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Most of Varex Imaging Corporation’s revenue comes from medical equipment manufacturers buying X-ray tubes, detectors and related software for systems such as CT scanners and mammography machines. These manufacturers build Varex components into their equipment and typically keep buying replacements and support afterward. Varex also sells replacement components through independent service companies and distributors and directly to end users. Replacement sales and service account for a substantial part of revenue.
Its smaller Industrial business supplies X-ray components, software and some complete systems for cargo and baggage screening and for inspecting materials without damaging them. Products include Linatron X-ray linear accelerators used in industrial applications.
The business relies on a relatively small group of large equipment makers, with Canon Medical Systems its largest customer. Some customers also manufacture their own components, so sales depend partly on their decisions to keep buying from Varex rather than produce components themselves. Customized components can be costly and complex to replace, and some changes require regulatory approval. Medical-device manufacturing must meet FDA quality requirements, and some new or significantly modified devices need FDA clearance before U.S. sales.
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Varex’s results depend chiefly on medical imaging equipment makers’ production and replacements in equipment already in use: Canon Medical Systems alone accounts for 18% of revenue, while Siemens Healthineers, United Imaging Healthcare and Rapiscan are also among its largest customers.
Teledyne competes with Varex for industrial customers buying low-energy X-ray imaging products for inspection, analysis and testing without damaging the object. Its imaging sensors, cameras and systems are the offerings to watch for competitive developments, rather than its broader marine, aerospace and defense businesses.
Leidos buys Varex’s high-energy imaging products for security systems, but also competes with it to sell complete cargo-inspection systems. Watch Leidos’s cargo-inspection business for both demand and rivalry; it is only part of a company paid mainly through U.S. government contracts.
Teledyne Technologies Incorporated earningsTDY
Teledyne's report can show whether its low-energy X-ray imaging offerings are gaining ground with industrial inspection customers that can also buy from Varex.
Look for Teledyne's sales or demand commentary specifically on low-energy X-ray products for inspection, analysis and testing; its overall results are not a substitute. Strength in those offerings would point to tougher competition for Varex among industrial customers. Weakness would mean less evidence of pressure, not proof that Varex is winning orders.
Leidos Holdings, Inc. earningsLDOS
Leidos buys Varex's high-energy imaging products for security systems and competes with Varex to sell complete cargo-inspection systems, so its report can speak to both demand and rivalry.
Read Leidos's explanation of sales and demand in cargo inspection. If growth reflects stronger customer demand for systems using Varex's high-energy products, that supports demand for those products. If Leidos points to wins for its complete systems, it also signals tougher competition for Varex's own systems. Weakness would suggest softer inspection demand, but would not by itself establish a change in Varex orders.
Varex Imaging Corporation earningsThis company
Varex sells most of its imaging components to medical-equipment makers, and this report will show whether its larger Medical business is keeping pace with its generally higher-margin Industrial business.
Compare revenue and gross margin in Medical and Industrial. Medical supplied about 70% of Varex's fiscal 2025 revenue. If Medical revenue and margin both strengthen, the company's main business is supporting results. If Medical is weak while Industrial holds up, growth depends more on the smaller Industrial business and does not show a broad recovery in Medical.
