Revvity Boosts Annual Forecasts Amid Strong Diagnostics Growth

Medical equipment manufacturer Revvity has revised its annual profit and revenue forecasts upward, driven by a surge in demand for its diagnostic testing products and drug-development tools. The company exceeded Wall Street expectations for the second quarter, reporting an adjusted profit of $1.41 per share and revenue of $730 million, surpassing analysts' estimates of $1.22 per share and $709.1 million, respectively, according to LSEG data.

Diagnostics Demand Drives Growth

Revvity's diagnostics business experienced an 11% increase, reaching $371 million in the second quarter compared to the same period last year. This growth played a crucial role in offsetting a 3% decline in the company's life sciences unit, which reported $359 million in revenue. The decline was largely attributed to a 20% decrease in its Signals software business, affected by factors such as contract timing.

Chief Financial Officer Max Krakowiak highlighted a return to normalized spending patterns among pharma and biotech customers, coupled with new demand generated by AI-related projects. Despite these positive developments, Revvity's shares fell nearly 5% in morning trading.

Revised Annual Forecasts

The company now anticipates annual sales between $2.83 billion and $2.86 billion, an increase from its previous range of $2.81 billion to $2.84 billion. Revvity also adjusted its 2026 profit outlook, forecasting an adjusted profit per share between $5.30 and $5.40, up from the prior estimate of $5.20 to $5.30. Analysts had projected an annual adjusted profit of $5.27 per share.

Despite challenges in its software segment, analysts like Leerink's Puneet Souda expected the decline, noting that investor focus on AI product launches could remain intense. The company's strategic adjustments reflect its efforts to capitalize on the growing diagnostics market and the evolving demands of the biotech and pharma sectors.