Revvity reported better-than-expected second-quarter results, which management attributed to an improving spending environment across the pharmaceutical and biotechnology sectors. The company has now recorded three consecutive quarters of strengthening end-market conditions. Full-year organic growth guidance was increased to a range of 4% to 5%, reflecting heightened confidence in the durability of the pharma and biotech recovery observed during the first half of the year.
Orders are climbing from both established and emerging customer categories seeking to construct AI-enabled drug discovery infrastructure. These platforms depend on generating biological validation data, which has become a key driver of customer acquisition. A strategic framework called ‘Lab-in-the-Loop’ is taking shape as a critical operational model, in which artificial intelligence systems recommend experiments that yield proprietary datasets, which are subsequently reintroduced into the models to reduce discovery timelines.
The high-content screening business demonstrated particular strength, with the Opera Phenix OptIQ instrument experiencing sustained order demand that is currently surpassing near-term production output despite increased resource deployment. The company’s instrument backlog has reached its strongest level in 3 to 4 years, composed primarily of specialized high-value systems. Management characterized this backlog build as evidence of a multi-year artificial intelligence infrastructure cycle rather than a temporary constraint. The Diagnostics division continues to provide stable performance, with expansion in newborn screening and immunodiagnostics categories outside of China balancing structural birth rate headwinds.
Management expects the Signals software business to return to strong double-digit growth in the second half of the year, supported by a robust schedule of contract renewals and new product introductions including LabGistics. The company received a one-time tariff refund benefit of $16 million in the second quarter, approximately half of which will be reinvested into strategic initiatives, supply chain capacity expansion, and workforce additions. Gross leverage is expected to decline below 3x by year-end following retirement of a EUR 500 million note. The company is divesting its China immunodiagnostics business and expects the transaction to close by the end of 2027, which will shift the company toward higher-margin differentiated capabilities.
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