Financial Data and Key Metrics Changes - The company generated revenue of $699 million in Q3 2025, resulting in 1% organic growth, with foreign exchange (FX) providing a modest 1% tailwind [24][25] - Adjusted operating margins were 26.1%, down 220 basis points year-over-year but slightly above expectations [25] - Adjusted earnings per share (EPS) for the quarter was $1.18, which was $0.05 above the midpoint of guidance [8][26] - Free cash flow for the quarter was $120 million, representing approximately 90% of adjusted net income [9][26] Business Line Data and Key Metrics Changes - The Signals software business grew 20% organically in the quarter, with annual recurring revenue (ARR) over 40% and a net retention rate of more than 110% [7][30] - The reproductive health business grew in the mid-single digits year-over-year, with newborn screening growing in the high single digits [7][31] - The diagnostics segment generated $356 million in revenue, up 3% on a reported basis and 2% on an organic basis, with immunodiagnostics declining in the low single digits [30] Market Data and Key Metrics Changes - The Americas grew in the low single digits, Europe in the mid-single digits, while Asia declined in the mid-single digits, with China experiencing a low teens decline [29] - Sales to pharma and biotech customers were up low single digits, while sales to academic and government customers declined in the low single digits [29] Company Strategy and Development Direction - The company is focused on disciplined capital deployment, with a new $1 billion share repurchase authorization to replace the existing program [10] - There is an emphasis on AI-driven solutions, with several new AI-focused software offerings launched in the past year [12][13] - The company is optimistic about future performance, anticipating organic growth of 2%-4% for the year and a baseline adjusted operating margin of 28% for 2026 [11][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving customer confidence and demand trends, particularly in the pharma and biotech sectors [6][10] - The company is cautious about assumptions until there are sustained improvements in broader industry demand trends [10][11] - Management reiterated the importance of maintaining a strong focus on cash flow generation and capital deployment priorities [9][10] Other Important Information - The company reported a 6% reduction in Scope 1 and 2 emissions in 2024 and achieved a 77% employee satisfaction rate [19] - The company received a AAA rating from MSCI, the highest possible rating, reflecting its commitment to sustainability [20] Q&A Session Summary Question: Commentary on 2026 growth expectations - Management indicated a prudent assumption of 2%-3% organic growth for 2026, with signs of increasing activity in the instrument side and confidence in diagnostics performance outside of China [36][37] Question: Insights on life sciences business performance - The life sciences solutions business was in line with expectations, with reagents performing slightly below expectations due to lighter summer months [39][40] Question: Details on customer activity levels - Management noted that increasing customer activity is primarily seen in the pharma biotech sector, particularly in instruments, rather than academia and government [44] Question: Expectations for software business growth - The software business is expected to face challenging comps in 2026, with organic growth anticipated in the mid-single digits, but strong performance metrics such as ARR and net retention rate remain positive [58][60] Question: Insights on China diagnostics - Management confirmed that China diagnostics is expected to continue facing headwinds, with a projected decline of 20%-25% year-over-year due to changes in reimbursement [73][74]

Financial Data and Key Metrics Changes - The company achieved revenue of $699 million in Q3 2025, resulting in 1% organic growth, with foreign exchange (FX) providing a modest tailwind of approximately 1% [24][26] - Adjusted operating margins were reported at 26.1%, slightly above expectations but down 220 basis points year-over-year due to tariffs, FX, and lower volume leverage [24][25] - Adjusted earnings per share (EPS) for the quarter was $1.18, exceeding the midpoint of guidance by $0.05 [26] Business Line Data and Key Metrics Changes - The signals software business grew 20% organically in the quarter, continuing to be a strong performer with an annual recurring revenue (ARR) of over 40% and a net retention rate of more than 110% [28] - The reproductive health business grew in the mid-single digits, with newborn screening growing in the high single digits [5][30] - The diagnostics segment generated $356 million in revenue, up 3% on a reported basis and 2% organically, with immunodiagnostics declining in the low single digits [29] Market Data and Key Metrics Changes - The Americas experienced low single-digit growth, Europe saw mid-single-digit growth, while Asia declined in the mid-single digits, with China specifically declining in the low teens [27] - The diagnostics business in China faced a decline of over 20%, significantly impacting overall performance [31][90] Company Strategy and Development Direction - The company is focusing on capital deployment through share repurchases, having repurchased approximately 2.3 million shares in Q3, totaling 12.5 million shares since the divestiture [8][26] - The company is optimistic about future performance, anticipating organic growth in the 2% to 4% range for the year, while raising adjusted EPS guidance to $4.90 to $5.00 [9][33] - Strategic partnerships, such as those with Genomics England and Sanofi, are expected to enhance product offerings and market presence [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding improving customer confidence and investment levels in the industry, despite current market stability [4][9] - The company is cautious in its assumptions until sustained improvements in broader industry demand trends are observed [10][18] - Management highlighted the importance of AI in driving productivity and innovation, with several new AI-based products launched [11][12] Other Important Information - The company reported a 6% reduction in scope one and two emissions in 2024 and a 77% employee satisfaction rate [17] - The company received a AAA rating from MSCI, indicating strong performance in ESG metrics [17] Q&A Session Summary Question: Insights on 2026 growth outlook - Management indicated a prudent assumption of 2% to 3% organic growth for 2026, with signs of increasing customer activity, particularly in the pharma sector [36][39] Question: Confidence in maintaining 28% operating margin - Management expressed confidence in achieving a 28% operating margin baseline for 2026, supported by ongoing actions and cost containment initiatives [41][42] Question: Performance of reagents in Q3 - Reagents were reported to be slightly below expectations, with modest declines noted, but underlying lab activity remains strong [78][79] Question: Impact of budget flush in Q4 - A modest seasonal increase in instrument sales is expected in Q4, with some improvement in customer activity levels noted [82] Question: Future of China diagnostics - Management expects continued headwinds in China diagnostics due to DRG impacts, but anticipates a return to low single-digit growth post-anniversary in Q2 2026 [90][92]

