Revvity Inc.'s stock soared 6.24% during intraday trading on Tuesday, driven by the company's better-than-expected first-quarter financial results and a strategic announcement to divest its underperforming China immunodiagnostics business.

The health sciences company reported adjusted earnings of $1.06 per share for Q1 2026, surpassing the FactSet consensus estimate of $1.02. Revenue climbed to $711.1 million, also beating analyst expectations of $704.2 million. This represents the company's first positive growth from pharmaceutical and academic customers since the second quarter of 2023.

Investors reacted positively to Revvity's strategic decision to exit its China immunodiagnostics unit, which accounted for approximately 6% of fiscal 2025 revenue. The company cited persistent policy-induced headwinds in China's healthcare market that have impacted customer demand and pricing. Analysts view this divestiture as strategically sound, noting it should aid organic growth by about 100 basis points. The company has entered a letter of intent with a potential buyer and expects to reach a definitive agreement in the second quarter of 2026.