Analysis RVTY
Revvity's lab business was shrinking. Now it's driving growth.
Life Sciences rebounded as Diagnostics grew more slowly. Our two-report comparison traces the shift in growth, stronger earnings and the cash behind a scheduled debt repayment.
Revvity's Life Sciences business has taken over as its main source of sales growth. The supplier of laboratory tools, reagents and scientific software reported a 9% organic sales increase in the quarter ended October 4, after a 3% decline in Q2. Both rates compare with the corresponding year-earlier quarter.
The change matters because Diagnostics, which previously carried growth, slowed. Revvity raised its annual outlook as both businesses earned more adjusted operating profit and cash generation improved.
A different business now carries growth
Research by Ticker Byline shows that Life Sciences supplied about three quarters of Revvity's third-quarter revenue increase after excluding the China immunodiagnostics business it plans to sell. Our comparison of the August and November reports finds a reversal from Q2, when Life Sciences reduced growth and Diagnostics supplied the increase.
| Contribution to revenue growth | Q2 2026 | Q3 2026 |
|---|---|---|
| Life Sciences | -7.2 | +36.8 |
| Diagnostics | +37.8 | +12.4 |
| Total | +30.6 | +49.2 |
This dollar comparison includes currency and acquisitions. Organic growth removes those effects: Life Sciences moved from minus 3% to plus 9%, while Diagnostics slowed from 11% to 5%.
Life Sciences' adjusted operating profit rose to $119.5 million from $101.0 million. Its margin reached 31.5%, versus 29.5%. CEO Prahlad Singh said end markets were improving and attributed the results to broad-based growth and execution.
The forecast increase stays modest
Revvity now expects approximately $2.86 billion in annual revenue, excluding the China business, versus August's $2.83 billion to $2.86 billion. The adjusted EPS forecast is now $5.40 to $5.45, up from $5.30 to $5.40.
The forecast excludes the China business that Revvity still owns. Its sale was announced in August and remains pending.
On the actual reported basis including the China business, revenue rose 4% to $728.9 million and GAAP operating profit increased to $95.1 million from $81.9 million. Adjusted profit removes costs including intangible amortization. Restructuring and other charges, also excluded, rose to $28.4 million from $9.9 million.
Cash improves while a maturity is repaid
Quarterly operating cash from continuing operations rose to $166.7 million from $138.6 million. Cash nevertheless fell as Revvity repaid $571.2 million of maturing notes, a payment already disclosed in August.
The next results can test whether Life Sciences sustains its recovery as Diagnostics grows more slowly. The Revvity company profile follows the changing business mix, forecast, cash and debt.