SALT LAKE CITY, May 7, 2026 – Varex Imaging Corporation (Nasdaq: VREX) today announced its unaudited financial results for the second quarter fiscal year 2026.
Q2FY26 Summary
- Revenues $216 million
- GAAP gross margin 34% | Non-GAAP gross margin* 34%
- GAAP operating margin 7% | Non-GAAP operating margin* 9%
- GAAP net loss $0.19 per diluted share | Non-GAAP net income* $0.21 per diluted share
- Cash outflows from operations of $2 million
“Demand remained solid in the second quarter, with continued momentum across both our Medical and Industrial businesses driven by global CT, cargo systems and photon counting detectors,” said Sunny Sanyal, Chief Executive Officer. Sanyal added, “As we move into the second half of fiscal 2026, we are encouraged by favorable demand trends across both Medical and Industrial segments. We believe these dynamics position us well to grow revenue year-over-year in the second half of fiscal 2026.”
Varex’s second quarter revenue of $216 million was up 1% year-over-year. Medical segment revenue was $156 million, while Industrial segment revenue was $60 million. Non-GAAP gross margin was 34% in the quarter compared to 36% in the second quarter of fiscal year 2025, and non-GAAP EPS decreased to $0.21 in the quarter from $0.31 in the second quarter of fiscal year 2025.
Balance Sheet & Cash Flow
Cash outflows from operations was $2 million in the second quarter of fiscal year 2026. Cash, cash equivalents, and marketable securities was $88 million as of the end of the second quarter, compared to $155 million at the end of fiscal year 2025. The change in cash primarily reflects the Company’s debt redemption and refinancing completed in March, as well as increased working capital associated with inventory to support anticipated demand and future shipments.
Outlook
For the second half of fiscal 2026, revenue is expected to be up approximately 3% compared to the second half of fiscal 2025. As a result, full fiscal year 2026 revenue is expected to be in the range of $860 million to $880 million and non-GAAP EPS to be in the range of $0.80 to $1.00.
Guidance for the third quarter of fiscal year 2026 is as follows:
- Revenues are expected to be between $210million and $225 million
- Non-GAAP net earnings per diluted share is expected to be between $0.15 and $0.30
While the Company has applied for tariff refunds, no International Emergency Economic Powers Act (IEEPA) tariff refund is assumed in guidance.
Guidance for the company’s net earnings per diluted share is provided on a non-GAAP basis only. This non-GAAP financial measure is forward-looking, and the company is unable to provide a meaningful or accurate reconciliation to a GAAP forecast of net earnings per diluted share without unreasonable effort due to certain of these reconciling items being uncertain, out of its control, and the amount and timing of these items being unable to be reasonably predicted. The actual amounts of such reconciling items could have a significant impact on the company’s GAAP net income (loss) per diluted share.
Non-GAAP Financial Measures
*Please refer to “Reconciliation between GAAP and non-GAAP Financial Measures” below for a reconciliation of non-GAAP items to the comparable GAAP measures.
Conference Call Information
Varex will conduct its earnings conference call for the second quarter of fiscal year 2026 today at 3:00 p.m. Mountain Time. The conference call, including a supplemental slide presentation, will be webcast live and can be accessed at Varex’s website at www.vareximaging.com/investor-relations. Access will also be available by dialing 877-524-8416 from anywhere in the U.S. or by dialing 412-902-1028 from non-U.S. locations. The webcast and supplemental slide presentation will be archived on Varex’s website at www.vareximaging.com/financial-reports. A replay of the call will be available from today through May 21st at 877-660-6853 from anywhere in the U.S. or 201-612-7415 from non-U.S. locations. The replay access code is 13760146. The listen-only webcast link is: https://event.choruscall.com/mediaframe/webcast.html?webcastid=yalsKXji
About Varex
Varex Imaging Corporation is a leading innovator, designer, and manufacturer of X-ray imaging components, which include X-ray tubes, digital detectors, and other image processing solutions that are key components of X-ray imaging systems, as well as X-ray imaging systems for industrial applications. With a 70+ year history of successful innovation, Varex’s products are used in medical imaging as well as in industrial and security imaging applications. Global OEM manufacturers incorporate the company’s X-ray sources, digital detectors, connecting devices, and imaging software in their systems to detect, diagnose, protect, and inspect. Headquartered in Salt Lake City, Utah, Varex employs approximately 2,450 people located in North America, Europe, and Asia. For more information visit www.vareximaging.com.
Forward Looking Statements
This news release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements concerning unaudited financial results; revenue and earnings guidance; industry or business outlook; product demand environment; expected future financial results or performance; and any statements using the terms “believe,” “expect,” “anticipate,” “can,” “should,” “would,” “could,” “estimate,” “may,” “intend,” and “potential,” or similar statements are forward-looking statements that involve risks and uncertainties that could cause the company’s actual results and the outcome and timing of certain events to differ materially from those projected or management’s current expectations. While forward-looking statements are based on assumptions and analyses made by management of Varex that it believes to be reasonable under the circumstances, actual results and developments will depend on a number of risks and uncertainties which could cause actual results, performance, and financial condition to differ materially from such expectations. Such risks and uncertainties include: changes in import/export regulatory regimes, tariffs, trade wars, and national policies, including exemptions thereto; reduction in or loss of business of one or more of the company’s limited original equipment manufacturing customers; global, regional, and country-specific economic instability, shifting political environments, changing tax treatment, tariffs, trade wars, and other risks associated with international manufacturing, operations and sales; loss of business to, and an inability to effectively compete with, competitors; pricing pressures and other factors that could result in market erosion or loss of customers; failure to meet customers’ needs and demands; supply chain disruptions resulting in delayed product delivery, and increased costs as a result of reliance on a limited number of suppliers for certain key components; disruption of critical information systems or material breaches in the security of such systems; inability to maintain or defend intellectual property rights, and cost associated with protecting the company’s intellectual property and defending such rights and defending against infringement claims; non-compliance with regulations applicable to marketing, manufacturing, labeling, and distributing the company’s products and delays in obtaining regulatory clearances or approvals; limitations imposed by operating and financial restrictions of the company’s debt financing agreements; the financial results of the company’s equity method investments and joint ventures, and the other risks listed from time to time in the company’s filings with the U.S. Securities and Exchange Commission. Any forward-looking statement made by us in this news release speaks only as of the date on which it is made. Factors or events that could cause the company’s actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Varex assumes no obligation to update or revise the forward-looking statements in this release because of new information, future events, or otherwise.
Varex has not filed its Form 10-Q for the second quarter of fiscal year 2026. All financial results described here should be considered preliminary and are subject to change to reflect any necessary adjustments or changes in accounting estimates that are identified prior to the time Varex files its Form 10-Q.
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For Information Contact:
Christopher Belfiore
Director of Investor Relations
Varex Imaging Corporation
801.973.1566 | christopher.belfiore@vareximaging.com
