Earnings call transcript: Varex Imaging beats Q1 2026 EPS forecast

Varex Imaging Corporation reported a significant financial milestone during its first-quarter fiscal 2026 earnings call on Monday, announcing that it exceeded analysts' earnings per share (EPS) forecasts despite a challenging global economic climate. Executives from the Salt Lake City-based medical technology company presented the results from their corporate headquarters, attributing the stronger-than-anticipated performance to improved operational efficiencies and a strategic stabilization within its industrial imaging segment. The positive earnings surprise comes as the company continues to navigate shifting demand in the healthcare sector and supply chain recalibrations following years of volatility. During the detailed presentation, management highlighted that the quarterly performance was bolstered by a diversification of their product portfolio, particularly in the dental and oncology markets. While the medical imaging industry has faced headwinds due to fluctuating hospital budgets, Varex managed to maintain competitive margins through cost-cutting initiatives implemented in the previous fiscal year. The company emphasized that its focus on high-growth areas, such as advanced CT components and digital detectors, allowed it to offset softer demand in some of its legacy radiographic businesses. Looking ahead, Varex Imaging provided a cautiously optimistic outlook for the remainder of the fiscal year, suggesting that the recent EPS beat serves as a foundation for sustained profitability. During the Q&A session with analysts, the leadership team addressed questions regarding geopolitical risks and R&D investments, confirming that they intend to continue prioritizing technological innovation to maintain their market-leading position. The market responded positively to the news, as the company’s ability to outperform expectations signals a potential recovery in broader industrial and medical imaging demand cycles.