Revvity (RVTY) Q2 2026 Earnings: A 20-Cent Beat, 11 Cents A Tariff Refund

Revvity, Inc. (RVTY) Q2 2026 — Q2 2026: revenue $729.7M, +1.3% y/y. GAAP EPS from continuing operations $0.48; adjusted $1.41 vs a $1.21 bar. But the release says $16M of tariff refunds sit inside that, about $0.11 of EPS. BMO Aug 4; the stock closed -3.32%. Revvity beat by 20 cents - $1.41 against $1.21 - and raised full-year guidance. Its own release says about $0.11 came from tariff refunds. Strip them and adjusted operating margin was FLAT. The stock closed down 3.32%. THE CALL: AVOID (2/5, THE BEAT IS REAL; ITS COMPOSITION IS THE PROBLEM) — base-case value ~$98.00 vs ~$114.66 today. KEY METRICS: - CALL: AVOID 2/5, fair value $98 vs the $114.66 close (-14.5%), 14.8% BELOW the $115 Street median. Base: trailing FCF $573M less the $16M tariff refund = $564M; 7%/4.5%/2.5% terminal at 8.25%. EV $13.07B (terminal 60.8%) less net debt over 111.6M shares = $97.57. Bull $132, bear $60. - THE PRINT: revenue $729.688M, +1.3% y/y; pro forma $711.109M, +4.5%, and 3% pro forma ORGANIC. GAAP EPS from continuing ops $0.48 vs $0.47; adjusted $1.41 vs $1.18 against a $1.21 bar. Adjusted operating income $211.0M, margin 28.9% vs 26.6%. - EPS BASIS, PROVEN NOT ASSUMED: 1.41 vs 1.21 is the ADJUSTED line, not GAAP's $0.48. FY2025 adjusted quarters 1.01+1.18+1.18+1.70 = $5.07 vs the $5.06 full-year adjusted EPS reported. - THE TARIFF REFUND: the release states adjusted operating income includes $16M of tariff refunds and adjusted EPS about $0.11. $16M on $729.7M is 219 basis points, against margin expansion of 230. Ex-refund the margin was 26.7% vs 26.6% - FLAT - and the beat shrinks to $0.09. - THE SHRINKING BASE: pro forma excludes China IDX, ~6% of FY2025 revenue, under a definitive agreement signed July 31, 2026 for up to $200M, closing by end-2027. Its revenue fell $39.7M to $18.6M (-53.2%) and operating income swung +$6.1M to -$4.4M. - SEGMENTS: Life Sciences $358.699M, -2.0%, pro forma ORGANIC -3%; adjusted operating income $111.534M, margin 31.1% vs 31.6%. Diagnostics $370.989M, pro forma +12%, organic +11%; adjusted operating income $112.866M, +26.2%, margin 30.4% vs 25.2%. - GUIDANCE WALK: Feb 2 initiated FY2026 adjusted EPS $5.35-5.45 (mid $5.40). May 5 rebased pro forma to $5.20-5.30. Aug 4 raised to $5.30-5.40 - a genuine LIKE-FOR-LIKE raise. But after $0.24 of beats the midpoint is $0.05 BELOW February, and H1 of $2.45 implies H2 of $2.90 vs ~$3.00 in May. - BALANCE SHEET: cash $1,022.9M; net debt $2,182.3M. Goodwill plus intangibles is 73% of assets, so TANGIBLE book is negative $14.36 a share. Q2 FCF $183.9M; H1 $299.0M, +28%. Intangible amortisation $84.9M a quarter is $0.76 of the $1.41. What to watch: UP: adjusted EPS $1.41 (+19.5%), adjusted operating margin 28.9% (+230bp), Diagnostics organic +11% with margin +520bp, a genuine like-for-like guidance raise to $5.30-5.40, H1 free cash flow +28%, $1.02B cash. DOWN: $0.11 of the $0.20 beat was tariff refunds, ex-refund margin FLAT, Life Sciences organic -3%, the FY midpoint is still below February's, the buyback has stopped. Also on YouTube: @ChargedAlpha DISCLAIMER: For informational and educational purposes only. Not financial advice. Do your own research before any investment decision. Learn investing free in the Charged Alpha app: https://chargedalpha.com/app?source=youtube&ref=video Educational only. Not financial advice.