Revvity, Inc. Q4 FY2025 earnings call

• 2025 was a dynamic year with strong fourth quarter performance, exceeding adjusted EPS and organic growth expectations. - Repurchased over $800 million of shares in 2025, reducing share count by 8.5 million. - Acquired software company ACD in mid-January 2026, expected to contribute over $20 million and add ~75 basis points to revenue growth. - Launched AI models as a service platform, Signals Synthetica, in collaboration with Lilly's TUNE lab initiative. - Implemented cost efficiency initiatives with plans to be fully completed by end of Q2 2026, expected to result in 28% adjusted operating margins in 2026.

In the fourth quarter, diagnostics generated $390 million of revenue, up 10% on a reported basis and 7% organically. The life sciences segment had $382 million in revenue, up 2% on a reported basis and flat organically. For the full year, diagnostics grew 4% organically, while life sciences grew 2% organically. Geographically, Europe saw double-digit growth in Q4 for diagnostics, and for the full year, Europe had high single-digit growth, Americas low single digits, and APAC low single-digit decline for diagnostics; life sciences had flat performance in The Americas and APAC and double-digit growth in Europe.

• Reiterates 2% to 3% total company organic growth for 2026. - FX rates as of December expected to provide ~1% tailwind to revenue. - ACD acquisition expected to add ~75 basis points to revenue growth, resulting in total revenue range of $2.96 to $2.99 billion. - Adjusted operating margins expected to be 28% in 2026. - Adjusted EPS expected to be in the range of $5.35 to $5.45 in 2026.

• End market and policy uncertainties remain, with the need to operate in a fluid environment. - China diagnostics business faces DRG-related volume pressures, which are expected to continue until around end of Q2 2026. - Margin impacts from factors like tariffs, FX, and incomplete cost efficiency initiatives in the first half of 2026.

Q: Dan Brennan asked about the 2% to 3% organic guide and potential upside.

A: Maxwell Krakowiak said there are multiple paths to upside, including positive signs in end markets, potential from software launches, and more prudent assumptions in certain diagnostic segments.

Q: Daniel Anthony Arias asked about software product timing and uptake.

A: Prahlad Singh said software launches are upsell opportunities with pull from user needs, taking a few quarters to gain traction.

Q: Vijay Muniyappa Kumar asked about M&A deal size and potential.

A: Prahlad Singh said focus is on software and life sciences reagents, with no compelling targets yet.

Q: Josh Waldman asked about pharma biotech in life sciences and diagnostics upside.

A: Maxwell Krakowiak provided details on life sciences pharma biotech trends and diagnostics upside potential.

Q: Luke England Sergott asked about China IDX prudence and instruments backlog.

A: Maxwell Krakowiak said China IDX is a small part, and instruments backlog is based on current CapEx environment.

Q: Andrew Cooper asked about margins and software go-to-market.

A: Maxwell Krakowiak and Prahlad Singh discussed margin moving parts and software go-to-market as upsell opportunities.

Q: Daniel Louis Leonard asked about China diagnostics recovery and AI software opportunity.

A: Maxwell Krakowiak said China IDX recovery not expected in second half, and Prahlad Singh discussed AI software's drug discovery acceleration.

Q: Brandon Couillard asked about free cash flow conversion.

A: Maxwell Krakowiak said free cash flow conversion expected to remain strong with ~85% or greater.

Q: Catherine Schulte asked about 1Q organic growth benefit from extra week and pacing.

A: Maxwell Krakowiak said 1Q organic growth has ~100 bps tailwind from extra week, with relatively consistent performance expected for rest of year.

Q: Tycho Peterson asked about reagents competitive dynamics and instrument buckets.

A: Prahlad Singh said reagents have not seen margin dilution, and Maxwell Krakowiak discussed instrument trends like high content screening momentum.