Varex Imaging (VREX) Stock Forecast & Price Target

Varex Imaging Corp has reported significant growth across its two business segments, with the industrial segment achieving a record revenue of $76.8 million, reflecting a year-over-year increase of 25.3%, while the medical segment also posted a solid growth of 5.3% year-over-year to $152.1 million. The company is witnessing stabilization in China, with expectations for stronger orders in 2026 and a positive outlook on its cargo inspection business poised for continued performance improvement into FY2026. Additionally, Varex is advancing its photon counting CT technology and expanding manufacturing capacities, which positions it well for future growth and strengthens its overall operational efficiency.

Varex Imaging faces significant challenges that contribute to a negative outlook, particularly due to potential new tariffs between the U.S. and China, which account for approximately 15% of its total revenues. Additionally, ongoing anti-corruption actions by the Chinese government have hampered sales into the region, alongside increased costs and complications in material imports. The company's cash and marketable securities decreased year-over-year by $58 million, reflecting financial strain, despite a minor sequential increase of $2 million.