Regarding Diagnostics, specifically Reproductive Health, how large was the Genomics England contribution in Q2, and what are the assumptions for Reproductive Health in the second half?

Max stated that Reproductive Health performed incredibly well, driven by both Genomics England and newborn screening. While H1 growth was mid-teens, H2 is expected to slow to low-to-mid single digits due to tougher Genomics England comps and a heavier instrument placement cycle in H1. Genomics England revenue for the full year is anticipated to be around $25 million, with active discussions for contract expansion beyond H1 2027. “I think from a full year perspective, we now probably anticipate it being closer to $25-ish million of full year revenue for us, and then we expect it to continue contractually through the first half of this year.”

Could you elaborate on the 'nontraditional customers' driving AI-related orders and if this changes the medium-term outlook for Life Science Solutions? How does the Q2 performance align with the expressed optimism?

Prahlad explained that nontraditional customers include AI-focused nonprofits and pharma companies directly building 'lab in the loop' models. The optimism stems from accelerating orders, the strongest backlog in 3-4 years, and clear trends of AI-generated drug candidates requiring validation, indicating the very early stages of a new growth trajectory. “we clearly are seeing a trend, which is a strong indicator of drug candidates that are now coming from creating -- being created by AI and as they move into the validation phase, customers are building out the infrastructure that they would require for data generation and for validation of these drug candidates.”

Given the 20% decline in software, the rest of Life Science Solutions implies only about 1% growth. Why isn't there more acceleration in reagents, and what are the expectations for reagents for the rest of the year?

Max clarified that the reagents business saw low single-digit growth in H1 and is expected to remain similar in Q3, but anticipates a step-up to mid-single-digit organic growth in Q4, indicating a gradual acceleration. “the reagents business was low single digits here in the first half of this year. And then I think as you look in the third quarter, we expect a similar sort of low single-digit growth performance. but then we do expect a step-up in the performance in the fourth quarter, kind of exiting this year at a mid-single-digit organic growth rate.”

RVTY

Revvity (RVTY) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Health Care· Aug 4, 2026

Source: earnings call transcript

Executive summary

Revvity Q2 FY26 — Strong Diagnostics and AI-Driven Life Sciences Demand Drive Raised Full-Year Outlook

Revvity delivered a strong second quarter, driven by robust Diagnostics performance and emerging AI-driven demand in Life Sciences, leading to a raised full-year outlook. The company is strategically investing in high-growth areas like high-content screening and software, while managing its portfolio through the divestiture of its China immunodiagnostics business. Management is optimistic about continued market improvement and the company's positioning in the evolving preclinical R&D landscape.

Highlights

Pro forma organic growth of 3% in Q2, exceeding the high end of expectations.
Pro forma adjusted EPS of $1.41, well above guidance due to operational performance, tax timing, and tariff refunds.
Diagnostics segment grew 11% organically in Q2, with Reproductive Health in mid-teens and Immunodiagnostics (ex-China) in high single digits.
Full-year organic growth guidance raised to 4%-5% from 3%-4%.
Net debt to adjusted EBITDA leverage ratio reduced to 2.5x, targeting gross leverage below 3x by year-end.

Concerns

Signals software business organic revenue declined approximately 20% year-over-year in Q2 due to difficult comps and contract timing.
Life Sciences segment experienced a 3% organic decline in Q2, primarily due to software comps and latent TB pressures.
Instrument order velocity for high-content screening outpaced near-term production capacity, leaving some incremental upside on the table in Q2.
Americas region experienced a low single-digit decline due to software comps and continued latent TB pressures.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year Organic Growth	4%-5% high materiality	FY26	High
Full-year Adjusted Operating Margins	approximately 28.7% high materiality	FY26	High
Full-year Adjusted EPS	$5.30 to $5.40 high materiality	FY26	High
China Immunodiagnostics Divestiture Closing	by the end of 2027 medium materiality	FY27	High
Gross Leverage Ratio	below 3x medium materiality	FY26	High
Net Leverage Ratio	approaching 2x medium materiality	FY26	High
Full-year Pro Forma Total Revenue	$2.83 billion to $2.86 billion high materiality	FY26	High
Full-year Adjusted Tax Rate	approximately 18% medium materiality	FY26	High
Full-year Diluted Average Share Count	approximately $112 million low materiality	FY26	High
Q3 Organic Growth	4% to 6% medium materiality	Q3 · FY26	High
Q3 Revenue	$685 million to $700 million medium materiality	Q3 · FY26	High
Q3 Pro Forma Adjusted Operating Margins	approximately 29% medium materiality	Q3 · FY26	High
Q3 Adjusted Tax Rate	19% low materiality	Q3 · FY26	High
Q3 Pro Forma Adjusted EPS	approximately 24% of our full year outlook medium materiality	Q3 · FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Life Sciences Decline driven by software comps and latent TB pressures. Stronger instrument performance was held back by timing of shipments, leading to a stronger backlog entering H2. Signals software organic revenue growth: -20% YoYSignals software APV growth: double digitsSignals software ARR growth: mid-20sLife Sciences Solutions organic growth: low single digitsPharma and biotech sales (ex-software): low single digits growthAcademic and government sales: low single digits decline	$359 million	-2% reported, -3% organic	—	—
Diagnostics Exceptional, broad-based performance, exceeding expectations. Benefited from newborn screening and Genomics England contract. Immunodiagnostics organic growth (ex-China): high single digitsReproductive Health organic growth: mid-teensNewborn screening reagent growth: high single digits	$352 million	12% reported, 11% organic	—	—

Product announcements

Product	Type	Timeline
Opera Phenix OptIQ	launch	a few months ago
Biodesign	launch	now commercially available
Xynthetica	launch	last month
LabGistics	roadmap	later this year
Signals AI	launch	recently launched
Anthropic Connector	launch	early July
Signals for Start-ups	launch	just 2 weeks ago

Deals & partnerships

Not named Divestiture of China immunodiagnostics business to sharpen focus on end markets with highest and most durable returns.

