Varex Imaging Corp. (VREX)

NASDAQHealth CareMedical - DevicesSnapshot 2026-10-23

$18.42+0.05%

Close 2026-10-23 · 1-day change

Investment OutlookAs of Oct 24, 2026

What could strengthen or challenge Varex Imaging Corp.’s outlook?

The long-term thesis, the evidence coming in, and the environment around it. Thesis dated Jul 8, 2026.

Higher potential upsideImproving expectations

Next-FY EPS estimate change · 30 days

Comparable estimates unavailable

+10% or more+5%0%−5%−10% or less

A matching fiscal period and sufficient coverage are required.

Higher risk of downsideWeakening expectations

One observable signal. This measures changing earnings expectations, not the probability of a gain or loss.

How this is measured

The calculation requires same-period, same-provider snapshots, positive EPS, at least five analysts and a baseline within three days of the requested lookback.

Measure / period	Management expectations	Analyst expectations
FY 2027 · Q1
Revenue	—	217.8M
EPS	—	0.18
FY 2026 · Annual
Revenue	$860M–$880M	—
EPS	$0.8–$1non-GAAP	—
FY 2027 · Annual
Revenue	—	900.27M
EPS	—	1.07
FY 2028 · Annual
Revenue	—	965M
EPS	—	1.4

What the Thesis Depends On

Three published thesis conditions, with dated milestones shown separately.

Key Factor	Why It Matters	Current Status	Break Condition	Latest Evidence
Effective management of capital and credit agreements	The company has managed capital allocation with new credit agreements.	Recovered	New financial obligations or credit issues increase risk materially	Qualitative condition This condition has no defined numerical measure. Context reviewed through Oct 23, 2026Last status assessment Oct 24, 2026Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement. Management context Stated as a priority in 2 of last 2 quarters. Cash and equivalents decreased from $155 million at 2025-Q4 to $88 million at 2026-Q2, reflecting debt redemption and refinancing completed in March 2026. Cash from operations turned negative $2 million in 2026-Q2 from positive $25.9 million in 2025-Q4. Management is actively managing capital allocation but recent cash flow trends show limited progress. Delivery assessment Oct 24, 2026
Non-GAAP EPS of $0.80-$1.00 for FY 2026	Varex Imaging aims for non-GAAP EPS of $0.80-$1.00 in fiscal 2026.	Under Pressure	EPS falls below $0.80 for FY 2026	Direct metric needs a verified mapping The published measure or accounting basis is not supported by an exact source binding. Source date unavailableLast status assessment Oct 24, 2026Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement. Management context Stated as a priority in 2 of last 2 quarters. Non-GAAP EPS was $0.21 in 2026-Q2, down from $0.31 in 2025-Q2, indicating a decline in quarterly EPS. Management maintains full year guidance of $0.80 to $1.00 non-GAAP EPS. The trajectory shows mixed progress with current quarterly EPS below prior year but guidance intact. Delivery assessment Oct 24, 2026
Annual revenue near $870 million in FY 2026	Revenue is expected near $870 million for the year.	Intact	Annual revenue falls below $860 million in FY 2026	Revenue: $210.5M FY2026-Q3; GAAP. Published target: >= $860 million. Target period is not explicitly aligned with this observation. Source published Aug 10, 2026210,500,000 USD · source valueSource reportLast status assessment Oct 24, 2026 Measurement source consolidated · GAAP FY2026-Q3 · Period ending Jul 3, 2026 Source: company_financial_results. Reference: 7d4bff79-33ac-40a7-a6d9-afa9d564e019. Source status: eligible. Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement. Management context Stated as a priority in 2 of last 2 quarters. Non-GAAP EPS was $0.21 in 2026-Q2, down from $0.31 in 2025-Q2, indicating a decline in quarterly EPS. Management maintains full year guidance of $0.80 to $1.00 non-GAAP EPS. The trajectory shows mixed progress with current quarterly EPS below prior year but guidance intact. Delivery assessment Oct 24, 2026

Stored thesis · Jul 8, 2026. Latest Evidence uses source-matched measurements where available, alongside the last thesis-monitor assessment. Source periods and assessment dates are shown separately. A new measurement does not automatically change the published status or verify an older target.

Incoming Evidence

Compare these dated observations with the operating requirements above

Expectations trend

Same fiscal period

FY2028 · fiscal year ending 2028-10-03 · fmp

FY2028 EPS: comparable history unavailable.

FY2028 revenue: comparable history unavailable.

Exact estimates & source dates

One fiscal period and provider throughout. At least five contributors are required for each plotted metric; missing coverage stays a gap. Axes show the observed range. Counts measure coverage, not revisions.

