Revvity (RVTY) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $711M, up 7% year-over-year, with 3% organic growth and pro forma organic growth of 6%; adjusted EPS was $1.06, exceeding guidance.

• Announced intention to divest China immunodiagnostics business, representing 6% of 2025 revenue, with completion expected by end of 2027; pro forma guidance excludes this business.

• Innovation highlighted by launches of Xynthetica, BioDesign, and Opera Phenix OptIQ HCS system, with continued investment in software and AI-driven platforms.

• Strong diagnostic trends outside China and encouraging growth in Pharma/Biotech and Academic/Gov't sectors.

• Gross margin declined to 54.5% due to product mix, FX, tariffs, and an extra fiscal week.

Financial highlights

• Q1 revenue: $711M, up 7% year-over-year; organic growth 3%, M&A 1%, FX 3%.

• Adjusted operating margin: 23.6%; pro forma margin 24%; GAAP operating margin 10.7%.

• Adjusted EPS: $1.06; pro forma EPS $1.04; GAAP EPS from continuing operations $0.37.

• Free cash flow: $115M, 97% conversion of adjusted net income; net cash from operations $126M.

• Net debt to adjusted EBITDA: 2.8x; all debt fixed at 2.6% average rate, 6-year maturity; cash and cash equivalents at quarter-end $860M.

• $86M in share repurchases in Q1; 784,142 shares repurchased for $79M under $1B buyback program.

Outlook and guidance

• 2026 pro forma revenue guidance: $2.81B–$2.84B, with 3–4% organic growth.

• Adjusted operating margin outlook raised to 28.4%; pro forma adjusted EPS for 2026 is $5.20–$5.30.

• Q2 pro forma organic growth expected at 2–3%; revenue $699M–$707M.

• Margin expansion expected through 2027 as cost initiatives annualize.

• Guidance excludes China immunodiagnostics business.