Varex Imaging (VREX) Stock Forecast & Price Target

Varex Imaging Corp reported strong financial performance, with the industrial segment achieving its highest quarterly revenue of $76.8 million, reflecting a 25.3% year-over-year increase, while the medical segment grew by 5.3% year-over-year to reach $152.1 million. The company is experiencing promising developments in China, where anticipated order growth for CT systems points to increased market activity and offers potential for improved revenue streams in 2026. Additionally, Varex's strategic initiatives, including expanding manufacturing capabilities in India and enhancing their photon counting CT technology, support a positive outlook for continued growth across both the medical and industrial segments in FY2026.

Varex Imaging faces significant revenue challenges due to ongoing trade tensions and tariff implications between China and the U.S., which could adversely affect approximately 15% of its total revenues. The company's sales in China have been hindered by the government’s anti-corruption measures, leading to increased costs and complications in importing materials, thereby impacting operational efficiency. Additionally, a year-over-year decline in cash and marketable securities of $58 million raises concerns about the company’s liquidity and financial stability, further contributing to a negative outlook.