Revvity Beats Q4 Forecasts, Sets Bullish 2026 Targets on Diagnostics Strength
BENGALURU, Feb 2 (Reuters) – Revvity Inc. delivered a stronger-than-anticipated finish to 2025, with fourth-quarter results comfortably exceeding analyst forecasts. The company on Monday projected 2026 revenue and profit above current Wall Street estimates, signaling confidence in the enduring momentum of its core diagnostics business even as challenges in academic and research funding linger.
The life sciences sector is finding its footing amid a stabilizing pharmaceutical market and clearer regulatory pathways, which are helping to offset constrained budgets at universities and government research institutes. This broader trend was reflected in Revvity's latest report, which followed similarly upbeat results from industry giants Danaher and Thermo Fisher Scientific last week.
For 2026, Revvity forecasts adjusted earnings per share in the range of $5.35 to $5.45, topping the consensus estimate of $5.32 compiled by LSEG. The company also sees annual revenue landing between $2.96 billion and $2.99 billion, ahead of the expected $2.93 billion.
"Our strong close to the year, with results solidly ahead of our internal expectations, positions us well for the future," said CEO Prahlad Singh in a statement. "The strategic focus on high-growth areas within diagnostics is yielding clear results."
The diagnostics unit was the quarter's star, posting organic growth of 7% to reach $390.1 million in revenue for the period ended December 28. This significantly outpaced the $377.7 million analysts had forecast, fueled by demand for tools used in genetic screening and other testing processes. Conversely, the life sciences unit, which supplies reagents and instruments for drug discovery, recorded revenue of $382 million, slightly below estimates of $385.6 million.
Overall, quarterly adjusted profit came in at $1.70 per share, beating estimates of $1.55. Total sales reached $772.1 million, exceeding the projected $761.3 million.
Analyst & Investor Reaction:
"This isn't just a beat; it's a statement. Revvity's guidance suggests management sees a multi-year runway for diagnostics, which is the higher-margin engine of their business. The slight miss in life sciences is a footnote if diagnostics continue to fire on all cylinders." – Michael Thorne, Portfolio Manager at Horizon Capital Advisors
"Impressive execution in a mixed environment. They're navigating the academic funding headwinds better than many peers by leveraging commercial diagnostic demand. The 2026 targets look achievable and provide good visibility." – Dr. Sarah Chen, Biotech Analyst at ClearWater Research
"Let's not get carried away. One strong quarter in diagnostics doesn't erase the persistent weakness in their research tools segment. This guidance feels optimistic, banking heavily on a single division while the other stagnates. The stock's pop today feels overdone." – David Keller, Editor of The Skeptical Investor newsletter
"Finally, some concrete numbers that back up the hype! The diagnostics growth is exactly what shareholders have been waiting for. This 2026 outlook is the confidence boost the sector needed." – Anya Petrova, a retail investor following the life sciences space
(Reporting by Kamal Choudhury in Bengaluru; Editing by Jonathan Ananda)