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Here's Why You Should Retain Revvity Stock in Your Portfolio for Now
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Key Takeaways
Revvity is positioned for growth across diagnostics, life sciences and scientific informatics.
Diagnostics organic revenues rose 11% in Q2, led by Reproductive Health and Immunodiagnostics growth.
AI-driven demand and the Human Cell Design deal expand Revvity's life sciences and screening capabilities.
Revvity, Inc. (RVTY - Free Report) is well-positioned for growth, thanks to its strong product portfolio. The company is positioned for growth across diagnostics, life sciences and scientific informatics. Diagnostics remains a key growth engine, while new screening solutions and the planned Human Cell Design acquisition expand its addressable markets. However, China divestiture uncertainty, uneven academic demand and margin pressure from nonrecurring tariff benefits remain near-term challenges.
This Zacks Rank #3 (Hold) company’s shares rallied 56.1% in the year-to-date period compared with the industry’s 4.8% growth. The S&P 500 jumped 11.8% during the same time frame.
The renowned provider of health science solutions has a market capitalization of $16.86 billion. It projects 10.3% growth over the next five years and expects to witness continued improvement in its business going forward. Revvity’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 6.59%.
Image Source: Zacks Investment Research
Let’s delve deeper.
Upsides of RVTY Stock
Expanding Markets Through AI and Life Sciences: Revvity’s presence across diagnostics, multi-omics, translational research and scientific informatics provides exposure to healthcare screening and R&D modernization. In the second quarter of 2026, pharma and biotech conditions improved for the third consecutive quarter, while sales to these customers, excluding software, grew in the low single digits. The company also saw direct orders tied to AI-driven data generation from pharma and biotech customers, AI-focused organizations and nonprofits. This trend supports demand for instruments, reagents and software as AI-generated hypotheses require biological data and laboratory validation.
Revvity also strengthened its life sciences portfolio in September by agreeing to acquire Human Cell Design, a France-based developer of human-relevant cell models for metabolic diseases. The deal is expected to expand Revvity’s capabilities in drug discovery, high-content screening and cell analysis, particularly for GLP-1 and other metabolic therapies.
Diagnostics Provides a More Stable Growth Base: Diagnostics continued to deliver stronger growth, with pro forma organic revenues increasing 11% year over year in the second quarter, following 9% growth in the first quarter. Reproductive Health grew in the mid-teens, supported by newborn screening and the Genomics England sequencing contract, while Immunodiagnostics outside China accelerated to the high single digits.
Revvity has strengthened this franchise by launching the SuperFlex prenatal screening system, a CE-IVDR-certified immunoassay platform designed for small and mid-sized laboratories and clinics. The company also launched the GSP T1D 3plex kit, a CE-IVDR-certified solution designed for population-wide screening of children at risk of Type 1 diabetes. The offering extends the company’s newborn-screening capabilities and could broaden its addressable diagnostics market.
Product Innovation Supports the Life Sciences Recovery: Revvity is advancing its product cycle across high-content screening and scientific software. Demand for the Opera Phenix OptIQ remained strong in the second quarter, while instrument backlog reached its highest level in three to four years. Signals AI, the Anthropic connector and other software initiatives are expanding the company’s scientific informatics ecosystem.
The Human Cell Design agreement, expected to close in the fourth quarter of 2026, further complements these capabilities by combining human-relevant cell models with Revvity’s screening, detection and analysis technologies.
Downsides of Revvity
China Divestiture Creates a Transitional Overhang: Revvity has entered into a definitive agreement to divest its China Immunodiagnostics business, which represented about 6% of fiscal 2025 revenues. The transaction is expected to close by the end of 2027 and remains subject to regulatory approvals. Until completion, reported results will continue to include the business, while forward-looking guidance is provided on a pro forma basis excluding it.
Academic Funding Remains Uneven: Life Sciences continues to face exposure to academic and government funding cycles. Sales to these customers declined in the low single digits in the second quarter, partly reflecting software comparisons. Although management expects Life Sciences trends to improve in the second half, a slower recovery in research funding could delay instrument purchases and software renewals.
Margins Remain Sensitive to One-Time Benefits: Pro forma adjusted operating margin was supported by $16 million of tariff-related refunds in the second quarter. Revvity raised full-year pro forma adjusted operating-margin guidance to 28.7%, but the tariff benefit is not recurring. Management plans to reinvest roughly half of the benefit into strategic initiatives, supply chain and personnel, making sustained margin expansion dependent on organic growth, favorable mix and operating efficiency.
Revvity has been witnessing a stable estimate revision trend for 2026. Over the past 30 days, the Zacks Consensus Estimate for earnings per share (EPS) has remained unchanged at $5.36.
The Zacks Consensus Estimate for third-quarter 2026 revenues is pegged at $702.6 million, indicating a 0.5% improvement from the year-ago reported number. The Zacks Consensus Estimate for EPS is pinned at $1.28, implying a year-over-year gain of 8.5%.
Veracyte, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of 54 cents, which surpassed the Zacks Consensus Estimate by 25.6%. Revenues of $150.3 million beat the Zacks Consensus Estimate by 4.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
VCYT has an estimated earnings growth rate of 8.4% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 41.8%.
Globus Medical, currently flaunting a Zacks Rank #1, reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.80, which beat the Zacks Consensus Estimate by 12.9%. Revenues of $2.89 billion surpassed the Zacks Consensus Estimate by 3.1%.
Intuitive Surgical has a long-term estimated growth rate of 14.9%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.5%.
