Revvity's Q2 2026 revenue rose 1% to $729.7M as Diagnostics grew 11% organically excluding a China business being sold, while tariff refunds and restructuring charges roughly cancelled out in GAAP profit; full-year guidance was raised.
Revenue
$730M
+1.3% YoY
Net income
$52M
-3.9% YoY
Diluted EPS
$0.47
+2.2% YoY
Operating margin
12.2%
Overview
Revvity's second quarter of fiscal 2026 (the three months ended July 5, 2026) looks flat on the surface. Revenue rose just 1% to $729.7 million, and GAAP net income slipped 4% to $51.8 million. Two things sit under that flat headline, and they point in opposite directions.
The underlying business sped up, mainly in Diagnostics. Newborn and prenatal screening (the "Reproductive Health" line) added $20.7 million of revenue. The one weak spot was a China immunodiagnostics business that Revvity has now agreed to sell. Strip that business out, along with currency effects and acquisitions, and the company grew 3% on what it calls a "pro forma organic" basis. Diagnostics grew 11% on that basis. Life Sciences shrank 3%.
One-off items pulled GAAP profit in both directions. On the plus side, $16.2 million of US tariff refunds were booked as lower cost of revenue. On the minus side, restructuring charges more than tripled to $35.5 million after layoffs that affected about 3% of the workforce. The two roughly cancelled out. Operating margin ended at 12.2%, compared with 12.6% a year earlier.
Management also raised full-year guidance and announced the sale of its China Immunodiagnostics business ("China IDX"). That business made up about 6% of fiscal 2025 revenue.
Key metrics
Metric
Q2 2026
Q2 2025
YoY Change
Revenue
$729.7M
$720.3M
+1.3%
Pro forma organic revenue growth (excl. China IDX, FX, M&A)
+3%
n/a
n/a
Gross margin
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"Organic" growth strips out currency moves and acquisitions or divestitures, so it shows how much more the existing business actually sold. "Pro forma" here also removes China IDX, which is being sold. Adjusted figures are the company's non-GAAP measures. Sources: Form 10-Q and the Q2 2026 earnings release.
Why GAAP EPS is $0.48 and adjusted EPS is $1.41
The gap between the two EPS figures is unusually wide, so it helps to see how Revvity bridges them. The company reconciles its $0.48 of GAAP earnings per share from continuing operations to $1.41 of adjusted EPS mainly through two items:
$0.76 of amortization of acquired intangible assets. This is a non-cash charge that spreads the price Revvity paid for past acquisitions (mainly for customer relationships and technology) over several years. The 10-Q puts it at $84.9 million this quarter: $34.8 million in cost of revenue and $50.1 million in SG&A. It comes from past deal-making and doesn't reflect how the business is running today, but it is a real cost of the growth-by-acquisition strategy.
$0.32 of restructuring. This is mostly severance and facility consolidation.
Those add-backs are partly offset by $0.21 of related tax.
Even adjusted EPS is flattered by something that won't repeat. The release says the $1.41 "includes approximately $0.11 from tariff related refunds." Without that, adjusted EPS would be about $1.30, roughly 10% above last year's $1.18. That is still solid, but it is half the headline 19.5%.
A falling share count also helps every per-share figure. Diluted shares were 111.6 million, down from 117.5 million a year earlier (-5%), because of buybacks. So GAAP EPS rose even though net income fell.
Segment detail
Diagnostics (51% of revenue) drove the quarter. Reported revenue rose $16.6 million (5%). The 10-Q attributes this to "an increase of $20.7 million in Reproductive Health revenue, partially offset by a decrease of $4.1 million in Immunodiagnostics revenue," plus favorable exchange rates. Segment operating income jumped 26% to $112.9 million, and segment margin rose 5.2 points, "primarily due to tariff refunds and cost containment initiatives." Part of that margin gain therefore comes from a one-time source.
The difference between 5% reported growth and 12% pro forma growth comes from China IDX. The release gives total revenue with and without that business ($729.7M vs. $711.1M this year; $720.3M vs. $680.5M last year). From those figures, China IDX brought in about $18.6 million this quarter, down from about $39.7 million a year ago. That means the business Revvity is selling roughly halved. The geographic split in the 10-Q shows the same picture: Diagnostics revenue from Asia fell to $89.4 million from $108.5 million (-18%).
