Varex Imaging (NASDAQ:VREX) Releases Earnings Results

Varex Imaging (NASDAQ:VREX) posted its earnings results on Thursday. The company reported $0.21 earnings per share for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.01), FiscalAI reports. The company had revenue of $216.00 million for the quarter, compared to the consensus estimate 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

Shares of Varex Imaging stock opened at $11.83 on Friday. The company has a quick ratio of 1.87, a current ratio of 3.89 and a debt-to-equity ratio of 0.75. Varex Imaging has a twelve month low of $6.76 and a twelve month high of $14.56. The stock has a market cap of $495.68 million, a price-to-earnings ratio of -7.21 and a beta of 0.96. The company’s fifty day moving average is $11.55 and its 200 day moving average is $12.17.

Analyst Ratings Changes

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

Insider Buying and Selling at Varex Imaging

In related news, Director Jay K. Kunkel sold 4,510 shares of the business’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 sale, the director owned 23,450 shares of the company’s stock, valued at $261,233. The trade was a 16.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 4.60% of the stock is currently owned by corporate insiders.

Institutional Trading of Varex Imaging

Institutional investors have recently bought and sold shares of the company. Empowered Funds LLC raised its holdings in shares of Varex Imaging by 7.3% during the first quarter. Empowered Funds LLC now owns 179,128 shares of the company’s stock valued at $2,078,000 after purchasing an additional 12,151 shares during the period. Jane Street Group LLC raised its holdings in shares of Varex Imaging by 17.9% in the 1st quarter. Jane Street Group LLC now owns 159,362 shares of the company’s stock worth $1,849,000 after acquiring an additional 24,160 shares during the last quarter. Rhumbline Advisers grew its position in Varex Imaging by 4.6% in the 2nd quarter. Rhumbline Advisers now owns 61,820 shares of the company’s stock worth $536,000 after purchasing an additional 2,694 shares in the last quarter. Hsbc Holdings PLC grew its position in Varex Imaging by 19.7% in the 2nd quarter. Hsbc Holdings PLC now owns 47,525 shares of the company’s stock worth $408,000 after purchasing an additional 7,825 shares in the last quarter. Finally, Quantbot Technologies LP grew its position in Varex Imaging by 25.1% in the 2nd quarter. Quantbot Technologies LP now owns 47,292 shares of the company’s stock worth $410,000 after purchasing an additional 9,476 shares in the last quarter.

About Varex Imaging

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.