tapebrief
RVTY · Q4 2025

RVTY · Q1 2026 Earnings

Bullish

Revvity

Reported May 5, 2026

30-second summary

Revvity beat on both lines (revenue $711M vs. $704M consensus +1.0%, non-GAAP EPS $1.06 vs. $1.02 +3.9%) and used the print to announce the China immunodiagnostics divestiture that has been the overhang for four quarters. FY2026 EPS guide is now $5.20–$5.30 on a pro forma basis excluding the divested business — versus the prior $4.90–$5.00 on a total-company basis, this represents a NET ~15-cent reduction (gross ~20c divestiture dilution offset by ~5c of operational benefit), not a raise. Pro forma adjusted operating margin lifted to 28.4%, and the FY organic growth range was narrowed to 3–4% (from 2–4%) — but Q2 organic is guided to 2–3% against a Q1 pro forma print of 6%, so the back half decelerates. The underlying organic base business hasn't moved; what moved is the portfolio.

Headline numbers

EPS

Q1 FY2026

$1.06

+3.9% vs est.

Revenue

Q1 FY2026

$0.71B

+7.0% YoY

+1.0% vs est.

Gross margin

Q1 FY2026

54.5%

Free cash flow

Q1 FY2026

$0.11B

Operating margin

Q1 FY2026

10.7%

Key financials

Q1 FY2026
MetricQ1 FY2026YoYQ4 FY2025QoQ
Revenue$0.71B+7.0%$0.77B-7.9%
EPS$1.06—$1.70-37.6%
Gross margin54.5%—54.6%-10bps
Operating margin10.7%—14.5%-380bps
Free cash flow$0.11B—$0.16B-34.6%

Guidance

Company raised FY2026 EPS guidance by 6% and margins by 110+ bps while narrowing/modestly lowering revenue guide; Q1 beats on both revenue and earnings, but forward Q2 organic growth guidance decelerated to 2-3% range.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

MetricPeriodPrior guideActualΔResult
RevenueQ1 FY2026—$0.711B+1.0% above estimateBeat
Adjusted EPSQ1 FY2026—$1.06+3.9% above estimateBeat

New guidance

MetricPeriodGuideYoY
Pro Forma Organic GrowthQ2 FY20262% to 3%—
Pro Forma Adjusted Operating MarginQ2 FY2026approximately 27%—
Total Pro Forma RevenueQ2 FY2026$0.699-$0.707B (midpoint $0.703B)-2.4% to -1.8% YoY

Changes to prior guidance

MetricPeriodPrior guideNew guideΔResult
Revenue
FY2026
$2.83-$2.88B (midpoint $2.855B)$2.81-$2.84B (midpoint $2.825B)-$0.03B at midpoint (-1.0%)Lowered
Adjusted EPS
FY2026
$4.90-$5.00 (midpoint $4.95)$5.20-$5.30 (midpoint $5.25)+$0.30 at midpoint (+6.1%)Raised
Organic Revenue Growth
FY2026
2% to 4%3% to 4%Narrowed range; low end raised 1pt to 3%, suggesting confidence in at least mid-single-digit growthLowered
Pro Forma Adjusted Operating Margin
FY2026
27.1% to 27.3% (implied from transcript)28.4%+110 to +130 bpsRaised

Segment KPIs

Q1 FY2026
SegmentQ1 FY2026YoY
Life Sciences$0.362B+6.0%
Diagnostics$0.349B+8.0%

Other KPIs

Q1 FY2026
SegmentQ1 FY2026
Organic Revenue Growth3%
Pro Forma Organic Revenue Growth6%
Life Sciences Adjusted Operating Margin28.7%
Diagnostics Adjusted Operating Margin21.8%
Adjusted Operating Margin (Company)23.6%
Life Sciences Organic Growth3%
Diagnostics Organic Growth4%
Diagnostics Pro Forma Organic Growth9%

Management tone

Q4 2024 customer caution → Q2 2025 China DRG shock + restructuring → Q3 2025 cautious optimism → Q1 2026 portfolio decision + AI inflection

The China overhang stopped being managed and became removed. For four quarters management framed China immunodiagnostics as something to wait out. This quarter the CEO reframed: "rather than deploying material dollars and management attention to address these structural challenges in the China immunodiagnostics market, we are choosing to concentrate our efforts on business areas where we have clear competitive advantages." The Letter of Intent is signed, the buyer is a local management-led group (with Revvity retaining a minority interest), definitive agreement expected within Q2, and the deal closes by end of 2027. This is the decisive move investors had been waiting four quarters for, and it's been executed at the cost of accepting that the segment was not recoverable on the original timeline.