Terms consistent with initial expectations. Non-GAAP and organic performance commentary and guidance are provided on a pro forma basis, excluding this business.

ACD Labs Integration of software business.

The acquisition's contribution was in line with expectations.

Risks & headwinds

Signals software business decline due to comps and timing Q2 FY26

Organic revenue declined approximately 20% year-over-year in Q2.

Mitigation:Expected to return to strong double-digit growth in the second half of the year due to contract renewals and new product launches.

Life Sciences segment organic decline Q2 FY26

3% organic decline in Q2.

Mitigation:Primarily driven by software comps and latent TB pressures, with expectations for improved performance in H2 as software returns to growth and instrument orders translate to revenue.

High-content screening production capacity constraints Q2 FY26

Order velocity outpacing near-term production capacity, leaving some incremental upside on the table in Q2.

Mitigation:Reinvesting tariff refunds into capacity build-out for screening instrumentation and reagents to meet building customer demand.

Structurally challenging environment for China immunodiagnostics business Ongoing

China represented a structurally more challenging environment for this part of our business of late.

Mitigation:Divestiture of the business, with a definitive agreement signed and expected to close by end of 2027, to sharpen focus on more attractive end markets.

What to watch in Q3 FY26

Life Sciences Platforms (Instruments) Growth

Full Year FY26

Current Low single digits (Q2 FY26)

Target Mid-single-digit growth

Why it matters

Indicates the strength of AI-driven instrument demand translating into revenue and the effectiveness of capacity expansion.

Previously, we were assuming positive low single-digit growth for our platforms business. But now given the incremental commentary and performance from an orders perspective, we are increasing that to positive mid-single-digit growth for the full year.

Find out whether RVTY delivers this. Inve re-checks your case every morning.

Q&A highlights

Can you elaborate on the Life Sciences business, particularly the instrument backlog and its contribution, and the expected performance of instruments and reagents in the second half?

Prahlad noted the strongest backlog in 3-4 years for both instruments (like OptIQ) and reagents, with some timing pushing deliveries into Q3. Max added that the full-year outlook for the platforms (instrument) business was raised to mid-single-digit growth from low single-digit.

“starting 3Q from probably the strongest position that we have seen in terms of backlog we've had in the past 3 to 4 years.”

asked by Dan Brennan · answered by Prahlad Singh

2 min read 6 chapters

Detailed narrative

AI-Driven Science and "Lab in the Loop" Workflow

Revvity is experiencing a significant increase in orders directly related to AI, stemming from both traditional pharma/biotech clients and new, non-traditional customers developing AI-driven drug discovery platforms. This trend is fostering a "lab in the loop" workflow, where AI models continuously learn from experimental results, generating unprecedented data volumes.

The company's instruments, reagents, and Signals software are integral to this process, positioning Revvity to capitalize on the evolving preclinical R&D landscape.

Signals Software Business Innovation

Despite a Q2 organic revenue decline of approximately 20% due to challenging year-ago comparisons, the Signals software business is projected to achieve strong double-digit growth in the second half of the year. Recent innovations include the commercial launch of Biodesign for large molecule workflows, the beta rollout of Xynthetica (an AI models as a service platform), and the anticipated release of LabGistics, a workflow coordination layer.

Signals AI, which integrates LLM capabilities, and a new connector with Anthropic, further enhance the platform's functionality and customer retention. The "Signals for Start-ups" program aims to broaden market access for emerging biotechs.

Diagnostics Segment Strength

The Diagnostics business delivered exceptional performance in Q2, achieving 11% organic growth, an acceleration from the first quarter. This robust and broad-based growth was driven by strong contributions from Reproductive Health, which grew in the mid-teens, benefiting from continued strength in newborn screening and the Genomics England sequencing contract.

Immunodiagnostics outside of China also performed well, accelerating into the high single digits, underscoring the segment's consistency and durability.

Operational Efficiency and Balance Sheet Management

Revvity is making solid progress on the integration of the recently acquired ACD Labs software business and advancing its operational efficiency initiatives, which are expected to yield benefits in H2 2026 and into 2027. The company generated significant cash in Q2, achieving an outstanding 117% conversion of adjusted net income.

The repayment of a EUR 500 million note in mid-July is projected to lower gross leverage below 3x and net leverage to approximately 2x by year-end, supported by a strong fixed-rate debt profile.

China Immunodiagnostics Divestiture

A definitive agreement has been executed for the divestiture of Revvity's China immunodiagnostics business, with terms aligning with initial expectations. This transaction is anticipated to conclude by the end of 2027. The strategic decision allows Revvity to concentrate its efforts on end markets where its differentiated capabilities can generate the highest and most sustainable returns.

All non-GAAP and organic performance metrics and guidance are presented on a pro forma basis, excluding this divested business.

High-Content Screening Demand

Demand for high-content screening instruments, particularly the new Opera Phenix OptIQ, remains exceptionally strong, exhibiting continued double-digit growth year-over-year. The order velocity for these instruments outpaced near-term production capacity in Q2, resulting in a higher-than-normal instrument backlog as the company enters the second half of the year. This increased customer investment in capacity is expected to drive future demand for related high-content screening reagents.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.