Core Insights - Revvity's shares have increased by approximately 9.5% since the last earnings report, outperforming the S&P 500 [1][2] Earnings Performance - For Q3 2025, Revvity reported adjusted earnings per share of $1.18, exceeding the Zacks Consensus Estimate of $1.14 by 3.5%, although this represents a 7.8% decline from the previous year [3] - GAAP earnings per share from continuing operations was 40 cents, down from 77 cents in the prior-year period [3] Revenue Details - Revvity's total revenue for the quarter was $698.9 million, reflecting a year-over-year increase of 2.2% and an organic growth of 1% [4] - The Life Sciences segment generated revenues of $343 million, remaining flat organically year over year, with adjusted operating income down 9% [5] - The Diagnostics segment reported revenues of $345 million, up 3% year over year, with organic growth of 2% [5] Margin Analysis - Selling, general and administrative expenses rose to $241.9 million, a 1.8% increase year over year [7] - Research and development expenses were $50.8 million, up 3.4% from the previous year [7] - Adjusted operating income decreased by 5.7% to $182.4 million, with an adjusted operating margin of 26.1%, down 220 basis points from the prior year [7] Financial Update - At the end of Q3 2025, Revvity had cash and cash equivalents of $931.4 million, down from $991.8 million at the end of the previous quarter [8] - Net cash provided by operating activities was $138.9 million, compared to $157 million in the same quarter last year [8] 2025 Guidance - Revvity has raised its earnings outlook for 2025, now expecting adjusted earnings per share in the range of $4.90-$5.00, up from $4.85-$4.95 [10] - Revenue guidance for 2025 has been updated to a range of $2.83-$2.88 billion, slightly down from the previous estimate of $2.84-$2.88 billion [10] Market Position and Estimates - Recent estimates for Revvity have trended upward, indicating positive market sentiment [11] - The company holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [13] Industry Comparison - Revvity is part of the Zacks Medical Services industry, where competitor Danaher has seen a 6.4% increase in stock price over the past month, reporting revenues of $6.05 billion, a 4.4% year-over-year increase [14] - Danaher's earnings per share for the last quarter was $1.89, compared to $1.71 a year ago, but it holds a Zacks Rank 4 (Sell) due to a slight downward revision in estimates [15]

Revvity, Inc. (RVTY), headquartered in Waltham, Massachusetts, is a leading provider of health sciences solutions, technologies, and diagnostic services. Valued at $10.3 billion by market cap, the company focuses on translational multi-omics technologies, biomarker identification, imaging, prediction, screening, detection, diagnosis, informatics, and other areas. Shares of this specialty chemicals giant have notably underperformed the broader market over the past year. RVTY has declined 15% over this time ...

Core Insights - The company reported a 1% organic growth for the third quarter, with Life Sciences remaining flat and Diagnostics experiencing low single-digit growth [1] Revenue Performance - Diagnostics showed better-than-expected performance, driven by strength in newborn screening, while the Immunodiagnostics business faced challenges due to headwinds in China [1] - Life Sciences faced weaker-than-anticipated performance in reagents, but this was offset by growth in instrumentation and software businesses, resulting in an overall flat performance [1]

