MARLBOROUGH, Mass.--(BUSINESS WIRE)---- $HOLX #FDA--Hologic Receives FDA Approval for Aptima® HPV Assay Primary Screening Option, Expanding Cervical Health Portfolio. ...

Core Financial Performance - The company reported a revenue of $1.05 billion for the first quarter of fiscal year 2026, representing a year-over-year growth of 2.5% [5] - GAAP net profit was $179 million, a decline of 10.9% compared to the previous year [5] - The gross margin decreased to 60.1%, down approximately 150 basis points year-over-year, primarily due to an increase in tariff-related costs of about $15.3 million [4] - Operating cash flow reached $230 million, showing a year-over-year increase of over 20%, indicating strong cash generation capability [4] Business Structure Analysis - The company remains focused on women's health, but performance varies across different segments: - Diagnostic business saw a revenue decline of 1.3% to $464 million, primarily due to a structural decline following the decrease in COVID-19 testing [6][7] - Breast health revenue was $376 million, reflecting a low single-digit growth driven by products related to Endomagnetics [6][7] - Gynecological surgery revenue reached $181 million, growing by 8.7%, supported by acquisitions and product lines like MyoSure and Fluent [6][7] - Skeletal health revenue was $26.7 million, showing a significant growth of 69%, although it remains a small part of the overall structure [6][7] Corporate Background - The company is headquartered in Massachusetts, USA, and is one of the few medical technology companies that focus systematically on women's health [9] - Its core technologies cover a closed-loop strategy of "diagnostics + intervention + surgery" in women's health, which is a key reason for private equity's willingness to invest at high valuations [9] Special Context of Mergers and Acquisitions - The company is currently in a critical phase of being acquired by Blackstone and TPG private equity firms, with a shareholder special meeting scheduled for February 5, 2026, to vote on the merger agreement [1][2] - Due to the ongoing merger process, all public information is primarily based on established facts rather than future operational forecasts or commitments [12] Conclusion - The company maintains stable cash flow from its core women's health business, and the merger process has entered a definitive shareholder voting stage [14]

Have you looked into how Hologic (HOLX) performed internationally during the quarter ending December 2025? Considering the widespread global presence of this medical device maker, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understan ...

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) 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 adj ...

Core Viewpoint - Hologic reported quarterly earnings of $1.04 per share, missing the Zacks Consensus Estimate of $1.09 per share, representing an earnings surprise of -4.46% [1]. Financial Performance - The company posted revenues of $1.05 billion for the quarter ended December 2025, which was below the Zacks Consensus Estimate by 2.14%, compared to $1.02 billion in the same quarter last year [2]. - Over the last four quarters, Hologic has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2]. Stock Performance - Hologic shares have increased by approximately 0.8% since the beginning of the year, while the S&P 500 has gained 1.9% [3]. - The current Zacks Rank for Hologic is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.09 on revenues of $1.05 billion, and for the current fiscal year, it is $4.51 on revenues of $4.28 billion [7]. - The trend of earnings estimate revisions for Hologic was mixed ahead of the earnings release, which could change following the recent report [6]. Industry Context - The Medical - Instruments industry, to which Hologic belongs, is currently in the top 38% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8].

