Revvity Outlook Upgraded to Stable, Leverage 2.7x

Revvity Outlook Upgraded to Stable, Leverage 2.7x

S&P Global Ratings revised Revvity Inc.’s (NYSE:RVTY) outlook on Monday, moving it from negative to stable while affirming the company’s BBB issuer credit rating. The agency highlighted that Revvity has maintained adjusted leverage at or below three‑times earnings in recent quarters, despite substantial share repurchases, and expects this leverage to improve further, declining to 2.7 times by the end of 2026 and to 2.4 times in 2027.

The ratings firm projects Revvity’s free operating cash flow to exceed $500 million annually in the coming years. Of this cash, $400 million to $500 million is slated for share buybacks each of the next two years, while less than $100 million is earmarked for acquisitions during the same period. Revvity has publicly indicated its intention to repay notes that mature on July 19, 2026.

Organic revenue growth is forecast at 3.5 % to 4.5 % for both 2026 and 2027, driven by a gradual recovery in pharmaceutical and biotechnology spending. Additional tailwinds are expected from the company’s Reproductive Health segment and newer software offerings. Profit margins are anticipated to rise to the 30 %–31 % range in 2026 and 2027, supported by cost‑optimization measures and internal artificial‑intelligence initiatives. The planned divestiture of Revvity’s China‑based Immunodiagnostics business is projected to further lift profit margins by approximately 100 basis points in 2028.

Revvity has consistently kept its trailing‑12‑month adjusted leverage at or below three‑times earnings and has no track record of increasing debt to fund share repurchases.