Varex Imaging Corp. (VREX)
NASDAQHealth CareMedical - DevicesSnapshot 2026-09-04
$18.51-0.05%
Close 2026-09-04 · 1-day change
NASDAQHealth CareMedical - DevicesSnapshot 2026-09-04
Warn: Primary pillar under pressure — Non-GAAP EPS of $0.80-$1.00 for FY 2026: FY26 EPS guide $0.90 vs $0.80 target.
Varex Imaging aims for non-GAAP EPS of $0.80-$1.00 in fiscal 2026. Revenue is expected near $870 million for the year. The company has managed capital allocation with new credit agreements. Recent earnings beats show some operational improvement.
The company is still loss-making and EPS was negative in Q2 2026. Progress toward the full-year EPS target is limited. Elevated risk and a 15.5% drawdown show market concerns. Capital structure changes may pressure financial health.
The price is about 45% below our fair value near $20. Analysts expect about 7% revenue growth. The market prices in a cautious outlook given the company’s loss-making status and uncertain EPS progress.
Breaks if: New financial obligations or credit issues increase risk materially
Maintain disciplined capital allocation including debt refinancing and cash management to support operations and growth.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a speculative growth opportunity in the healthcare sector. The current thesis state is intact, supported by recent earnings performance and strategic acquisitions, but it faces challenges from mixed management execution and market conditions.
The market currently prices VREX as relatively cheap compared to its peers, with a low expectations gap. However, it is also seen as loss-making, which indicates that investors are cautious about its ability to achieve profitability in the near term.
Management is focused on achieving revenue growth and has set specific targets for fiscal year 2026. However, recent cash flow trends are concerning, showing a decline in cash from operations, which could impact future performance.
The long-term thesis hinges on several factors, including the ability to meet revenue and EPS targets, as well as broader sector performance. If key healthcare companies continue to perform well, it could provide a favorable backdrop for VREX.
The most important moves since the prior daily snapshot.
Signal changed from 'mild_favorable' to 'mixed'.
Yes, our read has strengthened. The latest earnings beat supports this improvement. Teledyne's agreement to acquire Varex enhances its growth potential and market position. There are no new threats to the thesis.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 2 of last 2 quarters. Cash and equivalents decreased from $155 million at 2025-Q4 to $88 million at 2026-Q2, reflecting debt redemption and refinancing completed in March 2026. Cash from operations turned negative $2 million in 2026-Q2 from positive $25.9 million in 2025-Q4. Management is actively managing capital allocation but recent cash flow trends show limited progress.
“Change in cash reflects debt redemption and refinancing completed in March 2026”
“Company issued a press release announcing closing of Credit Facility in March 2026”
Breaks if: EPS falls below $0.80 for FY 2026
Breaks if: Annual revenue falls below $860 million in FY 2026
Over the next 1 to 3 years, VREX's performance will depend on its execution against management priorities and the overall health of the healthcare sector. Not investment advice.