Hologic reported modest revenue growth driven by its Surgical segment, partially offset by declines in Diagnostics. While non-GAAP EPS saw a slight increase, GAAP EPS decreased due to prior year foreign exchange gains. The company is navigating tariff impacts and preparing for a pending acquisition.
Surgical revenue grew 8.7% (7.5% constant currency), driven by the acquired Gynesonics business and other product sales.
positiveCash flow from operations was $229.9 million, an increase of 21.4% year-over-year.
positiveNon-GAAP diluted EPS increased 1.0% to $1.04.
positiveThe company ended the quarter with $2.17 billion in cash and cash equivalents.
positiveGAAP diluted EPS decreased 9.2% to $0.79, primarily due to favorable foreign exchange gains in the prior year period.
negativeDiagnostics revenue decreased 1.3% (2.7% constant currency) to $464.4 million.
negativeMolecular diagnostics revenue decreased 3.5% (4.6% constant currency) due to lower sales of COVID-19 tests and legacy assays.
negativeGAAP gross margin decreased 80 basis points to 56.0%, and non-GAAP gross margin decreased 150 basis points to 60.1%, primarily due to increased tariff expenses of $15.3 million.
negativeNon-GAAP operating margin decreased 40 basis points to 29.0%, primarily due to higher tariff expenses.
negativeThe company is not providing financial guidance for fiscal 2026 due to the pending acquisition.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
Diagnostics | N/A | — | — | — | -2.7% |
Breast health | N/A | — | — | — | +0.8% |
GYN surgical | N/A | — | — | — | +7.5% |
Skeletal health | N/A | — | — | — | +65.9% |
| Total Revenue | $0.00M | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
The company reported revenue of $1,047.8 million, GAAP diluted EPS of $0.79, and non-GAAP diluted EPS of $1.04.
Revenue increased 2.5% for the quarter, or 1.3% on a constant currency basis.
GAAP diluted EPS decreased (9.2%), mainly due to favorable foreign exchange gains in the prior year period. Non-GAAP EPS increased 1.0%.
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