Revvity (RVTY) 2026 Global Healthcare Conference summary

Company transformation and financial overview

• Completed major transformation, divesting 30% of the business and rebranding in mid-2023.

• Achieved better-than-expected Q2 results, with strong diagnostics growth and stable life sciences performance.

• Operational improvements led to over 100% free cash flow conversion and reduced leverage after significant bond repayment.

• Executed share buybacks totaling 15% over two years, positioning for future growth.

• Highest incremental margins in the industry, with focus now on driving organic growth.

Life sciences segment performance and outlook

• Life sciences revenue split between academic/government (soft, stable) and pharma/biotech (showing recovery since mid-February).

• Strongest backlog in high-content screening instruments in several years, driven by new product launch and increased demand.

• Orders outpaced revenue, with instrument deliveries expected to accelerate in Q3 and Q4.

• Reagents growth guided to low single digits in Q3, stepping up to mid-single digits in Q4 due to easier comps and backlog fulfillment.

• China life sciences, especially reagents, remains the fastest-growing region, benefiting from focus on innovative science.

Software and innovation

• Software revenue is about 9-10% of total, with SaaS now over a third; legacy on-premise licenses cause revenue lumpiness.

• Annualized portfolio value (APV) continues to grow low double digits, reflecting underlying business strength.

• Software organic growth expected to rebound to high teens in H2 after Q2 contract timing impact.

• Multiple new product launches in 2024, including AI-driven offerings and a shift to consumption-based revenue models.

• Recent acquisitions (ACD, HCD) enhance capabilities in cell analysis and complement high-content screening strengths.