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REVVITY, INC. (RVTY)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered modest top-line growth with revenue of $720.3M (+4% reported, +3% organic) and adjusted EPS of $1.18, both above Wall Street consensus; GAAP EPS was $0.46 . The Street expected ~$711.3M revenue and $1.142 EPS; the company beat on both metrics*.
  • Guidance updated: total 2025 revenue raised to $2.84–$2.88B on FX tailwinds, but adjusted EPS lowered to $4.85–$4.95 and organic growth trimmed to 2–4% vs 3–5% prior .
  • Segment performance: Life Sciences up 5% reported (+4% organic) with Signals software ~30% organic growth and record orders; Diagnostics up 3% reported (+2% organic) but China’s DRG reimbursement changes pressured multiplex volumes .
  • Margins compressed: adjusted operating margin 26.6% (-210 bps YoY) amid FX and mix headwinds; free cash flow remained strong at $115M with continued aggressive buybacks ($293M in Q2) and a $0.07 quarterly dividend declared on July 24 .

* Values retrieved from S&P Global

What Went Well and What Went Wrong

What Went Well

  • Signals software was a standout: ~30% organic growth, record quarterly orders, strong ARR/APV/net retention; management: “had its largest quarter of orders in its history” .
  • Life Sciences grew 5% reported (+4% organic) with mid-single-digit growth in pharma/biotech and five consecutive quarters of reagents growth .
  • Robust cash generation and capital returns: Q2 free cash flow $115M; buybacks of ~$293M in Q2 and ~$450M H1; CEO emphasized “strong pipeline of innovation… disciplined operational focus” .

What Went Wrong

  • China DRG policy headwinds: immunodiagnostics volumes and multiplex panel size cut; management now expects China immunodiagnostics down high teens for 2025, driving the guidance trim .
  • Margin pressure: adjusted operating margin 26.6% vs 28.8% a year ago as FX tailwinds to revenue did not flow through to profit dollars; segment margin rates declined in both LS and DX .
  • Continued weakness in academic/government spending globally and in the Americas, low single-digit declines impacting instrumentation and some reagents .

Financial Results

Headline metrics vs prior periods and estimates

MetricQ4 2024 (oldest)Q1 2025Q2 2025 (newest)
Revenue ($USD Millions)$729.4 $664.8 $720.3
GAAP EPS ($)$0.78 $0.35 $0.46
Adjusted EPS ($)$1.42 $1.01 $1.18
Adjusted Operating Margin (%)30.3% 25.6% 26.6%
Consensus Revenue ($USD Millions)——$711.3*
Consensus EPS ($)——$1.142*

* Values retrieved from S&P Global

Segment breakdown

Segment MetricQ4 2024 (oldest)Q1 2025Q2 2025 (newest)
Life Sciences Revenue ($USD Millions)$336.3 $340.4 $365.9
Life Sciences Adjusted Op Income ($USD Millions)$130.9 $105.7 $115.5
Life Sciences Adjusted Op Margin (%)38.9% 31.1% 31.6%
Diagnostics Revenue ($USD Millions)$393.2 $324.4 $354.4
Diagnostics Adjusted Op Income ($USD Millions)$98.4 $74.0 $89.4
Diagnostics Adjusted Op Margin (%)25.0% 22.8% 25.2%

KPIs and mix

KPIQ4 2024 (oldest)Q1 2025Q2 2025 (newest)
Organic Revenue Growth (Total)6% 4% 3%
Organic Revenue Growth (Life Sciences)5% 2% 4%
Organic Revenue Growth (Diagnostics)6% 5% 2%
Free Cash Flow ($USD Millions)—$118 $115
Cash, Cash Equivalents + Restricted ($USD Millions, end of period)$1,164.5 $1,138.7 $993.0
Share Repurchases ($USD Millions)$185.2 (Q4 CF line) $153.6 (CF line) $293.9 (CF line)

Notes: Free cash flow defined by company as operating cash flow of continuing ops less capex plus disposals . Signals software ~30% organic growth in Q2 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($USD Billions)FY 2025$2.83–$2.87 $2.84–$2.88 Raised
Organic Growth (%)FY 20253–5% 2–4% Lowered
Adjusted EPS ($)FY 2025$4.90–$5.00 $4.85–$4.95 Lowered
Adjusted Operating Margin (%)FY 202527.9–28.1 27.1–27.3 Lowered
Net Interest & Other ($USD Millions)FY 2025~$75 ~$80 Raised expense
Adjusted Tax Rate (%)FY 2025~19 ~18 Lowered
Avg Diluted Shares (Millions)FY 2025~119 ~117 Lowered
Segment Organic GrowthFY 2025LS: Low single-digit; DX: Mid-single-digit LS: Low single-digit (unchanged); DX: Low single-digit DX lowered
Q3 Revenue ($USD Millions)Q3 2025—$690–$705 New
Q3 Adjusted EPS ($)Q3 2025—$1.12–$1.14 New
Dividend ($/share)Quarterly—$0.07 declared (payable Nov 7, 2025) Announced

