Varex Imaging Corporation reported a net income of $2.4 million for the first quarter of fiscal year 2026, a notable recovery from a net loss of $0.1 million in the same period last year. The company’s total revenues increased by 4.9% to $209.6 million, up from $199.8 million in the prior year. This growth was driven primarily by a 17.4% increase in the Industrial segment, which generated $64.8 million in revenue, while the Medical segment saw a slight increase of 0.1%, totaling $144.8 million. The overall gross profit rose to $69.8 million, reflecting a 1.9% increase compared to the previous year.
In terms of operational performance, Varex's revenue growth was supported by a significant increase in sales of inspection products and digital detectors within the Industrial segment. The Americas region experienced a 16.9% revenue increase, attributed to heightened sales of security inspection products and X-ray tubes. Conversely, the Asia-Pacific region saw a decline of 6.8%, primarily due to decreased sales of X-ray tubes and digital detectors. The company’s total backlog as of January 2, 2026, was approximately $264 million, indicating a solid pipeline of future revenue.
Varex's financial position remains stable, with cash and cash equivalents totaling $119.5 million at the end of the quarter. The company has maintained a strong liquidity position, with $154.8 million available under its revolving credit facility. However, cash used in operating activities was $(16.1) million, a decline from $9.5 million in the prior year, largely due to increased inventory purchases in anticipation of future demand. The company’s employee headcount stands at approximately 2,400, reflecting its commitment to supporting growth in both medical and industrial markets.
Strategically, Varex continues to invest in research and development, with R&D expenses accounting for 10.4% of revenues in the first quarter. The company is focused on innovation and enhancing its product offerings, particularly in the medical imaging sector, where it aims to strengthen its position as a leading supplier. Looking ahead, Varex anticipates ongoing challenges from the current economic and trade environment, including potential impacts from tariffs and supply chain disruptions. The company remains committed to mitigating these risks while pursuing growth opportunities in both existing and new markets.
About Varex Imaging Corp
Varex Imaging Corporation designs and manufactures X-ray imaging components, including X-ray tubes, detectors, and software, serving medical, security, and industrial markets worldwide. Its core business involves supplying OEMs with customized, high-performance imaging solutions for diagnostic, security, and non-destructive testing applications. The company leverages technological innovation, scale, and long-term customer relationships to maintain competitive advantage in a highly regulated, global industry.
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