Varex Reports Strong Q1 FY26 Results, Exceeding Guidance with 5% Revenue Growth
Summary
Varex Imaging Corporation announced solid first-quarter fiscal year 2026 results, with revenues up 5% year-over-year and non-GAAP diluted EPS nearly doubling, meeting the high end of guidance.
Key Events
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Q1 FY26 Financial Performance
Reported revenues of $210 million, a 5% year-over-year increase, with non-GAAP diluted EPS of $0.19, nearly doubling from $0.10 in the prior year.
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Guidance Exceeded
Q1 results were at the high end of the company's guidance, indicating strong operational execution.
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Industrial Segment Growth
The Industrial segment revenue grew 17% year-over-year, primarily driven by strength in cargo systems.
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Updated Non-GAAP Policy
The company modified its non-GAAP policy to exclude gains and losses from equity-method investments, aiming to provide a clearer view of ongoing operations.
Analysis
Varex Imaging Corporation delivered a solid start to fiscal year 2026, reporting revenues of $210 million, a 5% increase year-over-year, driven by robust performance in its Industrial segment. Non-GAAP diluted EPS significantly improved to $0.19 from $0.10 in the prior year, indicating improved profitability. While the company experienced a cash outflow from operations due to increased working capital, the overall financial performance met the high end of guidance. The updated non-GAAP policy, which now excludes equity-method investment gains/losses, provides a clearer view of core operational performance. The positive Q2 FY26 revenue and EPS guidance suggests continued momentum, aligning with the stock trading near its 52-week high.
At the time of this filing, VREX was trading at $14.08 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $593.2M. The 52-week trading range was $6.76 to $14.57. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.