Revvity Q2 2026 earnings: Diagnostics and tariff refunds lift adjusted margins

Revvity (NYSE: RVTY) reported second-quarter 2026 revenue of $730 million, up about 1% from $720 million a year earlier, while GAAP diluted EPS from continuing operations was $0.48 versus $0.47. For the quarter ended July 5, Diagnostics growth and $16 million of tariff-related refunds supported adjusted EPS of $1.41 and a 28.9% adjusted operating margin, even as the GAAP operating margin slipped to 12.2%.

Core earnings data

Reported revenue growth was modest, but the pro forma results—which exclude the China Immunodiagnostics business—showed 4% revenue growth and 3% organic growth. Income from continuing operations declined, although lower diluted share count helped GAAP EPS increase slightly.

Adjusted operating income rose 10%, while quarterly operating cash flow increased by approximately 43%. The tariff refunds contributed to both adjusted operating income and adjusted EPS.

Pro forma figures exclude China IDX, while adjusted figures are non-GAAP measures. Average diluted shares declined to 111.6 million from 117.5 million.

Diagnostics offset weaker Life Sciences results

Diagnostics accounted for the quarter’s overall revenue increase and more than offset a decline in Life Sciences. The difference was more pronounced on a pro forma organic basis, with Diagnostics growing 11% while Life Sciences declined 3%.

Diagnostics adjusted operating income increased approximately 26% to $112.9 million, and its margin expanded by 520 basis points. Life Sciences adjusted operating income fell to $111.5 million from $115.5 million, with its margin declining by 50 basis points.

Tariff refunds lifted adjusted profitability while GAAP margins narrowed

Revvity received $16 million of tariff-related refunds during the quarter. The refunds were included in GAAP operating income and pro forma adjusted operating income, while pro forma adjusted EPS included approximately $0.11 from the refunds.

Despite that benefit, GAAP operating margin declined to 12.2%. Selling, general and administrative expenses increased to $278.6 million from $248.5 million, while restructuring and other adjustments rose to $35.5 million from $11.2 million. These costs contributed to the contrast between lower GAAP operating income and higher adjusted operating income.

Management plans to use a portion of the refunds to increase investment across the business. Investors therefore need to separate the refund contribution and related spending plans from the company’s underlying margin trend.

China IDX divestiture changes the reporting base

Revvity entered a definitive agreement to divest its China Immunodiagnostics business, which represented approximately 6% of fiscal 2025 revenue. The transaction is expected to close by the end of 2027, subject to regulatory approvals and customary closing conditions.

The company presented Q2 results on both reported and pro forma bases, with pro forma figures excluding China IDX. The difference between reported and pro forma Q2 revenue was approximately $18.6 million. All forward-looking guidance now uses the pro forma basis, making that basis more relevant for evaluating the continuing portfolio.

Cash flow and balance sheet

Operating cash flow from continuing operations rose to $191.9 million from $134.3 million. After $11.1 million of capital expenditures, operating cash flow less capital spending was approximately $180.9 million, compared with approximately $115.5 million a year earlier.

Cash and cash equivalents increased to $1.02 billion at July 5 from $919.9 million at the end of fiscal 2025. Total current and long-term debt was approximately $3.21 billion, little changed from $3.22 billion. Quarterly share repurchases fell to $16.0 million from $293.9 million, contributing to a substantially smaller financing cash outflow.

Full-year 2026 guidance

Revvity raised its full-year guidance on a pro forma basis, excluding China IDX. The supplied release did not include the previous ranges, so the size of the increase cannot be quantified.

The outlook implies that continued demand momentum will be important in the second half, particularly because total pro forma organic growth was 3% in Q2 and segment trends remained uneven.

Recent insider transactions

The supplied insider data show 114,683 shares purchased in 19 transactions and 41,369 shares sold in seven transactions during the past six months, resulting in net purchases of 73,314 shares. The latest individually identified transaction was a direct sale by officer Anita Gonzales; the next nine listed records were zero-price director stock awards rather than open-market purchases.

These disclosures describe the transactions but do not establish insiders’ views about Revvity’s outlook or valuation.

Risks investors should monitor

• Life Sciences weakness: Pro forma organic revenue declined 3%, while adjusted operating margin contracted. Continued weakness could offset Diagnostics growth.
• Dependence on Diagnostics momentum: Diagnostics drove the quarter’s growth and margin expansion, increasing the importance of sustaining demand in that segment.
• Tariff refund comparability: The $16 million refund added approximately $0.11 to pro forma adjusted EPS. Future periods may not include an equivalent benefit, while management intends to reinvest part of the proceeds.
• China IDX execution: The divestiture requires regulatory approval and is not expected to close until the end of 2027. Until then, investors must distinguish between reported and pro forma results.
• GAAP cost pressure: Higher SG&A and restructuring-related costs contributed to a lower GAAP operating margin despite the refund benefit.

Summary

Revvity’s Q2 2026 results showed modest reported revenue growth but stronger adjusted profitability and cash generation. Diagnostics was the main operating driver, offsetting weaker Life Sciences performance, while tariff refunds provided a meaningful earnings benefit. The central issues for upcoming quarters are whether Diagnostics momentum can support the raised pro forma guidance, how Life Sciences develops, and how underlying margins perform as the company reinvests part of the refunds and prepares to divest China IDX.