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HOLX Stock Slips on Q1 Earnings and Revenue Miss, Margins Crash
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Key Takeaways
Hologic reported Q1 EPS of $1.04 and revenues of $1.05B, missing estimates and pushing shares lower.
At Hologic, Diagnostics revenues slipped while GYN Surgical and Skeletal Health delivered strong growth.
HOLX saw adjusted gross margin fall 150 bps to 60.1% as higher tariff expenses weighed on results.
Hologic, Inc. (HOLX - Free Report) reported adjusted earnings per share (EPS) of $1.04 in the first quarter of fiscal 2026, up 1% year over year. The metric missed the Zacks Consensus Estimate by 4.46%.
The adjustments include charges and benefits related to the amortization of acquired intangible assets, restructuring charges, facility closure and consolidation charges and many others. The company’s GAAP EPS was 79 cents in the quarter, which decreased 9.2% year over year.
HOLX’s Q1 Revenues
Revenues totaled $1.05 billion in the quarter, up 2.5% year over year (1.3% at the constant exchange rate or CER). The top line fell short of the Zacks Consensus Estimate by 2.14%.
On a regional basis,U.S. revenues increased 2% to $773.5 million. International revenues amounted to $274.3 million, up 4% year over year (down 1% at CER).
Following the earnings announcement, HOLX shares fell 0.1% in yesterday’s after-hours session.
Detailed Breakdown of Hologic’s Q1 Revenues
The company operates through four segments: Diagnostics, Breast Health, GYN Surgical and Skeletal Health.
Diagnostics revenues fell 1.3% year over year (2.7% at CER) to $464.4 million in the quarter. Within this, Molecular Diagnostics revenues decreased 3.5%, due to lower sales of COVID-19 tests and legacy assays for sexually transmitted infections. Excluding COVID-19 and related revenues, organic Diagnostics revenues grew 1.2% on a reported basis.
Revenues in Breast Health increased 1.8% from the year-ago period (up 0.8% at CER) to $375.9 million, mainly due to strong sales of Endomagnetics products.
In GYN Surgical, revenues came in at $180.8 million, up 87% year over year (7.5% at CER). This was mainly driven by higher sales of the acquired Gynesonics business, MyoSure and Fluent.
Skeletal Health revenues surged 69% year over year (65.9% at CER) to $26.7 million, mainly from increased sales volume of the Horizon DXA systems.
Hologic’s Q1 Margin Performance
In the fiscal first quarter, the company-provided adjusted gross margin decreased 150 basis points (bps) to 60.1%, mainly due to increased tariff expenses. Adjusted operating margin was 29%, down 40 bps.
HOLX’s Financial Update
Hologic ended the first quarter of fiscal 2026 with cash and cash equivalents of $2.17 billion compared with $1.96 billion at the end of fiscal 2025.
Total long-term debt (including the current portion) was $2.51 billion, consistent with the figure at the end of fiscal 2025.
Net cash provided by operating activities at the end of the fiscal first quarter was $229.9 million compared with $189.3 million a year ago.
Our Take on HOLX Stock
Hologic ended the fiscal first quarter with both revenues and earnings missing the respective estimates. The contraction of both the gross and operating margins is also discouraging. However, both the top and bottom lines improved on a year-over-year basis. Weakness in Molecular Diagnostics was partially offset by stronger sales of BV CV/TV and Panther Fusion assays. Gynesonics’ contribution provided a boost to the GYN Surgical performance. In light of Hologic’s agreement to be acquired by Blackstone and TPG, the company has not issued annual or quarterly financial guidance for the full fiscal 2026.
Intuitive Surgical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $2.53, which surpassed the Zacks Consensus Estimate by 12.4%. Revenues of $2.87 billion beat the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 12.7% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 13.24%.
Veracyte, sporting a Zacks Rank #1 at present, posted a third-quarter 2025 adjusted earnings of 51 cents, exceeding the Zacks Consensus Estimate by 59.38%. Revenues of $131.9 million topped the Zacks Consensus Estimate by 5.50%.
VCYT has an earnings yield of 4.2% compared with the industry’s 0.6% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 45.12%.
Veeva Systems, carrying a Zacks Rank #2 (Buy) at present, posted a third-quarter fiscal 2026 adjusted EPS of $2.04, exceeding the Zacks Consensus Estimate by 4.62%. Revenues of $811.24 million topped the Zacks Consensus Estimate by 2.44%.
VEEV has an earnings yield of 3.6% compared with the industry’s yield of -1.7%. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 8.18%.
