Hologic's Diagnostics Strength in Focus: Is More Upside Ahead?

Hologic HOLX posted Diagnostics revenues of $464.4 million in the first quarter of fiscal 2026, down 1.3% from last year. The segment remains anchored by the molecular diagnostic assays, which run on the base Panther and the combined Panther Fusion advanced instrumentation systems. However, the quarter showed some pressure, with Molecular Diagnostics revenues declining 3.5%, mainly due to weaker sales of COVID-19 tests and legacy sexually transmitted infections (STI) assays.

The decrease was partially offset by stronger sales of BV, CV/TV tests and Panther Fusion assays. Hologic is actively targeting the vast U.S. vaginitis market by driving awareness and reimbursement for the high-throughput offering. Panther Fusion’s open access functionality allows customers to consolidate lab-developed tests (LDTs) and in vitro diagnostic (IVD) assays on a single platform. Last year, Hologic secured FDA 510(k) clearance and CE-IVDR marking for the Panther Fusion Gastrointestinal (GI) Bacterial and Expanded Bacterial Assays, supporting its menu diversification strategy. Biotheranostics is also seeing higher adoption of its Breast Cancer Index test, which helps guide extended endocrine therapy.

On the other side, Cytology and perinatal revenues rose 1.1% in the quarter. Sales of ThinPrep Pap tests were impacted by the U.S.-China tensions and other Chinese policies, dragging down Asia-Pacific revenues. The Genius Digital Diagnostics System, which blends novel artificial intelligence (AI) algorithms with advanced digital imaging to detect pre-cancerous lesions and cervical cancer cells, could emerge as a meaningful growth driver.

Recent developments also support prospects. In February 2026, the Aptima HPV Assay received FDA approval for clinician-collected HPV primary screening, expanding the Cervical Health Portfolio. The Genius System also gained expanded CE marking in the European Union, now approved to image and review both cell and tissue specimens.

Updates From Hologic’s Peers: BDX & ABT

Becton, Dickinson and Company BDX, or BD, has obtained CE Mark for the Revello Vascular Covered Stent, a next-generation endovascular solution for the treatment of atherosclerotic lesions in the common and external iliac arteries. The development comes at a time when lower???extremity peripheral artery disease (PAD), in which iliac artery disease is a key component, continues to place a substantial disability burden across the EU's aging population.

Abbott’s ABT CardioMEMS HERO, a next-generation pulmonary artery (PA) pressure reader, has received the FDA’s approval. The reader contains new design features to help empower heart failure patients and their clinicians with the daily insights they need to detect and combat heart failure progression. Abbott also secured CE Mark in Europe for the TactiFlex Duo Ablation Catheter, Sensor Enabled, its latest advancement in the pulsed field ablation (PFA) technology portfolio to treat atrial fibrillation in patients.

HOLX Stock Performance, Valuation and Estimates

In the past year, Hologic shares have risen 17.4% against the industry’s 4.2% fall.

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Hologic is trading at a forward, five-year price-to-sales (P/S) of 3.88X, lower than its median and the industry average.

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Here’s a quick look at Hologic’s earnings estimate trend.

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HOLX stock currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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