Acquisition and Mergers - The company entered into a definitive agreement to be acquired by Blackstone Inc. and TPG Capital for $76.00 per share in cash, with a potential total consideration of $79.00 per share including a contingent value right[116] - The acquisition of Gynesonics was completed for a purchase price of $340.7 million, with $146.1 million allocated to intangible assets and $192.2 million to goodwill[120] - The company faces risks related to regulatory approvals, market conditions, and potential disruptions from the merger process[116] Business Segments - The company operates in four segments: Diagnostics, Breast Health, GYN Surgical, and Skeletal Health, focusing on women's health and well-being[108] - The Diagnostics segment includes molecular diagnostic assays and systems, with a focus on detecting STDs and other infectious diseases[109] - The Breast Health segment offers advanced breast imaging solutions, including 3D digital mammography systems and AI-based image analysis software[112] - The GYN Surgical segment features products like the MyoSure and NovaSure systems for treating uterine conditions, enhancing surgical options[113] - The Skeletal Health segment includes the Horizon DXA system for bone density evaluation, although the sale of Fluoroscan Insight FD systems will be discontinued[114] Financial Performance - Product revenues increased by $13.5 million, or 1.7%, to $831.4 million in the current quarter compared to $817.9 million in the prior year, driven by increases in GYN Surgical and Skeletal Health revenues[122] - Diagnostics product revenues decreased by $3.7 million, or 0.8%, primarily due to lower sales of SARS-CoV-2 assays and a decrease in Aptima CT/NG and HPV assays[123] - Breast Health product revenues decreased by $4.7 million, or 2.2%, mainly due to lower sales of digital mammography systems and Brevera 9 Gauge Needles, which were subject to a stop-ship[124] - GYN Surgical product revenues increased by $13.2 million, or 8.0%, primarily due to the Gynesonics acquisition, contributing $9.1 million[125] - Skeletal Health product revenues surged by $8.7 million, or 124.3%, due to increased sales volume of Horizon DXA systems[126] - Service and other revenues increased by $12.5 million, or 6.1%, to $216.4 million, driven by higher Breast Health service contract revenue[128] Expenses and Costs - Cost of product revenues increased by $20.8 million, or 6.9%, to $362.9 million, with the cost as a percentage of product revenues rising to 43.6% from 42.4%[130] - Operating expenses totaled $349.4 million, a decrease of $1.3 million, with selling and marketing expenses down by 6.7%[137] - General and administrative expenses rose by 10.5% to $127.8 million, primarily due to increased acquisition transaction expenses and compensation[139] - Research and development expenses increased slightly by 0.4% to $60.5 million, influenced by consulting spend related to quality organization and Gynesonics acquisition expenses[137] Interest and Income - Interest income decreased by $4.5 million (18.6%) to $19.7 million for the three months ended December 27, 2025, compared to $24.2 million in the prior year, primarily due to lower interest rates[142] - Interest expense increased by $2.9 million (9.5%) to $30.5 million for the three months ended December 27, 2025, compared to $27.6 million in the prior year, mainly due to a lower principal balance under the 2025 Credit Agreement[143] - Other income decreased significantly by $23.4 million to $0.6 million for the three months ended December 27, 2025, compared to $24.0 million in the prior year, primarily due to a loss from a strategic investment[144] - Provision for income taxes increased by $4.1 million (8.8%) to $50.6 million for the three months ended December 27, 2025, with an effective tax rate of 22.0% compared to 18.8% in the prior year[145] Segment Revenues and Operating Income - Total revenues in the Diagnostics segment decreased by $6.2 million (1.3%) to $464.4 million for the three months ended December 27, 2025, while operating income increased by $2.0 million (1.3%) to $157.5 million[148] - Total revenues in the Breast Health segment increased by $6.8 million (1.8%) to $375.9 million for the three months ended December 27, 2025, with operating income rising by $13.1 million (14.6%) to $102.8 million[150] - Total revenues in the GYN Surgical segment increased by $14.5 million (8.7%) to $180.8 million for the three months ended December 27, 2025, but operating income decreased by $18.1 million (30.9%) to $40.5 million[152] - Total revenues in the Skeletal Health segment increased significantly by $10.9 million (69.0%) to $26.7 million for the three months ended December 27, 2025, while operating income improved by $5.9 million[154] Debt and Liquidity - As of December 27, 2025, the company had total recorded debt outstanding of $2.51 billion, including $1.167 billion under the 2025 Credit Agreement[161] - Cash and cash equivalents increased by $208.5 million to $2,168.0 million during the first three months of fiscal 2026, primarily due to cash generated from operating activities[156] - The total principal balance of the 2028 Senior Notes is $400.0 million, maturing on February 1, 2028, with an interest rate of 4.625% per year[166] - The total principal balance of the 2029 Senior Notes is $950.0 million, maturing on February 15, 2029, with an interest rate of 3.250% per year[168] - A new stock repurchase program was authorized for up to $1.5 billion, with $937.5 million remaining unused as of December 27, 2025[169] - As of December 27, 2025, the fair value of the 2028 Senior Notes is approximately $400.0 million and the 2029 Senior Notes is approximately $938.7 million[176] - The aggregate principal outstanding under the 2025 Credit Agreement is $1.169 billion, which is subject to variable interest rates[178] - A hypothetical 10% increase in the SOFR rate would increase annual interest expense by approximately $2.5 million[178] - A hypothetical 100 basis point change in market rates would change annual interest income by approximately $19.4 million based on current cash and investment balances[179] - Future liquidity is contingent upon operating performance and may require additional capital for acquisitions or strategic transactions[172] Risk Factors - Future performance may be impacted by macroeconomic factors such as inflation and interest rates, affecting customer and supplier relationships[116] - The company is focused on maintaining compliance with evolving regulations and quality standards in its product offerings[116] - The company has executed forward foreign currency contracts to hedge a portion of operating results against currency exchange rate fluctuations[180] - The company believes that a hypothetical 10% increase or decrease in foreign currencies would not have a material adverse impact on its financial condition or results of operations[181]

