Will Revvity Q4 Earnings Benefit From Early Signs of Demand Recovery?

Core Insights - Revvity, Inc. (RVTY) is expected to report its fourth-quarter 2025 results on February 2, with a revenue estimate of $767.2 million, reflecting a 5.2% year-over-year increase, while earnings per share are projected at $1.55, indicating a 9.2% decline from the previous year [1][4][11] Group 1: Company Performance - The company has shown a consistent ability to exceed earnings estimates, with an average surprise of 4.16% over the last four quarters, including a 3.51% surprise in the last reported quarter [1][4] - Revvity's Life Sciences segment is anticipated to perform steadily, benefiting from software growth and early signs of improved customer activity, while the Diagnostics segment faces challenges due to reimbursement issues in China [2][11] - The Life Sciences segment's revenue is estimated at $376.2 million, representing an 11.9% year-over-year increase, while the Diagnostics segment's revenue is projected at $385.5 million, down 1.9% year-over-year [9][14] Group 2: Segment Analysis - In the Life Sciences segment, the Signals software business is expected to continue driving growth, having achieved 20% organic growth in the previous quarter, supported by strong SaaS adoption and high annual recurring revenue (ARR) growth [7][8] - The Diagnostics segment is expected to show mixed results, with strong demand outside China but ongoing reimbursement-related pressures in the Chinese market, where immunodiagnostics demand is projected to decline over 20% [12][13] Group 3: Operational Factors - Seasonal strength is expected to support fourth-quarter results, driven by higher software revenues and modest improvements in instrument volumes, despite ongoing pressures in the academic and government sectors [5][6] - Strategic partnerships, such as the collaboration with Genomics England, are anticipated to contribute positively to revenues, although near-term financial impacts may be limited [16] - The company is expected to maintain strong margins in the fourth quarter due to seasonal volume leverage, disciplined expense management, and ongoing share repurchase activities [17]