{
  "id": 7323274,
  "title": "Revvity at Morgan Stanley conference: AI, margins and growth",
  "url": "https://urgent.news/2026/09/14/revvity-at-morgan-stanley-conference-ai-margins-and-growth",
  "topic": "ai",
  "section": "AI",
  "published": "2026-09-14T13:12:58.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/transcripts/revvity-at-morgan-stanley-conference-ai-margins-and-growth-93CH-4899722"
  },
  "original_language": "en",
  "account": "On Monday, September 14, 2026, Revvity (RVTY) addressed the Morgan Stanley 24th Annual Global Healthcare Conference to discuss its evolving business. The company has shifted focus toward differentiated life sciences and diagnostics offerings. However, this transformation has encountered challenges such as uneven demand in certain end markets and an ongoing China divestiture process. Management reported that these changes have led to cash flow conversion exceeding 90% and operating margins approaching the upper 20s in 2026. Long-term organic growth is projected at 6% to 8%, with life sciences expected to lead growth and diagnostics following behind. The Signals software business remains a significant growth driver, with a net retention rate of 106% to 107%. The company aims to double this business within four to five years. AI is influencing demand for reagents and software as pharma companies develop \"lab in the loop\" workflows, still requiring wet-lab validation. Revvity plans to divest its China immunodiagnostics business by the end of 2027 while retaining a minority stake and specific commercial rights. CFO Max Krakowiak highlighted the company's transition from an instrument-focused model to a recurring, innovation-driven business. Cash flow conversion has consistently surpassed 90%, up from roughly 70% historically. Operating margins are anticipated to reach the upper 20s in 2026, compared to the low 20s before the transformation. The company aims for organic growth of 6% to 8% over time and expects north of 40% incremental margins. Revvity has repurchased about 15% of its shares outstanding over the past couple of years and reduced debt to lower leverage. The company's portfolio and execution profile now support a more balanced financial model. Life sciences and diagnostics both show growth potential, though at varying speeds. The reagents segment has outpaced peers, growing several hundred basis points faster despite a challenging market environment. Over 95% of reagents are delivered within 24 hours of order, providing a competitive edge. Flow cytometry accounts for around 40% of the reagents business, while research reagents and other non-flow products make up 40% to 45%, growing faster. The company has experienced stronger demand in both instruments and reagents, raising its second-half forecast. Life sciences reagents benefit from product quality, competitive pricing, and a comprehensive pre-clinical research value chain. The company is well-positioned for AI-driven data generation in pharma, with customers increasingly discussing \"lab in the loop\" infrastructure where AI aids compound design, but wet labs must validate before clinical development. Signals is an ERP-like system for preclinical scientists, managing compound design, experiment documentation, and result analysis. Its net retention is between 106% and 107%, and management believes the business could double from current levels within four to five years. The recently launched Signals Xynthetica platform aims to host AI models alongside preclinical research data, complementing the core software without weakening it. Revvity expects AI to enhance Signals, which remains crucial for regulatory compliance and clinical submission work. Signals is also expanding into tier 2 and tier 3 pharma, smaller biotech firms, and material science customers. The company plans to grow its product offerings in biodesign, logistics, and other workflow tools. In the diagnostics segment, reproductive health and immunodiagnostics represent different growth patterns. Reproductive health, primarily driven by newborn screening, continues to grow despite declining global birth rates. This growth is fueled by testing more than 100 million babies worldwide, added markers in existing programs, and new assays for previously untreatable conditions. Genomics England's partnership is aiding results in 2026. Reproductive health is expected to grow in the double digits in the first half of 2026 and slow to low single digits in the second half due to tougher comparisons and normalizing instrument placements, though full-year growth is projected at high single digits above the company's 2% to 4% long-term plan. The Omics business, focusing on genomic screening programs and companion diagnostics partnerships, is positioned for larger growth targets of 9% to 11%. Areas like autoimmune, allergy, and tuberculosis testing, primarily in the U.S., present growth opportunities. The company sees potential in TB testing, which currently hinders performance. Immunodiagnostics has shown strength in the U.S. market, representing 15% to 20% of the business, while the U.S. accounts for about 40% of the total addressable market. Management believes there is room to expand U.S. adoption and menu registration.",
  "summary": null,
  "key_points": [
    "Revvity focuses on differentiated life sciences and diagnostics at Morgan Stanley conference.",
    "Cash flow conversion exceeds 90%, operating margins approaching upper 20s in 2026.",
    "AI influences demand for reagents and software in pharma's lab in the loop workflows."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Investing.com",
        "title": "Pfizer at Morgan Stanley conference: pipeline, AI and China focus",
        "url": "https://urgent.news/2026/09/14/pfizer-at-morgan-stanley-conference-pipeline-ai-and-china-focus",
        "published": "2026-09-14T15:43:31.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}