Revvity's 2025 Q1 Earnings Call: Unraveling Contradictions on Tariffs, Growth, and China Market Recovery

Tariff impact and mitigation strategies, Life Sciences instrument recovery, software growth expectations, operating margin and tariff impact, and China market and demand recovery are the key contradictions discussed in Revvity's latest 2025Q1 earnings call.



Organic Growth and Recession Resilience:
- Revvity reported a solid 4% organic growth in the first quarter, in line with expectations despite a dynamic macroeconomic environment.
- The growth was attributed to the resilience of the business and strong performance across diagnostics and software segments, offsetting pressures from academic customer uncertainties.

Diagnostics Segment Performance:
- The diagnostics segment generated $324 million in revenue, with a 5% organic growth.
- Growth was driven by strong demand for the reproductive health business and a stable diagnostic franchise, particularly in the Americas and global newborn screening.

Software Segment Surge:
- The Signals software business grew slightly more than 20% organically in the first quarter.
- This performance was supported by new product launches, strong retention rates, and expansion of AI capabilities, contributing significantly to Revvity's growth.

Impact of Tariffs and Strategic Mitigation:
- Revvity anticipates a $135 million gross impact from tariffs, which they plan to mitigate through proactive supply chain adjustments and alternative sourcing.
- The company aims to offset most of this impact by the end of June, ensuring minimal residual effects on 2025 results.

Academic Customer Uncertainty:
- A headwind from unanticipated choppiness in demand from U.S. academic customers impacted Life Sciences Solutions, affecting instrumentation and reagents.
- This was due to uncertainty over future funding levels amid changes in academic funding executive orders.