Financial Performance - Revenue for the first quarter of fiscal 2026 was $1,047.8 million, representing a 2.5% increase compared to $1,021.8 million in the same quarter last year[1] - GAAP diluted EPS decreased by 9.2% to $0.79, while non-GAAP diluted EPS increased by 1.0% to $1.04[1] - Net income for the three months ended December 27, 2025, was $179.1 million, down from $201.0 million in the prior year, representing a decrease of 10.9%[18] - Basic net income per share decreased to $0.80 from $0.87, while diluted net income per share also fell to $0.79 from $0.87[18] - Consolidated GAAP revenue increased to $1,047.8 million, up 2.7% from $1,021.8 million year-over-year[24] - Organic revenue, excluding COVID-19 related revenue, was $1,002.2 million, reflecting a 2.9% increase from $973.8 million in the prior year[24] - Non-GAAP net income was $235.5 million, compared to $238.6 million in the same quarter of 2024, resulting in a non-GAAP net income percentage of 22.5%[26] - Adjusted EBITDA for the quarter was $330.4 million, an increase from $326.0 million year-over-year[26] Revenue Breakdown - Diagnostics revenue was $464.4 million, a decrease of 1.3%, with organic diagnostics sales growing 1.2% excluding COVID-19 related revenue[5] - Breast Health revenue increased by 1.8% to $375.9 million, driven by strong sales of Endomagnetics products[5] - Surgical revenue grew by 8.7% to $180.8 million, primarily due to increased sales from the acquired Gynesonics business[5] - U.S. revenue increased by 2.0% to $773.5 million, while international revenue increased by 4.0% to $274.3 million[7] - Geographic revenues for the three months ended December 2025 show the United States at 73.8%, Europe at 15.4%, Asia-Pacific at 5.4%, and the rest of the world at 5.4%[37] - The United States revenue increased from 74.2% to 73.8% year-over-year, while Europe decreased from 14.6% to 15.4%[37] - Asia-Pacific revenue slightly increased from 5.9% to 5.4% year-over-year, indicating stable performance in the region[37] - The rest of the world revenue showed a minor decrease from 5.3% to 5.4% year-over-year, reflecting consistent market presence[37] - Overall, the company maintained a steady revenue distribution across geographic regions, with no significant fluctuations[37] Cash Flow and Financial Position - Cash flow from operations was $229.9 million, an increase of 21.4% compared to the prior year[5] - The company ended the quarter with cash and cash equivalents of $2.17 billion and an adjusted net leverage ratio of 0.3 times[7] - Cash and cash equivalents increased to $2,168.0 million as of December 27, 2025, compared to $1,959.5 million at the end of September 2025, reflecting a growth of 10.6%[20] - Total assets rose to $9,180.7 million as of December 27, 2025, up from $9,014.9 million at the end of September 2025, indicating an increase of 1.8%[20] - Total stockholders' equity increased to $5,245.1 million from $5,047.9 million, marking a growth of 3.9%[20] - The net leverage ratio as of December 27, 2025, was 0.3, indicating a strong balance sheet position[36] Expenses - Research and development expenses for the quarter were $60.5 million, slightly up from $60.3 million in the same quarter last year[18] - Selling and marketing expenses decreased to $154.9 million from $166.1 million, a reduction of 6.7%[18] - Capital expenditures for the quarter were $14.7 million, a decrease from $16.8 million in the same period last year[22] - The company plans to continue strategic investments, with $24.0 million allocated in the current quarter, compared to $6.0 million in the previous year[22] Merger and Acquisition - The company has scheduled a special meeting for stockholders to vote on a merger agreement with Blackstone and TPG[5] - Due to the merger agreement, the company is not providing annual or quarterly financial guidance for fiscal 2026[7] - Hologic is currently in the process of a proposed acquisition by affiliates of Blackstone Inc. and TPG Capital, with a Definitive Proxy Statement filed with the SEC[15] - The company faces various risks related to the proposed transaction, including regulatory approvals and potential impacts on stockholder relationships[14] Future Outlook - The performance metrics suggest a stable market environment for the company in the reported period[37] - The company continues to focus on geographic diversification to sustain revenue growth[37] - Future outlook may involve strategies to enhance revenue in underperforming regions like Asia-Pacific[37] - The company is likely to explore new product developments and market expansions to drive future growth[37]

