Can Varex Imaging Sustain Its Recent Rally?

Varex Imaging US92214X1063

Investors in Varex Imaging Corporation are looking ahead to a pivotal week, with the company’s first-quarter 2026 financial results scheduled for release after the U.S. market closes on Tuesday, February 10. Following a robust finish to the previous fiscal year, the market is now questioning whether this momentum can be carried forward. Management's guidance for the coming months will be a primary focus for shareholders.

The stock's performance has improved considerably in recent months. Closing at $13.78 on Friday, the share price remains below its 52-week high of $15.46 but has recovered significantly from its low of $6.76. This rally has brought the company's market capitalization to approximately $586 million.

While institutional investor activity has been mixed, major holders like Pzena Investment Management maintain their positions in the sector. The upcoming earnings report will be a key test to determine if the operational performance justifies the recent share price appreciation. Hitting earnings targets and providing stable forward-looking statements are seen as essential for the current uptrend to continue.

High Expectations Following a Strong Quarter

The bar is set high for the impending report. Varex Imaging delivered a standout performance in the fourth quarter of 2025, surpassing consensus estimates. The company reported earnings per share (EPS) of $0.37, soundly beating the forecast of $0.18. Revenue also exceeded expectations, coming in at $228.9 million against projections of $219.3 million.

For this first quarter of fiscal 2026, market expectations are more conservative. Analysts, on average, anticipate an EPS of around $0.14 on revenue of approximately $208 million. Market participants will be watching closely to see if the company can once again deliver a positive surprise and either confirm or raise its outlook for the full year.

Upcoming Annual Meeting and Executive Compensation

Merely two days after the earnings release, Varex will hold its virtual Annual Meeting of Shareholders on Thursday. The agenda includes the election of board members and votes on executive compensation plans.

Proxy materials for fiscal 2025 reveal that CEO Sunny Sanyal received total compensation of about $4.63 million. A base salary of roughly $816,000 constituted a portion of this sum, with the majority coming from stock awards and performance-based bonuses. The meeting offers investors a chance to evaluate the alignment between executive pay and the company's operational results.

Key Data Points:
* Earnings Release: Tuesday, February 10, 2026 (after market close)
* Estimated EPS: $0.14
* Estimated Revenue: $208 million
* Recent Share Price: $13.78 (Friday's close)
* 52-Week Range: $6.76 - $15.46