Life sciences company Revvity (NYSE:RVTY) reported Q1 CY2025 results beating Wall Street’s revenue expectations , with sales up 2.3% year on year to $664.8 million. The company’s full-year revenue guidance of $2.85 billion at the midpoint came in 0.6% above analysts’ estimates. Its non-GAAP profit of $1.01 per share was 6.4% above analysts’ consensus estimates.
Revenue: $664.8 million vs analyst estimates of $660.6 million (2.3% year-on-year growth, 0.6% beat)
Adjusted EPS: $1.01 vs analyst estimates of $0.95 (6.4% beat)
Adjusted EBITDA: $267.3 million vs analyst estimates of $189.8 million (40.2% margin, 40.9% beat)
The company slightly lifted its revenue guidance for the full year to $2.85 billion at the midpoint from $2.83 billion
Management reiterated its full-year Adjusted EPS guidance of $4.95 at the midpoint
Operating Margin: 10.9%, up from 6.8% in the same quarter last year
Free Cash Flow Margin: 16.9%, down from 20% in the same quarter last year
Organic Revenue rose 4% year on year (-3% in the same quarter last year)
Market Capitalization: $10.76 billion
StockStory’s Take
Revvity’s first quarter results were shaped by a dynamic macroeconomic environment, with management citing both external and internal factors impacting various segments. CEO Prahlad Singh pointed to solid organic growth in diagnostics and software, which helped offset weaker demand from U.S. academic customers affecting the life sciences instruments business. Singh highlighted that, "areas of strength, such as diagnostics and software, were able to offset those areas facing unanticipated pressures from the dynamic environment we are experiencing in some of our end-markets."
Looking ahead, management’s full-year outlook reflects continued caution around U.S. academic funding, ongoing mitigation of tariff-related headwinds, and confidence in the company’s ability to adapt quickly. CFO Max Krakowiak explained that proactive supply chain changes and temporary cost actions are expected to neutralize most of the current tariff impacts by mid-year. Singh also emphasized the role of new product launches and commercial partnerships in diagnostics, as well as robust growth in the Signals software business, as key contributors to Revvity’s projected performance for the remainder of 2025.
Key Insights from Management’s Remarks
Revvity’s leadership attributed first quarter performance to the interplay of stable diagnostics demand, robust software expansion, and targeted operational adjustments in response to industry-specific challenges. The company’s ability to mitigate external shocks was highlighted as central to delivering above-consensus results.
Diagnostics Growth Offsets Weakness: Organic growth in the diagnostics business, especially specialty and reproductive health diagnostics, helped balance continued pressure in life sciences instrumentation, which suffered from lower U.S. academic demand.
Software Momentum: The Signals software division grew over 20% organically, supported by new product launches, strong net retention, and expansion into new scientific workflow markets. Management noted that Signals’ performance was a key offset to other macro-driven headwinds.
Tariff Mitigation Efforts: Rapid supply chain adjustments, including shifting manufacturing and engaging alternative suppliers, allowed Revvity to largely neutralize the gross impact of new U.S.-China and EU-U.S. tariffs. Management expects operational changes to mitigate most tariff effects by the end of Q2.
Newborn Genomics Partnership: An expanded collaboration with Genomics England positions Revvity as a key player in newborn genomic sequencing, providing end-to-end DNA extraction and sequencing for a major UK health initiative targeting rare genetic disorders.
T-SPOT TB Automation Launch: The U.S. introduction of an automated latent tuberculosis (TB) testing platform, following FDA approval, is expected to increase lab productivity and expand Revvity’s presence in the U.S. TB diagnostics market, which represents a significant share of global testing volume.
Drivers of Future Performance
Management’s outlook for 2025 centers on adapting to ongoing academic funding uncertainty, responding to tariff and geopolitical risks, and leveraging growth in diagnostics and software.
Academic and Government Demand Risk: The company anticipates slower U.S. academic and government spending to persist due to funding uncertainties, impacting the life sciences instrumentation and reagent segments.
Diagnostic and Software Expansion: Revvity expects diagnostics, particularly reproductive health and newborn screening, and the Signals software business to drive growth, supported by new products and commercial partnerships.
Tariff and Supply Chain Actions: Management aims to offset most tariff-related headwinds through supply chain adjustments, alternative sourcing, and selective pricing, with expectations that these actions will limit margin pressure predominantly to the first half of the year.
Top Analyst Questions
Patrick Donnelly (Citi): Asked how Revvity can rapidly neutralize $135 million in tariff exposure. Management explained that proactive supply chain adjustments and early contingency planning enabled swift mitigation, particularly for life sciences products into China.
Dan Brennan (TD Cowen): Inquired about China growth and exposure to government pressures. Executives clarified that most diagnostics operations in China are locally based, and forecast low-single-digit growth for the region with limited direct impact from geopolitical tensions.
Matt Sykes (Goldman Sachs): Sought detail on Signals software growth and its margin contribution. Management described strong new business wins, high retention, and favorable product mix, noting that software scale is increasingly contributing to group margins.
Catherine Schulte (Baird): Queried the breakdown of tariff mitigation methods. CFO Krakowiak stated that about 75–80% comes from manufacturing and supply chain changes, with the remainder from supplier shifts and selective price increases.
Dan Leonard (UBS): Asked about the transition of the Signals business to a SaaS model. Management said one-third of the portfolio is now SaaS, and the conversion is progressing as planned, supporting recurring revenue growth.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) Revvity’s progress in mitigating tariff-related margin headwinds and the effectiveness of supply chain changes, (2) sustained growth in the Signals software business and the adoption of new product launches, and (3) the stability of diagnostics growth, especially in reproductive health and newborn screening, as commercial partnerships ramp up. The resolution of U.S. academic funding uncertainty and the impact of further geopolitical developments will also be important factors to watch.
Revvity currently trades at a forward P/E ratio of 17.6×. At this valuation, is it a buy or sell post earnings? Find out in our free research report.
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