Varex Imaging (NASDAQ:VREX) Releases Earnings Results, Misses Estimates By $0.01 EPS

Varex Imaging (NASDAQ:VREX) issued its earnings results on Thursday. The company reported $0.21 EPS for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.01), FiscalAI reports. The firm had revenue of $216.00 million for the quarter, compared to analyst estimates of $216.92 million. Varex Imaging had a positive return on equity of 8.43% and a negative net margin of 7.92%. Varex Imaging updated its Q3 2026 guidance to 0.150-0.300 EPS.

Here are the key takeaways from Varex Imaging’s conference call:

• Varex reported Q2 revenue of $216M, non‑GAAP gross margin of 34%, non‑GAAP EPS of $0.21, and provided full‑year guidance of $860M–$880M revenue and $0.80–$1.00 non‑GAAP EPS.
• The company completed a debt refinancing that reduced outstanding debt and annual interest expense, leaving net debt of about $263M and trailing‑12M leverage near 2.2x, improving financial flexibility.
• Industrial momentum continued—bookings and implementations for cargo inspection systems increased, photon‑counting adoption (notably in food inspection) is strong, and management expects industrial to be an expanding growth and margin driver.
• Operational headwinds include inventory rising to $347M (220 days), cash down $37M (mainly from refinancing), a GAAP net loss of $8M (GAAP EPS −$0.19), and a $1.8M non‑cash mark‑to‑market charge on Micro‑X shares that management did not adjust out.
• Manufacturing ramps in India are underway—detector capacity utilization is currently low but expected to reach ~60%–70% by year‑end, which management says should shift a current gross‑margin/OpEx headwind into a tailwind over time.

Varex Imaging Stock Performance

NASDAQ VREX traded down $0.34 during trading hours on Thursday, hitting $11.83. The company had a trading volume of 563,251 shares, compared to its average volume of 272,965. The company has a debt-to-equity ratio of 0.75, a quick ratio of 1.87 and a current ratio of 3.89. Varex Imaging has a 1-year low of $6.76 and a 1-year high of $14.56. The company has a market cap of $495.68 million, a PE ratio of -7.21 and a beta of 0.96. The business has a 50 day moving average of $11.55 and a 200-day moving average of $12.17.

Analyst Ratings Changes

A number of equities analysts recently commented on the stock. B. Riley Financial reiterated a “buy” rating on shares of Varex Imaging in a research note on Thursday, February 12th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Varex Imaging in a research note on Friday, March 27th. Jefferies Financial Group reiterated a “hold” rating and set a $14.50 target price on shares of Varex Imaging in a research note on Monday, February 2nd. Zacks Research upgraded shares of Varex Imaging from a “hold” rating to a “strong-buy” rating in a research note on Monday, April 13th. Finally, Wall Street Zen downgraded shares of Varex Imaging from a “strong-buy” rating to a “buy” rating in a research note on Saturday, April 25th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $16.17.

Insider Transactions at Varex Imaging

In other Varex Imaging news, Director Jay K. Kunkel sold 4,510 shares of the company’s stock in a transaction on Friday, March 20th. The shares were sold at an average price of $11.14, for a total value of $50,241.40. Following the completion of the transaction, the director owned 23,450 shares in the company, valued at $261,233. This represents a 16.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 4.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Varex Imaging

Large investors have recently bought and sold shares of the stock. Quarry LP acquired a new position in Varex Imaging in the third quarter valued at $64,000. Aquatic Capital Management LLC acquired a new stake in shares of Varex Imaging during the third quarter worth about $117,000. Inceptionr LLC acquired a new stake in shares of Varex Imaging during the third quarter worth about $152,000. Glenmede Investment Management LP acquired a new stake in shares of Varex Imaging during the third quarter worth about $153,000. Finally, Quadrature Capital Ltd acquired a new stake in shares of Varex Imaging during the fourth quarter worth about $147,000.

Varex Imaging Company Profile

Varex Imaging Corporation is a global provider of X-ray imaging components and solutions for the medical, security and industrial markets. The company designs, develops and manufactures a broad range of products that convert X-ray energy into high-resolution digital images. Its portfolio includes X-ray tubes, flat panel detectors, digital sensors, specialty radiographic tubes and related software, all engineered to meet the demanding requirements of original equipment manufacturers (OEMs) in diagnostic imaging, computed tomography (CT), fluoroscopy, mammography, dental radiography and non-destructive testing applications.

The company’s medical imaging offerings support a wide spectrum of clinical modalities, from portable radiography systems to advanced CT scanners, enhancing image quality and dose efficiency for healthcare providers.