Varex Imaging Corporation (NASDAQ: VREX) Earnings: Strong EPS and Strategic Acquisition Insights

• Varex Imaging Corporation (NASDAQ: VREX) reported a strong EPS of $0.31, significantly beating analyst estimates of $0.21.
• Despite the earnings surprise of over 40%, the company's revenue of $210.50 million fell short of expectations.
• The company maintains a strong liquidity position with a current ratio of 3.38 amidst its pending acquisition by Teledyne Technologies.

Varex Imaging Corporation (NASDAQ: VREX) is a major producer of medical X-ray imaging components. The company is set to be acquired by Teledyne Technologies (NYSE: TDY) for approximately $1.1 billion, a deal that includes both equity and debt, as highlighted by the Wall Street Journal. This provides important context for its recent performance.

On August 10, 2026, Varex Imaging Corporation announced its third-quarter earnings results. The company reported an earnings per share (EPS) of $0.31, which is a key measure of a company's profitability. This figure significantly surpassed the analyst consensus estimate of $0.21, marking a positive surprise for investors.

This strong EPS result represents an earnings surprise of over 40%, as highlighted by Zacks. It is also a substantial increase from the $0.18 per share reported in the same quarter last year. Varex Imaging Corporation has a consistent record of beating EPS estimates, achieving this in three of the last four quarters.

However, the company's revenue did not meet expectations. Varex Imaging Corporation reported revenue of $210.50 million, which fell short of the estimated $215.50 million. While this is a miss of 2.8% against the Zacks Consensus Estimate, the figure still shows growth from the $203.00 million reported a year prior.

The company generated $21.00 million in cash flow from operations and reported a non-GAAP gross margin of 37%. Varex Imaging Corporation maintains a current ratio of 3.38. This ratio suggests the company has more than three times the short-term assets needed to cover its short-term liabilities, indicating a strong liquidity position.