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Revvity (RVTY) Deepens AI And Buybacks Strategy: Is Diagnostics Now Its Core Value Engine?

Simply Wall St·02/05/2026 14:46:07
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  • In early February 2026, Revvity, Inc. reported fourth-quarter 2025 results showing higher sales of US$772.06 million and improved earnings, as well as full-year 2025 revenue of US$2.86 billion alongside lower net income and diluted EPS than the prior year.
  • Beyond the headline beat, management highlighted 7% organic growth in the diagnostics segment, share repurchases of over US$800 million, and new AI-enabled drug discovery tools such as Signals Synthetica as evidence of progress in the company’s ongoing transformation.
  • We will now examine how the stronger diagnostics growth and slightly higher 2026 revenue outlook shape Revvity’s evolving investment narrative.

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What Is Revvity's Investment Narrative?

To own Revvity, you have to believe its diagnostics and software tools can compound value even if headline earnings stay lumpy. The latest Q4 and full year 2025 numbers support that view at the margin: diagnostics organic growth of 7%, a solid adjusted EPS beat and 2026 revenue guidance of US$2.96–2.99 billion keep the near term catalyst focused on execution rather than a reset. The quarter also reinforces the transformation story around AI-enabled platforms like Signals Synthetica and the ACD Labs acquisition, while US$800 million of buybacks and a steady US$0.07 dividend signal ongoing capital returns. The flip side is that weaker net income, low current returns on equity and a rich P/E against industry peers keep valuation, profitability and execution risk very much in play.

Despite retreating, Revvity's shares might still be trading 22% above their fair value. Discover the potential downside here.

Exploring Other Perspectives

RVTY 1-Year Stock Price Chart
RVTY 1-Year Stock Price Chart

Two Simply Wall St Community valuations sit between US$114.63 and US$133.56, framing a relatively tight spread of opinions. Set against Revvity’s slower forecast revenue growth and currently low profitability, that range underlines how differently investors can weigh execution risk and rewards, and why it pays to test your own view against several contrasting estimates.

Explore 2 other fair value estimates on Revvity - why the stock might be worth as much as 29% more than the current price!

Build Your Own Revvity Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.