Varex Imaging Corporation (VREX) AI Stock Analysis

Varex Imaging Corporation specializes in the design, manufacturing, and distribution of X-ray imaging components across two segments: Medical and Industrial. Its Medical segment produces X-ray tubes, digital detectors, image-processing software, collimators, and generators used in radiography, CT, fluoroscopy, mammography, oncology, and dental diagnostics. The Industrial segment provides Linatron X-ray accelerators, high-voltage connectors, and detectors for cargo screening, airport security, and nondestructive industrial testing. The company sells globally through original equipment manufacturers, independent service providers, and direct sales channels.

Revenue rose from $818.1M in FY2021 to $893.4M in FY2023, before falling 9.2% to $811.0M in FY2024. In FY2025, revenue recovered 4.1% to $844.6M, though operating margin declined to -3.3% and net income dropped to -$70.3M. For the 5-year period through FY2025, revenue CAGR was 2.7%. Performance improved over the trailing twelve months, with revenue reaching $865.0M and operating margin reaching 10.8%. In the latest quarter ended June 30, 2026, quarterly revenue grew 3.7% year-over-year while quarterly earnings surged 453.4%.

As of June 30, 2026, Varex Imaging held $99.2M in cash and short-term investments against $373.6M in total debt, resulting in net debt of $274.4M. Debt-to-equity stood at 0.75, with total shareholders' equity of $496.6M and a current ratio of 3.38. In FY2025, the business generated $41.7M in operating cash flow and $18.8M in free cash flow, after spending $22.9M on capital expenditures. Over the past five years, the company reduced its share count by 3.0%.

Varex Imaging trades at a trailing P/E of 34.7x and a forward P/E of 20.3x, compared to medians of 24.6x and 17.3x for its US-listed Healthcare peers. Its price-to-sales ratio is 0.9x, well below the peer median of 4.1x, while its EV/EBITDA of 12.7x compares to 12.0x for the peer group. VREX gained 59.0% over the past year, outperforming the S&P 500's 16.8% gain, but its 5-year return of -30.8% lagged the index's 83.0% gain.

All 3 covering analysts rate Varex Imaging as a Hold. The mean price target is $18.90, representing a 2.7% premium over the last close of $18.41. For the fiscal year ending September 30, 2026, analysts estimate revenue of $865.9M and EPS of $0.84, representing a 6.7% decline. For the next fiscal year, 3 analysts project revenue of $900.3M and EPS of $1.07. The company beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 17, 2026.

This page is an AI-written research summary of Varex Imaging Corporation (VREX). 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.

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