RVTY · Revvity, Inc.

Revvity’s Q1 2026 results reflect solid underlying performance—revenue grew 7% year-over-year on a reported basis and 6% on a pro forma basis, while GAAP EPS rose to $0.37 from $0.35. More significantly, the company disclosed a strategic divestiture of its China Immunodiagnostics business, which contributed approximately 6% of FY2025 revenue but incurred a $46.6 million loss in Q1 2025. The pro forma adjustments eliminate China IDX’s $24.2 million in Q1 2026 revenue and associated costs, resulting in a $4.2 million increase in pro forma operating income and lifting pro forma operating margin from 3.2% to 11.7% year-over-year—demonstrating material margin improvement from portfolio rationalization. Management explicitly stated that full-year 2026 guidance is provided on a pro forma basis, excluding China IDX, and includes revenue of $2.81–$2.84 billion, organic growth of 3–4%, and adjusted EPS of $5.20–$5.30. The $200 million letter of intent signals a deliberate shift toward higher-margin, core businesses in Life Sciences and Diagnostics—segments that delivered 6% and 8% revenue growth respectively, though with modest margin compression in adjusted operating profit. CEO Prahlad Singh emphasized 'disciplined portfolio optimization' as a driver of shareholder value, positioning the divestiture not as a retreat but as a strategic realignment ahead of anticipated market recovery. Given the size of the business (~6% of revenue), its drag on profitability, and the explicit linkage of guidance and forward metrics to the pro forma baseline, this event materially reshapes Revvity’s earnings profile and growth trajectory.