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Varex Imaging

Varex Imaging (VREX) Q3 2026 Earnings

Reported Aug 10, 2026 at 7:32 AM ET · SEC Source

Q3 26 EPS Adjusted

$0.31

BEAT +56.57%

Est. $0.20

Q3 26 Revenue

$210.5M

MISS 2.32%

Est. $215.5M

vs S&P Since Q3 26

+50.1%

BEATING MARKET

VREX +49.2% vs S&P -0.9%

Market Reaction

Did VREX Beat Earnings? Q3 2026 Results

Varex Imaging Corp delivered a sharply mixed fiscal third-quarter report, posting adjusted EPS of $0.31 that topped the $0.20 consensus estimate by 56.57%, extending the company's streak of beating EPS expectations to four consecutive quarters, while… Read more Varex Imaging Corp delivered a sharply mixed fiscal third-quarter report, posting adjusted EPS of $0.31 that topped the $0.20 consensus estimate by 56.57%, extending the company's streak of beating EPS expectations to four consecutive quarters, while revenue of $210.50 million came in 2.32% below the $215.50 million estimate despite growing 3.7% year-over-year. The headline numbers were meaningfully shaped by tariff-related items: Varex received $17.00 million in U.S. Customs refunds for previously paid IEEPA tariffs, partially offset by a $7.00 million revenue reduction tied to expected customer reimbursements, together boosting gross profit by roughly $10.00 million and lifting non-GAAP gross margin to 36.7% from 33.5% a year ago. Industrial revenue surged to $76.50 million from $60.90 million, driven by cargo and vehicle inspection systems, even as Medical revenue slipped to $134.00 million from $142.10 million. Overshadowing the results entirely, Varex announced a pending acquisition by Teledyne Technologies, prompting the cancellation of its earnings call and withdrawal of forward guidance for the foreseeable future.

Key Takeaways

  • • Strong growth in Industrial segment revenue
  • • Continued expansion in cargo and vehicle inspection systems
  • • $17 million in IEEPA tariff refunds from U.S. Customs, net of $7 million customer reimbursement accrual, boosted gross profit by approximately $10 million
  • • Non-GAAP gross margin expansion to 36.7% from 33.5% year-over-year
  • • Non-GAAP operating margin improvement to 11.6% from 8.2% year-over-year

VREX Forward Guidance & Outlook

Varex has cancelled its earnings conference call and will not be providing financial guidance in conjunction with its Q3 FY2026 earnings release, in light of the announced pending acquisition transaction with Teledyne Technologies Incorporated, as is customary during the pendency of such a transaction.

24/7 Wall St

VREX YoY Financials

Q3 2026 vs Q3 2025, source: SEC Filings

24/7 Wall St

VREX Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 25 Q3 26

“Third-quarter product sales before the IEEPA-related customer reimbursement adjustment were approximately $217 million, reflecting strong growth in Industrial and continued expansion in cargo and vehicle inspection systems. The quarter also included the recovery of tariffs that had increased our product costs in prior periods. We generated $21 million of operating cash flow and enter the fourth quarter with continued momentum.”

— Sunny Sanyal, Q3 2026 Earnings Press Release

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