Revvity’s 2026 Earnings Call: Revised Life Sciences Growth and Instrument Demand Outlook Clash with Prior Guidance

Date of Call: Aug 4, 2026

Financials Results

• Revenue: $711M, 3% organic growth, above high end of expectations
• EPS: $1.41 per diluted share, well above high end of guidance
• Operating Margin: 29.3% adjusted operating margin, above 27% outlook

Guidance:

• Full year organic growth now expected 4-5%, up from prior 3-4% outlook.
• Full year adjusted operating margin now expected ~28.7%, up 30 bps.
• Full year adjusted EPS now expected $5.30-$5.40, up $0.10.
• Q3 organic growth expected 4-6%, revenue $685M-$700M, adjusted EPS ~24% of full-year outlook.
• Life sciences platforms (instrument) business expected positive mid-single-digit growth for full year.

Business Commentary:

Strong Financial Performance and Guidance Increase:

• Revity reported pro forma organic growth of 3% for Q2 2026, with total revenue exceeding expectations.
• Pro forma adjusted earnings per share were $1.41, surpassing guidance due to better operating performance, tax planning, and tariff refunds.
• The company raised its full-year pro forma guidance for organic growth, adjusted operating margin, and adjusted EPS, reflecting improved optimism for the second half.

Diagnostics Segment Growth:

• The diagnostics segment grew 11% organically in Q2, with broad-based strength in both immunodiagnostics and reproductive health.
• Reproductive health grew in the mid-teens, and immunodiagnostics grew in the high single digits, driven by newborn screening and Genomics England sequencing contract.
• The strong performance in diagnostics is attributed to consistent demand and resilience in the franchise.

Life Sciences and AI-Driven Demand:

• Life sciences saw an increase in instrument backlog, with high content screening instruments like Opera Phoenix Opt IQ experiencing double-digit growth.
• Orders related to AI-driven drug discovery platforms are increasing, with demand for tools that enable AI-driven science.
• The improvement in pharma and biotech end markets is contributing to the growth, with AI enabling more therapeutic compound designs needing validation.

Software Business and Innovation:

• The Signals software business saw a 20% decline in organic revenue year-over-year in Q2 due to contract timing and comps.
• New product launches like Biodesign, Synthereca, and Signals AI are expected to drive future growth and return to strong double-digit growth in the second half.
• The integration of AI capabilities and new commercial programs like Signals for Startups are enhancing platform functionality and user retention.

Operational and Strategic Initiatives:

• Revity achieved strong cash flow conversion of 117% of adjusted net income and reduced leverage by retiring a 500 million euro note.
• The company is progressing with operational efficiency initiatives and the integration of ACD Labs software, which is ahead of schedule.
• The strategic divestiture of the China immunodiagnostics business is underway, with a definitive agreement signed, aiming to sharpen focus on higher-return end markets.

Sentiment Analysis:

Overall Tone: Positive

• Management stated 'delivered strong results', 'strong 3% organic growth', 'more optimistic compared to 90 days ago', and 'extremely well positioned to deliver over the remainder of the year'. They noted 'tangible signs of a more constructive spending environment' and are 'increasingly encouraged by what we continue to see'.

Q&A:

• Question from Dan Brennan (TD Cowen): Unpack life science business in the quarter and outlook. What is the size of the instrument backlog and its contribution? How do instruments and reagents perform in the back half?
  Response: Backlog is the strongest in 3-4 years, with orders accelerating in Q2. Expect platform/instrument business to grow mid-single digits for full year, up from prior low-single-digit growth.

• Question from Vijay Kumar (Evercore ISI): Elaborate on non-traditional customers from AI and tie this to optimism versus Q2 performance.
  Response: Orders from AI-focused customers building data infrastructure are a clear trend, contributing to backlog and indicating early innings of a larger growth trajectory.

• Question from Michael Riskin (Bank of America): Discuss reagents performance and expectations through the year.
  Response: Reagents grew low single digits in H1, expected similar in Q3, then step up to mid-single-digit growth in Q4.

• Question from Puneet Sundar (Leerink): Outline high content instrument backlog visibility and confidence in software recovery.
  Response: Backlog is robust, spilling into Q3. Software confidence comes from contract renewals and new AI/LLM integrations (e.g., Signals AI, Anthropic connector).

• Question from Josh Waldman (Cleveland Research): Comment on products benefiting from AI investments and magnitude of opportunity.
  Response: AI is driving demand for high-content screening instruments (e.g., OptIQ) and reagents; it's very early to quantify the opportunity, but growth is just beginning.

