Varex Imaging (VI4) AI Stock Analysis

Varex Imaging

(Frankfurt:VI4)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Installed-base demandReplacement demand tied to the installed base gives Varex a recurring component revenue stream beyond new equipment shipments. This supports business durability because customers require tubes and related parts through service cycles, while detector and software sales add exposure to upgrades and new system builds.

Negative Factors

Weak cash conversionRecent cash generation is materially weaker than accounting profitability, reducing the funds available for investment, debt reduction, and resilience during demand fluctuations. The swing from strong 2023 free cash flow to a TTM outflow indicates that working-capital, capital-spending, or other cash demands require close monitoring.

Varex Imaging (VI4) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 783.87M
Dividend Yield: ―
Average Volume (3M): 170
Price to Earnings (P/E): 35.2
Beta (1Y): 1.03
Revenue Growth: -1.89%
EPS Growth: ―
Country: Germany
Employees: 2,500
Sector: Healthcare
Sector Strength: 51
Industry: Medical - Devices

Varex Imaging Business Overview & Revenue Model

Company Description

Varex Imaging Corporation (VREX) specializes in the development and production of X-ray imaging components. Its operations are divided into two primary divisions: Medical and Industrial. Within the Medical segment, Varex provides a comprehensive rang...

Varex Imaging Earnings Call Summary

Earnings Call Date:May 06, 2026(Q2-2026)|% Change Since:59.80%|Next Earnings Date:Nov 23, 2026

Earnings Call SentimentNeutral

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.

Positive Updates

Revenue Within Guidance and Continued Demand

Q2 revenue of $216 million came in within guidance; total revenue increased 1% year-over-year, driven by medical (+2%) and industrial (+1%). Medical represented $156M (72% of total) and Industrial $60M (28%).

Negative Updates

Modest Top-Line Growth and Geographic Weakness

Overall revenue growth was modest at +1% YoY; EMEA sales declined 16% YoY, and company acknowledged lumpy industrial shipment patterns tied to prior-year large orders.

Company Guidance

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.

Varex Imaging Risk Analysis

Varex Imaging disclosed 36 risk factors in its most recent earnings report. Varex Imaging reported the most risks in the "Legal & Regulatory" category.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

3 New Risks

1.The announcement of our entry into the Merger Agreement and pendency of the Merger may result in disruptions to our business, and the Merger could divert management's attention, disrupt our relationships with third parties and employees, and result in negative publicity, customer concerns, or legal proceedings, any of which could negatively impact our operating results and ongoing business.Q2, 2026

2.Completion of the Merger is subject to the conditions contained in the Merger Agreement, including receipt of regulatory approvals, which may not be received, may take longer than expected or may impose conditions that are not presently anticipated or that cannot be met, and if these conditions are not satisfied or waived, the Merger will not be completed.Q2, 2026

3.Competition and trade compliance lawsQ2, 2026

Varex Imaging Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

DE:VI4 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GEHC	71Outperform	$34.62B	20.61	16.13%	0.18%	6.87%	-2.26%
PHG	65Neutral	$26.35B	20.96	10.05%	3.59%	―	―
BRKR	56Neutral	$8.70B	-79.67	-2.92%	0.36%	1.65%	-233.85%
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ARAY	40Underperform	$16.74M	-0.37	-99.04%	―	-12.34%	-2363.03%
NNOX	39Underperform	$25.94M	-0.18	-94.35%	―	31.52%	-89.07%

* Healthcare Sector Average

Performance Comparison

DE:VI4 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:VI4	Varex Imaging Corporation	16.30	6.20	61.39%
ARAY	Accuray Incorporated	0.15	-1.30	-89.79%
BRKR	Bruker Corporation	55.69	15.66	39.12%
PHG	Koninklijke Philips N.V.	27.59	0.41	1.53%
NNOX	Nano-X Imaging Ltd.	0.30	-2.96	-90.74%
GEHC	Ge Healthcare Technologies Inc.	79.55	4.09	5.42%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Varex Imaging AI Stock Analysis