RVTY Q1 Earnings Beat Estimates on Organic Growth & Strong Execution

Revvity, Inc. RVTY delivered first-quarter 2026 adjusted earnings of $1.06 per share, up 5.0% year over year. The bottom line beat the Zacks Consensus Estimate of $1.02 by 3.9%. Quarterly revenues of $711.1 million increased 7.0% from the year-ago period and topped the consensus mark of $705.2 million by 0.8%.Strong performance across the portfolio helped results beat expectations, with the company reporting 3% organic revenue growth for the quarter and pointing to improving signals in key end markets.So far this year, RVTY’s shares have lost 10.6% compared with the industry’s decline of 11.9%. The S&P Index has gained 6.4% in the same period.Image Source: Zacks Investment ResearchRVTY’s Segment Mix Keeps Momentum Broad-BasedRVTY’s growth was supported by contributions from both operating segments. Life Sciences revenues totaled $361.8 million, reflecting year-over-year expansion led by demand in pharma/biotech and academic/government markets.Diagnostics revenues increased to $349.3 million, aided by strength in reproductive health. The company stated better diagnostic trends outside of China, which was partially offset by softer dynamics tied to its China Immunodiagnostics footprint.Investment Spending and Product Mix Weigh on Revvity MarginsRevvity reported an adjusted operating margin of 23.6% in the quarter, down 200 basis points year over year. The company attributed the margin pressure to a combination of factors, including ongoing investments, an unfavorable product mix, and the impact of an extra week in the reporting period.Adjusted gross margin was 59.5%, down 220 basis points from the prior-year quarter’s level. Below the operating line, adjusted net interest and other expense totaled $23 million, while the adjusted tax rate was 18.3%, aiding overall adjusted profitability despite the margin contraction.Selling, general and administrative expenses totaled $253.9 million, up 1.7% year over year. Research and development expenses amounted to $57.9 million, up 8% from the year-ago quarter’s reported number.RVTY’s Cash Generation Stays Strong Despite OutflowsThe company exited the first quarter of 2026 with cash and cash equivalents of $860.3 million compared with $919.9 million at the end of the prior quarter.RVTY generated $115.2 million of net cash provided by operating activities in the quarter compared with $128.2 million in the year-ago period. After capital expenditures of $19.8 million and proceeds from capital disposals, free cash flow was reported at $115 million, with year-to-date free cash flow equal to 97% of adjusted net income.The quarter also included meaningful shareholder returns. The company repurchased $86.5 million of common stock and paid $7.8 million in dividends. Revvity ended the period with $860.3 million in cash and cash equivalents, while long-term debt amounted to $2.63 billion.Revvity’s China ImmunoDx Divestiture Reshapes the LensA key strategic development was the decision to divest its Immunodiagnostics business in China. Management noted that this unit accounted for roughly 6% of total company revenues in 2025 and confirmed that it has entered into a letter of intent with a prospective buyer, with a definitive agreement expected in the second quarter of 2026.The divestiture is anticipated to be closed in 2027, subject to necessary regulatory approvals. Reflecting this transition, the company reported first-quarter results on both a reported and pro forma basis, with pro forma revenues of $686.9 million and pro forma adjusted earnings of $1.04 per share.RVTY Updates Outlook on a Pro Forma BasisRVTY updated full-year 2026 guidance on a pro forma basis that excludes the China Immunodiagnostics business. The company expects total revenues of $2.81-$2.84 billion, implying 3-4% pro forma organic revenue growth, with foreign exchange expected to add about 0.5% and M&A contributing roughly 0.75%.Pro forma adjusted earnings are projected in the $5.20-$5.30 per share band, supported by an expected adjusted operating margin of 28.4%. Additional assumptions include adjusted net interest expense and other of about $90 million, an adjusted tax rate near 18% and an average diluted share count of roughly 112 million.Revvity’s Pipeline Activity and Market Momentum Stay StrongRevvity highlighted continued investment in innovation alongside its quarterly performance. During the period, the company introduced Signals BioDesign software aimed at biologics development and launched the new flagship Opera Phenix OptiQ high-content screening system. Revvity Inc. Price, Consensus and EPS Surprise Revvity Inc. price-consensus-eps-surprise-chart | Revvity Inc. QuoteManagement also pointed to encouraging signs from pharma/biotech and academic/government customers. Combined with stronger diagnostic trends outside of China, these factors framed the quarter as one where operational execution held up while the company advanced portfolio moves to sharpen its long-term focus. RVTY’s Zacks Rank & Stocks to ConsiderRVTY has a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the broader medical space that have announced quarterly results are West Pharmaceutical Services, Inc. WST, Intuitive Surgical ISRG and Cardinal Health, Inc. CAH.West Pharmaceutical reported first-quarter 2026 earnings per share (EPS) of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.West Pharmaceutical has a long-term estimated growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.37%.Intuitive Surgical reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.19%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%. It currently carries a Zacks Rank of 2 (Buy).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 16.82%.Cardinal Health, carrying a Zacks Rank of 2 at present, reported third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.Cardinal Health has a long-term estimated growth rate of 15.6%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.27%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. 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