Varex Reports Mixed Q2 2026 Results Amid Industrial and Medical Demand
Event summary
- Varex Imaging Corporation reported Q2 FY2026 revenues of $216 million, up 1% year-over-year.
- Non-GAAP gross margin declined to 34% from 36% in Q2 FY2025.
- Non-GAAP net income per diluted share was $0.21, down from $0.31 in the same period last year.
- Cash outflows from operations were $2 million, with cash reserves dropping to $88 million from $155 million.
- Revenue guidance for the second half of FY2026 is expected to be up approximately 3% year-over-year.
The big picture
Varex's Q2 FY2026 results reflect solid demand in both Medical and Industrial segments, driven by global CT, cargo systems, and photon counting detectors. However, the company faces challenges in maintaining profitability amid declining margins and reduced cash reserves. The strategic focus will be on leveraging favorable demand trends to drive year-over-year revenue growth in the second half of fiscal 2026.
What we're watching
- Revenue Growth
- Whether Varex can sustain its 3% revenue growth guidance amid declining margins.
- Cash Reserves
- The pace at which Varex can replenish its cash reserves after a significant drop.
- Operational Efficiency
- How Varex will address the decline in non-GAAP gross margin and improve operational efficiency.
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