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REVVITY, INC. (RVTY)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $665M (+2% reported, +4% organic) and adjusted EPS was $1.01; both exceeded internal expectations and modestly beat Street consensus. Management highlighted resilient Diagnostics and Signals software strength offsetting life sciences instrumentation headwinds .
  • Full-year 2025 revenue guidance raised to $2.83–$2.87B on FX, organic growth reaffirmed at 3–5%, and adjusted EPS reaffirmed at $4.90–$5.00 despite tariff actions; adjusted operating margin outlook trimmed by ~60 bps due to tariffs, offset below the line by tax planning and FX .
  • Q2 2025 outlook: revenue $700–$715M and adjusted EPS $1.13–$1.15; tariff mitigation to be largely in place by end of Q2, with margin headwinds concentrated intra-quarter .
  • Catalysts: robust Signals (>20% organic growth), newborn genomic sequencing expansion (Genomics England), FDA-approved automation for latent TB testing, and ongoing buybacks; dividend declared ($0.07 per share) .

What Went Well and What Went Wrong

What Went Well

  • Diagnostics grew 5% organically with strong immunodiagnostics and high-single-digit newborn screening growth; management reiterated Diagnostics’ durable growth drivers and normalization post-pandemic .
  • Signals software delivered slightly >20% organic growth in Q1 with ARR/APV/net retention at or above 2024 levels; Signals One launched with expanded AI capabilities; management emphasized Signals as a “crown jewel” .
  • Cash flow execution: 97% free cash flow conversion of adjusted net income; active buybacks of $154M; net leverage 2.4x with entirely fixed-rate debt (~2.6% WA rate, ~7-year maturity) .

Management quotes:

  • “Our strong execution combined with the uniqueness of our businesses drove our revenue, earnings and cash flow to each exceed our expectations in the quarter.” — CEO Prahlad Singh .
  • “Signals has an even stronger growth rate … and benefits from the entrenched customer relationships of our broader Life Sciences franchise.” — CEO Prahlad Singh .

What Went Wrong

  • Life sciences instruments pressured by unforeseen choppiness from U.S. academic customers amid funding uncertainty; instrumentation weakness offset by reagents/software, but organic growth would have been higher absent academic pullback .
  • Tariff-related headwinds expected to reduce FY25 adjusted operating margin by ~60 bps; Q2 gross margin guided ~60% vs 61.5–62.5% historical, with net ~$0.12 EPS headwind offset by tax and FX .
  • Diagnostics segment margin ticked down YoY (22.8% vs 24.3%) despite revenue growth, reflecting mix and cost dynamics .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$684.0*$729.4 $664.8
GAAP Diluted EPS – Continuing Ops ($)$0.76*$0.73 $0.35
Adjusted EPS ($)$1.28 $1.42 $1.01
Adjusted Operating Margin (%)28.3% 30.3% 25.6%

Values with asterisk (*) retrieved from S&P Global.

Q1 2025 segment breakdown:

SegmentRevenue ($USD Millions)YoY Reported GrowthOrganic GrowthAdjusted Operating Income ($USD Millions)Adjusted Margin (%)
Life Sciences$340.4+1%+2%$105.731.1%
Diagnostics$324.4+3%+5%$74.022.8%

KPIs:

KPIQ1 2025Notes
Organic revenue growth (%)4% FX headwind ~1%
Free cash flow conversion (%)97% $118M FCF
Average diluted shares (M)120.2 Sequentially down ~1.5M
Share repurchases ($M)$154 Continued post-Q1
Net debt / adj EBITDA (x)2.4x 100% fixed-rate debt, 2.6% WA rate

Q1 2025 vs Consensus (S&P Global):

MetricActualConsensusSurprise
Revenue ($USD Millions)$664.8$661.7*+$3.1M (~+0.5%); beat
Primary EPS ($)$1.01$0.949*+$0.061 (~+6.4%); beat
EPS # of Estimates18——
Revenue # of Estimates14——

Values with asterisk (*) retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($B)FY 2025$2.80–$2.85 $2.83–$2.87 Raised (FX)
Organic Revenue Growth (%)FY 20253–5 3–5 Maintained
Adjusted EPS ($)FY 2025$4.90–$5.00 $4.90–$5.00 Maintained
Adjusted Operating Margin (%)FY 2025~28.5–28.7 27.9–28.1 Lowered (~60 bps; tariffs)
Adjusted Tax Rate (%)FY 2025~20 ~19 Lowered (tax planning)
Net Interest & Other ($M)FY 2025~70 ~75 Raised
Avg Diluted Shares (M)FY 2025~120 ~119 Lowered (buybacks)
Revenue ($M)Q2 2025N/A$700–$715 New
Adjusted EPS ($)Q2 2025N/A$1.13–$1.15 New
Dividend ($/share)Next paymentN/A$0.07; payable Aug 8, 2025; record Jul 18, 2025 New

