The strong earnings beat and tariff refund tailwind are positive but overshadowed by the Teledyne acquisition, which now drives the stock. Traders should monitor regulatory filings for the Teledyne merger – shareholder vote and Hart-Scott-Rodino clearance are the next catalysts.
Price Chart
Executive Summary
Varex Imaging reported Q3 FY2026 non-GAAP EPS of $0.31, a 138.5% increase YoY from $0.13, and revenue of $210.5M (+3.7% YoY). Results benefited from $17M in IEEPA tariff refunds boosting gross profit by ~$10M. The company canceled its earnings call and guidance citing the pending Teledyne transaction, shifting focus to deal completion.
Key Financial Metrics
Key Facts
- Non-GAAP EPS $0.31 vs $0.13 YoY (+138.5%); GAAP EPS $0.37 vs ($2.15) YoY
- Total revenue $210.5M, up 3.7% YoY from $203.0M; Industrial segment revenue surged 25.6% to $76.5M
- Non-GAAP gross margin expanded to 36.7% from 33.5% YoY, partly due to $17M in IEEPA tariff refunds
- Operating cash flow improved to $21M from negative $2M in Q2; cash and equivalents $99M
- Earnings conference call canceled and guidance suspended due to pending Teledyne acquisition
- The $0.31 non-GAAP EPS represents a 56.6% beat vs consensus estimate of $0.20
Financial Impact
Non-GAAP EPS beat consensus of $0.20 by 56.6%; revenue beat consensus of $215.5M by -2.3% (slight miss). The EPS beat is the stronger signal.
Risk Factors
- Teledyne deal fails – stock could revert to standalone valuation (current price likely reflects deal premium)
- No forward guidance – lack of visibility into post-merger standalone trajectory
- Medical segment revenue declined 5.7% YoY to $134M, signaling mixed underlying demand
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-093036 |
| Document: tm2622686d1_8k.htm | 0001104659-26-093036 |
| Document: 0001104659-26-093036-index-headers.html | 0001104659-26-093036 |
| Document: 0001104659-26-093036-index.html | 0001104659-26-093036 |
| Document: 0001104659-26-093036.txt | 0001104659-26-093036 |
| 8-K Data (Synthetic) | 0001104659-26-093036 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 15, 2026 17d ago | Insider Cluster | $18.47 $18.49 | ▼ −0.11% | ▲ +0.71% | $18.50 (−0.14%) |
Sep 14, 2026 18d ago | 144 | $18.46 $18.47 | ▲ +0.05% | ▼ −1.60% | $18.50 (+0.19%) |
Sep 11, 2026 20d ago | 144 | $18.46 $18.47 | ▼ −0.05% | ▲ +1.60% | $18.50 (−0.19%) |
Aug 10, 2026 7w ago | DEFA14A | $18.58 $18.46 | ▼ −0.65% | ▼ −0.24% | $18.50 (−0.46%) |
Aug 10, 2026 7w ago | DEFA14A | $18.58 $18.46 | ▼ −0.65% | ▼ −0.24% | $18.50 (−0.46%) |
Aug 10, 2026 7w ago | 8-K / DEFA14A | $18.58 $18.46 | ▼ −0.65% | ▼ −0.24% | $18.50 (−0.46%) |
Aug 10, 2026 7w ago | 8-K | $18.46 $18.46 | · 0.00% | ▲ +0.05% | $18.50 (+0.19%) |
Jun 11, 2026 16w ago | Institutional Cluster | $11.04 $10.53 | ▼ −4.62% | ▼ −5.29% | $18.50 (+67.53%) |
US Market Status
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