- **Revenue Beat & Margin Resilience**: Q3 EPS $1.08 vs. $1.07, with 30.1% operating margin despite $1.4M tariffs.
- **Breast Health Turnaround**: Sequential gantry growth, interventional +6%, Endomag +100% to $20M/Q3.
- **FY26 Outlook**: Mid-single-digit growth, $10M/Q tariff, $6M FX tailwind, $18M Fluoroscan exit.

**【CEO Opening Remarks】**
- Hologic reported Q3 revenue of $1.024 billion, exceeding guidance by $14 million, with EPS of $1.08, $0.01 above expectations.
- CEO Steve MacMillan highlights progress in Breast Health, citing sequential improvement in gantry shipments and interventional sales growth.

**【CFO Financial Review】**
- CFO Karleen Oberton notes Q3 gross margin at 60.3%, down 80bps YoY due to product mix and $1.4M tariffs.
- Operating expenses decline 4.3% ex-acquisitions, with $343M operating cash flow and $1.88B cash on hand.

**【Q&A Highlights】**
- CEO MacMillan: Breast Health to return to growth in Q4, driven by Endomag ($20M/Q3) and refocused sales force.
- CFO Oberton: FY26 tariff mitigation to $10-12M/Q, with $6M FX tailwind in Q4.
- Management reaffirms mid-single-digit FY26 growth, excluding $18M Fluoroscan exit.

Hologic, Inc. (HOLX) Q3 2025 Earnings Call Transcript

- **Q2 Revenue Resilience**: $1.005B total, flat YoY, with Diagnostics (+1.5%) and Surgical (+5.1%) offsetting Breast Health decline.
- **Profitability Strength**: Non-GAAP EPS $1.03 (high end of guidance), 61.1% gross margin (+40bps YoY).
- **Tariff Headwinds**: $20-25M/Q impact starting Q3, partially offsetting $20M China revenue cut.
- **Growth Catalysts**: Q4+ acceleration from breast health execution, Endomagnetics/Gynesonics integration, and new product pipeline.
- **Service Growth**: 12% service revenue expansion (21% of total), driven by breast health and diagnostics.


**【CEO Summary Section】**
- Total Q2 revenue: $1.005 billion (flat YoY in constant currency, high end of guidance). Diagnostics grew despite Africa funding cuts; skeletal business rebounded from supply constraints.
- Non-GAAP EPS: $1.03 (flat YoY, high end of guidance). Gross margin expansion and share buybacks drove profitability.
- Key strengths: Reliability of business model, customer relationships (21% of revenue from recurring services), and fortress balance sheet ($1.6B cash).
- Risks: China market challenges (lowered FY25 China revenue to $50M), Africa HIV testing decline.
- Outlook: Q4+ growth from breast health execution, easier comps, and new product launches (e.g., Endomagnetics, Gynesonics).

**【COO Business Update】**
- **Diagnostics**: $453.6M (+1.5% YoY, +7.8% ex-COVID). BV/CV/TV assay growth, respiratory tests benefited from flu season. Africa HIV testing down due to USAID cuts.
- **Breast Health**: $356.2M (-6.9% YoY). Service revenue up 12% to $212.6M (45% of segment). Reorg to separate capital/disposable sales teams; Endomagnetics direct sales in NA.
- **Surgical**: $162.5M (+5.1% YoY). Fluent Pro adoption strong; Gynesonics integration on track.
- **Skeletal**: $33M (+22.9% YoY). DEXA production ramp exceeded expectations.
- **Tariffs Impact**: $20-25M/Q impact from Costa Rica (67%) and China (15%). Mitigation efforts underway, but limited pricing flexibility.

**【CFO Financial Commentary】**
- Non-GAAP gross margin: 61.1% (+40bps YoY). Accretive margins from Endomagnetics and Gynesonics.
- Operating expenses: $312.9M (+1.7% YoY). Ex-acquisitions, down 4.6% due to cost control.
- Q2 cash flow: $169.5M. FY25 ending cash: $1.6B+.
- **Guidance Update**: FY25 non-GAAP EPS: $4.10-4.20 (down $0.10). FY25 revenue: $4.05-4.10B (unchanged). Q3 EPS: $1.04-1.07.
- Tariffs impact: $5M/Q3, $20M/Q4 in COGS. China revenue reduction: $20M FY25.

