Revvity (RVTY) shares rose toward their 52-week high of $133 during the Wells Fargo 21st Annual Healthcare Conference on September 9, 2026, with the stock trading at $123.69 after a 50% gain over the trailing year. The $13.8 billion company reaffirmed its margin expansion trajectory, projecting operating margins to reach the low-30% range by 2026.
CEO Prahlad Singh pointed to multiple drivers behind the outlook. Tariff-related tailwinds are expected to contribute 20 to 25 basis points to margins. Singh added that even excluding those benefits, the company would have raised guidance — noting that 4% to 8% organic growth could yield an additional 40 to 75 basis points of operating margin improvement.
Segment performance in the second quarter showed mixed results. Diagnostics performed slightly above expectations, buoyed by reproductive health and immunodiagnostics. Immunodiagnostics grew in the high single digits, with growth outside China in the double digits, against a long-range plan target of 9% to 11%. Reproductive health posted mid-teens growth in the first half, though it is expected to slow to low single digits in the second half as instrument placements normalize and the Genomics England contract expires in mid-2025.
Life Sciences maintained its full-year outlook at low-single-digit growth. Platform instruments are expected to grow in the mid-single digits in Q3 and Q4, while reagents are projected to rise in the low single digits in Q3. The Pharma/Biotech segment declined in the mid-single digits excluding software in Q2, but Singh described a more constructive tone following what he called a turning point in pharma investment.
"The calming down of the chaos allowed for pharma biotech customers to start planning and reinvesting back to what pretty much normal should look like," Singh said.
Software remained a drag. Q2 software revenue fell 20% year-over-year on a tough comparison, though the annual portfolio grew 12% to 13% — exceeding the 9% to 11% long-range assumption. Full-year 2024 software guidance calls for mid-single-digit growth. Current SaaS penetration sits at 32% to 34%, with a long-term target in the mid-60% range.
Singh also addressed the role of artificial intelligence in drug discovery, calling it "incremental investment" rather than a substitution for traditional tools. "I think the AI component is not taking money out from left pocket and putting it in right pocket," he said.
On the m&A front, Revvity completed the acquisition of Human Cell Design, which Singh described as a "tuck-in" that strengthens the reagents business and bridges preclinical and clinical development workflows.
High-content screening, once roughly a quarter of the platform business, now accounts for approximately one-third of that segment. The Opera Phenix OptIQ system, featuring four-camera capability and a price near $1 million per instrument with 10- to 12-week manufacturing lead times, was highlighted as a key growth vehicle.
Singh noted that approximately 100 million newborns globally remain untested for newborn screening, with expanding rare-disease indications including Duchenne muscular dystrophy, spinal muscular atrophy, and MPS II offering further upside.
Revvity trades at a price-to-earnings ratio of 61.1 with a gross profit margin of 55% and levered free cash flow of $558 million over the last twelve months.