The AI narrative graduated from operator-efficiency to demand thesis. In Q3 2025 management positioned AI as internal productivity. This quarter the CEO articulated AI as a demand driver for Revvity's instrumentation: "Every AI generated discovery will still require physical validation through wet lab experimentation. One cannot approve a drug based solely on computational predictions." That is a different and bigger claim — it frames Revvity as essential infrastructure to the AI drug-discovery wave, not just an operationally efficient user of AI. The earlier "paradigm-shifting" pipeline language has been replaced with this concrete thesis.

CEO emotional register escalated to unusually bullish. "I've never been more excited about the future potential of Rev[v]ity than I am right now." For a CEO who in Q2 2025 was openly defensive about NIH visibility and in Q3 2025 said optimism was "anticipatory," this is a step-change. Whether it's substantiated by the underlying base business — which, per management's own admission, didn't change this quarter — is the question.

Pharma/biotech moved from "measured" to "early indicators of improvement." Management cited "the strongest year-over-year growth we've had for reagents and instrument sales to this customer group since the first half of 2023." That's a specific, falsifiable claim and a real positive signal — though hedged with "customer behavior continues to remain somewhat measured."

Macro hedging persists despite the bullishness. "We remain mindful of the world we live in today and how quickly policies and regulations can change" and "we want to remain prudent in our outlook until we see more sustainable signs of concrete improvement" — the planning posture is still defensive. The bullish CEO language is layered on top of a prudent finance posture.

Recurring themes management leaned on this quarter:

AI-driven demand inflection in life sciences validationPortfolio optimization via China immunodiagnostics divestiturePharma/biotech and academic end-market stabilizationSoftware innovation acceleration (Synthetica, BioDesign, Labgistics)Operating margin expansion through cost efficiency and business mixInternal AI adoption and employee repositioning

Risks management surfaced:

Policy-induced headwinds in China healthcare market persisting over medium termPharma/biotech and academic customer budget cycles remain measuredRapid changes in policy and regulations affecting demandGlobal birth rate trends challenging reproductive health growthFX headwinds reducing expected contribution from 100 to 50 basis points

Q&A highlights

Patrick Donnelly · Citi

Software SaaS business trends, customer engagement, and cadence of organic growth. Also inquired about reagents business improvement and ACA Gov/biotech funding dynamics.

Management highlighted strong customer excitement around Synthetica, Biodesign, and LabGistics launches. Software APV showed strong double-digit growth and SaaS/ARR north of 30% in Q1. FY organic growth guidance is positive mid-single digits with Q2 expected down ~20% due to tough comps, then high-teens growth in H2. Reagents business characterized as positively stable with mid-single digit revenue growth in Q1.

Software SaaS/ARR growth north of 30% in Q1Full year software organic growth guidance: positive mid-single digitsQ2 software expected down approximately 20%H2 software expected to grow high teens

Puneet Suda · Lee Rink

Impact of China DX divestiture on M&A appetite and capital deployment strategy. Also asked about AI corporate implementation plans and margin uplift potential.

Management views divestiture as strategic portfolio optimization; post-divestiture China will be 8-9% of revenue (7% life sciences, 1-1.5% reproductive health). Company maintains acquisitive stance but emphasizes share buyback as primary capital deployment vehicle. AI corporate implementation proceeding well with structured approach, LLM rollout to global employee base at fraction of traditional costs, and expects significant mid-to-long-term cost productivity benefits.

China business to represent 8-9% of total revenue post-divestiturePost-divestiture China: 7% life sciences, 1-1.5% reproductive healthAI adoption rate well above peer corporate averagesAI implementation at fraction of traditional cost

Dan Brennan · TD Cowan

Reproductive health strength drivers and full-year contribution expectations. Also inquired about Immunodx China divestiture deal certainty and timing.

Reproductive health grew double digits (vs high single-digit expectations) driven by stronger reagent performance, additional instrument placements, and GEL performing slightly better than anticipated. GEL expected to contribute ~$20M for full year with Q1 slightly ahead of plan. Deal for China immunodiagnostics business expected to close in Q2 with definitive agreements completed. High confidence in closing; internally-led management consortium as buyer. Completion expected in 2027.

Reproductive health Q1 growth: double digitsGEL contribution guidance: ~$20 million for 2026Immunodx China divestiture: Letter of Intent signedDefinitive agreements expected Q2 2026

Vijay Kumar · Evercore ISI

Q1 pro forma 6% organic growth vs FY 2-4% guidance implies slowdown to 3% in H2; asked if this reflects one-offs or sustainable dynamics. Also queried organic raise attribution and EPS impact from deal proceeds.

