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]

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]