Revvity Raises Guidance as Diagnostics Growth Offsets Life Sciences Slump
Revvity posted $1.41 in pro forma adjusted earnings per share, aided by $16 million of tariff refunds, as diagnostics growth accelerated even as life sciences revenue fell.
Revvity (RVTY) reported second-quarter revenue of $730 million, up 1.4% from $720 million a year earlier, and raised its full-year 2026 guidance for the second consecutive quarter. The life-sciences and diagnostics company also signed a definitive agreement to divest its China Immunodiagnostics business, a unit that accounted for roughly 6% of 2025 revenue, with the sale expected to close by the end of 2027.
The divestiture marks a shift from the letter-of-intent stage the company described in the first quarter, when management framed the move as part of a broader effort at what it called disciplined portfolio optimization. By the second quarter, the tone had changed. Executives pointed to increased demand across the customer base and said they were directing tariff-related refunds toward growth investment rather than banking the gain, a more bullish posture heading into the second half of the year.
On a pro forma basis, revenue reached $711 million, up 4% from a year earlier, or 3% organic. That represented a deceleration from the first quarter's pace of 7% reported and 6% pro forma organic growth. Adjusted operating margin expanded to 28.9% on a GAAP basis and 29.3% pro forma, up from 26.6% and 26.5% a year ago and a sharp reversal from the first quarter's 23.6%/24.0%, which had itself contracted from 25.6%/25.3% in the prior-year period. Results included $16 million of tariff-related refunds that lifted GAAP operating income and added roughly $0.11 to pro forma adjusted earnings of $1.41 a share, a disclosure that did not appear in either the first-quarter or fourth-quarter 2025 releases.
The diagnostics segment drove the acceleration. Revenue there grew 12% pro forma, or 11% organic, up from 8% reported and 4% organic in the first quarter and continuing momentum from the fourth quarter of 2025, when the segment grew 10% reported and 7% organic. Diagnostics margin expanded to 30.4% from 25.2% a year earlier, reversing the erosion seen as recently as the fourth quarter, when margin fell to 23.4% from 25.7%.
Life sciences moved in the opposite direction. Segment revenue fell 2% pro forma, or 3% organic, to $359 million from $366 million a year ago, a reversal from the first quarter's 6% revenue growth and 3% organic gain to $362 million. Margin in the segment compressed to 31.1% from 31.6%, extending a decline that ran from 36.9% to 35.6% in the fourth quarter of 2025 and from 31.1% to 28.7% in the first quarter of 2026.
For the six months ended in the second quarter, GAAP operating margin was 11.5%, compared with 11.8% in the prior-year period, while the pro forma figure rose to 12.4% from 8.9%. The year-earlier pro forma margin had been depressed by a large loss tied to probable dispositions, making the comparison an easier one for 2026.
Revvity's raised full-year guidance follows an update in the first quarter and an initial 2026 outlook issued in the fourth quarter of 2025, marking the third consecutive quarter the company has revised its forecast upward. Management's decision to redeploy tariff refunds into growth spending, paired with the diagnostics segment's margin recovery, positions the company to test whether that momentum can offset continued softness in life sciences through the second half of the year.