Varex Imaging (NASDAQ:VREX) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Analyst sentiment is mixed but slightly positive, with Varex Imaging receiving a consensus rating of “Moderate Buy” from five analysts. The average 12-month price target is about $16.17, above the stock’s recent trading level.
• Q2 results missed expectations, as the company reported $0.21 EPS on $216 million in revenue, both slightly below estimates. The firm also posted a GAAP net loss and negative operating cash flow, adding to investor concerns.
• Management’s guidance was cautious, with Q3 fiscal 2026 EPS expected at $0.15 to $0.30 and revenue forecast at $210 million to $225 million. This outlook suggests only modest upside versus Wall Street expectations.

Shares of Varex Imaging (NASDAQ:VREX - Get Free Report) have earned an average recommendation of "Moderate Buy" from the five brokerages that are currently covering the firm, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, one has assigned a hold recommendation, two have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month price objective among analysts that have issued ratings on the stock in the last year is $16.1667.

A number of research firms recently weighed in on VREX. Zacks Research raised shares of Varex Imaging from a "hold" rating to a "strong-buy" rating in a report on Monday, April 13th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Varex Imaging in a research note on Friday, March 27th. Wall Street Zen lowered shares of Varex Imaging from a "buy" rating to a "hold" rating in a research report on Saturday. B. Riley Financial reissued a "buy" rating on shares of Varex Imaging in a research note on Thursday, February 12th. Finally, Jefferies Financial Group restated a "hold" rating and set a $14.50 target price on shares of Varex Imaging in a research report on Monday, February 2nd.

Varex Imaging Price Performance

NASDAQ:VREX opened at $9.83 on Friday. The business's 50-day moving average is $11.55 and its 200 day moving average is $12.17. Varex Imaging has a 12 month low of $6.76 and a 12 month high of $14.56. The company has a market capitalization of $411.88 million, a P/E ratio of -4.92 and a beta of 0.96. The company has a current ratio of 3.89, a quick ratio of 1.87 and a debt-to-equity ratio of 0.75.

Varex Imaging (NASDAQ:VREX - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.21 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.01). The firm had revenue of $216.00 million for the quarter, compared to analysts' expectations of $216.92 million. Varex Imaging had a negative net margin of 9.64% and a positive return on equity of 8.21%. Varex Imaging has set its Q3 2026 guidance at 0.150-0.300 EPS. On average, equities research analysts forecast that Varex Imaging will post 0.93 earnings per share for the current fiscal year.

Varex Imaging News Roundup

Here are the key news stories impacting Varex Imaging this week:

• Neutral Sentiment: Varex reported Q2 revenue of $216 million and adjusted EPS of $0.21, both just below consensus, while the company said demand remained solid and margins held relatively steady. Varex Announces Financial Results for Second Quarter Fiscal Year 2026
• Neutral Sentiment: The company’s GAAP results were weaker, with a net loss of $0.19 per diluted share and $2 million in cash outflows from operations, which may keep some pressure on the stock despite stable gross margins. Varex Announces Financial Results for Second Quarter Fiscal Year 2026
• Negative Sentiment: Varex’s Q3 fiscal 2026 guidance called for EPS of $0.15 to $0.30 versus analysts’ $0.22 estimate, and revenue guidance of $210 million to $225 million versus about $215.5 million expected, signaling only modest upside and likely disappointing investors looking for a stronger outlook. Varex Announces Financial Results for Second Quarter Fiscal Year 2026
• Negative Sentiment: Coverage from earnings transcript and analysis pieces on Yahoo Finance, Seeking Alpha, and Zacks all centered on the earnings and revenue miss, reinforcing the market’s negative reaction to the quarterly update. Varex Imaging (VREX) Q2 2026 Earnings Transcript

Insiders Place Their Bets

In other Varex Imaging news, Director Jay K. Kunkel sold 4,510 shares of the business's stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $11.14, for a total transaction of $50,241.40. Following the sale, the director directly owned 23,450 shares of the company's stock, valued at $261,233. The trade was a 16.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 4.60% of the stock is owned by insiders.

Hedge Funds Weigh In On Varex Imaging

Institutional investors and hedge funds have recently modified their holdings of the stock. Fifth Third Bancorp raised its holdings in Varex Imaging by 10,311.2% during the 1st quarter. Fifth Third Bancorp now owns 18,532 shares of the company's stock valued at $197,000 after buying an additional 18,354 shares during the period. Y Intercept Hong Kong Ltd boosted its stake in Varex Imaging by 206.6% during the first quarter. Y Intercept Hong Kong Ltd now owns 38,020 shares of the company's stock worth $403,000 after buying an additional 25,618 shares during the period. Inspire Investing LLC boosted its stake in Varex Imaging by 21.2% during the first quarter. Inspire Investing LLC now owns 48,594 shares of the company's stock worth $516,000 after buying an additional 8,484 shares during the period. SG Americas Securities LLC increased its position in Varex Imaging by 4.4% during the first quarter. SG Americas Securities LLC now owns 30,202 shares of the company's stock valued at $320,000 after acquiring an additional 1,272 shares during the last quarter. Finally, Diversified Trust Co bought a new position in Varex Imaging during the first quarter valued at $134,000.

About Varex Imaging

Varex Imaging Corporation is a global provider of X-ray imaging components and solutions for the medical, security and industrial markets. The company designs, develops and manufactures a broad range of products that convert X-ray energy into high-resolution digital images. Its portfolio includes X-ray tubes, flat panel detectors, digital sensors, specialty radiographic tubes and related software, all engineered to meet the demanding requirements of original equipment manufacturers (OEMs) in diagnostic imaging, computed tomography (CT), fluoroscopy, mammography, dental radiography and non-destructive testing applications.

The company's medical imaging offerings support a wide spectrum of clinical modalities, from portable radiography systems to advanced CT scanners, enhancing image quality and dose efficiency for healthcare providers.

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