Varex Imaging Surpasses Estimates Again — Can It Keep Delivering?

Forward-Looking Analysis

Analysts project Varex Imaging’s Q1 2026 earnings to reflect continued momentum from its Q4 2025 outperformance, where it beat EPS estimates by $0.19 and revenue estimates by $9.64M. The consensus price target of $17.00 (24.27% upside from current levels) reflects optimism about its stronger profitability metrics (net margins, ROE) and institutional ownership (10.9%) compared to peers like GlucoTrack. Recent guidance for Q1 2026 includes EPS of $0.05–$0.25 and revenue of $200M–$215M, with analysts maintaining a “Hold” rating (1 Sell, 2 Buy). The company’s ability to exceed expectations in prior quarters, coupled with favorable industry positioning in medical imaging, suggests upside potential.

Historical Performance Review

In Q4 2025, Varex Imaging reported revenue of $228.90M, net income of $12.20M, and EPS of $0.29, with gross profit of $77.80M. The results marked a significant beat on both revenue and EPS estimates, driven by strong demand for its imaging solutions and cost management. This performance underscores the company’s resilience in a competitive market.

Additional News

Varex Imaging recently outperformed GlucoTrack in analyst comparisons, with stronger profitability, higher institutional ownership, and a more bullish consensus rating. Analysts highlight its robust net margins and return metrics as key differentiators. Recent ratings reaffirm a “Hold” stance, with a 12-month price target of $17.00, reflecting confidence in its ability to sustain growth amid sector challenges.

Summary & Outlook

Varex Imaging’s Q4 2025 results and Q1 2026 guidance position it as a resilient player in the medical imaging sector. With a 24.27% upside in price targets and strong profitability metrics, the company is well-placed to capitalize on demand for advanced imaging solutions. Analyst optimism, coupled with outperformance against peers, suggests a bullish outlook for Q1 2026, provided it meets or exceeds revenue and EPS guidance. Risks include macroeconomic pressures, but its competitive advantages and institutional backing offer a buffer. Investors should watch for execution consistency and market share gains in key segments.