Revvity (NYSE:RVTY) FY Conference January 13, 2026 12:45 PM ET Company ParticipantsNone - Company RepresentativePrahlad Singh - President and CEOConference Call ParticipantsCasey Woodring - AnalystCasey WoodringAll right, great. Thank you, everybody, for joining us today. I'm Casey Woodring from the Life Science Tools and Diagnostics team here at JPMorgan. Welcome to our conference. Pleasure to be joined today by the management team of Revvity. Pass it off to CEO Prahlad Singh for some prepared remarks and ...

Core Insights - Revvity, Inc. has launched Signals Xynthetica, an AI-augmented design platform aimed at enhancing molecular and materials discovery across scientific industries [2][8] - The platform operates as a Models-as-a-Service (MaaS) solution, integrating advanced in-silico design capabilities with real experimental data [2][4] - Early access to Signals Xynthetica is expected in the first half of 2026, with pre-registration already underway [3][8] Product Features - Signals Xynthetica addresses the disconnect between computational models and experimental workflows, aiming to unify de novo generation, property prediction, and multi-objective optimization [4] - The platform is designed to accelerate discovery while maintaining scientific rigor, adapting to new data and benchmarking against real-world results [4][5] - Revvity emphasizes that the initiative serves as an operational backbone for predictive science, aligning AI predictions with laboratory realities [5] Market Position and Trends - Following the announcement, RVTY shares have remained relatively flat, gaining 1.4% over the past six months compared to the industry’s 6.2% growth and the S&P 500's 15.3% increase [6] - The introduction of Signals Xynthetica is expected to enhance Revvity's prospects as demand for predictive tools integrated with empirical workflows grows [7] Strategic Vision - Revvity is evolving from a provider of discrete scientific tools to a platform-centric technology partner, leveraging AI and cloud delivery to accelerate discovery and standardize workflows [14] - The acquisition of ACD/Labs is expected to strengthen Revvity's strategy by incorporating specialized analytical and molecular design tools into the Signals ecosystem [15]

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]