Varex Imaging (VI4) Q2 2026 Earnings Report

The call highlighted solid execution on guidance, margin resilience (non‑GAAP gross margin at the high end), successful debt refinancing and clear technology and industrial pipeline momentum (CT, photon-counting, cargo systems). Offsetting these positives are modest top‑line growth (+1% YoY), a GAAP loss, margin erosion versus the prior year (down ~240 bps), elevated inventory and short‑term working capital pressures. Management provided multi-quarter visibility (annual guidance) and actions (India ramp, pricing/contract renewal levers) that could improve margins over time, but near-term growth and margin recovery remain modest.

Varex guided that second‑half fiscal 2026 revenue should be up roughly 3% year‑over‑year (guidance excludes any IEEPA tariff refund) and reiterated full‑year fiscal 2026 revenues of $860–$880 million with non‑GAAP EPS of $0.80–$1.00; Q3 guidance is $210–$225 million of revenue and non‑GAAP diluted EPS of $0.15–$0.30, based on non‑GAAP gross margin of 33–34%, non‑GAAP operating expenses of about $54 million, net interest and other expense of $6–$7 million, a Q3 tax rate of ~23% (full‑year tax expectation ~20%), and roughly 42 million diluted non‑GAAP shares outstanding, and management said it will resume providing annual guidance going forward.