Varex Imaging Corporation reported fourth‑quarter 2025 revenue of $229 million, an 11% year‑over‑year increase that surpassed the consensus estimate of $219.26 million by $9.74 million, or 4.4%. Non‑GAAP earnings per share rose to $0.37, beating the analyst consensus of $0.19 by $0.18, a 94.7% beat that reflects disciplined cost management and a favorable product mix. The company’s operating income was $20 million, slightly lower than the $22.1 million originally reported but still up from $15 million in the same quarter last year, driven by higher gross margin and efficient operating leverage.
The Medical segment generated $152 million in sales, up 5% from $145 million a year earlier, driven by robust demand for CT tube replacements and photon‑counting technology upgrades. The Industrial segment delivered $77 million, a 25% jump from $61 million, marking the highest quarterly revenue in the segment’s history. This surge was largely due to the cargo‑inspection systems business, which secured over $55 million in new orders and shipped 15 new units during the quarter. The mix shift toward higher‑margin industrial products helped lift the company’s non‑GAAP gross margin to 34%, up from 33% YoY.
Operating income growth was supported by a 2‑percentage‑point margin expansion and a 30% reduction in cost of goods sold relative to revenue, a result of improved supply‑chain efficiencies and better pricing power in the industrial market. While the operating income figure was lower than the initial estimate, the margin improvement and the higher industrial contribution offset the difference, keeping earnings per share on track. The company’s focus on photon‑counting technology and expansion of its manufacturing footprint in India also positioned it for continued margin growth in the coming quarters.
Full‑year 2025 results showed revenue of $845 million, up 4% from $813 million a year earlier, and non‑GAAP EPS of $0.90, a 12% increase that beat the consensus estimate of $0.86. Non‑GAAP EBITDA reached $122 million, up 37% from $88 million, underscoring the company’s ability to generate cash flow while investing in growth initiatives. These figures confirm a steady upward trajectory and validate the company’s strategy of balancing capital allocation with aggressive technology development.
Management highlighted the strong finish to the fiscal year, noting that “the quarter’s performance was driven primarily by global CT tube sales in the Medical segment and sustained momentum in our cargo systems business.” CEO Sunny Sanyal emphasized the company’s confidence in the China market, where customers are projecting stronger orders for 2026. CFO Shubham Maheshwari added that the high industrial revenue contribution “speaks to the strength of our diversification strategy.” For Q1 2026, Varex guided revenue between $200 million and $215 million and non‑GAAP EPS between $0.05 and $0.25, reflecting a more moderate growth outlook while maintaining profitability targets.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.