Accuray Incorporated (ARAY) AI Stock Analysis
ARAY AI stock analysis summary
AI ResearchAccuray Incorporated is a medical device company developing advanced radiosurgery and radiation therapy systems such as CyberKnife. In FY2026, revenue dropped 12.3% to $401.9M while net loss expanded to -$49.2M. With net debt of $143.3M and a market capitalization of $18.6M, the stock has declined 90.9% over the past year.
- Market cap
- $18.6M
- Revenue (TTM)
- $401.9M
- P/E
- — fwd 94.3x
- 1Y return
- -90.9% S&P 500 16.8%
- Avg. target
- $0.35 118.8% vs last close
Bull case
- Analysts forecast an EPS improvement of 25.0% for the fiscal year ending June 30, 2027, bringing expected EPS to -$0.30.
- The consensus analyst mean price target of $0.35 implies potential upside of 118.8% over the closing price of $0.16.
- Short-term liquidity remains supported by a current ratio of 1.50 and cash and short-term investments of $40.6M as of June 30, 2026.
Bear case
- Net losses widened to -$49.2M in FY2026, compared to -$1.6M in FY2025.
- Revenue dropped 12.3% in FY2026 to $401.9M, driven by a 20.9% year-over-year revenue drop in the quarter ended June 30, 2026.
- Total debt stands at $183.9M with net debt of $143.3M, significantly exceeding total equity of $41.7M.
What Accuray does
Accuray Incorporated designs, manufactures, and distributes advanced radiosurgery and radiation therapy systems worldwide. Headquartered in Sunnyvale, California, the company's product line includes the CyberKnife System, which provides robotic precision for stereotactic radiosurgery and stereotactic body radiation therapy across tumors in areas such as the spine, lung, and prostate. Accuray also offers the TomoTherapy System, featuring the Radixact System, which integrates radiation treatment planning, delivery, and data management for approximately 50 patients daily. It markets products directly to hospitals and treatment facilities in the United States and via distributors and sales agents internationally.
Growth and profitability
Accuray's revenue recorded a 5-year CAGR of 0.3% from FY2021 to FY2026. In FY2025, revenue reached $458.5M with a net loss of -$1.6M, before contracting 12.3% in FY2026 to $401.9M. FY2026 gross margin fell to 27.7% from 32.1% in FY2025, while operating margin turned negative to -6.6%. The company posted a net loss of -$49.2M and diluted EPS of -$0.38 in FY2026. For the trailing twelve months, profit margin stood at -12.2%. In the latest quarter ended June 30, 2026, quarterly revenue fell 20.9% year-over-year, and quarterly earnings declined 96.2%.
Balance sheet and cash flow
As of June 30, 2026, Accuray held $40.6M in cash and short-term investments against total debt of $183.9M, leaving net debt at $143.3M. Shareholders' equity was $41.7M, resulting in a high debt-to-equity ratio of 4.41, while the current ratio stood at 1.50. In FY2026, operating cash flow was -$7.0M and free cash flow was -$12.8M after capital expenditures of $5.9M. Over the past five years, the company's share count increased by 30.6%.
Valuation and performance
Accuray trades at an enterprise value of $170.2M and a market cap of $18.6M. Its forward P/E of 94.3x stands well above the 17.3x median of its US-listed Healthcare peers. The company's EV/EBITDA multiple of 15.1x is also above the peer group median of 12.0x, though its price-to-sales multiple is 0.0x compared to the sector median of 4.1x. Accuray shares fell 90.9% over the past year, trailing the S&P 500 (SPY) gain of 16.8%, and declined 95.9% over five years versus an 83.0% return for the benchmark.
What analysts expect
Wall Street analysts maintain a mean price target of $0.35 for Accuray, representing an implied upside of 118.8% above its last close of $0.16. For the current fiscal year ending June 30, 2027, the consensus estimate calls for an EPS of -$0.30, reflecting projected EPS growth of 25.0%. Over the trailing four quarters, Accuray exceeded EPS estimates once. The company's next earnings report is scheduled for November 4, 2026.
Key risks and what to watch
- A debt-to-equity ratio of 4.41 exposes the balance sheet to high financial leverage.
- Free cash flow remained negative at -$12.8M in FY2026, creating continued operational cash burn.
- Shareholder dilution has been substantial, with total share count expanding 30.6% over the trailing five years.
- Quarterly earnings fell 96.2% year-over-year in the period ended June 30, 2026, highlighting ongoing margin pressure.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this ARAY AI stock analysis
This page is an AI-written research summary of Accuray Incorporated (ARAY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: ARAY income statement, ARAY balance sheet, ARAY key metrics, ARAY analyst forecast, ARAY chart. See the ARAY stock overview for the latest quote and news.
ARAY AI stock analysis FAQ
Why has Accuray stock fallen over the past year?
Accuray shares declined 90.9% over the past year amid deteriorating financial results, including a 12.3% revenue decline to $401.9M and an expanded net loss of -$49.2M in FY2026.
Does Accuray pay a dividend?
Accuray does not pay a dividend. The company directs its capital toward operations and capital expenditures, which totaled $5.9M in FY2026.
What is Accuray's debt position?
As of June 30, 2026, Accuray held $183.9M in total debt and $40.6M in cash, resulting in net debt of $143.3M and a debt-to-equity ratio of 4.41.
What is the consensus analyst price target for ARAY?
Analysts have a mean price target of $0.35, which is 118.8% higher than its last closing price of $0.16.