Revvity (NYSE:RVTY) executives said the company ended 2025 with results that exceeded internal expectations, helped by better-than-anticipated performance in diagnostics and improving trends in parts of the life sciences portfolio. Management also provided an initial 2026 outlook that assumes recent end-market stabilization continues but does not yet bake in a broader recovery.
Fourth-quarter results topped expectations
Chief Executive Officer Prahlad Singh said fourth-quarter revenue, organic growth and adjusted earnings per share all came in above the company’s expectations, allowing Revvity to exceed its adjusted EPS guidance for the full year. Singh highlighted a number of headwinds the company navigated in 2025, including changes in NIH funding, evolving tariffs, pharma policy uncertainty, an extended U.S. government shutdown, foreign exchange movements, and DRG-related volume pressures in China diagnostics.
For the full year, Revvity reported $2.86 billion in revenue, including 3% organic growth and a 1% FX tailwind. Full-year adjusted operating margin was 27.1%, down 120 basis points year-over-year, with management citing pressure from tariffs, FX, and lower volume leverage, partially offset by cost containment initiatives. Full-year adjusted EPS was $5.06, up 3% year-over-year and above the high end of the company’s initial guidance.
Diagnostics drove growth while life sciences stabilized
Management said diagnostics posted stronger-than-expected performance in the quarter. Krakowiak said diagnostics segment revenue was $390 million, up 7% organically (10% reported). Life sciences segment revenue was $382 million, flat organically.
Within diagnostics, Krakowiak said:
- Immunodiagnostics grew high single digits organically in the quarter and mid-single digits for the full year, with strength outside China partially offset by double-digit declines in China for the full year due to DRG-related volume pressures.
- Reproductive Health grew mid-single digits organically in the quarter and for the year. Management said newborn screening grew mid-single digits in the quarter and high single digits for the full year and cited contributions from work with Genomics England.
In life sciences, Krakowiak said pharma/biotech sales rose low single digits in both the quarter and full year, while academic and government sales declined low single digits, including a “modest headwind” from the U.S. government shutdown. Singh said life sciences reagents and consumables were slightly better than expected and were flat year-over-year in the quarter, while instruments were also roughly flat year-over-year and showed a strong sequential increase versus the third quarter.
Revvity’s Signals software business was flat organically in the quarter due to renewal timing and difficult comparisons, while the business grew in the high teens organically for the full year. Krakowiak added that the SaaS pipeline grew, citing nearly 40% ARR growth year-over-year, SaaS representing approximately 35% of the overall business, double-digit APV growth, and net retention above 110%.
Capital deployment and balance sheet
Singh said Revvity repurchased more than $800 million of shares in 2025, reducing share count by 8.5 million shares. Since rebranding as Revvity in mid-2023, he said repurchases exceeded $1.5 billion, representing nearly 15 million shares, or about 12% of total share count at the time.
Krakowiak said the company generated $162 million of free cash flow in the fourth quarter, bringing full-year free cash flow to $515 million, with conversion of 84% and 87% of adjusted net income in the quarter and full year, respectively. He said net leverage ended 2025 at 2.7x net debt to adjusted EBITDA, with 100% of debt fixed rate (weighted average rate of 2.6%) and weighted average maturity of about six years.
2026 guidance: cautious assumptions with potential upside
Management reiterated an initial 2026 outlook calling for 2% to 3% organic growth, assuming end-market trends remain similar to the past several years. Singh and Krakowiak said there are “multiple paths” to upside if demand improves, but the company is starting the year with what they described as prudent assumptions.
Revvity expects 2026 revenue of $2.96 billion to $2.99 billion, incorporating:
- ~1% revenue tailwind from FX based on end-of-December rates, and
- approximately 75 basis points of growth from the acquisition of software company ACD/Labs, which closed in mid-January and is expected to contribute “a little over $20 million” of revenue in 2026.
Adjusted operating margin is expected to be 28% in 2026, up from 27.1% in 2025, as cost-efficiency initiatives are completed by the end of the second quarter. Management described the initiatives as including footprint consolidation, commercial and operational integrations, and supply chain and logistics synergies.
Adjusted EPS guidance for 2026 is $5.35 to $5.45. Krakowiak said the outlook assumes an 18% adjusted tax rate (up from 14.5% in 2025, which benefited from discrete items timing) and approximately $95 million of net interest and other expense, versus $84 million in 2025. He also noted a EUR 500 million bond maturing in July that the company plans to retire. Diluted average share count is expected to be about 112 million in 2026.
For the first quarter, Krakowiak said organic growth is expected to be in line with the full-year 2% to 3% outlook, with an estimated 3% FX tailwind. Adjusted operating margin in the first quarter is expected to be approximately 23%, affected by FX, a 14-week quarter, tariffs, and the timing of cost programs. He also said the extra week is expected to be about a 100 basis-point tailwind to first-quarter organic growth, but a $0.06 headwind to first-quarter adjusted EPS due to margin and some additional interest expense.
Software and AI initiatives highlighted as longer-term opportunities
Singh emphasized the company’s launch plans for Signals Xynthetica, an AI models-as-a-service platform intended to allow bench scientists to use public and private AI/ML models directly within Signals One workflows. He said the goal is to enable a “lab-in-the-loop” approach that accelerates drug development iterations. Management also highlighted a collaboration with Lilly and its TuneLab initiative, in which Lilly models are made available to smaller biotechs, alongside co-funding of access to Signals and Xynthetica credits for users.
In the Q&A, Krakowiak said Signals is in what he called the “most significant new product introduction phase in its history,” referencing upcoming launches including BioDesign, Xynthetica, and LabGistics. While he said the company is not revising long-range plan assumptions on the call, he reiterated management would be “really disappointed” if the business does not at least double revenue over the next four to five years, which he said would imply growth closer to 15%.
Management also said it remains disciplined on M&A, with Singh noting the focus is primarily on software and life sciences reagents, and that the company has not yet seen targets compelling enough to pursue based on financial profile and expected returns.
About Revvity (NYSE:RVTY)
Revvity, Inc is a global provider of technology-enabled solutions for the life sciences, diagnostics and applied markets. The company develops and supplies a range of products and services, including reagents and consumables, laboratory instruments, workflow automation, software analytics and technical support. Its portfolio supports applications in drug discovery, genomics, cell biology research, environmental and food safety testing, industrial quality control and clinical diagnostics.
Tracing its heritage to Perkin-Elmer, founded in 1937, Revvity began trading on the New York Stock Exchange under the ticker symbol RVTY in January 2024 following a corporate rebranding.
