I'll research RVTY (Revvity) before writing the preview. Let me gather recent earnings materials, filings, and news.I'll read the most recent quarter (2026Q1) earnings call and release, plus the prior Q2 (2025Q2) for year-ago comparison. Let me also get recent price data.Now let me get the year-ago Q2 2025 release for comparison, recent stock price performance, and any recent sector/analyst news.Let me get recent sector/peer context and any RVTY-specific news heading into the print.I have what I need. Let me compute a few reference figures before writing.Now I have everything needed. Here's the preview.
This is the first "clean" quarter under Revvity's reshaped portfolio. On the Q1 call in May, management announced its intention to divest the China immunodiagnostics business (~6% of 2025 revenue) and re-based all guidance to a pro forma view that excludes it. The Street will be judging the quarter against those new pro forma numbers, watching whether the early signs of a pharma/biotech and academic recovery held, and looking for confirmation that the divestiture is on track and that the big second-half margin ramp is intact.
At the Q1 call, management framed Q2 2026 on a pro forma basis (excludes China immunodiagnostics):
| Metric | Q2 2026 guide (pro forma) | Q2 2025 (as reported, incl. China IDx) |
|---|---|---|
| Revenue | $699M – $707M | $720M |
| Organic growth | +2% to +3% | +3% |
| Adj. operating margin | ~27% | 26.6% |
| Adj. EPS | ~23% of FY → ≈ $1.20 (range ~$1.196–$1.219) | $1.18 |
| Tax rate | ~19% assumed | — |
Two important framing points: - The comps aren't apples-to-apples. The $720M / $1.18 reported a year ago still included the China IDx business now being carved out. On a pro forma basis, the year-ago quarter was materially lower (Q1 2025 pro forma revenue was $629M vs. $665M reported; pro forma EPS $0.95 vs. $1.01 reported). So the ~$1.20 guide represents roughly high-single-digit pro forma EPS growth, and $699–707M is ~2–3% pro forma organic + a modest FX tailwind. - Full-year pro forma guide to beat/reiterate: revenue $2.81–$2.84B, organic +3–4%, adj. operating margin ~28.4%, adj. EPS $5.20–$5.30.
Track record: Q1 came in ahead of plan — 3% reported organic (6% pro forma), 23.6% adjusted margin vs. a 23% outlook, and $1.06 adjusted EPS vs. a $1.02–$1.04 implied guide. Revvity tends to guide conservatively and beat modestly, so a small Q2 beat would be consistent with pattern.
1. China divestiture — is the definitive agreement signed? Management said it had a letter of intent with a local, management-led buyer group and expected to sign a definitive agreement within Q2 2026, with closing by end of 2027 (Revvity retaining a minority stake). Since Q2 just ended, this print is the natural moment to confirm the signing. The deal is strategically important: it lifts full-year organic growth ~100 bps, margins ~30 bps, and improves free-cash-flow conversion by ~300 bps (2025 conversion would have been ~90% vs. the 87% reported). Watch for any slippage in timing or terms — the deal hasn't closed, so execution risk remains.
2. Pharma/biotech — did the recovery continue? Q1 delivered the strongest pharma/biotech growth (low-single-digit, across both reagents and instruments) since 1H 2023. Management called it "positively stable" and wants to see reagents accelerate further before declaring an all-clear. This is the single most important read-through for the group. Any commentary on GLP-1-driven high-content screening demand and instrument funnel activity matters.
3. Academic & government — sustaining the turn? Q1 saw mid-single-digit academic growth overall and, notably, the first positive U.S. academic growth since Q2 2023. Given ongoing NIH/funding-policy uncertainty in the U.S., investors will want to see whether that held. Management has stayed deliberately cautious here.
4. Software — don't panic on the optics. Management pre-warned that reported software organic growth would be down ~20% in Q2 on tough rev-rec comps — this is expected and not a demand signal. The metrics that matter are APV (growing double digits) and ARR/SaaS growth (40% ARR growth, 30%+ SaaS in Q1). Software recovers to high-teens growth in 2H. Watch traction on the three new launches — Xynthetica, BioDesign, and LabGistics — plus the Lilly TuneLab partnership. Software is the central theme of the Nov 13 Investor Day, so expect the narrative to build here.
5. Diagnostics / reproductive health. Q2 diagnostics is guided up mid-to-high-single digits on a pro forma basis. Reproductive health had a standout Q1 (up double digits), helped by the Genomics England (GEL) contract (~$20M first-year contribution, tracking slightly ahead) and resilient newborn screening despite weak global birth rates. Watch whether GEL momentum and instrument placements continue.
6. Margins and the 2H ramp — the "show-me" item. The full-year 28.4% margin (and Q3 stepping to ~29%) depends on cost-efficiency programs completing around mid-year, weighted to headcount reductions/delayering plus footprint, sourcing and freight actions. Since these actions anniversary mid-2027, management has flagged robust margin expansion into 1H 2027 as well. Confirmation that these are on track (and Q2 hitting ~27%) is key to the second-half and 2027 setup. Tariffs and an extra fiscal week were Q1 headwinds worth watching for lingering effects.
7. Capital allocation. The ~$600M Eurobond due mid-July was slated to be repaid, keeping gross leverage below 3x by year-end (net debt/EBITDA was 2.8x in Q1). Buybacks continue ($86M in Q1; management has been opportunistic — $294M in Q2 2025). Divestiture proceeds (2027) are earmarked largely for buybacks. M&A appetite remains for tuck-ins, but buyback is called the "biggest opportunity."
Bull case: Pharma/biotech and academic recoveries broaden; a clean, higher-growth/higher-margin portfolio post-China; software inflection with three new AI-native launches and a compelling Investor Day; cost programs drive a strong 2H and 2027 margin story; buyback support. Revvity keeps out-growing peers.
Bear case: End-market recovery is still early and fragile (management itself is "prudent"); the ~$1.20/2–3% bar is un-demanding but the stock is near highs, so a mere in-line print may not satisfy; software optics (-20%) and China execution create headline risk; margin ramp is back-half loaded and unproven; NIH/academic and tariff policy remain wildcards.
Coming off a strong Q1 and a well-received strategic reset, the Q2 setup hinges on confirmation, not surprise: sign the China deal, show pharma/biotech and academic momentum held, reassure on the second-half margin ramp, and ideally nudge the full-year pro forma guide higher. With the stock near 2026 highs after a ~37% rally off the spring lows, expectations have caught up — so the guidance tone and any FY raise (or lack of one) will likely drive the reaction more than the headline Q2 beat itself. Watch the software APV/ARR metrics and reproductive-health/GEL trajectory as the cleaner tells on underlying momentum.
Prices as of 8/3/2026 close; all forward figures are management's pro forma guidance from the Q1 2026 call. This is an informational preview, not investment advice.