Financial Data and Key Metrics Changes - The company achieved revenue of $699 million in Q3 2025, resulting in 1% organic growth, with foreign exchange (FX) providing a modest 1% tailwind [24][25] - Adjusted operating margins were 26.1%, slightly above expectations but down 220 basis points year-over-year due to tariffs, FX, and lower volume leverage [25][26] - Adjusted earnings per share (EPS) for the quarter was $1.18, exceeding the midpoint of guidance by $0.05 [6][26] - Free cash flow generated in the quarter was $120 million, representing approximately 90% of adjusted net income [7][8] Business Line Data and Key Metrics Changes - The Signals software business grew 20% organically in the quarter, with strong performance in Software as a Service (SaaS) [5][29] - The reproductive health business grew in the mid-single digits year-over-year, with newborn screening growing in the high single digits [5][31] - The diagnostics segment generated $356 million in revenue, up 3% on a reported basis and 2% organically, with immunodiagnostics declining in the low single digits [29][30] Market Data and Key Metrics Changes - The Americas saw low single-digit growth, Europe experienced mid-single-digit growth, while Asia declined in the mid-single digits, with China down in the low teens [28] - The life sciences segment generated revenue of $343 million, up 1% on a reported basis and roughly flat on an organic basis [28] Company Strategy and Development Direction - The company is focused on disciplined capital deployment, with a new $1 billion share repurchase authorization to replace the existing program [9] - The company is optimistic about future performance, anticipating organic growth of 2% to 4% for the year and adjusted EPS guidance raised to $4.90 to $5.00 [10][33] - The company is actively pursuing AI-driven solutions and strategic partnerships to enhance its product offerings and market position [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving customer confidence and investment levels in the science sector, despite a stable demand environment [5][19] - The company is cautious in its assumptions until sustained improvements in broader industry demand trends are observed [10][19] - Management highlighted the importance of recent strategic partnerships, including collaborations with Genomics England and Sanofi, which are expected to drive future growth [16][17] Other Important Information - The company reported a 6% reduction in Scope 1 and 2 emissions in 2024 and a 77% employee satisfaction rate [18][19] - The company received a AAA rating from MSCI, indicating strong performance in environmental, social, and governance (ESG) criteria [19] Q&A Session Summary Question: Commentary on 2026 growth outlook - Management indicated a prudent assumption of 2% to 3% organic growth for 2026, with signs of increasing activity in the pharma and biotech sectors [36][37] Question: Insights on life sciences business performance - Management noted that reagents were modestly lower than anticipated, with expectations for a similar market environment moving forward [41][42] Question: Customer activity levels in October - Management observed increasing activity primarily from pharma and biotech customers, particularly in instruments [45][46] Question: EPS growth expectations for 2026 - Management indicated that a 2% to 3% organic growth rate with 28% operating margins would imply high single-digit EPS growth for 2026 [47][48] Question: Confidence in Q4 ramp - Management expressed confidence in the ramp from Q3 to Q4, citing seasonal increases and expected contributions from software and instruments [53][55] Question: China diagnostics outlook - Management confirmed that China diagnostics would continue to face headwinds, with expectations for a return to muted growth levels in the second half of 2026 [76][78]