6% Q1 and 2-3% Q2 guidance average to ~4% H1, requiring ~3-4% H2 to hit full-year 3-4% guidance. Management noted conservative H2 assumptions for life sciences solutions and diagnostics vs H1 trends; software cadence previously explained. Organic raise of 100 bps entirely attributable to removal of China immunodiagnostics; no change to base business. EPS guidance does not include proceeds benefit; proceeds expected in 2027 when deal closes.

Q1 pro forma organic growth: 6%Q2 organic growth guidance: 2-3%H1 average: ~4% organic growthFY organic growth guidance: 3-4%

Mike Riskin · Bank of America

Multi-year impact of China immunodiagnostics divestiture on EPS dilution, margins, and top line. Q2 organic growth guidance bridge and software decline assumption change.

Management stated divestiture fortifies long-range plan by removing overhang in challenging China diagnostics market. Share buyback identified as primary use of proceeds. Cost efficiency initiatives (fully implemented H2 2026) expected to offset earnings dilution in out years. Operating margin impact permanent at ~30 bps headwind; new baseline 28.4% excluding China IDX. Q2 2-3% guidance primarily reflects China IDX removal with minimal ex-China changes. Software decline increased to ~20% (vs prior mid-teens) due to tougher Q2 comps.

China IDX removal 20 cents impact to 2026 EPS30 bps permanent operating margin headwind from divestitureNew pro forma operating margin baseline: 28.4%Cost initiatives completion: end of Q2 2026

Answers to last quarter's watch list

Q4 organic growth bridge to FY: Not directly resolved on this print since the focus is FY2026. The press release notes FY2025 revenue of approximately $2.9 billion. Status: Continue monitoring.
2026 organic growth re-rating risk: The narrower 3-4% band held; management did not widen back to 2-4%. But the 100bps raise from the prior 2-4% framework is entirely the China IDX removal — base-business growth assumption is unchanged. The "rhetoric, not numbers" risk flagged last quarter has been confirmed: the base business has not re-rated, only the portfolio composition has. Status: Resolved negatively.
Software organic growth trajectory: Q1 SaaS/ARR >30% and ARR pipeline +40% YoY, but FY software guide is only "positive mid-single digits" with Q2 down ~20%. NRR and SaaS mix were again not disclosed. The deceleration from Q2 2025's 32% to mid-single-digit FY guide is decisive — software is no longer the offset narrative it was. Status: Resolved negatively.
China IDX Q4 print: Reframed entirely — China IDX is being divested rather than waited out. Post-divestiture China is 8-9% of revenue. The question is no longer "did it deteriorate?" but "did Revvity execute the exit?" — and the LOI is signed. Status: Not resolved (question was made obsolete by the divestiture).
Pipeline catalysts: The "paradigm-shifting" language from Q3 2025 was replaced with three named software launches — Synthetica, BioDesign, and Labgistics — and the AI validation thesis. This is more concrete than the prior rhetoric, and the November investor day will feature software centrally. Status: Resolved positively.
Adjusted tax rate baseline: FY adjusted tax rate guide is ~18% (Q1 came in at 18.3%, Q2 assumed at 19%). Status: Resolved.

What to watch into next quarter

Base business organic growth ex-China IDX: with the pro forma reframe, the cleanest underlying signal is whether ex-divestiture organic clears 4% in Q2 (against the 2-3% guide). A print at 2% would confirm the base business never moved; a print at 4%+ would validate the CEO's bullish framing.

Software H2 acceleration: management is guiding Q2 down ~20% and H2 up high-teens. Watch Q3 software organic — anything below 10% breaks the H2 ramp narrative and forces another FY software cut.

Pharma/biotech reagent durability: "strongest YoY growth since H1 2023" is a falsifiable claim. Watch whether Q2 reagents to this customer group sustain mid-single-digit growth or revert.

Definitive agreement on China IDX divestiture: management committed to definitive agreements in Q2 2026. Any slippage — or material changes to economics — would re-open the overhang.

Operating margin against 27% Q2 guide: Q1 pro forma came in at 24.0% with cost initiatives completing end of Q2. A miss on the 27% Q2 print would signal the 28.4% FY baseline is under pressure before the cost actions are even fully implemented.

Reproductive health sustainability: double-digit Q1 print materially outpaced expectations. With GEL ramping, watch whether this segment sustains high-single-digit or better through Q2 — it has quietly become a swing factor.

Sources

  1. Revvity Q1 2026 press release — https://www.sec.gov/Archives/edgar/data/31791/000003179126000016/q12026pressrelease.htm
  2. Revvity Q1 2026 earnings call — prepared remarks and Q&A transcript

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