**【Q&A Key Themes】**
- **Tariffs Mitigation**: No major supplier price hikes yet. Focus on inventory management and production shifts (USMCA exemptions for Mexico).
- **Breast Health Recovery**: Service attach rates improving; Q4 gantry upgrades expected to accelerate.
- **China Risk**: Derisked FY25 forecast; $50M China revenue target reflects geopolitical uncertainty.
- **New Product Launches**: Envision gantry (Q4 FY26) expected to drive long-term growth; Endomagnetics wireless biopsy adoption ramping.
- **Utilization Trends**: Elective procedures stable; breast health service demand resilient.


Hologic (HOLX)-1 May 25-2025 Q2 Earnings call transcript

- **Q1 Performance**: Revenue $1.022B (+1% const. curr.), non-GAAP EPS $1.03 (5% growth), meeting high-end guidance.
- **Growth Drivers**: Diagnostics (+5.2%), Surgical (+2.5%), Gynesonics ($28M annual sales).
- **Breast Health Challenges**: Capital sales down 2.1%, 2025 expected softness due to 3D replacement cycles.
- **Financial Strength**: Gross margin 61.6% (+80bps), operating margin 29.4% (+90bps), $2B cash for M&A and buybacks.
- **Long-Term Outlook**: Double-digit EPS growth target, 2026 gantry launch, and expanding Panther Fusion menu.
- **Risks**: FX headwind ($30M), U.S. policy disruptions ($30M HIV testing), delayed dexa shipments.


**【CEO Summary Section】**
- Total revenue for Q1 FY2025 was $1.022 billion, up 1% on a constant currency basis, with non-GAAP EPS of $1.03, at the high end of guidance.
- Emphasized long-term goal of double-digit EPS growth, driven by mid-single-digit revenue growth, margin expansion, and strategic acquisitions.
- Highlighted historical performance: 4.8% CAGR in revenue (2014-2024) and 10.8% CAGR in non-GAAP EPS.
- Key growth drivers include Diagnostics molecular assays (e.g., BV/CV/TV), Surgical international expansion, and new acquisitions like Gynesonics.

**【COO Business Review】**
- **Diagnostics**: $470.6M revenue (+5.2% YoY), led by molecular diagnostics (+11% ex-COVID). Panther Fusion adoption at 40% of U.S. customers, with strong performance of Biotheranostics and vaginitis testing.
- **Breast Health**: $369.1M (-2.1% YoY), impacted by lower capital equipment sales. Service revenue (+>40% of total) offset hardware decline. 2025 expected to be softer due to 3D-to-3D replacement cycles and delayed M.gen launch.
- **Surgical**: $166.3M (+2.5% YoY), driven by international growth (+20%). U.S. recovery from IV fluid shortage; Gynesonics acquisition expected to add $28M in annual sales.
- **Skeletal**: $15.8M (-37.4% YoY) due to delayed Horizon dexa shipments, expected to normalize by Q3.

**【CFO Financial Commentary】**
- Non-GAAP gross margin 61.6% (+80bps YoY), driven by product mix and efficiencies.
- Operating expenses $329M (+0.5% YoY), stable ex-Endomagnetics. Operating margin 29.4% (+90bps YoY).
- Full-year guidance: Revenue $4.05-4.10B (down $100M from prior), non-GAAP EPS $4.25-4.35. FX headwind $30M, offset by Diagnostics and Surgical growth.
- Risks include U.S. policy disruptions ($30M HIV testing impact) and potential tariffs on Mexico manufacturing.

**【Q&A Highlights】**
- **Breast Health Capital Sales**: 2025 expected to be down low single digits, with Q4 recovery. New M.gen gantry launch in 2026 may drive 2026 growth.
- **M&A Strategy**: Focus on $20-50M tuck-in acquisitions with >10% ROIC, e.g., Endomagnetics and Gynesonics.
- **Panther Fusion Adoption**: 40% U.S. customers, potential to reach 100% as menu expands (e.g., H5N1 assay development).
- **Policy Risks**: Tariffs on Mexico manufacturing ($10M-$15M annual impact), delayed F/D funding for HIV testing.
- **Margins**: Q1 operating margin 29.4%, expected to improve sequentially with lower Q2 expenses and higher Q4 revenue.


