Revvity, Inc. (RVTY Quick QuoteRVTY - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $1.38, up 16.9% year over year. The bottom line surpassed the Zacks Consensus Estimate of $1.29 by 7%.

GAAP EPS from continuing operations was 56 cents compared with 41 cents in the prior-year period. Results benefited from broad-based growth, improving pharmaceutical and biotech demand and operating efficiencies.

Shares of RVTY gained 8.9% in pre-market trading today. Year to date, the company’s shares have climbed 56.7%, outperforming the industry’s 7.4% growth and the broader S&P 500 Index’s 9.3% increase.

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RVTY's Q3 Sales Top Expectations

Quarterly revenues rose 4.3% to $728.9 million and beat the Zacks Consensus Estimate of $707 million by 3.1%.

Revvity reported third-quarter results on both reported and pro forma bases following its agreement to divest the China Immunodiagnostics business. Pro forma revenues totaled $709.6 million, up 7.4% from $660.5 million in the year-ago quarter. Organic growth contributed 7 percentage points, while acquisitions added 1 point. Foreign currency movements reduced growth by 1 point.

The quarter benefited from improving pharma and biotech end-market conditions, growing AI-related demand and favorable Diagnostics trends outside China. Recurring products generated high-single-digit growth, while non-recurring products declined in the low-single digits.

Geographically, the Americas and Europe recorded double-digit growth, while Asia-Pacific declined in the low-single digits on a pro forma basis.

Revvity's Life Sciences Segment Drives Growth

Life Sciences revenues increased 10.7% year over year to $379.6 million. Pro forma revenues rose 11%, while organic revenues advanced 9%, supported by improving demand across pharmaceutical, biotech and academic markets.

Life Sciences Solutions delivered high-single-digit growth, with both reagents and instruments performing ahead of management's expectations. Pharmaceutical and biotech demand increased in the low-double digits, while academic and government demand advanced in the mid-single digits.

Software revenues registered double-digit growth, driven by contract renewals and an increase in annual recurring revenues. The improvement reflected stronger software activity alongside recovering demand for laboratory products.

RVTY's Diagnostics Segment Shows Organic Gains

Diagnostics revenues declined 1.9% year over year to $349.3 million. However, pro forma revenues increased 4%, while organic revenues climbed 5%, reflecting underlying growth after excluding the China Immunodiagnostics business.

Immunodiagnostics delivered high-single-digit growth, supported by strength in the Americas. Reproductive Health recorded low-single-digit growth, with mid-single-digit expansion outside China.

The segment's performance reflected favorable diagnostic demand trends outside China, although the China Immunodiagnostics business continued to weigh on reported results. Revvity's planned divestiture of this business remains subject to regulatory approvals and customary closing conditions.

Revvity’s Margins Expand on Volume Growth and Efficiency

Pro forma adjusted gross margin rose 280 basis points year over year to 62.4%.

Selling, general and administrative expenses totaled $275.3 million, up 13.8% year over year. Research and development expenses amounted to $48.1 million, down 5.3% from the year-ago quarter’s reported figure.

Adjusted operating income increased 14.8% year over year to $209.3 million. The adjusted operating margin expanded 260 basis points to 28.7%, while the pro forma adjusted operating margin improved 340 basis points to 29.4%. Results benefited from higher volumes, favorable product mix and operational efficiencies.

Diagnostics margin expanded 480 basis points to 29.9%, driven by volume leverage and operational efficiencies. The margin included a 160-basis-point headwind from China Immunodiagnostics. Life Sciences margin improved 200 basis points to 31.5%, supported by higher volumes and favorable product mix.

RVTY’s Cash Flow Supports Balance Sheet Strength

The company ended the quarter with $592.8 million in cash and cash equivalents, down from $1.02 billion at the end of the second quarter. Gross debt totaled $2.63 billion, resulting in a net debt-to-adjusted EBITDA ratio of 2.3 times. Revvity retired a €500 million note during the quarter.

Net cash provided by operating activities of continuing operations totaled $166.7 million compared with $138.6 million in the year-ago quarter, reflecting a 20.3% increase. Free cash flow during the third quarter reached $152.4 million, representing 99% of adjusted net income. Year-to-date free cash flow totaled $451.3 million, or 105% of adjusted net income.

Revvity Inc. Price, Consensus and EPS Surprise

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

Revvity Raises Its 2026 Pro Forma Outlook

Revvity raised its full-year 2026 pro forma revenue outlook to approximately $2.86 billion, compared with the previous range of $2.83-$2.86 billion. The updated forecast implies total revenue growth of approximately 6% and organic growth of 5%.

Pro forma adjusted EPS is now expected to be between $5.40 and $5.45, compared with the previous guidance of $5.30-$5.40. The company anticipates an adjusted operating margin of approximately 28.8%.

The outlook assumes adjusted net interest expense and other items of approximately $88 million, an adjusted tax rate near 18% and approximately 112 million diluted shares. Foreign currency is expected to contribute 0.5% to revenue growth, while acquisitions are projected to add 0.75%.

The guidance excludes the China Immunodiagnostics business, which accounted for approximately 6% of Revvity's 2025 revenues. The divestiture is expected to close by the end of 2027.

RVTY’s Zacks Rank & Key Picks

Revvity currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are OPKO Health (OPK Quick QuoteOPK - Free Report) , Intuitive Surgical (ISRG Quick QuoteISRG - Free Report) and Globus Medical (GMED Quick QuoteGMED - Free Report) .

OPKO Health, currently flaunting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted loss of 1 cent per share, which surpassed the Zacks Consensus Estimate by 87.5%. Revenues of $163.6 million beat the Zacks Consensus Estimate by 24.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

OPK has an estimated earnings growth rate of 23.3% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 95.1%.

Intuitive Surgical, currently carrying a Zacks Rank #2 (Buy), reported third-quarter 2026 adjusted EPS of $3.00, which beat the Zacks Consensus Estimate by 13.6%. Revenues of $3.05 billion surpassed the Zacks Consensus Estimate by 4.9%.

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 15.1%.

Globus Medical, currently carrying a Zacks Rank #2, 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%.