Revvity (RVTY) 47th Annual Raymond James Institutional Investor Conference summary

Company transformation and portfolio evolution

• Over the past decade, the business shifted from a balanced mix of analytical, life sciences, and diagnostics to a focus on life sciences and diagnostics, divesting the analytical segment and launching under a new brand in March 2023.

• Life sciences and diagnostics now each contribute roughly $1.5 billion in revenue, with a high recurring revenue mix of about 85%.

• Diagnostics expanded beyond reproductive health into autoimmune, allergy, and emerging disease, targeting faster-growing, specialized markets.

• Strategic partnerships, such as with Sanofi and Genomics England, are enabling end-to-end solutions from discovery to diagnostics.

Innovation and growth drivers

• Four main innovation pillars: software (notably Xynthetica and upcoming BioDesign and Signals LabGistics), strategic customer partnerships, GMP reagent expansion, and U.S. immunodiagnostics growth.

• Xynthetica, launched in Q4, is an AI model marketplace linking in silico and wet lab research, with further software launches planned through 2026.

• GMP reagent capabilities completed in 2023, with commercial traction expected over 4–5 years.

• U.S. immunodiagnostics market penetration increased from under 5% to 20%, with a goal to reach 40%.

Financial performance and operational excellence

• Free cash flow conversion improved from 70% to about 90% since the rebranding, supported by disciplined capital allocation and share repurchases totaling nearly 10% of shares in two years.

• Margin expansion targeted at 100 basis points in 2026, with further gains expected in 2027 due to cost benefits and operational efficiencies.

• Long-term organic growth expected at 6–8%, above market averages, with reproductive health and software outperforming targets.

• 2026 guidance includes $3 billion revenue, 2–3% organic growth, 28% adjusted operating margin, and high single-digit EPS growth.