Medical equipment maker Revvity on Monday raised its annual profit forecast and reported better-than-expected third-quarter earnings, driven by stronger demand for its testing kits in the diagnostics unit.
Despite the upbeat outlook, shares fell 2.7% in volatile premarket trading as overall revenue missed market expectations.
Revenue from the diagnostics unit, which supplies testing tools, grew 3% to $356.1 million, surpassing analysts’ projections of $350.6 million, according to LSEG data.
Revvity joined peers such as Thermo Fisher Scientific in witnessing renewed demand for contract research and diagnostics services, as U.S. pharmaceutical companies accelerate drug development amid shifting trade policies under President Donald Trump.
Earlier this year, Revvity had cautioned about a $135 million impact from U.S. tariffs on China and outlined plans to reconfigure its manufacturing operations.
The company now expects 2025 adjusted earnings in the range of $4.90–$5.00 per share, compared to the earlier forecast of $4.85–$4.95.
For the third quarter, Revvity reported $699 million in revenue, slightly below estimates of $700.5 million, while adjusted profit of $1.18 per share exceeded expectations of $1.14.