Earnings Call Themes & Trends

TopicQ4 2024 (Q-2)Q1 2025 (Q-1)Q2 2025 (Current)Trend
AI/Technology initiatives (Signals)Strong double-digit growth; portfolio positioning Launch of Signals One with expanded AI; Signals Clinical/Synergy; strong ARR/net retention ~30% organic growth; record orders; ARR/APV/net retention metrics up Improving
Tariffs/MacroNot yet a major topic; steady FX commentary Detailed mitigation plan; gross $135M tariff headwind largely offset by Q2; margin impact ~60 bps EU-US 15% tariff framework could be $0.03–$0.05 gross impact H2; ongoing mitigation Evolving, managed
Supply chain/manufacturing—Redundancy and geographic adjustments; supplier changes Further structural actions; global footprint reevaluation Proactive
Product performanceDiagnostics normalization; strong Q4 margins Reproductive health low-single growth; newborn screening high single-digit Launch of IBS i20 (Euroimmun) CLIA platform; strong initial feedback Positive
Regional trends (China)Modest growth drivers; no major reimbursement changes China low single-digit overall; stimulus modest; DX high single-digit growth DRG “debundle” cuts multiplex volumes; China IDX down low teens in Q2; high-teens decline expected for year Deteriorating in China DX
Regulatory/legal—Spotfire court ruling benefit; NIH funding uncertainty noted DRG policy impact discussed; VBP not impacting; tariff framework evolving Mixed
R&D execution—Strong reagent pipeline and sustained reagents growth Five consecutive reagent growth quarters; LS stability Stable
Capital allocationBuyback authorization (Q3 2024) $154M Q1 repurchases; leverage 2.4x $293M Q2 repurchases; dividend declared Shareholder-friendly

Management Commentary

  • CEO: “The power of Revvity's transformation and consistent execution were evident… enabling us to exceed expectations despite the evolving market environment” .
  • CFO: “Adjusted EPS in the second quarter [was] $1.18… 4 cents above our expectations… adjusted operating margins… down 210 bps YoY and in line with our expectations” .
  • On China DRG: “This expanded policy change… impacting diagnostic panels… likely to drive an eventual increase in volume for more expensive single-plex tests” .
  • On 2026 margin baseline: “Enter next year with a 28% operating margin baseline… with corresponding margin expansion based on organic growth” .
  • On tariffs: EU-US framework 15% could be $0.03–$0.05 gross impact; “already actively putting in place offsetting mitigation actions” .

Q&A Highlights

  • China DRG impact is the primary driver of guidance trim; no VBP impact; IDX China expected down high teens for FY25; IDX China now <6% of total revenue .
  • Margin trajectory: 2026 baseline OM 28% with typical 50–75 bps expansion depending on growth; near-term FX and China mix weigh on margins .
  • Revenue pacing: Normal seasonality with high-single-digit Q3→Q4 ramp; Signals volume typically larger in Q4 despite lower organic growth .
  • Reproductive health: Q4 growth expected high single-digit; Genomics England ramp ~$10M in H2, mostly in Q4 .
  • Software economics: Strong SaaS bookings; ~1/3 portfolio converted to SaaS; operating margin mix headwind from China DX volume loss offsets software margin tailwind .

Estimates Context

  • Q2 2025 vs consensus: Revenue $720.3M vs $711.3M consensus; Adjusted EPS $1.18 vs $1.142 consensus — both beats*. Number of estimates: revenue (14), EPS (17)*.
  • FY 2025 consensus EPS ~$4.92 and revenue ~$2.845B broadly align with updated guidance ranges*.
  • Near-term (Q3 2025) consensus revenue ~$699.6M and EPS ~$1.139; company guided revenue $690–$705M and EPS $1.12–$1.14 *.

* Values retrieved from S&P Global

Estimates table

MetricQ2 2025 ConsensusQ2 2025 ActualQ3 2025 ConsensusFY 2025 Consensus
Revenue ($USD Millions)711.3*720.3 699.6*2,845.0*
Primary EPS ($)1.142*1.18 1.139*4.918*
# of Estimates (Revenue/EPS)14 / 17*—15 / 16*16 / 17*

* Values retrieved from S&P Global

Key Takeaways for Investors

  • Q2 beat on revenue and adjusted EPS versus consensus, driven by resilient Life Sciences and standout Signals software growth; margins compressed but disciplined cost control limited downside .
  • Guidance tweak reflects China DRG headwinds in immunodiagnostics and FX/mix pressures; 2025 revenue raised on FX, EPS trimmed ~1% with organic growth lowered by 100 bps .
  • Management expects 2026 operating margin baseline of ~28% with structural cost actions; medium-term margin expansion tied to organic growth resumption .
  • Capital returns remain robust (Q2 buybacks $293M; dividend declared), providing support amid operational turbulence .
  • Near-term watch items: trajectory of China DRG impact (timing/annualization), academic/government demand stabilization, and FX pass-through to margins .
  • Tactical: Q3 guide implies flattish organic growth (0–2%) with adjusted OM ~26%; Signals volume seasonality and Genomics England ramp could aid Q4 .
  • Medium-term thesis: diversified portfolio, software growth optionality, and cost actions underpin margin recovery once end-market pressures abate .

Notes: All figures are as reported by Revvity in press releases and 8-K filings unless otherwise marked. Estimates marked with an asterisk are from S&P Global.