Varex Imaging Corp
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.35%.
Did VREX Beat Earnings? Q4 2025 Results
Varex Imaging delivered a clear beat across the board in Q4 fiscal 2025, with revenue climbing 11.3% year-over-year to $228.90 million against a consensus estimate of $219.26 million, while non-GAAP EPS of $0.37 landed more than double the $0.18 Wall Street had anticipated, a 102.74% positive surprise. The headline driver was a combination of strength in CT tube sales within the Medical segment and a 25% surge in Industrial segment revenue, fueled by cargo systems demand that produced over $55 million in orders for the full fiscal year. Non-GAAP gross margin expanded to 34.2% from 32.9% a year earlier, and non-GAAP operating margin widened to 10.1% from 7.0%, reflecting improved operating leverage. One analyst characterized Varex as a deep-value name with meaningful upside, even while trimming a price target following results. Looking ahead, management guided Q1 FY2026 revenue of $200 million to $215 million and non-GAAP EPS of $0.05 to $0.25, reflecting a typical seasonal step-down from the fiscal fourth quarter.
- Global CT tube sales drove Medical segment growth
- Sustained momentum in cargo systems business drove 25% Industrial segment growth
- Non-GAAP gross margin improvement to 34.2% from 32.9% year-over-year
- Non-GAAP EBITDA grew 37% to $122 million for full fiscal year
“Fourth quarter revenue reached $229 million, up 11% year-over-year and at the high-end of our expectations. This strong finish to the fiscal year was driven primarily by global CT tube sales in our Medical segment, while sustained momentum in our cargo systems business drove a 25% increase in Industrial segment sales compared to last year.”
Varex Imaging CEO, on the earnings call
Forward Guidance & Outlook
For Q1 FY2026, Varex expects revenues of $200 million to $215 million and non-GAAP net earnings per diluted share of $0.05 to $0.25.
VREX YoY Financials
VREX Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.