Revvity (PKN) Q2 2026 Earnings Report

The call presented a generally positive operational and financial picture: revenue and EPS beat with upgraded full-year guidance, strong Diagnostics performance, accelerating high-content instrument orders and robust cash flow and balance sheet improvements. Key near-term weaknesses include a sizable decline in Signals software revenue this quarter, some production/timing constraints that shifted instrument revenue into Q3, and portions of the quarter's outperformance tied to one-time tariff refunds and tax timing. Management plans reinvestments of a portion of one-time benefits while highlighting new software capabilities and AI-driven demand as multi-year growth drivers—though the AI opportunity is still early and not fully quantifiable.

Revvity raised its 2026 pro forma outlook: organic growth now 4–5% (vs. 3–4%), with FX contributing ~50 bps and the ACD/Labs acquisition ~75 bps, implying pro forma revenue of $2.83–$2.86B; pro forma adjusted operating margin is now 28.7% (up 30 bps) and pro forma adjusted EPS is $5.30–$5.40 (up $0.10), with net interest & other expense ~ $90M, a full‑year tax rate of ~18%, diluted share count ~112M, and a target gross leverage <3x and net leverage approaching 2x by year‑end (net debt/EBITDA was 2.5x at quarter end). For Q3 they guide organic growth of 4–6%, revenue of $685–$700M, ~29% pro forma adjusted operating margin, net interest ~$23M, a Q3 tax rate of ~19% and Q3 EPS ~24% of the full‑year outlook; management noted $16M of tariff refunds in Q2 (about half of Q2 EPS upside) and said most refunds have been received with any additional amounts expected to be immaterial.