Revvity's Q2 2025 Earnings Call: Navigating Contradictions in Revenue Growth, Market Dynamics, and Regulatory Impacts

Revenue growth expectations and impact of regulatory changes, life sciences reagents growth, China market growth expectations, instrument sales recovery, and software business growth expectations are the key contradictions discussed in Revvity's latest 2025Q2 earnings call.



Revenue and Organic Growth:
- Revvity reported revenue of $720 million for Q2 2025, marking a 3% organic growth.
- This growth was driven by a strong performance in the Life Sciences business, particularly in the Signals software franchise, which experienced approximately 30% growth.

Diagnostics Business Challenges:
- The Diagnostics segment grew 2% organically in Q2, with a decline in China due to a new hospital lab reimbursement change, known as the diagnosis-related groups (DRG).
- This policy change led to reduced volumes for multiplex products, impacting overall diagnostics performance.

Share Repurchase Activity:
- Revvity repurchased nearly $300 million worth of stock in Q2, adding to the previous quarter's repurchase of $150 million.
- This activity reduced over 4 million shares, representing nearly 4% of total shares outstanding.

Tariff and Currency Impact:
- FX movements resulted in a 1% tailwind to Q2 revenue but had a minimal impact on adjusted net income due to the severity and dispersion of currency changes.
- Despite tariff rollbacks, Revvity's updated outlook assumes the impact of tariffs currently in place.