VREX · Varex Imaging Corporation

Varex Imaging reported second quarter fiscal 2026 results showing modest revenue growth to $216 million, a 1% increase year-over-year, driven by solid demand in both Medical ($156 million) and Industrial ($60 million) segments amid momentum in global CT, cargo systems, and photon counting detectors. Despite revenue gains, GAAP profitability deteriorated with gross margin contracting to 34% from 36% prior year, operating margin to 7% from 10%, and a shift to net loss of $0.19 per diluted share from prior profit, primarily due to higher interest expense from debt refinancing and non-operational costs. Non-GAAP metrics remained positive with 34% gross margin, 9% operating margin, and $0.21 EPS, though down from $0.31 last year. CEO Sunny Sanyal highlighted continued momentum and favorable H2 demand trends positioning for year-over-year revenue growth. Balance sheet reflects cash decline to $88 million from $155 million at fiscal year-end, attributed to March debt redemption/refinancing and inventory buildup to $347 million for anticipated demand. Guidance signals optimism with full-year revenue $860-880 million, H2 up ~3% YoY, and Q3 revenue $210-225 million with non-GAAP EPS $0.15-0.30, excluding tariff refunds. Results are preliminary pending 10-Q filing.