Revvity (RVTY) investor relations material

Business performance and market trends

• Achieved stable results in Q2, with top and bottom lines slightly ahead of expectations; consumables showed low single-digit growth for five consecutive quarters, while instruments declined mid to high single-digits, consistent with outlook.

• Life sciences solutions faced low single-digit declines, mainly due to academic/government funding pressures and ongoing softness in pharma/biotech; software segment outperformed, growing above long-term expectations.

• Diagnostics, about half of revenue, performed well outside China, with strong growth in the Americas and reproductive health; China diagnostics faced new policy-driven volume pressures, impacting outlook.

• Reagents, especially in China, outperformed with mid single-digit growth, driven by demand for innovative science and specialty consumables.

• Software business (Signals) grew in high teens, with a major product launch expanding into large molecule workflows expected to further differentiate and accelerate growth.

Regional and segment-specific dynamics

• Academic/government segment declined low single-digits but showed signs of stability, with specialized consumables less impacted than instrumentation.

• Pharma/biotech revenue was flat excluding software, with medium and large customers making up 85% of segment revenue; small biotech exposure is limited.

• Life sciences in China grew mid single-digits, outperforming peers due to focus on consumables and innovative science.

• Diagnostics in China impacted by DRG policy changes, leading to a 25% expected revenue decline in the back half of the year; stabilization anticipated by mid-2025.

• Reproductive health maintained mid single-digit growth despite birth rate pressures, supported by geographic/menu expansion and a major Genomics England contract.

Strategic initiatives and outlook

• Software business expected to continue outpacing LRP assumptions, with new launches targeting unified small and large molecule workflows.

• BioLegend acquisition, though affected by market changes, remains profitable and strategically valuable.

• Operating margin guidance set at 28% for 2026, with structural actions underway to offset headwinds and support margin expansion.

• Capital deployment focuses on organic growth, selective M&A in attractive areas (consumables, software), and active share repurchases (8-9% of shares bought back in 12 months).

• Key opportunities include software growth and U.S. diagnostics expansion, with new product launches and FDA approvals prioritized.