Q1 2026 earnings snapshot

Varex Imaging (VREX) opened fiscal Q1 2026 with revenue of US$209.6 million and basic EPS of US$0.06, while the stock trades around US$11.83. Over recent quarters, revenue has moved between US$199.8 million and US$228.9 million, with EPS ranging from a loss of US$2.15 per share in Q3 2025 to a profit of US$0.29 per share in Q4 2025. This highlights how sensitive margins have been to shifts in profitability.

See our full analysis for Varex Imaging.

With the latest quarter in hand, the next step is to see how these numbers line up with the widely held bull and bear stories around Varex Imaging and where those narratives might need updating.

Trailing losses still heavy at US$67.7 million

• Over the last twelve months Varex reported total revenue of US$854.4 million and a net loss of US$67.7 million, which equates to basic EPS of a US$1.63 loss, despite Q1 2026 itself showing a small profit of US$2.3 million.
• Consensus narrative expects margins to improve over time, and the contrast between the recent quarterly profit and the trailing loss:
  • Highlights how sensitive results have been, with quarterly net income moving from a US$89.1 million loss in Q3 2025 to a US$12.2 million profit in Q4 2025 and then US$2.3 million in Q1 2026.
  • Supports the idea that earnings stability is still a work in progress, even as analysts in the consensus narrative anticipate earnings reaching US$142.4 million by about 2029 from a current loss of US$67.7 million.

Modest 3.4% revenue growth vs wider losses

• Revenue on a trailing twelve month basis has grown about 3.4% per year to US$854.4 million, while trailing basic EPS sits at a US$1.63 loss and interest payments are flagged as not well covered by earnings in the risk summary.
• Bears argue that sluggish growth and margin pressure could cap long term earnings power, and the current numbers give that view some support:
  • Revenue grew only modestly over the past year while the company remained loss making, and those growth rates are lower than the 11.4% per year referenced for the wider US market.
  • The risk section specifically calls out weak interest coverage, which fits with multi year loss trends and challenges the idea that modest revenue growth alone can quickly repair the balance between earnings and financing costs.

On these figures, skeptics focus on whether modest 3.4% revenue growth and current losses can really support a turnround story or if the bears are closer to the mark on margin and financing risks. 🐻 Varex Imaging Bear Case

DCF and targets sit well above US$11.83

• The stock trades around US$11.83 against a DCF fair value of about US$20.39 and an analyst price target of US$18.40, while the P/S multiple of 0.6x is below the US Medical Equipment industry at 2.8x and peers at 8.5x.
• Bullish investors point to this valuation gap as potential upside, and the current data gives them several talking points:
  • The gap between the US$11.83 share price and the DCF fair value of US$20.39, along with the 0.6x P/S, is consistent with the reward summary highlighting the stock as trading at a discount to peers and to the DCF estimate.
  • Analysts referenced in the data point to an average implied upside of about 55.5%, which aligns with the idea in the bullish narrative that future earnings growth could support a higher valuation if the company moves from a US$67.7 million loss to sustained profits.

For readers weighing that discount against the loss history, the bullish narrative outlines how advocates think future growth and margin repair could close the gap to DCF fair value and analyst targets. 🐂 Varex Imaging Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Varex Imaging on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Mixed signals or clear direction? The only way to know where you stand is to review the full picture of risks and rewards for yourself. To weigh those trade offs quickly and form your own view, start with the 4 key rewards and 1 important warning sign.

See What Else Is Out There

Varex Imaging still carries a US$67.7 million trailing loss, modest 3.4% revenue growth and flagged interest coverage issues, which raises questions about resilience.

If those weak earnings and interest coverage worries give you pause, compare this profile with companies screened for stronger finances using the solid balance sheet and fundamentals stocks screener (44 results).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.