• Question from Luke Sergon (Barclays): Talk about cohesion in software suite and AI customer count/pipeline.
  Response: New capabilities like Signals AI and Anthropic connector expand platform functionality. It's too early to size the AI opportunity, but momentum is exciting.

• Question from Jack Negan (Operon Research): Flag growth rate of high content screening and plans to expand capacity.
  Response: High content screening had double-digit organic growth in Q2. Capacity expansion for instruments and reagents is planned using tariff refund investments.

Contradiction Point 1

Reproductive Health Growth Outlook

Conflicting guidance on growth trajectory for the back half of 2026.

What are Dan Brennan's expectations for the earnings call? - Dan Brennan (TD Cowen)

2026Q2: For the back half, growth is expected to slow to low-to-mid single digits, aligning with prior guidance. - [Max Grzykowiak](CFO)

What was the contribution of Genomics England to the reproductive health performance in the quarter, and what are the assumptions for the back half? - Daniel Brennan (TD Cowen)

2026Q1: Underlying reproductive health has consistently outpaced challenging global birth rate trends due to execution on commercial pillars... - [Maxwell Krakowiak](CFO)

Contradiction Point 2

Software Business Outlook

Inconsistent expectations for software growth in Q2 2026.

Vijay Kumar (Evercore ISI) - Vijay Kumar (Evercore ISI)

2026Q2: The EPS guidance raise of $0.10 is split: half from the net impact of tariff refunds... and half from stronger revenue and operating margins. - [Prahlad Singh](CEO) and [Max Grzykowiak](CFO)

How are non-traditional customer orders impacting the Life Sciences outlook, and what factors in Q2 performance justify the raised EPS guidance? - Patrick Donnelly (Citigroup Inc.)

2026Q1: Software organic growth is best measured by APV... Q2 organic growth is expected to be down ~20% (tougher comps), with growth resuming in the second half (high teens). - [Maxwell Krakowiak](CFO)

Contradiction Point 3

Life Sciences Growth Guidance and Outlook

Guidance for full-year Life Sciences growth shifts from low single digits to positive mid-single digits.

Dan Brennan (TD Cowen) - Dan Brennan (TD Cowen)

2026Q2: Orders accelerated in Q2, leaving the strongest backlog in 3-4 years. Some delivery timing pushed into Q3... Life Sciences Platforms (instrument) growth for the full year has been raised from low single digits to positive mid-single digits. - [Prahlad Singh](CEO) and [Max Grzykowiak](CFO)

Could you unpack the life science business performance in the quarter, the size and contribution of the instrument backlog, and how instruments and reagents are expected to perform in the back half under the new guidance, considering improving pharma and biotech demand? - Vijay Kumar (Evercore ISI)

2025Q4: The framework embeds Life Sciences in the low single digits and Diagnostics in the low single digits for 2026. - [Maxwell Krakowiak](CFO)

Contradiction Point 4

Instrument Demand and Backlog Visibility

Outlook on 2026 instrument demand shifts from flattish to positive growth.

Dan Brennan (TD Cowen) - Dan Brennan (TD Cowen)

2026Q2: Orders accelerated in Q2, leaving the strongest backlog in 3-4 years. Some delivery timing pushed into Q3. Life Sciences Platforms (instrument) growth for the full year has been raised... to positive mid-single digits. - [Prahlad Singh](CEO) and [Max Grzykowiak](CFO)

How did the life science business perform in the quarter, what is the size and contribution of the instrument backlog, and how do instruments and reagents perform in the new guidance given improving pharma and biotech demand in the back half? - Luke Sergott (Barclays)

2025Q4: The flattish assumption for 2026 is based on a similar CapEx environment as 2025. - [Maxwell Krakowiak](CFO)

Contradiction Point 5

Reagents Business Performance and Outlook

Contradiction on the performance and near-term growth outlook for the reagents business.

Michael Riskin (Bank of America) - Michael Riskin (Bank of America)

2026Q2: Reagents growth in Q2 was low single digits. Full-year expectations: low single digits in Q3, a step-up in Q4, ending the year at mid-single digit organic growth. - [Max Grzykowiak](CFO)

Could you discuss the reagents business performance, explain the lack of acceleration despite strong instrument backlog, and provide an update on the Genomics England contract? - Tycho Peterson (Jefferies LLC, Research Division)

2025Q3: Reagents were slightly down year-over-year in Q3 due to lighter summer run rates... Reagent growth in 2026 assumes a similar environment as today (2%–3% organic growth). No huge ramp is factored in... - [Maxwell Krakowiak](CFO)