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Revvity Q2 Preview: Can Strong Segments Deliver an Earnings Beat?

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Key Takeaways

  • RVTY projects Q2 revenues of $700M-$715M and EPS of $1.13-$1.15 amid tariff-related margin pressure.
  • RVTY's Diagnostics gains are driven by immunodiagnostics strength and Genomics England collaboration.
  • RVTY's Life Sciences growth is led by Signals Software, offsetting weak academic demand for instruments.

Revvity, Inc. (RVTY - Free Report) is slated to report second-quarter 2025 results on July 28, before market open.

In the last reported quarter, the company delivered an earnings surprise of 5.21%. RVTY’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 7.71%.

Q2 Estimates

The Zacks Consensus Estimate for revenues is pegged at $711.3 million, up 2.8% from the prior-year quarter’s level. The consensus mark for earnings is pinned at $1.14 per share, indicating a deterioration of 6.6% year over year.

For the second quarter of 2025, Revvity anticipates organic revenue growth between 2% and 4%, translating to total revenues of $700 million to $715 million. Gross margins are expected to be slightly compressed, landing around 60% due to the near-term impact of tariffs. Despite this, adjusted earnings per share are projected to be in the range of $1.13 to $1.15, reflecting the company's solid operational execution and effective mitigation strategies.

Diagnostics Segment

Revvity’s Diagnostics segment grew 5% organically in the first quarter of 2025, led by high-single-digit growth in immunodiagnostics, driven by strength in the Americas and recent menu expansions. The reproductive health business also performed well, with low-single-digit growth overall and high-single-digit growth in newborn screening. A key milestone was the U.S. Food and Drug Administration approval of an automated platform for the T-SPOT latent tuberculosis test, positioning the company for growth in a market where the United States accounts for over half of global latent TB testing volume.

In the second quarter of 2025, the Diagnostics segment is expected to remain a strong contributor. The expanded partnership with Genomics England will enhance newborn genomic screening through Revvity’s DNA sequencing services, building on its existing DNA extraction collaboration. Supported by a localized lab facility, this initiative aims to improve efficiency and speed. Immunodiagnostics is also expected to sustain its momentum, backed by ongoing menu expansion and steady regional demand.

Our estimate for the Diagnostic segment’s revenues is pegged at $388.4 million, up 2.8% year over year.

Life Sciences Segment

Revvity’s Life Sciences segment grew 2% organically in the first quarter of 2025, supported by strong reagent demand and more than 20% growth in the Signals Software business. While pharmaceutical and biotech sales rose modestly, academic and government demand declined, pressuring instrumentation revenue. Looking ahead to the second quarter, instrumentation is expected to remain soft due to ongoing U.S. academic funding uncertainty, which represents slightly more than 5% of total company revenue. However, this headwind is being fully offset by stronger-than-expected growth in Signals Software, now projected to grow in the upper teens organically for the full year. Revvity’s continued software innovation and operational agility position the segment to remain resilient despite macro pressures.

Our estimate for the Life Sciences segment’s revenues is pegged at $321.7 million, up 2.5% year over year.

Revvity Inc. Price, Consensus and EPS Surprise

Revvity Inc. Price, Consensus and EPS Surprise

Revvity Inc. price-consensus-eps-surprise-chart | Revvity Inc. Quote

Other Factors to Consider

Revvity’s expanded collaboration with Genomics England continues to support momentum in the Diagnostics segment. The partnership now includes both DNA extraction and sequencing services for the Generation Study, which aims to screen up to 100,000 newborns for over 200 rare genetic disorders. Supported by a localized lab facility, this initiative enhances speed and efficiency in newborn genomic screening across the United Kingdom.

In May, RVTY’s EUROIMMUN launched the IDS i20 analytical platform, enabling full automation of chemiluminescence immunoassays across six diagnostic specialties, including endocrinology, infectious diseases, and Alzheimer’s testing. With a capacity of up to 140 tests per hour, this FDA-listed and CE-marked instrument offers higher throughput and broader test consolidation, potentially driving incremental revenue in the Diagnostics segment during the second quarter.

In the Life Sciences segment, strong growth in Signals Software is expected to continue, while instrumentation remains pressured due to weak U.S. academic demand. In China, Revvity saw low-single-digit growth in the first quarter, with Diagnostics outperforming Life Sciences. Tariff-related headwinds from the United States and China are expected to peak in the second quarter, though management has implemented mitigation actions expected to take full effect by the second half.

Earnings Beat Likely

Our proven model predicts an earnings beat for Revvity this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.88%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: Revvity currently has a Zacks Rank #3.

Other Stocks Worth a Look

Here are some other medical stocks worth considering, as these also have the right combination of elements to post an earnings beat this time:

GeneDx Holdings (WGS - Free Report) has an Earnings ESP of +5.26% and a Zacks Rank #2. The company is slated to release second-quarter 2025 results on July 29.

WGS’ earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 145.82%. The Zacks Consensus Estimate for the company’s second-quarter EPS is expected to increase 190.9% from the year-ago quarter figure.

Cencora (COR - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank #2. The company is set to release third-quarter fiscal 2025 results on Aug. 6.

COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6%. The Zacks Consensus Estimate for COR’s fiscal third-quarter EPS is expected to surge 13.2% from the year-ago reported figure.

Cardinal Health (CAH - Free Report) has an Earnings ESP of +0.81% and a Zacks Rank #2. The company is slated to release fourth-quarter fiscal 2025 results on Aug. 12.

CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.3%. The Zacks Consensus Estimate for the company’s fiscal fourth-quarter EPS is expected to increase 10.3% from the year-ago quarter figure.

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