Group 1: Earnings Performance - Revvity reported quarterly earnings of $1.18 per share, exceeding the Zacks Consensus Estimate of $1.14 per share, but down from $1.28 per share a year ago, representing an earnings surprise of +3.51% [1] - The company posted revenues of $698.95 million for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.15%, compared to $684.05 million in the same quarter last year [2] Group 2: Market Performance and Outlook - Revvity shares have declined approximately 11.4% since the beginning of the year, while the S&P 500 has gained 15.5% [3] - The current consensus EPS estimate for the upcoming quarter is $1.54 on revenues of $762.72 million, and for the current fiscal year, it is $4.87 on revenues of $2.85 billion [7] Group 3: Industry Context - The Medical Services industry, to which Revvity belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8] - The estimate revisions trend for Revvity was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting expected underperformance in the near future [6]

Financial Performance - Revvity's Q3 2025 revenue reached $699 million, a 2% year-over-year increase[11] - Organic revenue growth was 1%, with a 1% positive impact from foreign exchange[11] - Adjusted operating margin was 26.1%, a decrease of 220 basis points year-over-year[11] - Adjusted EPS was $1.18, down 8% year-over-year[11] - Free cash flow was $120 million for the quarter, and $354 million year-to-date[11] - Adjusted gross margin was 58.7%, a decrease of 300 basis points year-over-year[11] Segment Performance - Life Sciences revenue was $343 million in Q3 2025, with 0% organic growth[13, 14] - Diagnostics revenue was $356 million in Q3 2025, with 2% organic growth[17, 18] 2025 Financial Guidance - Revvity projects full-year 2025 revenue between $2.83 billion and $2.88 billion, representing reported growth of 3% to 5% and organic growth of 2% to 4%[19] - The company anticipates an adjusted operating margin of 27.1% to 27.3% and adjusted EPS of $4.90 to $5.00 for 2025[19]

Core Insights - Medical equipment maker Revvity raised its annual profit forecast due to improved demand for its testing kits in the diagnostics unit [1] Company Summary - Revvity beat third-quarter estimates, indicating strong performance in its diagnostics segment [1]

Financial Performance - GAAP earnings per share for Q3 2025 was $0.40, down from $0.77 in the same period last year[4] - Revenue for Q3 2025 was $699 million, representing a 2% increase compared to $684 million in Q3 2024[4] - Adjusted earnings per share from continuing operations for Q3 2025 was $1.18, compared to $1.28 in the same period last year[5] - The Company reported a GAAP operating profit margin of 11.7% for Q3 2025, down from 14.3% in Q3 2024[4] - Adjusted operating income for Q3 2025 was $182 million, down from $193 million in the same period last year[5] - The adjusted operating profit margin for Q3 2025 was 26.1%, compared to 28.3% in Q3 2024[5] - Net income for the three months ended September 28, 2025, was $46,652,000, a decrease of 51.5% compared to $94,367,000 for the same period in 2024[29] - Income from continuing operations for the nine months ended September 28, 2025, was $144,112,000, down 26% from $194,688,000 in 2024[29] Revenue Segments - Life Sciences segment revenue for Q3 2025 was $343 million, a 1% increase year-over-year[7] - Diagnostics segment revenue for Q3 2025 was $356 million, reflecting a 3% increase year-over-year[16] - Revenue for Q3 2025 was $698,949,000, an increase from $684,049,000 in Q3 2024, representing a growth of 2.8%[24] - Life Sciences segment revenue for Q3 2025 was $342,822,000, slightly up from $338,800,000 in Q3 2024, indicating a growth of 1.0%[24] - Diagnostics segment revenue for Q3 2025 was $356,127,000, an increase from $345,249,000 in Q3 2024, showing a growth of 3.0%[24] - Organic revenue growth from continuing operations for the three months ended September 28, 2025, was 1%, with a 2% growth in Diagnostics and 0% in Life Sciences[31] - Projected organic revenue growth for the twelve months ending December 28, 2025, is estimated to be between 2% and 4%[33] Guidance and Future Outlook - Full year 2025 revenue guidance has been updated to a range of $2.83-$2.88 billion, with organic growth guidance reaffirmed at 2% to 4%[11] Cash Flow and Assets - Net cash provided by operating activities of continuing operations for the three months ended September 28, 2025, was $138,581,000, compared to $157,014,000 in 2024[29] - Cash, cash equivalents, and restricted cash at the end of the period were $932,575,000, a decrease from $1,230,808,000 at the end of the same period in 2024[30] - Total current assets decreased to $2,143,788,000 in September 2025 from $2,349,608,000 in December 2024, a reduction of 8.7%[26] - Cash and cash equivalents decreased to $931,386,000 in September 2025 from $1,163,396,000 in December 2024, a decline of 20.0%[26] Liabilities and Debt - Total liabilities increased to $4,763,056,000 in September 2025 from $4,725,604,000 in December 2024, an increase of 0.8%[26] - Long-term debt decreased to $2,630,693,000 in September 2025 from $3,150,476,000 in December 2024, a decrease of 16.5%[26] Shareholder Actions - The Company has authorized a new $1 billion share repurchase program[6] Non-GAAP Measures - The company uses "adjusted earnings per share from continuing operations" to exclude various costs, including amortization of intangible assets and acquisition-related expenses, to better reflect ongoing operational performance[43] - Management believes that debt extinguishment costs and other purchase accounting adjustments do not accurately represent the performance of ongoing operations and therefore exclude them from non-GAAP measures[44] - Transformation costs related to business process modernization and global systems implementation are considered non-capitalizable and excluded from performance evaluations[45] - Significant litigation matters and environmental charges are excluded from adjusted earnings as they do not reflect ongoing operational performance[47] - The company excludes the impact of foreign currency changes and significant tax events from its non-GAAP financial measures to avoid obscuring underlying trends[47] - Non-GAAP financial measures are not considered superior to GAAP measures and should be viewed in conjunction with them for a comprehensive evaluation of financial results[49] - Management uses non-GAAP measures to evaluate operating performance, benchmark results against peers, and determine bonus payments for senior management[50]