Revvity (NYSE:RVTY) 2025 Conference Summary Industry Overview - The conference focused on the Life Sciences and Diagnostics sectors, specifically discussing Revvity's performance and outlook in these areas. Key Points and Arguments Financial Performance - **Third Quarter Results**: Revvity reported a 1% organic growth for Q3, with Life Sciences remaining flat and Diagnostics growing in the low single digits, driven by strength in newborn screening [4][32]. - **Reagents Business**: The reagents segment generated approximately $750 million in revenue, with two-thirds from pharma biotech and one-third from academic and government sectors. Year-to-date growth was low single digits overall, with pharma performing slightly better than academic and government [7][11]. - **GMP Capabilities**: The company expects GMP capabilities to become a significant revenue contributor over the next three years, although it is not currently material [8][9]. Market Dynamics - **Academic and Government Sector**: The academic and government market has faced challenges, including potential budget cuts and a government shutdown, leading to low single-digit declines in revenue [11][12]. - **Pharma Activity**: There has been an uptick in customer activity, particularly from large pharma, with expectations for instrumentation to return to growth in Q4 [13][14]. - **Biotech Funding**: Investment in biotech is seen as a positive sign, with less than 5% of total revenue coming from pre-revenue biotech [15][17]. Geographic Insights - **China Market**: Revvity has experienced growth in its China Life Sciences business over the past two years, attributed to a focus on innovative science and preclinical R&D [19][20]. - **US Market Penetration**: The US market for immunodiagnostics has seen increased penetration, growing from 5% to nearly 20% of total revenue, with expectations for continued growth [42][43]. Product and Innovation - **Instrumentation**: The high content screening segment, which constitutes 25% of the instrumentation portfolio, has seen increased demand, with average selling prices ranging from $500,000 to $1,500,000 [21][22]. - **Software Growth**: The software business has grown by 25% year-to-date, driven by a strong product cycle and expansion into material sciences [26][27]. - **Newborn Screening**: The newborn screening business has consistently grown mid to high single digits, driven by geographic expansion, adoption of new assays, and menu expansion [32][33]. Strategic Partnerships - **Genomics England**: The partnership has been beneficial, with successful outcomes in rare disease detection and ongoing discussions for expansion into other countries [35][36][38]. Future Outlook - **2025 Expectations**: The company anticipates continued challenges in the academic and government sectors but expects to see growth in instrumentation and software, with a focus on new product launches and market expansion [11][14][27]. - **Margin Expansion**: Operating margins are expected to improve from 27.2% to 28% in the next year, driven by actions to address China volume declines and operational efficiencies [50][51]. Additional Important Insights - **AI Applications**: Revvity has launched three AI applications for its instrumentation, indicating a focus on integrating advanced technology into its offerings [25]. - **Regulatory Stability**: The company emphasizes the need for regulatory stability in China to return to growth in the immunodiagnostics business [48][49]. This summary encapsulates the key discussions and insights from the Revvity conference, highlighting the company's performance, market dynamics, and strategic initiatives moving forward.

Core Insights - The company reported solid overall performance in Q3, with organic growth and operating margins meeting expectations [1] - Free cash flow generation was strong, achieving about 90% conversion [2] Growth Performance - The software business experienced significant growth, increasing by 20% [2] - The newborn screening business showed strong performance, growing in the high single digits globally [3] - The U.S. immunodiagnostics franchise continued to progress, with growth in the mid-teens during the quarter [3]

Revvity (NYSE:RVTY) 2025 Conference Summary Company Overview - **Company**: Revvity - **Industry**: Life Sciences and Diagnostics Key Highlights from Q3 Results - **Overall Performance**: Solid quarter with organic growth and operating margins in line with expectations [2][3] - **Free Cash Flow**: Generated approximately 90% conversion from free cash flow [2] - **Software Business Growth**: Grew by 20% [2] - **Newborn Screening Business**: High single-digit growth globally [2] - **U.S. Immunodiagnostics Franchise**: Grew in the mid-teens [2] Growth Drivers and Market Trends - **Instrumentation Business**: Increased commercial activity noted in September and early October, but cautious about sustainability [3] - **Reagents Business**: Differentiators include rapid innovation, customer service, and competitive pricing [5][6] - **E-commerce Growth**: Reagents sold through e-commerce increased from 25%-30% to approximately 45% post-BioLegend acquisition [7][8] - **GMP Facility**: Completed build-out expected to drive results in 3-5 years, with potential for quicker financial impact [10][11] Instrumentation and Software Developments - **In Vivo Platform Refresh**: Positive traction noted [15] - **AI Integration**: Ongoing innovations in AI software for instrumentation and analytical capabilities [15][30] - **Signals Business**: Anticipated mid-single-digit growth due to product launches and expansion into smaller biotechs and material sciences [18][19] Financial Metrics and Projections - **2026 Framework**: Projecting 2%-3% organic growth, with life sciences and diagnostics expected to grow in low to mid-single digits [47][48] - **Software Transition**: Approximately one-third of the portfolio sold via SaaS, with a target of 65%-70% in the future [22] Acquisitions and Capital Allocation - **Recent Acquisition**: ACD/Labs for $70 million, expected to be EPS neutral in 2026 and accretive thereafter [26][29] - **Share Repurchase Program**: Increased from $250 million to approximately $900 million due to favorable market conditions [54] Challenges and Risks - **China Market**: Anticipated decline in revenue contribution due to policy headwinds, with expectations of low single-digit growth post-adjustment [46] - **Immunodiagnostics Growth**: Focus on FDA approvals and automation to drive growth in the Americas [38] Conclusion - **Long-term Outlook**: Revvity remains optimistic about growth drivers in software, reagents, and instrumentation, while navigating challenges in specific markets like China and adapting to evolving industry dynamics [50][56]

