Varex Imaging's Q1 revenue up 5%, slightly beats estimates

Varex Imaging

10/02/2026 21:18

Overview

X-ray imaging components maker's Q1 revenue rose 5% yr/yr, slightly beating analysts' expectations

Non-GAAP EPS increased to $0.19 from $0.10 in the prior year

Growth driven by 17% increase in Industrial segment revenue, led by cargo systems

Outlook

Company expects Q2 FY26 revenue between $210 mln and $225 mln

Varex anticipates strong demand for CT products and cargo security systems

Company forecasts Q2 FY26 non-GAAP EPS between $0.15 and $0.25

Result Drivers

CARGO SYSTEMS - Growth in the quarter was driven by strength in cargo systems business, contributing to a 17% year-over-year increase in Industrial segment revenue, said CEO Sunny Sanyal

INVENTORY IMPACT - Cash outflow from operations was driven by an increase in working capital, primarily due to inventory

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$209.60 mln
$207.69 mln (5 Analysts)
Q1 Net Income
$2.40 mln
Q1 Gross Margin
33.00%
Q1 Adjusted Operating Margin
9.00%
Q1 Operating Income
$15.40 mln
Q1 Pretax Profit
$3.80 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

Wall Street's median 12-month price target for Varex Imaging Corp is $18.00, about 28.2% above its February 9 closing price of $14.04

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nBwbC47Lfa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)