Varex Imaging 2025 Q4 Earnings Record Revenue and 123.9% Net Income Turnaround

Varex Imaging (VREX) reported fiscal 2025 Q4 earnings on Nov 18, 2025, with revenue rising 11.3% to $228.9 million and a dramatic turnaround in profitability. The company exceeded Wall Street expectations, delivering EPS of $0.29 (vs. a $1.24 loss in 2024 Q4) and net income of $12.2 million (vs. a $51 million loss). Guidance for Q1 2026 was provided in line with expectations, signaling stability ahead.

Revenue

The Medical segment drove growth with a 5% year-over-year increase to $152 million, while the Industrial segment surged 25% to $77 million, contributing to the overall 11% revenue growth. This performance was fueled by strong global CT tube demand and sustained momentum in cargo systems.

Earnings/Net Income

Varex Imaging returned to profitability with EPS of $0.29, reversing a $1.24 loss in 2024 Q4 (123.5% positive change). Net income reached $12.2 million, a 123.9% turnaround from a $51 million loss. The EPS turnaround reflects a significant improvement in profitability, showcasing the company’s successful strategic initiatives.

Price Action

Following the earnings report, Varex Imaging’s stock experienced a 4.49% increase on the latest trading day, though it faced a 4.82% decline over the subsequent week. Month-to-date, the stock edged up 2.86%, indicating mixed investor sentiment in the short term.

CEO Commentary

Sunny Sanyal, CEO, highlighted $229 million in revenue (11% YoY growth) and a record $77 million in industrial segment revenue. He emphasized robust demand for CT tubes and fluoroscopy, while noting oncology modality sales below trends. Strategic priorities include advancing photon counting CT technology, expanding India’s radiographic detector production, and scaling cargo inspection systems.

Guidance

For Q1 2026, CFO Sam Maheshwari guided revenue of $200–215 million and non-GAAP EPS of $0.05–$0.25, with gross margin of 32–34%. Sanyal expects full-year 2026 revenue growth, driven by industrial expansion and medical segment stability (excluding China).

Additional News

Recent non-earnings updates include B.Riley raising VREX’s price target to $16 from $12, citing confidence in growth prospects. The company also presented at the Small-Cap Virtual Conference on Sept 17, 2025, outlining strategic moves amid tariffs. Additionally, Aranki, Varex’s CHRO, sold 3,174 shares on Sept 22, 2025.

Additional Notes

Varex Imaging’s Q4 results underscore its resilience amid global challenges, with a strong focus on innovation and market diversification. The company’s industrial segment, now at a record $77 million, highlights the success of its cargo inspection systems and international expansion.