Revvity, Inc. Q3 FY2025 earnings call

• AI Initiatives: Commercially launched new AI-focused software offerings like SignalsOne in the signals business, Transcribe AI in reproductive health, and phenologic AI in a high content screening franchise. Entered into a collaboration with ProFluent Bio to offer novel AI-engineered enzymes. Introduced the new living image synergy AI software platform for in vivo imaging instruments. • Strategic Partnerships: Sequencing partnership with Genomics England with work beginning in the third quarter, and a collaboration with Sanofi to develop and seek regulatory approvals for a new four plex assay for type one diabetes and expand existing audio assay availability. • Annual Impact Report: Showcased 6% reduction in scope one and two emissions in 2024, 47% waste diversion from landfills, 77% employee satisfaction rate, expanded STEM scholarship initiatives to two additional universities in China and The UK, and received a triple A ESG rating from MSCI.

In the third quarter, the company generated revenue of $699 million. The signals software business grew 20% organically. The reproductive health business grew in the mid-single digits year over year. The Diagnostics segment had revenue of $356 million in the quarter, up 3% on a reported basis and 2% on an organic basis. Overall, there was 1% organic growth with FX providing an approximate 1% tailwind to growth. The Life Sciences segment had revenue of $343 million, flat on an organic basis.

• Reiterate organic revenue growth outlook of 2% to 4% for the full year 2025, with the fourth quarter expected to play out as previously expected. • Adjusted earnings per share expected in the range of $4.9 to $5, up from prior outlook. • For 2026, expect organic growth in the range of 2% to 3%, with a 28% adjusted operating margin baseline assumption due to ongoing restructuring activities.

• China Diagnostics business impacted by DRG, resulting in organic decline in the third quarter. • FX fluctuations and industry demand uncertainties that could impact performance. • Tariffs, FX, and lower volume leverage putting pressure on margins year over year.

Q: Patrick Bernard Donnelly asked about 2026 commentary, including China diagnostics and life science growth drivers.

A: Prahlad R. Singh and Maxwell Krakowiak responded discussing China diagnostics trends, instrument activity signs in pharma biotech, and margin expectations for 2026.

Q: Vijay Muniyappa Kumar inquired about October customer activity levels and 2026 EPS.

A: Prahlad R. Singh and Maxwell Krakowiak talked about pharma biotech instrument activity and EPS expectations based on organic growth and margin assumptions.

Q: Michael Leonidovich Ryskin asked about the 4Q ramp and China DRG impact.

A: Maxwell Krakowiak addressed 4Q margin expectations and the outlook for China Diagnostics under DRG.

Q: Tycho Peterson questioned reagents performance and margins.

A: Maxwell Krakowiak responded on reagents' slight decline and the power of incremental margins in the reagents business.

Q: Doug Schenkel asked about China Diagnostics sales percentage and recovery.

A: Maxwell Krakowiak provided China Diagnostics sales percentage and the outlook for its recovery.

Q: Puneet Souda inquired about instrument improvement drivers.

A: Prahlad R. Singh stated it's broader pharma biotech activity driving instrument improvement.

Q: Dan Arias asked about GEL contributions and pharma biotech segments.

A: Maxwell Krakowiak and Prahlad R. Singh responded on GEL contributions and the different segments within pharma biotech.

Q: Catherine Schulte asked about the 2% to 4% organic range and U.S. academic/government performance.

A: Maxwell Krakowiak addressed the 4Q range within the full year organic growth and the performance of U.S. academic/government.

Q: Sabu Nambi asked about AI impact on Revvity products and instrument recovery.

A: Prahlad R. Singh discussed AI as an opportunity for Revvity and the outlook for instrument recovery on noncommoditized products.