Varex Imaging Q2 adjusted EPS falls

Varex Imaging

07/05/2026 22:02

Overview

US X-ray imaging components maker's preliminary Q2 revenue up 1% yr/yr, slight miss to expectations

Non-GAAP EPS fell to $0.21 from $0.31 a year ago

Company cites solid demand in Medical and Industrial segments, led by CT and cargo systems

Outlook

Varex sees Q3 revenue between $210 mln and $225 mln

Company expects Q3 non-GAAP EPS between $0.15 and $0.30

Varex forecasts full-year 2026 revenue of $860 mln to $880 mln and non-GAAP EPS of $0.80 to $1.00

Result Drivers

SEGMENT DEMAND - Co said solid demand in Medical and Industrial segments, driven by global CT, cargo systems, and photon counting detectors, supported Q2 results

INVENTORY BUILD - Co increased working capital associated with inventory to support anticipated demand and future shipments

Company press release: ID:nBw47Xnd6a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Miss*
$216.0 mln
$216.92 mln (5 Analysts)
Q2 Net Income
-$8 mln
Q2 Gross Margin
34.00%
Q2 Adjusted Operating Margin
9.00%
Q2 Operating Income
$14.40 mln
Q2 Pretax Profit
-$6.40 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 47.9% above its May 6 closing price of $12.17

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

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.)