Revvity (RVTY): Evaluating Valuation Following Q3 Earnings Results and $1 Billion Buyback Announcement

Revvity (RVTY) got investor attention this week after reporting its third quarter earnings, which showed higher sales but lower profits year over year, and announcing a fresh $1 billion share buyback program.

See our latest analysis for Revvity.

Revvity’s third quarter buzz came amid a year marked by weak momentum. The share price has slipped 16% year-to-date, and the one-year total shareholder return sits at -22%. Even with the new buyback on deck and a fresh financial chief appointed, the stock’s longer-term performance remains underwhelming. This suggests that investors are still waiting for a firmer sign of recovery.

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With shares now trading at a notable discount to analyst price targets and management reaffirming growth guidance, is Revvity an undervalued opportunity? Or is the market already accounting for the company’s recovery prospects?

Most Popular Narrative: 17.7% Undervalued

Revvity’s most widely followed narrative points to a fair value of $113.67 per share, nearly $20 higher than the last close at $93.59. The stage is set for a rebound, with multiple internal shifts and future margin expansion drawing attention from analysts and investors alike.

Ongoing shift in product mix toward higher-margin, software-enabled and consumables-driven offerings (e.g., SaaS Signals, reagents, new IDS i20 platform), along with structural cost actions, are expected to materially expand operating and net margins. The year 2026 is set to start at a higher 28% operating margin baseline.

Read the complete narrative.

Curious how margin leaps, segment pivots, and big cost changes produce a valuation nearly one-fifth above today’s price? The hidden engine here is a blend of higher profitability and strategic portfolio moves that might surprise you. Discover which bold financial leaps underline this “undervalued” call. Read the full narrative to see the numbers behind the story.

Result: Fair Value of $113.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent regulatory changes in China or ongoing funding pressures in key academic markets could present challenges to Revvity’s anticipated recovery and margin expansion.

Find out about the key risks to this Revvity narrative.

Build Your Own Revvity Narrative

If you have a different perspective or want to dive into the numbers yourself, crafting your own narrative is quick and simple. Do it your way with Do it your way.

A great starting point for your Revvity research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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.

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