View the Zacks #1 Rank List
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Here's Why You Should Retain Revvity Stock in Your Portfolio for Now
Key Takeaways
Revvity, Inc. (RVTY - Free Report) is well-positioned for growth, thanks to its strong product portfolio. The company is positioned for growth across diagnostics, life sciences and scientific informatics. Diagnostics remains a key growth engine, while new screening solutions and the planned Human Cell Design acquisition expand its addressable markets. However, China divestiture uncertainty, uneven academic demand and margin pressure from nonrecurring tariff benefits remain near-term challenges.
This Zacks Rank #3 (Hold) company’s shares rallied 56.1% in the year-to-date period compared with the industry’s 4.8% growth. The S&P 500 jumped 11.8% during the same time frame.
The renowned provider of health science solutions has a market capitalization of $16.86 billion. It projects 10.3% growth over the next five years and expects to witness continued improvement in its business going forward. Revvity’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 6.59%.
Image Source: Zacks Investment Research
Let’s delve deeper.
Upsides of RVTY Stock
Expanding Markets Through AI and Life Sciences: Revvity’s presence across diagnostics, multi-omics, translational research and scientific informatics provides exposure to healthcare screening and R&D modernization. In the second quarter of 2026, pharma and biotech conditions improved for the third consecutive quarter, while sales to these customers, excluding software, grew in the low single digits. The company also saw direct orders tied to AI-driven data generation from pharma and biotech customers, AI-focused organizations and nonprofits. This trend supports demand for instruments, reagents and software as AI-generated hypotheses require biological data and laboratory validation.
Revvity also strengthened its life sciences portfolio in September by agreeing to acquire Human Cell Design, a France-based developer of human-relevant cell models for metabolic diseases. The deal is expected to expand Revvity’s capabilities in drug discovery, high-content screening and cell analysis, particularly for GLP-1 and other metabolic therapies.
Diagnostics Provides a More Stable Growth Base: Diagnostics continued to deliver stronger growth, with pro forma organic revenues increasing 11% year over year in the second quarter, following 9% growth in the first quarter. Reproductive Health grew in the mid-teens, supported by newborn screening and the Genomics England sequencing contract, while Immunodiagnostics outside China accelerated to the high single digits.
Revvity has strengthened this franchise by launching the SuperFlex prenatal screening system, a CE-IVDR-certified immunoassay platform designed for small and mid-sized laboratories and clinics. The company also launched the GSP T1D 3plex kit, a CE-IVDR-certified solution designed for population-wide screening of children at risk of Type 1 diabetes. The offering extends the company’s newborn-screening capabilities and could broaden its addressable diagnostics market.
Product Innovation Supports the Life Sciences Recovery: Revvity is advancing its product cycle across high-content screening and scientific software. Demand for the Opera Phenix OptIQ remained strong in the second quarter, while instrument backlog reached its highest level in three to four years. Signals AI, the Anthropic connector and other software initiatives are expanding the company’s scientific informatics ecosystem.
The Human Cell Design agreement, expected to close in the fourth quarter of 2026, further complements these capabilities by combining human-relevant cell models with Revvity’s screening, detection and analysis technologies.
Downsides of Revvity
China Divestiture Creates a Transitional Overhang: Revvity has entered into a definitive agreement to divest its China Immunodiagnostics business, which represented about 6% of fiscal 2025 revenues. The transaction is expected to close by the end of 2027 and remains subject to regulatory approvals. Until completion, reported results will continue to include the business, while forward-looking guidance is provided on a pro forma basis excluding it.
Academic Funding Remains Uneven: Life Sciences continues to face exposure to academic and government funding cycles. Sales to these customers declined in the low single digits in the second quarter, partly reflecting software comparisons. Although management expects Life Sciences trends to improve in the second half, a slower recovery in research funding could delay instrument purchases and software renewals.
Margins Remain Sensitive to One-Time Benefits: Pro forma adjusted operating margin was supported by $16 million of tariff-related refunds in the second quarter. Revvity raised full-year pro forma adjusted operating-margin guidance to 28.7%, but the tariff benefit is not recurring. Management plans to reinvest roughly half of the benefit into strategic initiatives, supply chain and personnel, making sustained margin expansion dependent on organic growth, favorable mix and operating efficiency.
Revvity Inc. Price
Revvity Inc. price | Revvity Inc. Quote
Estimate Trend
Revvity has been witnessing a stable estimate revision trend for 2026. Over the past 30 days, the Zacks Consensus Estimate for earnings per share (EPS) has remained unchanged at $5.36.
The Zacks Consensus Estimate for third-quarter 2026 revenues is pegged at $702.6 million, indicating a 0.5% improvement from the year-ago reported number. The Zacks Consensus Estimate for EPS is pinned at $1.28, implying a year-over-year gain of 8.5%.
Stocks to Consider
Some better-ranked stocks from the broader medical space are Veracyte (VCYT - Free Report) , Globus Medical (GMED - Free Report) and Intuitive Surgical (ISRG - Free Report) .
Veracyte, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of 54 cents, which surpassed the Zacks Consensus Estimate by 25.6%. Revenues of $150.3 million beat the Zacks Consensus Estimate by 4.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
VCYT has an estimated earnings growth rate of 8.4% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 41.8%.
Globus Medical, currently flaunting a Zacks Rank #1, reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.80, which beat the Zacks Consensus Estimate by 12.9%. Revenues of $2.89 billion surpassed the Zacks Consensus Estimate by 3.1%.
Intuitive Surgical has a long-term estimated growth rate of 14.9%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.5%.