Life Sciences (49% of revenue) was the soft side. Revenue fell 2% to $358.7 million. The 10-Q says the decline was "driven by a decrease of $10.2 million in Software revenue, partially offset by an increase of $3.0 million in Life Sciences Solutions revenue." Life Sciences Solutions, the reagents, instruments and services business, grew only about 1%, to $301.0 million from $298.1 million. Segment operating income fell 3% to $111.5 million, with margin down 0.5 points "primarily due to strategic investments in software and new product development."
By region: revenue from the Americas was flat ($325.6M vs. $323.6M). Europe rose 12.5% to $229.0 million, helped by currency: over the first half, FX added 2 points to growth. Asia fell 9.3% to $175.1 million, and China IDX explains most of that drop.
Cost lines and below the operating line
Gross margin (the share of revenue left after the direct cost of making products and delivering services) rose 2.6 points to 57.1%, "primarily due to tariff refunds and product mix shift." The refunds followed the Supreme Court's February 20, 2026 ruling that emergency-powers tariffs were not authorized. Revvity applied for $20.2 million of refunds and received $16.2 million. It records refunds only when the cash arrives, so the remaining $4.0 million could show up in a later quarter, but the timing is uncertain.
SG&A (selling, general and administrative costs) rose 12% to $278.6 million. The main cause was restructuring costs of $35.5 million, up from $11.2 million. Beyond that, the 10-Q cites "digital investments and employee incentive compensation."
R&D fell 8% to $49.0 million because of "cost containment initiatives." For a tools company whose sales depend on new products, cutting R&D is worth watching.
Interest and other expense rose to $25.8 million from $22.1 million. Interest income fell to $5.3 million from $8.3 million because of lower rates and lower cash balances, and investment write-downs added $5.3 million.
Tax rate was 15.8%, down from 19.6%, helped by a $2.4 million state deferred-tax benefit. Management expects about 20% for the full year, so this quarter's lower rate won't last.
Cash and balance sheet
Operating cash flow from continuing operations was $191.9 million in the quarter, up from $134.3 million. For the first half it was $317.8 million, up from $268.4 million. Cash ended at $1.02 billion. Buybacks slowed sharply: only $7.8 million this quarter, and $792.7 million remains under the $1.0 billion authorization. Goodwill and intangibles total $8.8 billion of the $12.0 billion in total assets, a reminder of how much of the company was built through acquisitions.
Takeaway: The profit beat mostly came from a one-off. About $0.11 of the $0.23 rise in adjusted EPS came from tariff refunds, and GAAP operating margin actually fell. The real improvement is in revenue: excluding the China immunodiagnostics business being sold, Diagnostics grew 11% organically. That business roughly halved year over year (about $40M to about $19M of quarterly revenue), and selling it removes the biggest drag on reported growth.
Guidance and outlook
Management raised full-year 2026 guidance. All guidance is now on a pro forma basis that excludes China IDX:
Revenue of $2.83–$2.86 billion
Pro forma organic revenue growth of 4–5%
Pro forma adjusted EPS of $5.30–$5.40
CEO Prahlad Singh said the company is "utilizing a portion of recently received tariff refunds to increase investments across the business." In other words, some of this quarter's windfall will be spent in the second half rather than passed through to profit.
Our read: the 4–5% organic target implies the second half has to grow a bit faster than the first half's 4% pro forma organic rate. Diagnostics, now free of China IDX, is doing that work, while Life Sciences was flat organically for the first half and down 3% in Q2. Three things to watch in Q3:
Life Sciences: does it return to growth? The Software decline was the whole Q2 shortfall.
Diagnostics margins: do they hold up without refunds? About $16 million of Q2 operating income came from tariff refunds that will not repeat at the same size.
Restructuring charges: do they fall back? They totalled $46.2 million in the first half.
Fiscal 2026 has 53 weeks, and the extra week fell in Q1. That flatters first-half comparisons, but it does not affect Q2's year-over-year numbers. The China IDX sale is not expected to close until the end of 2027. Until then, reported results will keep including a shrinking business that guidance leaves out, so readers should compare against the pro forma figures.