Group 1 - The article does not provide any specific content related to company or industry analysis [1]

Core Insights - Hologic (HOLX) is expected to report quarterly earnings of $1.09 per share, reflecting a year-over-year increase of 5.8% and revenues of $1.07 billion, up 4.9% from the previous year [1] - Analysts have revised their consensus EPS estimate upward by 0.6% over the past 30 days, indicating a collective reassessment of projections [1][2] Revenue Projections - Analysts estimate 'Revenues- GYN surgical' will reach $180.97 million, indicating a year-over-year change of +8.8% [4] - 'Revenues- Diagnostics- Molecular diagnostics' are projected at $354.66 million, with a year-over-year change of +4% [4] - The consensus for 'Revenues- Diagnostics- Blood screening' stands at $4.77 million, reflecting a year-over-year change of +16.3% [4] - 'Revenues- Breast health- Breast imaging' is expected to be $294.22 million, showing a change of +4.5% from the prior year [5] - 'Revenues- Total Diagnostics' are forecasted at $479.84 million, indicating a change of +2% from the previous year [5] - 'Revenues- Skeletal health' is projected to reach $20.13 million, with a year-over-year change of +27.4% [5] - 'Revenues- Diagnostics- Cytology and perinatal' is estimated at $120.41 million, reflecting a change of -4% from the prior year [6] - 'Revenues- Total Breast health' is expected to be $392.22 million, indicating a year-over-year change of +6.3% [6] - 'Revenues- Breast health- Interventional breast solutions' is projected at $98.00 million, with a change of +12% from the previous year [7] - 'Revenues- Service and other' are expected to reach $212.72 million, indicating a change of +4.3% from the prior year [7] - The consensus for 'Revenues- Product' is $860.93 million, reflecting a change of +5.3% from the previous year [8] Market Performance - Hologic shares have experienced a change of +0.7% in the past month, compared to a +0.2% move of the Zacks S&P 500 composite [8] - Hologic holds a Zacks Rank 3 (Hold), suggesting it is expected to mirror overall market performance in the near future [8]

Investment Rating - The report indicates a positive outlook for the private equity (PE) industry, highlighting a resurgence in deal activity and a strong market environment, suggesting a favorable investment rating for the sector in 2025 [8][9]. Core Insights - The private equity sector experienced a significant rebound in 2025, with total deal activity surpassing 9,000 transactions and an aggregate value of approximately $1.2 trillion, marking only the second time in history that deal value exceeded $1 trillion [8][34]. - The second half of 2025 saw a strong recovery in deal flow, compensating for a slowdown in Q2 due to market volatility, with 4,560 deals valued at $632.2 billion [35]. - The report emphasizes the importance of mega-sized transactions, with 150 megadeals totaling $567.8 billion, surpassing previous years and indicating a strong appetite for large-scale investments [9][34]. Summary by Sections Executive Summary - The PE industry rebounded strongly in 2025, achieving a total deal value of $1,155.5 billion, with a year-over-year growth of 36.3% [7]. - Exit activity also saw significant growth, with exit values reaching $728.1 billion, a 90.1% increase from the previous year [7]. Deals - The total number of PE deals in 2025 was 9,019, with a deal count increase of 5.9% year-over-year [7]. - Buyout/LBO transactions accounted for $616.6 billion, reflecting a 57.4% increase compared to 2024 [7]. Fundraising - Fundraising in 2025 was noted as the weakest since 2020, with significant declines in both fund count and capital raised, despite increasing exit activity [12]. - The dry powder in the PE market reached an all-time high of $1.1 trillion, indicating potential for future deal-making [12]. Performance - The report highlights a bifurcation in the market, with large, high-conviction investments performing well, while lower and middle market activities remained muted [72]. - The healthcare sector saw a notable increase in deal value, driven by a few mega-transactions, with a 43.4% rise in total PE-backed healthcare deal value [72]. Valuations - Median global M&A EV/EBITDA multiples reached 10x, recovering from previous lows and indicating a strong valuation environment for PE deals [81]. - PE buyout valuations showed a mixed trend, with EBITDA multiples adjusting down slightly to 12.3x, while revenue multiples increased significantly to 2.5x [82].