Revvity Soars 8% on Earnings Hike, But Can the Momentum Hold?

Summary
• Revvity (RVTY) surges 8% intraday to $112.24, surpassing its 52-week high of $128.28
• Company raises 2025 profit forecast, citing $772M Q4 revenue beat and $2.86B annual guidance
• Options frenzy: 20 contracts traded, with RVTY20260220C115 seeing 3,070 shares turned over

Revvity’s stock is racing toward its 52-week high after a blockbuster earnings update. The medical equipment maker’s Q4 revenue and profit forecasts have ignited a 8% rally, with options traders piling into call contracts. As the stock trades near its all-time peak, investors must weigh whether this surge is a sustainable breakout or a short-term spike. Key levels to watch include the 200-day moving average at $94.17 and the Bollinger Band upper bound at $105.28.

Earnings Beat and Sector Tailwinds Fuel Revvity's Surge
Revvity’s 8% intraday jump stems from a dual catalyst: a Q4 revenue beat of $772 million (exceeding $760.3M estimates) and a revised 2025 adjusted EPS forecast above $5. The company attributes this to surging demand for contract research and diagnostics under Trump-era trade policies. With 4% annual revenue growth to $2.86 billion, Revvity’s guidance outpaces peers in a sector grappling with supply chain bottlenecks. The stock’s sharp move also coincides with its J.P. Morgan Healthcare Conference presentation, amplifying short-term momentum.

Health Care Equipment Sector Mixed as Thermo Fisher Drags
While Revvity’s rally is self-driven, the broader Health Care Equipment sector remains fragmented. Sector leader Thermo Fisher (TMO) fell 0.45% on the day, reflecting divergent earnings dynamics. Revvity’s focus on diagnostics and R&D services contrasts with TMO’s lab equipment exposure, which faces margin pressures. However, Revvity’s 66.8x dynamic P/E ratio suggests investors are pricing in premium growth, outpacing the sector’s average valuation.

Options and ETFs for Capitalizing on RVTY's Volatility
• MACD: 1.41 (above signal line 0.79), Histogram: 0.61 (bullish divergence)
• RSI: 70.33 (overbought territory)
• Bollinger Bands: $93.07–$105.28 (price at upper bound)
• 200-day MA: $94.17 (price above by 20%)

Revvity’s technicals scream short-term overbought conditions, with RSI near 70 and MACD divergence suggesting a potential pullback. However, the stock’s 8% move has triggered a surge in call options. Two top picks from the chain:

• RVTY20260220C115: Call option with 115 strike, 2026-02-20 expiry, IV 78.82%, leverage 50.62%, delta 0.449, theta -0.807, gamma 0.0409, turnover 3,070
- High leverage and moderate delta position this as a short-term volatility play. With 5% upside to $117.85, payoff would be $2.85/share. Gamma and theta suggest sensitivity to price swings and time decay.
• RVTY20260220C110: Call option with 110 strike, 2026-02-20 expiry, IV 92.21%, leverage 22.27%, delta 0.571, theta -1.097, gamma 0.0365, turnover 1,000
- Strong IV and high theta make this ideal for a 5–7 day hold. A 5% move to $117.85 yields $7.85/share payoff. Gamma ensures responsiveness to price action.

Aggressive bulls may consider RVTY20260220C115 into a bounce above $115. If $115 breaks, the 200-day MA at $94.17 becomes critical support.

Backtest Revvity Stock Performance
The backtest of RVTY's performance following an 8% intraday increase from 2022 to the present reveals a significant underperformance. The strategy yielded a return of -42.90%, lagging the benchmark by 89.31%. With a maximum drawdown of 0.00% and a Sharpe ratio of -0.38, the strategy demonstrated a high risk and negative return.

Revvity's Rally: Secure Gains or Ride the Wave?
Revvity’s 8% surge is a high-stakes play on earnings optimism and sector rotation. While technicals suggest overbought conditions, the stock’s 4% annual revenue growth and Trump-era demand tailwinds justify near-term bullishness. Watch the 200-day MA at $94.17 and the sector leader Thermo Fisher (TMO, -0.45%) for directional clues. For traders, the RVTY20260220C115 option offers a leveraged bet on a $115 breakout. If the move holds, this could be the start of a multi-week rally; if not, volatility may intensify. Position sizing and stop-loss placement near $105.28 are critical.