Varex Imaging (VREX) Jefferies Global Healthcare Conference 2026 summary

Business model and value proposition

• Maintains long-term, sticky relationships with over 150 OEMs globally, leveraging 75 years of technological expertise.

• Delivers scale in R&D and manufacturing, enabling mass customization and reducing OEMs’ time to market.

• Aggregates R&D and supply chain across both medical and industrial verticals, creating a strong competitive moat.

• Outsourcing trend among OEMs continues, as in-house development proves costly and complex over time.

• Customers benefit from lower total cost of ownership, including savings on R&D, CapEx, warranty, and field service.

Strategic initiatives and growth drivers

• Transitioned to providing annual guidance, reflecting increased business stability and industry alignment.

• Three main growth drivers: India manufacturing expansion, cargo inspection systems, and photon counting technology.

• India: Detector factory operational with gradual ramp-up; tube factory under construction, equipment move-in planned by year-end.

• Cargo: $55M in orders for fiscal 2025, expanding product portfolio and sales channels across multiple countries.

• Photon counting: Targeting $100M medical and $50M industrial revenue by 2029, with broadening applications and customer base.

Technology and innovation

• Photon counting opens a new $500M addressable market in CT detectors, with pilot launches and commercial ramp expected.

• Technology adoption extends to breast, orthopedic, spine, and dental imaging, as well as industrial uses like battery and food inspection.

• Aims for $150M combined photon counting revenue by 2030, with current industrial run rate at $20M.

• R&D investments focus on democratizing advanced imaging technologies for a wide range of OEMs.