Revvity lifts profit forecast on renewed demand in diagnostics unit

By Siddhi Mahatole

Oct 27 (Reuters) - Medical equipment maker Revvity RVTY.N on Monday raised its annual profit forecast and beat third-quarter estimates on improving U.S. demand for its testing kits in the diagnostics unit.

However, sales of its diagnostics products in key market China declined nearly 6% during the quarter. The company earns more than half of its annual revenues from markets outside the United States.

Its shares were down about 3.4% in early trading.

Revvity joined peers such as Thermo Fisher TMO.N in reporting renewed U.S. demand for contract research and diagnostics services, as pharmaceutical companies ramp up drug development in the country amid evolving trade policies under President Donald Trump.

Revenue in the diagnostic unit rose 3% to $356.1 million, compared with analysts' estimates of $350.6 million, according to data compiled by LSEG.

"We are starting to see signs of increasing activity with customers, especially in September and October, and we expect that starting to result in actual demand coming into 2026," said CEO Prahlad Singh.

Earlier this year, Revvity warned of a $135 million hit from Trump's tariffs on China and announced plans to adjust its manufacturing footprint.

The company expects 2025 adjusted profit in the range of $4.90 to $5 per share, compared with its previous forecast of $4.85 to $4.95.

Quarterly adjusted profit of $1.18 per share beat expectations of $1.14.

However, total quarterly revenue came in at $699 million, slightly below estimates of $700.5 million.