Will RVTY Q3 Earnings Reflect Segmental Strength Amid Rising Demand?

Revvity, Inc. RVTY is slated to report third-quarter 2025 results on Oct. 27, before market open.

In the last reported quarter, the company delivered an earnings surprise of 3.51%. RVTY’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 6.60%.

Revvity is likely to have entered the second half of 2025 with a mixed but resilient performance backdrop. While its Life Sciences segment should have demonstrated sustained momentum, challenges in Diagnostics, particularly in China, are expected to have weighed on near-term results.

Q3 Estimates

The Zacks Consensus Estimate for revenues is pegged at $700 million, indicating a gain of 2.3% from the prior-year quarter’s level. The consensus mark for earnings is pinned at $1.14 per share, indicating a deterioration of 10.9% year over year.

For the third quarter of 2025, Revvity anticipates organic revenues to be flat to a gain of 2%, translating to total revenues of $690 million to $705 million. The drop in high-margin diagnostic assay volumes in China (due to DRG policy changes) was highlighted as a major headwind for gross and operating margin rates. The company expects adjusted operating margin to be around 26%. Despite this, adjusted earnings per share are projected to be in the range of $1.12 to $1.14, reflecting the company's solid operational execution and effective mitigation strategies.

Life Sciences Segment

In the Life Sciences segment, momentum is likely to have remained intact. The Signals Software business, which grew about 30% organically in second-quarter with record order volumes, is likely to have sustained its growth trajectory, even if seasonally softer. Reagents demand from pharmaceutical and biotech customers is likely to have shown resilience, sustaining its five consecutive quarters of expansion and providing a steady growth engine.

Meanwhile, reproductive health sales are expected to have advanced at a low single-digit pace, ahead of a potential sharper ramp in the fourth quarter from the Genomics England sequencing contract. Instrumentation sales, however, are likely to have remained subdued amid muted capital spending as academic and government budgets might have remained under pressure.

Our estimate for the Life Sciences segment’s revenues is pegged at $308.7 million, up 2.6% year over year.

Diagnostic Segment

The Diagnostics segment faces a tougher outlook. Ex-China, immunodiagnostics businesses are likely to have performed strongly, following mid-teens growth in the Americas and mid-single-digit gains in Europe during the second quarter. New platforms such as the IDS i20, launched in Europe earlier this year, could have added incremental growth. Yet, China remains a significant drag. The country’s de-bundling reimbursement policy (DRG) has led to a steep decline in multiplex testing volumes, with management expecting revenues in the region to have dropped sharply during the third quarter. This shift is not only likely to have unfavorably impacted sales but also gross margins during the soon-to-be-reported quarter, given the high profitability of multiplex assays.

Our estimate for the Diagnostic segment’s revenues is pegged at $392.5 million, up 2.5% year over year.

Revvity Inc. Price and EPS Surprise

Revvity Inc. price-eps-surprise | Revvity Inc. Quote

Other Factors to Consider

In May, RVTY’s EUROIMMUN launched the IDS i20 analytical platform, enabling complete automation of chemiluminescence immunoassays across six diagnostic specialties, including endocrinology, infectious diseases, and Alzheimer’s testing. With a capacity of up to 140 tests per hour, this FDA-listed and CE-marked instrument offers higher throughput and broader test consolidation, potentially driving incremental revenues in the Diagnostics segment during the quarter.

In June, RVTY introduced three Mimix reference standards for IVD use for monitoring oncology diagnostic testing workflows. These standards provide diagnostic labs with trusted quality controls for optimizing tests and monitoring workflows. The demand for these reference standards is likely to have been rising amid surging cancer diagnosis, bringing additional revenues during the soon-to-be-reported quarter.

In August, Revvity announced the launch of pHSense reagents, a powerful technology designed to advance internalization studies in drug discovery. With a growing focus on receptor trafficking in drug development and increasing demand for accurate, high-throughput tools, pHSense reagents offer support for emerging trends in oncology and precision medicine, particularly in ADC development, potentially driving the top line higher.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Intuitive Surgical this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.26%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #4 (Sell) at present.

Stocks Worth a Look

Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time around.

Globus Medical GMED has an Earnings ESP of +1.02% and a Zacks Rank #3 at present. The company is set to release third-quarter 2025 results on Nov. 6.

GMED’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 10.82%. According to the Zacks Consensus Estimate, GMED’s third-quarter EPS is expected to decline 6% from the year-ago reported figure.

Edwards Lifesciences EW has an Earnings ESP of +0.47% and a Zacks Rank #3 at present. The company is set to release third-quarter fiscal 2025 results on Oct. 30.

EW’s earnings surpassed estimates in three of the trailing four quarters and met once, with the average surprise being 5.5%. According to the Zacks Consensus Estimate, EW’s third-quarter EPS is expected to decline 11.9% from the year-ago reported figure.

McKesson MCK has an Earnings ESP of +0.78% and a Zacks Rank of 3 at present. The company is slated to release second-quarter fiscal 2026 results on Nov. 5.

MCK’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 1.50. According to the Zacks Consensus Estimate, MCK’s fiscal second-quarter EPS is expected to gain 26.2% from the year-ago reported figure.

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This article originally published on Zacks Investment Research (zacks.com).

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