Executive Summary / Key Takeaways

• Revvity's strategic transformation, marked by a significant divestiture and rebranding, has created a more focused health science solutions provider with a resilient portfolio mix less susceptible to certain market pressures.
• Despite a dynamic macroeconomic environment and specific headwinds like US academic funding uncertainty and tariff impacts, the company demonstrated solid execution in Q1 2025, achieving 2% reported revenue growth and exceeding adjusted EPS expectations.
• Differentiated growth drivers, particularly the high-performing Signals Software business (20%+ organic growth in Q1 2025) and the resilient Diagnostics segment (5% organic growth in Q1 2025), are offsetting pressures in Life Sciences instrumentation.
• Operational agility and technological innovation, including advancements in AI-driven software and automated diagnostic platforms, are key competitive advantages enabling margin expansion and mitigation of external challenges like tariffs.
• Management reaffirmed full-year 2025 guidance for 3-5% organic growth and adjusted EPS of $4.90-$5.00, signaling confidence in the business's ability to perform in the current environment, supported by strong cash flow generation and opportunistic share repurchases.

Setting the Scene: A Transformed Revvity in a Dynamic Market

Revvity, Inc. is no longer the diversified entity it once was. A strategic transformation, highlighted by the divestiture of its Applied, Food and Enterprise Services businesses in fiscal year 2023, has reshaped the company into a more focused provider of health science solutions. Operating across the continuum from discovery to diagnosis, Revvity leverages technology, expertise, and services to serve customers in pharmaceutical and biotechnology, academic research, and clinical diagnostics. This strategic pivot aimed to sharpen the company's focus on higher-growth, higher-margin areas, positioning it within the competitive landscape of major life science and diagnostics players.

The industry itself is characterized by rapid technological change, intense competition, and sensitivity to macroeconomic conditions, government funding, and regulatory shifts. Key competitors like Thermo Fisher Scientific (TMO), Danaher Corporation (DHR), Agilent Technologies (A), and Illumina (ILMN) bring significant scale, broad portfolios, and substantial R&D capabilities. While these larger players often boast superior financial metrics like higher gross and operating margins (TMO: ~41% gross, ~17% operating; DHR: ~60% gross, ~20% operating; A: ~54% gross, ~23% operating; ILMN: ~65% gross, -19% operating TTM), Revvity carves out its position through specialized innovation, a differentiated portfolio mix, and operational agility. Its estimated market share, while smaller than the giants, is supported by a global distribution network reaching 190 countries, providing a unique avenue for customer engagement and recurring revenue, particularly in niche or emerging markets where larger competitors may lack the same depth of presence.

The company's strategic response to competitive forces and market dynamics centers on leveraging its core strengths: a resilient portfolio with significant recurring revenue from consumables and services, a growing software franchise, and a robust diagnostics business less tied to cyclical CapEx spending. This mix provides a buffer against the volatility seen in instrumentation markets, a segment where larger competitors like TMO and A have significant exposure.

Technological Differentiation and the Engine of Innovation

At the heart of Revvity's strategy lies its commitment to technological differentiation and continuous innovation. The company's portfolio spans critical areas like translational multi-omics, biomarker identification, imaging, and informatics, underpinned by proprietary technologies designed to offer tangible benefits to customers.

In the realm of diagnostics, Revvity's T-SPOT latent TB test, now integrated with the