Earnings Call Themes & Trends

TopicQ3 2024 (Q-2)Q4 2024 (Q-1)Q1 2025 (Current)Trend
AI/software initiativesPhenologic AI; Signals growth low double digit FY; SaaS ARR +30%, NRR 106% Signals >30% in Q4; FY low double digits; Signals Clinical/Synergy traction Signals >20% organic; launched Signals One with expanded AI; strong ARR/APV/NRR Strengthening
Life sciences instrumentsChina stimulus delays; instruments down low teens; cautious Q4 outlook Instruments down high single digits; FY down low double digits Academic funding uncertainty drives instrumentation pressure; organic growth constrained Still pressured
Reagents/pharma demandReagents mid-single-digit growth; stabilization Reagents grew mid-single digits; pharma/biotech turned positive in Q4 Reagents continued growth; pharma stable; instrumentation remains soft Gradual recovery
Diagnostics (immuno/newborn)Immuno mid-single-digit; newborn low double-digit globally; China prenatal uptick Immunodiagnostics high single-digit FY; reproductive health low single-digit FY Diagnostics +5% organic; newborn high single-digit; immuno strong; TB automation FDA approval Durable growth
ChinaLife sciences instruments weakness; stimulus expected 2025 Q4 China up high single digits; FY low single-digit decline Q1 low single-digit growth overall; LS decline offset by Dx high single-digit; modest stimulus assumptions Mixed; Dx supportive
Tariffs—Elevated uncertainty flagged for 2025 Gross $135M impact if no action; mitigation via supply chain, suppliers, pricing; ~60 bps margin headwind; actions done by end-Q2 Manageable with mitigation
Regulatory/NIH—Global tax reform and NIH exposure minimal; prudent FY guide Academic funding uncertainty; NIH direct ~1%, indirect ~5%; limited impact to reagents Transient headwind

Management Commentary

  • Strategic positioning: “The current environment is clearly challenging… but our unique offerings and ability to quickly adjust are allowing us to continue to deliver for both our customers and our shareholders.” — CEO Prahlad Singh .
  • Tariff mitigation: “We expect to be able to mitigate most of the currently contemplated tariff impact by the end of June… net impact to adjusted operating margins ~60 bps in 2025.” — CEO/CFO .
  • Diagnostics leadership: “Our specialty diagnostic businesses… are more immune to changes in the macroeconomic environment.” — CEO .
  • Signals software: “Signals… a crown jewel… with new Signals One AI capabilities and strong enterprise footprint.” — CEO .

Q&A Highlights

  • Tariffs: Gross ~$135M impact if no action; ~75–80% mitigation from manufacturing/supply chain changes; remainder via suppliers/pricing and temporary cost actions; Q2 gross margin guided ~60% before recovery .
  • Academic demand: U.S. academic/government ~5% of revenue; assumed 100 bps headwind to company organic growth, offset by stronger software and reproductive health .
  • China: FY25 expectation low single-digit growth overall; LS slight decline, Dx mid-single-digit growth; no specific pull-forward in U.S. immuno due to tariffs .
  • Signals trajectory: FY25 organic growth in upper teens; ~1/3 of portfolio converted to SaaS; ARR/NRR/APV trends strong; court ruling supports Spotfire continuity .
  • Reproductive health: Newborn screening strong globally; expanded Genomics England partnership adds sequencing services; Year of the Dragon boosted prenatal in H2’24 .

Estimates Context

  • Q1 2025 beats: Revenue $664.8M vs $661.7M consensus; adjusted EPS $1.01 vs $0.949 consensus; 14 revenue and 18 EPS estimates. We expect Street models to lift FY margin/FCF expectations modestly given the below-the-line offsets (tax/FX) and tariff mitigation timeline .
  • Q2 2025 guide vs Street: Management guided revenue $700–$715M and adjusted EPS $1.13–$1.15; consensus ahead of print was ~$711.3M revenue and ~$1.142 EPS; intra-quarter tariff headwind likely concentrates in Q2 before mitigation benefits in H2 .

Values retrieved from S&P Global for consensus figures.

Key Takeaways for Investors

  • Resilience: Diagnostics and Signals continue to offset life sciences instrumentation softness, enabling revenue and EPS beats in a choppy macro; maintain a constructive stance into H2 as tariff mitigation completes and academic uncertainty stabilizes .
  • Margins: FY adjusted operating margin lowered ~60 bps on tariffs but EPS maintained via tax/FX; look for gross margin recovery post-Q2 and operating margin stability near 28% .
  • Growth drivers: Signals (>20%+) and newborn screening strength plus Genomics England sequencing expansion provide visibility; watch incremental U.S. latent TB automation ramp following FDA approval .
  • Capital allocation: Active buybacks and dividend support TSR; diluted share count trending down (~119M guided) benefits EPS leverage .
  • Near-term trading: Q2 margin headwind could create volatility; any evidence of academic demand normalization or faster tariff mitigation is a positive catalyst; Signals momentum can re-rate multiple .
  • Medium-term thesis: As pharma/biotech reagents normalize and instruments gradually recover, Revvity’s operating leverage and software contribution can drive margin expansion back toward long-range plan trajectory .
  • Monitoring items: Academic funding policy outcomes, tariff scope/trajectory, China stimulus flow-through to instruments, Signals SaaS conversion pace, and immunodiagnostics pricing dynamics .