Varex Imaging (NASDAQ:VREX) Exceeds EPS Estimates Amid Teledyne Acquisition News

• Varex Imaging (NASDAQ:VREX) surpassed earnings per share (EPS) estimates, reporting $0.31 against a projection of $0.21.
• Despite a slight revenue miss, management said sales before a customer reimbursement adjustment were around $217.0 million, supported by growth in industrial and cargo inspection.
• The company remains the subject of a major strategic acquisition, with Teledyne Technologies agreeing to acquire Varex for approximately $1.1 billion, or $18.90 per share in cash.

Varex Imaging Corporation (NASDAQ:VREX) operates in the medical imaging technology sector, focusing on the design and manufacturing of advanced X-ray imaging components. The company is also facing a significant strategic corporate event, as Teledyne Technologies (NYSE:TDY) plans to acquire it for approximately $1.1 billion.

On August 10, 2026, Varex Imaging reported its fiscal third-quarter earnings. Wall Street analysts had expected earnings per share of $0.21, while the company reported EPS of $0.31, beating the estimate by more than 40%. This was also an increase from the $0.18 per share reported in the same quarter of the previous year.

For total revenue, analysts expected approximately $215.5 million. Varex reported revenue of $210.5 million, missing the consensus estimate by about 2.3%. CEO Sunny Sanyal said sales before a specific customer reimbursement adjustment were around $217.0 million, supported by strong growth in the industrial and cargo inspection markets.

The company also reported a non-GAAP gross margin of 37%. Gross margin is a key profitability metric that shows the percentage of revenue left after accounting for the cost of goods sold. Varex also generated $21.0 million in operating cash flow during the quarter.

Varex Imaging maintains solid liquidity, with a current ratio of 3.38. Its debt-to-equity ratio stands at 0.71, suggesting a balanced use of debt and shareholder equity to finance its assets. The Teledyne acquisition, if completed, would give shareholders $18.90 per share in cash and is expected to close in early 2027, pending regulatory and shareholder approvals.