Revvity finds more momentum as both divisions expand margins

Revvity, Inc. (NYSE:RVTY) has raised its 2026 guidance after a quarter in which both of its operating divisions delivered growth and adjusted margins widened. Revenue rose to US$728.9 million from US$698.9 million a year earlier, while pro forma revenue, excluding the China immunodiagnostics business slated for sale, reached US$709.6 million with 7% organic growth.

Third-quarter growth reaches both operating divisions

Life Sciences supplied the stronger top-line performance, with revenue up to US$379.6 million from US$342.8 million. On a pro forma basis, the division grew revenue 11% and organic revenue 9%. Diagnostics revenue eased to US$349.3 million from US$356.1 million on a reported basis, but pro forma revenue increased 4% and organic revenue rose 5%.

Profitability improved in both businesses. Life Sciences adjusted operating income climbed to US$119.5 million, lifting its adjusted margin to 31.5% from 29.5%. Diagnostics adjusted operating income rose to US$104.3 million, with margin expanding to 29.9% from 25.1%.

Adjusted earnings rise faster than reported profit

GAAP earnings per share from continuing operations increased to US$0.56 from US$0.41. Adjusted EPS, a non-GAAP measure, rose to US$1.38 from US$1.18, while pro forma adjusted EPS came in at US$1.37 after excluding the China IDX operation.

The gap between the two measures remains material. Reported operating income was US$95.1 million, compared with adjusted operating income of US$209.3 million, with the reconciliation including US$84.7 million of intangible-asset amortisation and US$28.4 million of restructuring and other charges. Revvity itself cautioned that non-GAAP measures should be considered alongside, rather than instead of, GAAP results.

Guidance rises as China divestiture reshapes the base

For the full year, Revvity now expects approximately US$2.86 billion of pro forma revenue, about 5% pro forma organic growth and pro forma adjusted EPS of US$5.40 to US$5.45. The guidance is presented on a non-GAAP, pro forma basis and excludes China IDX, so it is not a direct forecast of the company’s reported GAAP results.

The planned China IDX disposal is expected to generate up to US$200 million, subject to adjustments, customary closing conditions and regulatory approvals. Revvity said the transaction is expected to close by the end of 2027; its pro forma statements use a potential consideration of US$120 million and include a US$55 million loss on the probable disposition, including tax impacts. The business represented about 6% of total company revenue in fiscal 2025, making the post-sale growth rate and margin profile important tests of the strategy.

Investor Day offers the next strategic checkpoint

Revvity’s cash balance fell to US$592.8 million at October 4 from US$919.9 million at the end of 2025, following debt repayment, share purchases and other financing movements. Operating cash flow for the first nine months nevertheless rose to US$473.9 million from US$401.0 million a year earlier.

The next substantial update is scheduled for the company’s 13 November Investor Day. That event should provide a clearer test of whether the improved demand described in the quarter can offset the revenue being removed through China IDX, and how much of the margin improvement management expects to retain.