Revvity Q3 2026 Earnings: Margins Expand as Guidance Rises

Revvity (NYSE: RVTY) reported Q3 2026 revenue of $728.9 million, up 4.3% from $698.9 million a year earlier, while GAAP diluted EPS from continuing operations increased to $0.56 from $0.41. For the quarter ended October 4, adjusted operating margin expanded to 28.7% from 26.1%, with Life Sciences supplying the reported revenue growth while Diagnostics delivered stronger profitability despite lower reported sales.

Core Financial Results

Profit increased faster than revenue during the quarter. GAAP operating income from continuing operations rose 16.2%, adjusted operating income increased 14.7%, and net income grew 33.5%. A lower diluted share count also supported EPS growth, with the quarterly average declining to 111.8 million shares from 115.5 million.

The following figures use reported GAAP results unless otherwise identified. Dollar amounts are in millions, except per-share data.

Business and Segment Performance

Life Sciences was the main source of reported revenue growth, with sales rising 10.7% and adjusted operating income increasing 18.2%. The segment also reported 11% pro forma revenue growth and 9% pro forma organic growth.

Diagnostics revenue declined 1.9% on a reported basis, but pro forma revenue grew 4% and pro forma organic revenue increased 5%. Its adjusted operating margin expanded by 4.8 percentage points, the larger improvement of the two segments.

Higher corporate expenses partially offset the segment-level improvement. Corporate costs increased to $14.5 million from $8.0 million, leaving consolidated adjusted operating income growth below the combined growth in segment operating income.

Excluding China IDX Changes the Diagnostics Growth Picture

Revvity has agreed to divest its China Immunodiagnostics business, or China IDX, 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 therefore presented Q3 results on both reported and pro forma bases, while issuing forward guidance only on a pro forma basis excluding China IDX. Pro forma revenue was $709.6 million, about $19.3 million below reported revenue, and grew 7% year over year on both a total and organic basis.

The distinction is particularly important for Diagnostics: reported segment revenue declined, while pro forma and organic revenue both increased. On a consolidated pro forma adjusted basis, operating margin reached 29.4%, up from 26.0%, and adjusted EPS rose to $1.37 from $1.13.

Profitability, Cash Flow, and the Balance Sheet

Based on reported revenue and cost of revenue, gross profit was approximately $418.6 million, compared with $374.6 million a year earlier. The implied gross margin expanded to about 57.4% from 53.6%, as cost of revenue declined even as sales increased.

That improvement outweighed higher selling, general, and administrative expenses, which rose to $275.3 million from $241.9 million. Restructuring and other charges also increased to $28.4 million from $9.9 million, contributing to the substantial difference between GAAP and adjusted earnings.

Operating cash flow from continuing operations increased to $166.7 million from $138.6 million. After $14.3 million of capital expenditures, implied quarterly free cash flow was approximately $152.4 million, up from about $120.1 million a year earlier.

Cash and cash equivalents declined to $592.8 million from $919.9 million at the end of fiscal 2025. Revvity repaid $571.2 million of senior unsecured notes during the quarter, and current long-term debt fell to zero from $588.8 million at fiscal year-end. Long-term debt was broadly unchanged at $2.63 billion.

Full-Year Guidance

Revvity raised its full-year 2026 outlook, although the previous guidance ranges were not included in the supplied results, so the size of the increase cannot be quantified. All guidance excludes China IDX and is presented on a pro forma basis.

The company noted that its organic growth and adjusted EPS guidance cannot be reconciled to the closest GAAP measures without unreasonable effort because the timing and size of excluded items remain unpredictable.

Management’s View

President and CEO Prahlad Singh attributed the quarter to broad-based growth, execution, and the increasing benefits of Revvity’s transformation. Management also said end-market conditions were continuing to improve and highlighted its innovation pipeline as a source of future opportunity.

Recent Insider Transactions

Separate transaction data reported 116,280 shares purchased across 12 transactions and 1,716 shares sold across two transactions over the previous six months, resulting in reported net purchases of 114,564 shares. However, the supplied transaction list did not provide the underlying purchase entries; only the two sales contained sufficient price and value details.

These transactions are presented as reported and do not, by themselves, establish insiders’ views about Revvity’s prospects.

Risks Investors Should Monitor

• China IDX divestiture execution: The business represented approximately 6% of fiscal 2025 revenue, and the transaction remains subject to regulatory approval and other closing conditions through an expected completion by the end of 2027.
• Different reported and pro forma trends: Diagnostics revenue declined on a reported basis but increased after excluding China IDX. Investors will need to distinguish underlying operating growth from changes in the reporting perimeter.
• Large GAAP-to-adjusted earnings gap: Adjusted EPS of $1.38 was well above GAAP EPS of $0.56, primarily reflecting intangible amortization, restructuring costs, and related tax adjustments.
• Rising operating costs: SG&A expenses and corporate costs increased faster than reported revenue. Continued margin expansion may depend on gross-margin gains and execution offsetting those higher expenses.

Summary

Revvity’s Q3 2026 results combined modest reported revenue growth with faster earnings and cash-flow growth as margins expanded. Life Sciences drove the top line, while Diagnostics improved profitability and produced positive growth on a pro forma basis excluding China IDX. The main follow-up points are whether those margin gains persist, whether underlying Diagnostics growth continues, and how Revvity executes against its raised pro forma guidance while completing the China IDX divestiture.