Revvity reported a strong Q1 with pro-forma organic growth of 6%, excluding a planned divestiture of its China immunodiagnostics business. Management is optimistic about end-market recovery and AI-driven demand, while maintaining conservative full-year guidance. The divestiture is expected to improve margins and cash flow conversion. Revvity announced the planned divestiture of its China immunodiagnostics business, which was a drag on growth and margins, to a local management-led group.
Revvity reported a strong Q1 with pro-forma organic growth of 6%, excluding a planned divestiture of its China immunodiagnostics business. Management is optimistic about end-market recovery and AI-driven demand, while maintaining conservative full-year guidance. The divestiture is expected to improve margins and cash flow conversion. Revvity announced the planned divestiture of its China immunodiagnostics business, which was a drag on growth and margins, to a local management-led group.
Revvity reported a strong Q1 with pro-forma organic growth of 6%, excluding a planned divestiture of its China immunodiagnostics business. Management is optimistic about end-market recovery and AI-driven demand, while maintaining conservative full-year guidance. The divestiture…
Revvity announced the planned divestiture of its China immunodiagnostics business, which was a drag on growth and margins, to a local management-led group.
Management is confident, highlighted by strong Q1 results, a bold divestiture to improve focus, and repeated statements about being 'extremely excited' about the company's direction and AI opportunities.
Management sees AI as a tailwind for demand for its tools (instruments, reagents, software) in the 'value creation' phase, and is also using AI internally to cut costs and boost productivity, with adoption rates 'well above corporate averages' at 'a fraction of the cost'.
Management sees AI as a tailwind for demand for its tools (instruments, reagents, software) in the 'value creation' phase, and is also using AI internally to cut costs and boost productivity, with adoption rates 'well above corporate averages' at 'a fraction of the cost'.
Pharma/biotech demand shows first signs of recovery after long slump.. Management is confident, highlighted by strong Q1 results, a bold divestiture to improve focus, and repeated statements about being 'extremely excited' about the company's direction and AI opportunities.
Management is not increasing capex; instead, it is divesting the China immunodiagnostics business to avoid substantial capital investments required to localize manufacturing, signaling a selective capital allocation to higher-return areas.
Management is confident, highlighted by strong Q1 results, a bold divestiture to improve focus, and repeated statements about being 'extremely excited' about the company's direction and AI opportunities.
“We believe that as more compounds are designed and combined with new ways to develop and refine them, a continuous loop of innovation and improvement will be created that is likely to result in a demand bottleneck in validation-related work”
“The healthcare market in China, particularly diagnostics, has faced persistent policy-induced headwinds that have dramatically impacted both customer demand and pricing dynamics.”
“there's still 100 million babies born every year that don't get any level of testing. There continues to be differing levels of testing menus across different geographies and countries around the globe.”
“we essentially are averaging about 4% in the first half of the year. So then if you look what's required for us to hit our 3% to 4% organic growth for the full year, that would imply about a 3% to 4% growth in the back half of the year.”
“This inflection point sits squarely within gravity's core strengths providing the critical technologies that translate AI driven insights into real world biological validation.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $5.20–$5.30 | $5.25 | MAINTAINED |
| Op margin | FY2026 | 28.4% | 28.4% | MAINTAINED |
| Revenue | FY2026 | $2.81B–$2.84B | $2.825B | MAINTAINED |
Gartner published research highlighting Revvity's AI deployment, indicating a partnership or validation that could be referenced in Gartner's future reports on AI adoption.
“The well-known research firm Gartner recently published a research paper highlighting our internal AI deployment, which stands out across the industries that they've researched.”
… timelines and higher success rates. These gains will incentivize even greater investments in research capabilities, creating a virtuous cycle that expands the entire market for scientific research tools. Beyond our external AI strategy, we are dramatically transforming our internal operations through AI adoption that I believe is quite differentiated and includes appropriately repositioning our employees and their roles. The well-known research firm Gartner recently published a research paper highlighting our internal AI deployment, which stands out across the industries that they've researched. They noted how our structured approach has accelerated software delivery and enabled impactful initiatives that previously would not have been feasible. With our unique rollout of multiple leading LLMs to the entirety of our global employee base, we are seeing employee adoption rates of AI well above corporate averages, and we are doing so at a fraction of the cost of traditional AI corporate implementations. We also continue to execute on our operational efficiency initiatives that we discussed on our fourth quarter call. Implementation is well underway and remains on pace to be fully …
Revvity announced a partnership with Lilly to leverage its ecosystem for its new 'Synthetica' AI platform, indicating a close collaboration with the pharma giant.
“You know, we announced the Lily Tune Labs partnership, which is a great launchpad for Synthetica, leveraging the ecosystem that Lily brings to the table.”
Hey, guys. Thank you for taking the questions. Prahlad, maybe on the software SaaS piece, helpful to get some data there. Can you just talk about the recent conversations with customers? I know you've talked a lot about your offering with all the focus on that business. We'd be curious just the recent trends and then max on that business. I know there's some comp dynamics. If you'd be able to talk through just the cadence of the software as we work our way through the year, it would be helpful.
Sure. Good morning, Patrick. You know, on the software side, you know, as we've talked about both, you heard in the prepared remarks and even during some of the investor conferences, the excitement and the engagement with our customers continue to remain high. You know, we announced the Lily Tune Labs partnership, which is a great launchpad for Synthetica, leveraging the ecosystem that Lily brings to the table. But more importantly, I think as we talk to our big pharma biotech customers, the question really is not really how AI is going to impact, but how are we going to leverage AI in the development of the software into bringing Synthetica early on, As signals continues to be on the plan of record, the excitement level around Synthetica, Biodesign, LabGistics, as you know, these are three of the biggest launches that could have happened in the software business, and all of them are coming in this year. So the engagement level and excitement level continues to remain very high for that business.
Revvity's AI strategy is based on the belief that AI-generated discoveries will create a 'demand bottleneck' for physical validation, requiring more wet lab tools and reagents, positioning them to benefit from the build-out of AI infrastructure in life sciences. — This thesis implies a secular tailwind for lab tools companies as AI accelerates the number of drug targets, potentially benefiting peers like Danaher (DHR) and Thermo Fisher (TMO).
… are designed and combined with new ways to develop and refine them, a continuous loop of innovation and improvement will be created that is likely to result in a demand bottleneck in validation-related work for our customers. as ai generates more promising therapeutic hypothesis at an unprecedented rate the downstream demand for laboratory tools reagents and instruments to validate these discoveries will grow substantially this inflection point sits squarely within gravity's core strengths providing the critical technologies that translate AI driven insights into real world biological validation. Looking ahead, I anticipate a third phase emerging after value creation, which is value capture. This is where our customers will begin realizing substantial returns on their AI investments through faster development timelines and higher success rates. These gains will incentivize even greater investments in research capabilities, creating a virtuous cycle that expands the entire market for scientific research tools. Beyond our external AI strategy, we are dramatically transforming our internal operations through AI adoption that I believe is quite differentiated and includes …