Core Viewpoint - Revvity, Inc. has announced a definitive agreement to acquire ACD/Labs, enhancing its capabilities in research informatics and expanding its solutions in development and manufacturing [1][2][3] Company Overview - Revvity, Inc. is a provider of health science solutions, technologies, and services, focusing on workflows from discovery to development [8] - The company reported revenue exceeding $2.7 billion in 2024 and employs approximately 11,000 people, serving customers in over 160 countries [9] Acquisition Details - The acquisition of ACD/Labs aims to deepen Revvity Signals' presence in research informatics and strengthen its ability to accelerate scientific innovation [1][3] - ACD/Labs specializes in scientific software solutions that support analytical characterization and molecular design in pharmaceutical and material sciences [2][10] Strategic Benefits - The integration of ACD/Labs' technologies into Revvity Signals will create a unified SaaS environment, connecting molecular design, analytical science, and manufacturing quality control [4][3] - This acquisition is expected to provide comprehensive support across the scientific workflow, enhancing the ability of scientists to manage and act on complex data [3][4] Product Offerings - ACD/Labs offers industry-leading tools such as the Spectrus® Platform for advanced spectral analysis and the Percepta® Platform for AI-driven molecular property prediction [6] - Other specialized applications include Katalyst D2D® for high-throughput experimentation and Luminata® for pharmaceutical chemistry decision support [6]

Revenue Performance - Total revenue for Q3 FY2025 was $698.9 million, an increase of $14.9 million or 2% compared to Q3 FY2024, driven by a 3% increase in Diagnostics segment revenue and a 1% increase in Life Sciences segment revenue [89]. - Life Sciences segment revenue for Q3 FY2025 was $342.8 million, up $4.0 million or 1%, primarily due to an $8.9 million increase in Software revenue [95]. - Diagnostics segment revenue for Q3 FY2025 was $356.1 million, an increase of $10.9 million or 3%, attributed to a $9.7 million increase in Reproductive Health revenue [95]. - Total revenue for the nine months ended September 28, 2025, was $2,084.0 million, a 3% increase from $2,025.7 million for the same period in FY2024 [96]. - Life Sciences segment revenue for the nine months ended September 28, 2025, was $1,049.1 million, a 2% increase driven by a $35.1 million increase in Software revenue [96]. Expenses and Margins - Consolidated gross margins decreased by 266 basis points to 53.6% in Q3 FY2025, primarily due to increased tariffs and unfavorable foreign exchange rates [90]. - Selling, general and administrative expenses for Q3 FY2025 were $241.9 million, a 2% increase from $237.5 million in Q3 FY2024, with expenses as a percentage of revenue decreasing to 34.6% [101]. - Research and development expenses for Q3 FY2025 were $50.8 million, an increase of $1.7 million or 3%, representing 7.3% of revenue [103]. - Cost of revenue for Q3 FY2025 was $324.3 million, an 8% increase from $299.2 million in Q3 FY2024, resulting in a gross margin decrease to 53.6% [97]. - The company anticipates a $25 million increase in cost of revenue due to tariffs, with an expected $20 million decrease in gross margin for the current fiscal year [99]. Income and Taxation - Segment operating income for the Life Sciences segment decreased by $9.5 million, or 9%, to $101.0 million for Q3 2025, with a segment operating margin decrease of 316 basis points [112]. - The effective tax rate for continuing operations increased to 15.2% for Q3 2025 from 6.9% in Q3 2024, primarily due to prior year true-ups recorded in fiscal year 2024 [108]. Cash Flow and Investments - Net cash provided by operating activities decreased to $407.0 million for the nine months ended September 28, 2025, from $489.5 million for the same period in 2024, a decrease of $82.5 million [128]. - Net cash used in investing activities increased by $699.1 million, totaling $(53.2) million for the nine months ended September 28, 2025, compared to net cash provided of $646.0 million in the prior year [129]. - Cash and cash equivalents stood at $931.4 million as of September 28, 2025, with $540.0 million held by non-U.S. subsidiaries [122]. Financing Activities - The company repurchased 515,232 shares of common stock at an aggregate cost of $47.5 million under the stock repurchase program prior to its termination [123]. - Net cash used in financing activities decreased by $254.0 million to $681.2 million for the nine months ended September 28, 2025, compared to $935.2 million for the same period in 2024 [130]. - Share repurchases totaled $652.5 million during the nine months ended September 28, 2025, up from $184.4 million in the prior year period [130]. - Dividends paid decreased slightly to $24.8 million for the nine months ended September 28, 2025, compared to $25.9 million for the same period in 2024 [130]. - Net payments on debts were $2.6 million for the nine months ended September 28, 2025, significantly lower than $722.3 million in the prior year [130]. Credit Facilities and Market Risks - A new senior unsecured revolving credit facility with a borrowing capacity of $1.5 billion was established, available through January 7, 2030 [133]. - A quarterly cash dividend of $0.07 per share was declared for the first three quarters of fiscal year 2025, with future dividends potentially reduced or eliminated to fund growth investments [134]. - The company is exposed to market risks including interest rate and currency exchange rate fluctuations, managed through derivative transactions [136]. - The outstanding €500,000 Principal 1.875% Senior Unsecured Notes due in 2026 are expected to be repaid with existing cash or credit facility draws [132]. Accounting and Compliance - The company has recorded contingent consideration obligations of $19.2 million related to acquisitions, with a maximum earnout period of 6.2 years [124]. - The company has not adopted any new accounting pronouncements during the nine months ended September 28, 2025 [135].

