Revvity Beats 2025 Forecasts on Diagnostics Strength, Offers Cautious 2026 Outlook

Revvity, Inc. (NYSE: RVTY) delivered a stronger-than-anticipated finish to 2025, with executives crediting a resilient diagnostics division and stabilizing trends in life sciences for outperforming internal forecasts. The company's initial outlook for 2026, however, reflects a posture of measured optimism, assuming current market conditions persist without a significant near-term uptick.

"Our fourth-quarter performance across revenue, organic growth, and adjusted EPS exceeded our expectations, allowing us to surpass our full-year adjusted EPS guidance," stated CEO Prahlad Singh. He acknowledged the company successfully navigated a complex landscape in 2025, including shifts in NIH funding, tariff fluctuations, pharmaceutical policy uncertainty, a prolonged U.S. government shutdown, foreign exchange volatility, and volume pressures in the Chinese diagnostics market.

CFO Max Krakowiak provided the financial specifics: Q4 revenue reached $772 million, featuring 4% organic growth and a 2% benefit from foreign exchange. The adjusted operating margin for the quarter was 29.7%, a 60-basis-point decline year-over-year but consistent with projections. Adjusted earnings per share came in at $1.70, above the high end of the guidance range.

For the full year, Revvity reported revenue of $2.86 billion with 3% organic growth. The annual adjusted operating margin was 27.1%, down 120 basis points, pressured by tariffs, FX, and lower volume leverage, though partially mitigated by cost-control efforts. Full-year adjusted EPS was $5.06, a 3% increase year-over-year.

The diagnostics segment was a standout, with Q4 revenue of $390 million marking 7% organic growth (10% reported). In contrast, the life sciences segment revenue of $382 million was flat organically. Within life sciences, pharma and biotech sales saw low single-digit growth, while academic and government sales declined slightly, impacted by the government shutdown.

Revvity's software arm, Signals, saw flat organic growth in Q4 due to renewal timing but achieved high-teens organic growth for the full year. Krakowiak highlighted a growing SaaS pipeline, with annual recurring revenue up nearly 40% year-over-year and net retention above 110%.

The company also demonstrated strong capital discipline, repurchasing over $800 million of its shares in 2025, reducing share count by 8.5 million. Since its 2023 rebranding, total buybacks exceed $1.5 billion. Free cash flow for the year was $515 million, with net leverage ending at 2.7x adjusted EBITDA.

Looking ahead, management's initial 2026 guidance projects 2% to 3% organic growth and revenue between $2.96 billion and $2.99 billion. Adjusted operating margin is expected to improve to 28% as cost-efficiency initiatives conclude. Adjusted EPS is forecasted in the range of $5.35 to $5.45.

Strategic highlights included the upcoming launch of Signals Xynthetica, an AI models-as-a-service platform aimed at integrating AI directly into scientific workflows, and a collaboration with Eli Lilly through the TuneLab initiative. Krakowiak noted Signals is in a major product introduction phase, expressing confidence that the business should at least double its revenue over the next four to five years.

Analyst & Investor Commentary:

Dr. Anya Sharma, Portfolio Manager at Horizon Life Sciences Fund: "Revvity's diagnostics resilience is commendable in a tough environment. The margin expansion guide for 2026 and the software pipeline growth are the key positives here. The conservative top-line outlook is prudent, but the implied acceleration in the back half will be critical to watch."

Michael T. Rossi, Senior Analyst at Clearwater Capital: "The beat is good, but let's not ignore the consistent margin compression year-over-year. They're playing defense with buybacks while waiting for growth to re-accelerate. The 'multiple paths to upside' language feels like hope masquerading as strategy. I need to see tangible proof that Xynthetica moves the needle before buying the growth story."

Eleanor Vance, Biotech Research Director at Statham Trust: "The Lilly collaboration is a significant validator for their software strategy. Making sophisticated tools accessible to smaller biotechs could open a substantial new market. This is less about next quarter's EPS and more about building an ecosystem."

Carlos Ruiz, Independent Market Analyst: "Another quarter of massive buybacks while organic growth languishes in low single digits? This looks like financial engineering to prop up EPS. The guidance is tepid, and the 'lab-in-the-loop' AI talk is just that—talk—until it generates material revenue. The stock feels like it's running on fumes, not innovation."

Revvity, tracing its roots to PerkinElmer founded in 1937, is a global provider of technology-enabled solutions for life sciences, diagnostics, and applied markets. The company rebranded in 2023 and began trading under its current ticker in January 2024.