Business Context and Reporting Period
Company: Revvity, Inc.
Filing Type: Form 10-Q (Unaudited)
Reporting Period: Three months ended April 5, 2026 (Fiscal Q1 2026)
Business Overview: Revvity provides health science solutions, technologies, and services across two reportable segments: Life Sciences (products and services for life sciences customers) and Diagnostics (clinically-oriented tools for reproductive health and emerging markets). The fiscal year 2026 includes 53 weeks, adding one extra week compared to the prior year.
Key Financial Metrics
| Metric (in thousands) | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenue | $711,118 | $664,762 |
| Gross Profit | $387,655 | $375,546 |
| Gross Margin | 54.5% | 56.5% |
| Operating Income | $75,886 | $72,230 |
| Operating Margin | 10.7% | 10.9% |
| Net Income | $40,718 | $42,237 |
| Diluted EPS | $0.36 | $0.35 |
| Operating Cash Flow | $125,887 | $134,097 |
| Cash and Equivalents (End of Period) | $860,320 | $919,860 |
| Total Debt (Carrying Value) | $3,207,903 | $3,222,900 (Dec 2025) |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 7% ($46.4 million) year-over-year. This was driven by an 8% increase in the Diagnostics segment (Reproductive Health and favorable FX) and a 6% increase in the Life Sciences segment (Software and Solutions growth plus an extra fiscal week).
- Margin Compression: Gross margin decreased 200 basis points to 54.5%, and operating margin decreased 20 basis points to 10.7%. Headwinds included product mix shifts, increased tariffs (approx. $8 million impact on cost of revenue), foreign exchange fluctuations, and the extra fiscal week.
- Restructuring Costs: Restructuring and other costs rose significantly to $10.7 million from $3.2 million in the prior year, primarily due to workforce reductions affecting ~2% of the workforce and facility consolidations.
- Acquisitions: The company acquired Advanced Chemistry Development Inc. (ACD/Labs) for $72.0 million in cash plus up to $8.0 million in contingent consideration, contributing to the Life Sciences segment.
- Share Count: Weighted average diluted shares decreased to 111.9 million from 120.2 million due to active share repurchases.
Guidance, Outlook, and Risks
- Tax Outlook: Management expects the effective tax rate on continuing operations to be approximately 20% for fiscal year 2026.
- Tariff Uncertainty: While the Supreme Court ruled in February 2026 that the IEEPA does not authorize certain tariffs, the timing and amount of potential refunds remain uncertain. No refund receivable has been recorded as of April 5, 2026.
- Capital Allocation: The company continues a $1.0 billion share repurchase program (authorized Oct 2025), with $800.5 million remaining available as of April 5, 2026. A quarterly dividend of $0.07 per share was declared for Q2 2026.
- Debt Maturity: The €500 million 1.875% Senior Unsecured Notes due in 2026 mature in July 2026. Management expects to repay these using existing cash or borrowings under the $1.5 billion revolving credit facility.
- Risk Factors: Key risks include global economic conditions, supply chain disruptions, foreign currency volatility, potential impairment of significant intangible assets ($8.9 billion net), and regulatory changes in healthcare and trade.
Investor Verification Checklist
- Tariff Refund Status: Verify the progress of administrative refund processes for IEEPA duties and the likelihood of recovery.
- Debt Refinancing: Confirm the strategy and execution for refinancing or repaying the €500 million notes maturing in July 2026.
- Intangible Asset Valuation: Monitor the $8.9 billion in net intangible assets for potential impairment triggers given margin pressures and economic conditions.
- Restructuring Execution: Track the realization of cost savings from the $10.7 million in restructuring charges and facility consolidations.
- FX Impact: Assess the ongoing impact of foreign currency fluctuations on revenue and earnings, given ~60% of business is conducted outside the U.S.