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HOLX Stock Slips on Q1 Earnings and Revenue Miss, Margins Crash
Key Takeaways
Hologic, Inc. (HOLX - Free Report) reported adjusted earnings per share (EPS) of $1.04 in the first quarter of fiscal 2026, up 1% year over year. The metric missed the Zacks Consensus Estimate by 4.46%.
The adjustments include charges and benefits related to the amortization of acquired intangible assets, restructuring charges, facility closure and consolidation charges and many others. The company’s GAAP EPS was 79 cents in the quarter, which decreased 9.2% year over year.
HOLX’s Q1 Revenues
Revenues totaled $1.05 billion in the quarter, up 2.5% year over year (1.3% at the constant exchange rate or CER). The top line fell short of the Zacks Consensus Estimate by 2.14%.
On a regional basis,U.S. revenues increased 2% to $773.5 million. International revenues amounted to $274.3 million, up 4% year over year (down 1% at CER).
Following the earnings announcement, HOLX shares fell 0.1% in yesterday’s after-hours session.
Detailed Breakdown of Hologic’s Q1 Revenues
The company operates through four segments: Diagnostics, Breast Health, GYN Surgical and Skeletal Health.
Diagnostics revenues fell 1.3% year over year (2.7% at CER) to $464.4 million in the quarter. Within this, Molecular Diagnostics revenues decreased 3.5%, due to lower sales of COVID-19 tests and legacy assays for sexually transmitted infections. Excluding COVID-19 and related revenues, organic Diagnostics revenues grew 1.2% on a reported basis.
Hologic, Inc. Price, Consensus and EPS Surprise
Hologic, Inc. price-consensus-eps-surprise-chart | Hologic, Inc. Quote
Revenues in Breast Health increased 1.8% from the year-ago period (up 0.8% at CER) to $375.9 million, mainly due to strong sales of Endomagnetics products.
In GYN Surgical, revenues came in at $180.8 million, up 87% year over year (7.5% at CER). This was mainly driven by higher sales of the acquired Gynesonics business, MyoSure and Fluent.
Skeletal Health revenues surged 69% year over year (65.9% at CER) to $26.7 million, mainly from increased sales volume of the Horizon DXA systems.
Hologic’s Q1 Margin Performance
In the fiscal first quarter, the company-provided adjusted gross margin decreased 150 basis points (bps) to 60.1%, mainly due to increased tariff expenses. Adjusted operating margin was 29%, down 40 bps.
HOLX’s Financial Update
Hologic ended the first quarter of fiscal 2026 with cash and cash equivalents of $2.17 billion compared with $1.96 billion at the end of fiscal 2025.
Total long-term debt (including the current portion) was $2.51 billion, consistent with the figure at the end of fiscal 2025.
Net cash provided by operating activities at the end of the fiscal first quarter was $229.9 million compared with $189.3 million a year ago.
Our Take on HOLX Stock
Hologic ended the fiscal first quarter with both revenues and earnings missing the respective estimates. The contraction of both the gross and operating margins is also discouraging. However, both the top and bottom lines improved on a year-over-year basis. Weakness in Molecular Diagnostics was partially offset by stronger sales of BV CV/TV and Panther Fusion assays. Gynesonics’ contribution provided a boost to the GYN Surgical performance. In light of Hologic’s agreement to be acquired by Blackstone and TPG, the company has not issued annual or quarterly financial guidance for the full fiscal 2026.
HOLX’s Zacks Rank and Key Picks
Hologic currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Veracyte (VCYT - Free Report) and Veeva Systems (VEEV - Free Report) .
Intuitive Surgical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $2.53, which surpassed the Zacks Consensus Estimate by 12.4%. Revenues of $2.87 billion beat the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 12.7% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 13.24%.
Veracyte, sporting a Zacks Rank #1 at present, posted a third-quarter 2025 adjusted earnings of 51 cents, exceeding the Zacks Consensus Estimate by 59.38%. Revenues of $131.9 million topped the Zacks Consensus Estimate by 5.50%.
VCYT has an earnings yield of 4.2% compared with the industry’s 0.6% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 45.12%.
Veeva Systems, carrying a Zacks Rank #2 (Buy) at present, posted a third-quarter fiscal 2026 adjusted EPS of $2.04, exceeding the Zacks Consensus Estimate by 4.62%. Revenues of $811.24 million topped the Zacks Consensus Estimate by 2.44%.
VEEV has an earnings yield of 3.6% compared with the industry’s yield of -1.7%. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 8.18%.