Varex Imaging Q3 revenue rises; Teledyne to acquire co for $1.1 billion

Varex Imaging

10/08/2026 12:18

Overview
US X-ray imaging components maker's Q3 revenue rose 4% yr/yr but missed expectations
Adjusted EPS for Q3 beat analyst expectations, more than doubling yr/yr
Tariff refunds boosted Q3 gross profit by about $10 mln
Sensing-systems maker Teledyne Technologies agreed to acquire Varex Imaging in an all-cash transaction valued at approximately $1.1 billion

Outlook
Company will not provide financial guidance due to pending Teledyne transaction

Result Drivers
INDUSTRIAL GROWTH - Co said strong growth in Industrial and expansion in cargo and vehicle inspection systems drove product sales before tariff adjustments
TARIFF REFUNDS - Recovery of previously paid tariffs and related customer reimbursement accrual boosted Q3 gross profit by about $10 mln
SEGMENT MIX - Industrial revenue increased while Medical revenue declined yr/yr, affecting overall revenue composition

Company press release: ID:nBw4W4LGGa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$210.5 mln
$213.94 mln (5 Analysts)
Q3 Adjusted EPS
Beat
$0.31
$0.21 (4 Analysts)
Q3 Net Income
 
$15.90 mln
 
Q3 Operating Income
 
$22.80 mln
 
Q3 Pretax Profit
 
$16.20 mln
 

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 Corporation is $18.00, about 45% above its August 7 closing price of $12.41
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Aug 10 - Teledyne to acquire Varex Imaging in $1.1 billion deal
Aug 7 - Ultralife Q2 revenue dips 1.3% gross margin improves on tariff refund
Aug 9 - RadNet raises outlook as Q2 revenue jumps 25%, adjusted EPS beats estimates 

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.)