Core Insights - Revvity, Inc. reported mixed financial results for Q3 2025, with adjusted EPS of $1.18 exceeding analyst estimates of $1.14, while total revenue of $698.949 million fell short of the consensus estimate of $700.457 million [1] - The company has authorized a new two-year $1 billion share repurchase program, replacing the previous program [1] Financial Guidance - For the full year 2025, Revvity raised its adjusted EPS guidance to a range of $4.90 to $5.00, up from $4.85–$4.95, surpassing the analyst estimate of $4.86 [2] - The company reaffirmed its organic growth guidance of 2% to 4% [2] - Full-year revenue guidance was widened to $2.83–$2.88 billion from a prior range of $2.84 billion–$2.88 billion, accounting for changes in foreign currency exchange rates, against an analyst estimate of $2.849 billion [2] Strategic Outlook - CEO Prahlad Singh highlighted the company's strong performance in Q3, attributing it to key innovations and strategic partnerships, and expressed optimism for greater success in 2026 and beyond [3] - Revvity shares closed at $97.16 following the earnings announcement [3] Analyst Ratings - Baird analyst Catherine Ramsey maintained an Outperform rating on Revvity and raised the price target from $122 to $123 [5] - Barclays analyst Luke Sergott also maintained an Overweight rating and increased the price target from $100 to $105 [5]

Core Insights - Revvity Inc. shares declined over 2% despite exceeding third-quarter adjusted earnings expectations and raising the full-year profit outlook [1] Financial Performance - The company reported adjusted earnings of $1.18 per share, surpassing the analyst consensus of $1.14 [2] - Revenue for the quarter was $699 million, aligning closely with expectations of $699.39 million, and reflecting a 2% increase from the prior-year quarter [2] - Organic revenue growth was reported at 1% year-over-year [2] Segment Performance - The Diagnostics division experienced a 3% rise in revenue, totaling $356 million [3] - The Life Sciences segment saw a 1% increase in revenue, reaching $343 million [3] - Both segments reported year-over-year declines in adjusted operating margins [3] Future Outlook - Revvity updated its 2025 revenue forecast to a range of $2.83 billion to $2.88 billion, accounting for foreign exchange adjustments [4] - The company maintained its organic growth outlook of 2–4% [4] - Adjusted earnings guidance was raised to $4.90–$5.00 per share, exceeding the consensus estimate of $4.87 [4]