Core Insights - Revvity, Inc. (RVTY) is expected to report its third-quarter 2025 results on October 27, with a history of earnings surprises, averaging 6.60% over the last four quarters [1][3] Q3 Performance Expectations - The company is anticipated to have a mixed but resilient performance in the second half of 2025, with the Life Sciences segment showing sustained momentum while facing challenges in Diagnostics, particularly in China [2] - The Zacks Consensus Estimate for revenues is $700 million, reflecting a 2.3% increase year-over-year, while earnings are expected to decline by 10.9% to $1.14 per share [3] - RVTY projects organic revenue growth to be flat to a 2% increase, translating to total revenues between $690 million and $705 million, with adjusted operating margins around 26% [4] Life Sciences Segment - The Life Sciences segment is expected to maintain its growth trajectory, particularly driven by the Signals Software business, which grew approximately 30% organically in the previous quarter [5] - Revenue estimates for the Life Sciences segment are projected at $308.7 million, a 2.6% increase year-over-year [6] Diagnostics Segment - The Diagnostics segment faces a challenging outlook, with strong performance outside of China but significant declines in multiplex testing volumes within China due to policy changes [7] - Revenue estimates for the Diagnostics segment are pegged at $392.5 million, reflecting a 2.5% year-over-year increase [8] Additional Factors - Recent product launches, such as the IDS i20 analytical platform and Mimix reference standards, are expected to contribute positively to revenues in the Diagnostics segment [10][11] - The introduction of pHSense reagents is anticipated to support growth in oncology and precision medicine, potentially enhancing revenue streams [12]

Core Insights - Wall Street analysts forecast Revvity (RVTY) will report quarterly earnings of $1.14 per share, reflecting a year-over-year decline of 10.9% [1] - Anticipated revenues are projected to be $699.98 million, showing a 2.3% increase compared to the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has been revised upward by 0.2% in the past 30 days, indicating a reassessment by covering analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions to the stock [3] Revenue Projections - Analysts estimate 'Net Sales- Life Sciences' will reach $338.39 million, representing a year-over-year increase of 12.5% [5] - 'Net Sales- Diagnostics' is expected to be $361.25 million, indicating a decline of 5.8% from the previous year [5] - 'Organic revenue growth - Diagnostics' is forecasted at 0.2%, down from 5.0% a year ago [5] Stock Performance - Revvity shares have increased by 13% over the past month, outperforming the Zacks S&P 500 composite, which rose by 1.1% [5] - With a Zacks Rank of 4 (Sell), RVTY is expected to underperform the overall market in the near term [5]

Core Insights - Revvity, Inc. is a leading provider of health science solutions with a market cap of $10.6 billion, serving healthcare, academia, and government sectors with over 11,000 employees [1] Financial Performance - Revvity is expected to report adjusted earnings of $1.14 per share for Q3, a decrease of 10.9% from $1.28 in the same quarter last year [2] - For the full fiscal year 2025, adjusted EPS is projected to be $4.87, slightly down from $4.90 in 2024, with a forecasted increase to $5.35 in fiscal 2026, representing a 9.9% year-over-year growth [3] Stock Performance - RVTY stock has declined by 25.9% over the past 52 weeks, underperforming the Healthcare Select Sector SPDR Fund's 6.7% decline and the S&P 500 Index's 14.7% gain during the same period [4] - Following the release of better-than-expected Q2 results, Revvity's stock fell by 8.3%, despite a 4.1% year-over-year revenue growth to $720.3 million, which exceeded expectations [5] Guidance and Outlook - The company anticipates continued pressure on its margins and subdued organic revenue growth, leading to a reduction in its full-year organic revenue growth guidance from 3%-5% to 2%-4% [6] - Adjusted EPS guidance has also been lowered from $4.90-$5.00 to $4.85-$4.95, which has affected investor confidence [6]