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Hologic, Inc. HOLX reported adjusted earnings per share (EPS) of $1.13 in the fourth quarter of fiscal 2025, up 11.9% year over year. The metric surpassed the Zacks Consensus Estimate by 2.73%.
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 83 cents in the quarter, which increased 9.2% year over year.
Meanwhile, fiscal 2025 adjusted EPS was $4.26, up 4.4% from fiscal 2024.
Revenues totaled $1.05 billion in the quarter, up 6.2% year over year (5.4% at the constant exchange rate or CER). The top line beat the Zacks Consensus Estimate by 1.49%.
Fiscal 2025 revenues of $4.10 billion were up 1.7% relative to fiscal 2024.
Following the earnings announcement, HOLX shares increased 4.3% in yesterday’s after-hours session.
In the fiscal fourth quarter, U.S. revenues increased 5.2% to $784.4 million. This surpassed our model’s projection of $763.7 million.
International revenues amounted to $265.1 million, up 9.4% year over year (6% at CER). Our model’s projection was $265.7 million.
Revenues in the segment increased 2.4% year over year (up 01.5% at CER) to $454.1 million in the quarter, mainly driven by higher core U.S. molecular diagnostics sales. This compares with our model’s segmental projection of $447.3 million.
Excluding COVID-19 revenues, organic Diagnostics revenues jumped 5.4% on a reported basis.
Hologic, Inc. price-consensus-eps-surprise-chart | Hologic, Inc. Quote
Within the division, Cytology & Perinatal revenues of $123.1 million rose 4.1% at CER. Molecular Diagnostics revenues of $323.1 million increased 0.4% at CER, thanks to higher sales of the BV CV/TV and Panther Fusion assays. Blood Screening revenues of $7.9 million were up 5.3% year over year at CER.
The segment’s revenues surged 4.8% from the year-ago period (up 4.2% at CER) to $393.7 million. Our model projected revenues of $375.8 million for this segment.
Excluding sales from the divested SSI business as well as July sales from the acquired Endomagnetics business, organic Breast Health revenues increased 3.3% (2.7% at constant currency).
Surgical revenues grew 10.2% year over year (9.5% at CER) to $172.5 million, mainly driven by increased sales of MyoSure and Fluent, and the acquired Gynesonics business. Our model projected revenues of $175.1 million in this segment.
Revenues surged 129.9% year over year (128.1% at CER) to $29.2 million. Our model projected revenues of $31.1 million for this segment.
In the fiscal fourth quarter, the company-provided adjusted gross margin decreased 60 basis points (bps) to 60.9%, mainly due to the product mix and higher tariff expenses.
Hologic’s adjusted operating margin was 31.2%, up 120 bps, due to increased leverage on operating expenses from revenue growth.
Hologic ended the fourth quarter of fiscal 2025 with cash and cash equivalents of $1.96 billion compared with $2.16 billion at the end of fiscal 2024.
Total long-term debt (including the current portion) was $2.51 billion compared with $2.53 billion at the end of fiscal 2024.
Net cash provided by operating activities at the end of the fiscal fourth quarter was $1.06 billion compared with $1.29 billion a year ago.
On Oct. 21, 2025, Hologic announced that it had entered into a definitive agreement to be acquired by funds managed by Blackstone and TPG in a transaction valued at up to $79 per share. Under the terms of the agreement, the firms will acquire all outstanding Hologic shares for $76 per share in cash, along with a non-tradable contingent value right (CVR) of up to $3 per share. The CVR will be payable in two installments of up to $1.50 each, following achievement of certain global revenue goals for the Breast Health business in fiscal years 2026 and 2027.
The transaction is expected to close in the first half of calendar year 2026, subject to the approval of Hologic’s stockholders, receipt of required regulatory approvals and the satisfaction of certain other customary closing conditions. Given the proposed transaction, Hologic has not issued any financial guidance for fiscal 2026.
Hologic ended the fiscal fourth quarter with better-than-expected earnings and revenues. Both metrics were up on a year-over-year basis as well. The company’s Breast Health segment achieved growth, mainly driven by strong sales of interventional products, the inclusion of Endomagnetics and ongoing improvement in the U.S. sales execution. The expansion of the adjusted operating margin is encouraging. Also, during the quarter, Hologic received FDA clearance and CE marking for its Panther Fusion Gastrointestinal Bacterial and Expanded Bacterial Assays.
Hologic currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Medpace Holdings MEDP, Intuitive Surgical ISRG and Boston Scientific BSX.
Medpace, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter 2025 EPS of $3.86, which surpassed the Zacks Consensus Estimate by 10.29%. Revenues of $659.9 million beat the Zacks Consensus Estimate by 3.04%. You can see the complete list of today’s Zacks #1 Rank stocks here.
MEDP has an estimated earnings growth rate of 17.1% for 2025 compared with the industry’s 16.6% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 14.28%.
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted a third-quarter 2025 adjusted EPS of $2.40, exceeding the Zacks Consensus Estimate by 20.6%. Revenues of $2.51 billion topped the Zacks Consensus Estimate by 3.9%.
ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 11.9% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.34%.
Boston Scientific, currently carrying a Zacks Rank #2, reported a third-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion outperformed the Zacks Consensus Estimate by 1.9%.
BSX has an estimated long-term earnings growth rate of 16.4% compared with the industry’s 13.5% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 7.36%.
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This article originally published on Zacks Investment Research (zacks.com).
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