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Hologic's Breast Health Rebounds, Takes Spotlight in Buyout Deal
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Key Takeaways
Hologic's Breast Health revenues rose 4.8% to $393.7 million in the fiscal fourth quarter.
Growth was driven by interventional products, Endomagnetics sales and Hologic's better U.S. execution.
Hologic's $79-per-share takeover by Blackstone and TPG spotlights the division's strategic importance.
Hologic (HOLX - Free Report) exited the fourth quarter of fiscal 2025, achieving a turnaround for its Breast Health division. Revenues increased 4.8% to $393.7 million, mainly driven by strong sales of interventional products, the inclusion of Endomagnetics and continued improvement in U.S. sales execution. On an organic basis — excluding sales from the divested SSI business and July sales from Endomagnetics — the division still delivered solid growth of 3.3%.
At the fiscal year’s beginning, management had predicted a slowdown in gantry placements, following several quarters of sustained double-digit mammography growth that blurred the visibility of a normalized gantry market and eventually, resulted in tough comparisons. While capital sales struggled, recurring service revenues continued to grow strongly, aligning with Hologic’s long-term strategy to diversify revenues within this business.
A key development during the year was the appointment of new leadership, which reorganized the sales force between capital and disposable product sales reps to align with the distinct skill sets. Combined with a more concrete selling strategy, the move is expected to sharpen focus and improve performance within the commercial channels. The company also rolled out a refined end-of-life strategy for older gantries and started selling Endomagnetics products directly through its salesforce in North America, replacing the previous distributor approach.
On Oct. 21, Hologic announced its proposed takeover by private equity firms, Blackstone and TPG. The deal, valued at up to $79 per share, includes a non-tradable contingent value right (CVR) of up to $3 per share in two payments of up to $1.50 each, payable following achievement of certain Breast Health global revenue goals in fiscal years 2026 and 2027. The transaction now places greater strategic focus on the division.
News From Hologic’s Breast Health Rivals
GE Healthcare (GEHC - Free Report) reported revenues of $5.1 billion in the third quarter of 2025, up 4% year over year organically, driven by strength in the imaging, AVS and PDX businesses. The company reported a book-to-bill at 1.06 times and ended the quarter with a backlog of $21.2 billion. GEHC management noted that these metrics, along with momentum in multiyear enterprise deals and high-margin innovations, signal the company’s continued growth potential. Adjusted earnings per share (EPS) fell 6% to $1.07, including an approximately $0.16 tariff impact.
Becton, Dickinson and Company (BDX - Free Report) , or BD, posted revenues of $5.89 billion in the fourth quarter of fiscal 2025, up 8.3% year over year on a reported basis. The Diagnostic Solutions business returned to positive growth in the quarter, with strong year-over-year improvement in BD MAX IVD, BD COR and BD BACTEC as utilization continued to recover. BD’s adjusted diluted EPS of $3.96 grew 3.9%, including a six-point tariff impact.
HOLX Stock Performance, Valuation and Estimates
Year to date, Hologic shares have risen 2.9% compared with the industry’s 0.3% growth.
Image Source: Zacks Investment Research
Hologic is trading at a forward 12-month price-to-sales (P/S) of 3.85X, lower than the industry average of 4.28X.
Image Source: Zacks Investment Research
See how analysts are projecting Hologic’s fiscal 2026 and 2027 earnings.
Image: Bigstock
Hologic's Breast Health Rebounds, Takes Spotlight in Buyout Deal
Key Takeaways
Hologic (HOLX - Free Report) exited the fourth quarter of fiscal 2025, achieving a turnaround for its Breast Health division. Revenues increased 4.8% to $393.7 million, mainly driven by strong sales of interventional products, the inclusion of Endomagnetics and continued improvement in U.S. sales execution. On an organic basis — excluding sales from the divested SSI business and July sales from Endomagnetics — the division still delivered solid growth of 3.3%.
At the fiscal year’s beginning, management had predicted a slowdown in gantry placements, following several quarters of sustained double-digit mammography growth that blurred the visibility of a normalized gantry market and eventually, resulted in tough comparisons. While capital sales struggled, recurring service revenues continued to grow strongly, aligning with Hologic’s long-term strategy to diversify revenues within this business.
A key development during the year was the appointment of new leadership, which reorganized the sales force between capital and disposable product sales reps to align with the distinct skill sets. Combined with a more concrete selling strategy, the move is expected to sharpen focus and improve performance within the commercial channels. The company also rolled out a refined end-of-life strategy for older gantries and started selling Endomagnetics products directly through its salesforce in North America, replacing the previous distributor approach.
On Oct. 21, Hologic announced its proposed takeover by private equity firms, Blackstone and TPG. The deal, valued at up to $79 per share, includes a non-tradable contingent value right (CVR) of up to $3 per share in two payments of up to $1.50 each, payable following achievement of certain Breast Health global revenue goals in fiscal years 2026 and 2027. The transaction now places greater strategic focus on the division.
News From Hologic’s Breast Health Rivals
GE Healthcare (GEHC - Free Report) reported revenues of $5.1 billion in the third quarter of 2025, up 4% year over year organically, driven by strength in the imaging, AVS and PDX businesses. The company reported a book-to-bill at 1.06 times and ended the quarter with a backlog of $21.2 billion. GEHC management noted that these metrics, along with momentum in multiyear enterprise deals and high-margin innovations, signal the company’s continued growth potential. Adjusted earnings per share (EPS) fell 6% to $1.07, including an approximately $0.16 tariff impact.
Becton, Dickinson and Company (BDX - Free Report) , or BD, posted revenues of $5.89 billion in the fourth quarter of fiscal 2025, up 8.3% year over year on a reported basis. The Diagnostic Solutions business returned to positive growth in the quarter, with strong year-over-year improvement in BD MAX IVD, BD COR and BD BACTEC as utilization continued to recover. BD’s adjusted diluted EPS of $3.96 grew 3.9%, including a six-point tariff impact.
HOLX Stock Performance, Valuation and Estimates
Year to date, Hologic shares have risen 2.9% compared with the industry’s 0.3% growth.
Image Source: Zacks Investment Research
Hologic is trading at a forward 12-month price-to-sales (P/S) of 3.85X, lower than the industry average of 4.28X.
Image Source: Zacks Investment Research
See how analysts are projecting Hologic’s fiscal 2026 and 2027 earnings.
Image Source: Zacks Investment Research
HOLX stock currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.