FY2028 estimate observations · fmp
Snapshot	EPS	Revenue	EPS / revenue analysts
2026-10-04	Unavailable	Unavailable	1 / 1
2026-10-05	Unavailable	Unavailable	1 / 1
2026-10-06	Unavailable	Unavailable	1 / 1
2026-10-07	Unavailable	Unavailable	1 / 1
2026-10-08	Unavailable	Unavailable	1 / 1
2026-10-09	Unavailable	Unavailable	1 / 1
2026-10-10	Unavailable	Unavailable	1 / 1
2026-10-11	Unavailable	Unavailable	1 / 1
2026-10-12	Unavailable	Unavailable	1 / 1
2026-10-13	Unavailable	Unavailable	1 / 1
2026-10-14	Unavailable	Unavailable	1 / 1
2026-10-15	Unavailable	Unavailable	1 / 1
2026-10-16	Unavailable	Unavailable	1 / 1
2026-10-17	Unavailable	Unavailable	1 / 1
2026-10-18	Unavailable	Unavailable	1 / 1
2026-10-19	Unavailable	Unavailable	1 / 1
2026-10-20	Unavailable	Unavailable	1 / 1
2026-10-21	Unavailable	Unavailable	1 / 1
2026-10-22	Unavailable	Unavailable	1 / 1
2026-10-23	Unavailable	Unavailable	1 / 1
2026-10-24	Unavailable	Unavailable	1 / 1

Revenue and EPS estimates track expectations. They are not delivered results or like-for-like proof of a required annual path.

Compare required revenue and earnings

Analyst view

Monthly observations

Buy / Strong BuyHoldSell / Strong Sell

Exact monthly counts

Monthly rating snapshots · fmp. Missing snapshots are not zero.
Date	Buy*	Hold
2026-05-01	4	1
2026-06-01	4	1
2026-07-01	4	1
2026-08-01	4	5
2026-09-01	0	5
2026-10-01	0	3

*Buy includes Strong Buy; Sell includes Strong Sell. Monthly counts describe the analyst mix, not the firms behind each recent action.

Latest: 0 Buy / Strong Buy · 3 Hold · 0 Sell / Strong Sell

0 upgrades0 downgrades0 maintains

Recent actions · Sep 25–Oct 24 · 0 recorded

Price-target changes

30 days

Individual price-target observations are unavailable.

0 raises · 0 cuts · 0 unchanged · 0 without a comparable prior

How this is measured

Sep 25, 2026–Oct 24, 2026. Each firm's latest positive target is paired only with its immediately prior positive target from the same provider, at most 180 days earlier. Unmatched observations have one dot; conflicting observations are not compared.

Outlook in Brief

The evidence, the remaining questions, and what comes next

What's improving

No recovery evidence is reported in the available driver assessments.

Still unresolved / key risks

Effective management of capital and credit agreementsQualitative condition
Non-GAAP EPS of $0.80-$1.00 for FY 2026Published status: Under Pressure
Annual revenue near $870 million in FY 2026Revenue: $210.5M

Next proof point

Nov 17, 2026

Look for updated results and guidance against the published targets, plus direct evidence for unresolved drivers.

Review earnings

Bottom line

3 of 3 published conditions remain under pressure or need verification. The next results need to address those conditions.

The dated weekly assessment and its assumptions are available in Read detailed Outlook.

Historical risk context

Observed price history; separate from operating scenarios

Price sensitivity

0.2%Typical daily move · historical

Downside history

-35.1%Maximum drawdown · trailing year

Read detailed Outlook Company context, assumptions & risks

Varex Imaging Corp. outlook in detail

The weekly editorial context below is a separate assessment from the dated monitor evidence above. Recovery observations do not automatically change the published thesis. Unverified outside influences are hypotheses, not measured driver evidence.

Updated Oct 24, 2026

What kind of bet this is

This is a higher-risk medical technology business with some cyclical exposure, rather than a proven durable compounder. Its thesis state is intact, and the recent signal improved from mixed to mildly favorable, but the evidence snapshot still points to loss-making earnings quality and elevated risk.

What's priced into Varex Imaging Corp.

The valuation evidence is mixed: VREX is described as cheap versus peers, while the valuation measure also shows a peer premium. The expectations gap is negative, which suggests expectations are not especially demanding, but the evidence does not explain that measure in detail. Overall, the priced-in signal is tagged as justified, with low fragility.

What the fundamentals likely do

Near term, revenue has risen from $209.6 million in the first quarter of 2026 to $216 million in the second quarter, and management maintained full-year revenue guidance of $860 million to $880 million. Progress on earnings is less clear: second-quarter non-GAAP EPS fell from $0.31 a year earlier to $0.21, while full-year guidance remains $0.80 to $1.00. Cash declined to $88 million by the second quarter, and operating cash flow turned negative, so execution and liquidity remain important risks.

What Varex Imaging Corp. hinges on

The multi-year thesis depends on management delivering its 2026 revenue and EPS guidance while improving cash generation. A guidance cut would be a meaningful negative, and continued weakness in jobs data could weigh on cyclical names. Strong results and higher guidance from healthcare peers such as ABT, MDT, and SYK would support the sector backdrop; recent acquisition announcements are noted, but their effects are not detailed in the evidence.

Bottom line

For the next 1 to 3 years, VREX has an intact but execution-sensitive thesis: revenue progress and a supportive healthcare backdrop are balanced by falling quarterly EPS and weak recent cash flow. The evidence is mixed, with medium confidence. Not investment advice.

Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.