Hologic Q2 Revenue Beats Estimates, Stock Surges

Hologic reported Q2 CY2025 sales of $1.02 billion, beating estimates by 1.2% YoY growth and 1.7% above analyst estimates. The company expects Q3 revenue of $1.04 billion, close to analyst estimates, and raised full-year Adjusted EPS guidance to $4.25. Hologic's revenue growth has been mediocre at 4.2% CAGR over the last five years, and its recent performance shows demand has slowed, with flat revenue over the last two years.

Hologic, Inc. (Nasdaq: HOLX) reported its financial results for the fiscal second quarter ended June 28, 2025, showcasing robust performance that exceeded analyst expectations. The company's revenue of $1,023.8 million for the quarter increased by 1.2% year-over-year (YoY), surpassing the guidance range of $1,000 to $1,010 million [1]. This performance was driven by a 1.8% increase in diagnostics revenue, primarily due to higher molecular diagnostics sales, while breast health revenue declined by 5.1% due to lower mammography capital equipment sales [1].

Hologic's non-GAAP diluted EPS of $1.08 for the quarter grew by 1.9%, exceeding the high-end of the guidance range of $1.04 to $1.07. The company's strong cash flow from operations of $343.2 million and an adjusted net leverage ratio of 0.6 times highlight its financial health [1]. Additionally, Hologic repurchased 0.7 million shares for $36 million in the third quarter of fiscal 2025, indicating confidence in its stock price [1].

Looking ahead, Hologic expects mid-single-digit growth in organic, constant currency revenue excluding COVID-19 in the fourth quarter, with non-GAAP earnings per share growing faster than revenue. The company has raised its full-year Adjusted EPS guidance to $4.25, reflecting its optimism for the remainder of the year [1].

However, Hologic's revenue growth has been mediocre, with a compound annual growth rate (CAGR) of 4.2% over the last five years. The recent performance shows demand has slowed, with flat revenue over the last two years [2]. Despite this, the company's strong Q2 results and guidance suggest a potential rebound in the coming quarters.

References:
[1] https://finance.yahoo.com/news/hologic-announces-financial-results-third-200100504.html
[2] (Provided writing topic)