Revvity delivered a first quarter that reflected solid execution amid a volatile macroeconomic backdrop, with sales outpacing Wall Street expectations and organic growth supported by resilient diagnostics and software segments. Management cited stabilized demand from pharmaceutical and biotech customers and a notable rebound in diagnostics, especially in areas like newborn screening. CEO Prahlad Singh pointed to unexpected softness in U.S. academic spending, which affected life science instruments, but emphasized that strong operational management and a diversified product mix allowed the company to overcome these challenges. Singh noted, “Our ability to continue to generate strong organic growth and better-than-expected earnings in this environment is a testament to the resilience of our business and the tremendous efforts of our people.”
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Revvity (RVTY) Q1 CY2025 Highlights:
- Revenue: $664.8 million vs analyst estimates of $660.6 million (2.3% year-on-year growth, 0.6% beat)
- Adjusted EPS: $1.01 vs analyst estimates of $0.95 (6.4% beat)
- Adjusted EBITDA: $267.3 million vs analyst estimates of $190.2 million (40.2% margin, 40.6% beat)
- The company slightly lifted its revenue guidance for the full year to $2.85 billion at the midpoint from $2.83 billion
- Management reiterated its full-year Adjusted EPS guidance of $4.95 at the midpoint
- Operating Margin: 10.9%, up from 6.8% in the same quarter last year
- Organic Revenue rose 3.7% year on year (-3% in the same quarter last year)
- Market Capitalization: $11.53 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Revvity’s Q1 Earnings Call
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Patrick Donnelly (Citi) asked how Revvity could neutralize the $135 million tariff impact so quickly. CEO Prahlad Singh explained that supply chain redundancies and early contingency planning allowed for agile manufacturing shifts, particularly for life science products sold into China.
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Dan Brennan (TD Cowen) questioned expectations for China amid political tensions. Singh and CFO Max Krakowiak noted that diagnostics operations in China are localized and that low-single-digit growth is anticipated, with no significant new regulatory pressures observed.
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Matt Sykes (Goldman Sachs) inquired about the Signals software business’s competitive positioning and scalability. Singh highlighted new product launches and strong customer retention, while Krakowiak indicated that software margins will start to contribute more meaningfully as the business scales.
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Vijay Kumar (Evercore) pressed for details on gross margin headwinds from tariffs. Singh clarified that the $135 million figure reflected a scenario with no mitigation, and Krakowiak added that supply chain and cost actions would address most of the gross margin pressure.
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Dan Leonard (UBS) sought clarity on the pace of SaaS adoption in the Signals business. Krakowiak stated that about a third of the software portfolio is now SaaS, with continued progress expected and organic growth metrics remaining strong.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will be watching (1) the ramp-up of Revvity’s new automated latent TB testing platform in the U.S., (2) the pace of organic growth in the Signals software business and additional product rollouts, and (3) sustained mitigation of tariff-related margin pressures. Execution on reproductive health partnerships and demand stabilization in academic and government markets will also be key markers of progress.
Revvity currently trades at $97.82, up from $94.27 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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