the last four quarters [2][4][14] Q2 Estimates - The Zacks Consensus Estimate for revenues is $711.3 million, reflecting a 2.8% increase year over year, while earnings are estimated at $1.14 per share, indicating a 6.6% decline year over year [3] - Revvity anticipates organic revenue growth of 2% to 4%, translating to total revenues between $700 million and $715 million, with gross margins expected around 60% due to tariff impacts [4][10] Diagnostics Segment - The Diagnostics segment grew 5% organically in Q1 2025, driven by high-single-digit growth in immunodiagnostics and strong performance in reproductive health [5][6] - For Q2 2025, the Diagnostics segment is projected to contribute significantly, with revenues estimated at $388.4 million, up 2.8% year over year [7][10] Life Sciences Segment - The Life Sciences segment experienced 2% organic growth in Q1 2025, supported by strong reagent demand and over 20% growth in the Signals Software business [8] - Revenues for the Life Sciences segment are estimated at $321.7 million, reflecting a 2.5% increase year over year, despite pressures from weak academic demand for instrumentation [9][10] Other Factors - Revvity's collaboration with Genomics England aims to enhance newborn genomic screening, supporting momentum in the Diagnostics segment [11] - The launch of the IDS i20 analytical platform by EUROIMMUN is expected to drive incremental revenue in the Diagnostics segment during Q2 [12] - Tariff-related headwinds are anticipated to peak in Q2, but management has implemented mitigation strategies expected to take effect in the second half of the year [13]

Group 1 - Wall Street analysts expect Revvity (RVTY) to report quarterly earnings of $1.14 per share, reflecting a year-over-year decline of 6.6% [1] - Revenues are anticipated to be $711.27 million, which represents a 2.8% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the past 30 days, indicating a reassessment of projections by covering analysts [1] Group 2 - Analysts project 'Net Sales- Life Sciences' to reach $342.32 million, indicating a year-over-year increase of 9.1% [4] - The estimate for 'Net Sales- Diagnostics' is $365.99 million, reflecting a decline of 3.2% compared to the prior year [4] - Organic revenue growth for Diagnostics is expected to be 3.8%, up from 3.0% reported in the same quarter last year [5] Group 3 - Revvity shares have experienced a return of -0.3% over the past month, while the Zacks S&P 500 composite has increased by 5.9% [5] - Based on its Zacks Rank 3 (Hold), RVTY is expected to perform in line with the overall market in the near future [5]

Company Overview - Revvity (RVTY) is anticipated to report a year-over-year decline in earnings of 6.6%, with expected earnings of $1.14 per share, while revenues are projected to increase by 2.8% to $711.27 million for the quarter ended June 2025 [3][12]. Earnings Expectations - The earnings report is scheduled for release on July 28, and the stock may experience upward movement if the reported figures exceed expectations; conversely, a miss could lead to a decline in stock price [2][12]. - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. Earnings Surprise Prediction - Revvity has an Earnings ESP of +0.88%, suggesting a higher Most Accurate Estimate compared to the Zacks Consensus Estimate, indicating a bullish outlook from analysts [12]. - The company has a Zacks Rank of 3, which, when combined with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [12]. Historical Performance - Revvity has consistently beaten consensus EPS estimates in the past four quarters, with a notable surprise of +5.21% in the last reported quarter [13][14]. Industry Context - In comparison, Labcorp Holdings (LH), another player in the medical services industry, is expected to report earnings of $4.14 per share, reflecting a year-over-year increase of 5.1%, with revenues projected at $3.49 billion, up 8.3% [18]. - Labcorp's consensus EPS estimate has been revised down by 0.1% over the last 30 days, resulting in an Earnings ESP of -0.26%, making it challenging to predict a beat against the consensus EPS estimate [19].

Revvity (RVTY) FY Conference Summary Company Overview - **Company**: Revvity (formerly PerkinElmer) - **Industry**: Life Sciences Tools and Diagnostics Key Points and Arguments Market Environment and Company Adaptation - The current market is dynamic with uncertainties due to policy changes, tariffs, and challenges in pharma, biotech, and academia sectors [3][4][5] - Revvity's diverse portfolio has demonstrated resilience amidst these challenges, with 60% of revenue now coming from diagnostics and software [4][5][8] Financial Performance and Growth - Revvity's growth rate is at the top end of its publicly traded peer group, with a long-range plan (LRP) growth target of 6-8%, compared to 3-5% previously [4][7] - The company has shifted to a recurring revenue model, with over 80% of revenue now from recurring sources, improving margins from 18-20% to 28% [7][8] - Organic growth guidance for the year is set at 3-5%, with confidence in achieving this despite market uncertainties [9][12] Life Sciences Segment Challenges - The life sciences segment faces challenges due to funding shifts towards clinical work, impacting preclinical discovery [14][15] - Revvity's differentiated product portfolio in consumables is expected to maintain growth despite these challenges [15][20] Software Business - Revvity's software business is unique, functioning as an ERP for researchers, with 48 out of the top 50 pharma companies using its software [26][28] - The software segment is expected to grow significantly, contributing to overall margin improvement [56] Diagnostics and Growth Opportunities - Immunodiagnostics represent a significant growth opportunity in the U.S., with current market penetration at 15-20% compared to a historical 35-40% [30][31] - The company is focusing on expanding its offerings in reproductive health and rare disease testing, leveraging partnerships for growth [40][41] Competitive Landscape in China - Revvity faces intense competition in China, but differentiates itself through proprietary assays and a focus on complex diseases [35][36] - The company is adapting to local market conditions and regulatory environments to maintain growth and profitability [36][39] Capital Allocation and M&A Strategy - Revvity has been active in M&A, completing 13 acquisitions in 22 months to enhance its portfolio [60][62] - Current capital allocation focuses on share buybacks, with a balanced approach to future M&A opportunities [64][68] Long-term Outlook - The company aims for mid-30s operating margins in a normalized market environment, with equal opportunities for margin expansion across life sciences and diagnostics [54][56] - Revvity's strong portfolio and execution strategy position it well for long-term growth despite current macroeconomic challenges [72][74] Additional Important Insights - The company emphasizes innovation and automation in its product offerings to enhance researcher productivity, especially in a budget-constrained environment [47] - Revvity's software and diagnostics segments are seen as critical to its long-term success, with ongoing efforts to improve customer stickiness and market penetration [25][28][70]

Revvity, Inc. (RVTY) announced the launch of its new IDS i20 analytical random-access platform from EUROIMMUN. Per management, it is expected to enable full automation of chemiluminescence immunoassays (ChLIA).The IDS i20 instrument is equipped with the ability to process up to 140 tests per hour (assay dependent) and is the latest addition to RVTY’s well-established IDS i-device series.The latest product availability is expected to boost Revvity’s Immunodiagnostics product line under the broader Diagnostic ...