Revvity beats, ups outlook

 

Revvity beats Q3 estimates with EPS $1.38, revenue $709.6M, raises 2026 pro forma EPS outlook to $5.40–$5.45 and revenue to ~$2.86B

• Q3 revenue $710M with 7% organic growth; EPS $1.37, 21% YoY increase.
• Life Sciences led with 9% organic growth; reagents high single digits, instruments mid-single digits.
• Signals software grew high teens with 20%+ ARR; APV low-double-digit, moderating slightly Q4.
• Diagnostics grew 5% organically; immunodiagnostics high single digits, reproductive health low single digits.
• Pro forma operating margin reached 29.4%; structural efficiencies driving 40%+ incremental margins.
• Management raised 2026 organic growth outlook to ~5% and EPS to $5.40–$5.45.
• Q4 guidance: ~5% organic growth, ~$755M revenue, EPS midpoint $1.60, >32% margin.
• AI-related demand expanding beyond high-content screening into detection, reagents, imaging and software workflows.
• Main risk: sustainability of AI-driven and pharma/biotech CapEx upturn after prior industry false starts.
• Balance sheet strengthened; free cash flow $152M, 99% conversion, net leverage down to 2.3x.
• Main concern: Durability of elevated Life Sciences and AI-driven demand as comparisons toughen into 2027.
• Strong quarter, driven by broad-based Life Sciences recovery, AI demand and structural margin gains.

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