Hologic (HOLX)-5 Feb 25-2025 Q1 Earnings call transcript

Hologic (HOLX)-4 Nov 24-2024 Q4 Earnings call transcript

Hologic (HOLX)-29 Jul 24-2024 Q3 Earnings call transcript

Hologic (HOLX)-2 May 24-2024 Q2 Earnings call transcript

Hologic (HOLX)-1 Feb 24-2024 Q1 Earnings call transcript

Hologic (HOLX)-9 Nov 23-2023 Q4 Earnings call transcript

Hologic (HOLX)-31 Jul 23-2023 Q3 Earnings call transcript

Hologic (HOLX)-1 May 23-2023 Q2 Earnings call transcript

Hologic (HOLX)-1 Feb 23-2023 Q1 Earnings call transcript

Hologic (HOLX)-1 Nov 22-2022 Q4 Earnings call transcript

Hologic (HOLX)-28 Jul 22-2022 Q3 Earnings call transcript

Hologic (HOLX)-28 Apr 22-2022 Q2 Earnings call transcript

Hologic (HOLX)-3 Feb 22-2022 Q1 Earnings call transcript

Hologic (HOLX)-2 Nov 21-2021 Q4 Earnings call transcript

Hologic (HOLX)-29 Jul 21-2021 Q3 Earnings call transcript

Hologic (HOLX)-29 Apr 21-2021 Q2 Earnings call transcript

Hologic (HOLX)-28 Jan 21-2021 Q1 Earnings call transcript

Hologic (HOLX)-4 Nov 20-2020 Q4 Earnings call transcript

Hologic (HOLX)-29 Jul 20-2020 Q3 Earnings call transcript

Hologic (HOLX)-29 Apr 20-2020 Q2 Earnings call transcript

Hologic (HOLX)-29 Jan 20-2020 Q1 Earnings call transcript

Hologic (HOLX)-6 Nov 19-2019 Q4 Earnings call transcript

Hologic (HOLX)-31 Jul 19-2019 Q3 Earnings call transcript

Hologic (HOLX)-1 May 19-2019 Q2 Earnings call transcript

Hologic (HOLX)-30 Jan 19-2019 Q1 Earnings call transcript

Hologic (HOLX)-7 Nov 18-2018 Q4 Earnings call transcript

Hologic (HOLX)-31 Jul 18-2018 Q3 Earnings call transcript

Hologic (HOLX)-2 May 18-2018 Q2 Earnings call transcript

Hologic (HOLX)-8 Feb 18-2018 Q1 Earnings call transcript

Hologic (HOLX)-8 Nov 17-2017 Q4 Earnings call transcript

Actual																	0.57	0.75	2.07	2.86	2.59	1.33	1.61	2.17	2.07	0.95	0.82	1.07	1.06	0.93	0.89	0.98	1.03	1.06	1.01	1.03	1.03	1.08	1.13	1.04
Forecast																	0.5699	0.3859	1.2295	2.1675	2.6182	1.1194	1.0037	1.324	1.598	0.7105	0.6245	0.9116	0.8773	0.8892	0.8402	0.9499	0.9778	1.0174	1.0132	1.0151	1.0161	1.0638	1.0983	1.0957
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+0.02%	+94.35%	+68.36%	+31.95%	-1.08%	+18.81%	+60.41%	+63.90%	+29.54%	+33.71%	+31.31%	+17.38%	+20.83%	+4.59%	+5.93%	+3.17%	+5.34%	+4.19%	-0.32%	+1.47%	+1.37%	+1.52%	+2.89%	-5.08%

Actual	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	756.10M	822.90M	1.35B	1.61B	1.54B	1.17B	1.32B	1.47B	1.44B	1.00B	953.30M	1.07B	1.03B	984.40M	945.30M	1.01B	1.02B	1.01B	987.90M	1.02B	1.01B	1.02B	1.05B	1.05B
Forecast	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	745.85M	616.70M	1.12B	1.40B	1.54B	1.04B	1.04B	1.19B	1.29B	903.31M	862.09M	1.00B	956.44M	960.25M	940.00M	989.32M	1.00B	1.00B	978.26M	1.02B	1.00B	1.01B	1.03B	1.07B
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+1.37%	+33.44%	+20.31%	+14.78%	-0.08%	+12.51%	+26.24%	+23.31%	+11.39%	+11.00%	+10.58%	+6.91%	+7.33%	+2.52%	+0.56%	+2.40%	+1.60%	+0.96%	+0.99%	0.00%	+0.48%	+1.32%	+1.48%	-2.20%

HOLX(Quitar la ciudad)

HOLX(Quitar la ciudad)

Hologic (HOLX) Earnings

HOLX Q1 2026 Earnings

EPS

Revenue

Earnings Call

You can ask Aime