Hologic's Breast Health Unit Stays In Focus in 2026: What Lies Ahead?

Hologic HOLX operates across four segments, but investor attention last year remained particularly heightened on the Breast Health business. From expected gantry slowdowns impacting sales to improved U.S. commercial execution supporting the division’s return to growth, the quarters reflected gradual progress. Now, it has once again taken center stage following the proposed take-private transaction by Blackstone & TPG, which includes a fixed $76 cash offer and a contingent value right (CVR) of up to $3 per share tied to the achievement of certain global revenue metrics for the Breast Health business in fiscal years 2026 and 2027.

The segment generates revenues from a broad portfolio of solutions for breast imaging, biopsy, breast surgery and pathology, including 3D digital mammography systems and Selenia Dimensions. The addition of Endomagnetics in fiscal 2024 diversified the expanding interventional breast health portfolio by adding wire-free breast surgery localization and lymphatic tracing solutions, including Magseed, Magtrace and Sentimag. Endomag contributed an incremental $54.9 million of product revenues in fiscal 2025.

Meanwhile, the larger part is the Breast Health service business, which continues to generate robust recurring revenues from performing service contracts for the global installed base of gantries. According to management, this also helps offset the volatility in capital sales. 

Hologic has always thrived on innovations. The FDA-approved, 3DQuorum Imaging Technology was the first of several products powered by the company’s core AI platform, Genius AI. The next-generation Genius AI Detection PRO software was shown to reduce radiologists’ reading time. Hologic is also advancing contrast-enhanced mammography (CEM) with its I-View 2.0 software, an MRI alternative for patients requiring additional imaging. Meanwhile, the new Envision Mammography Platform—featuring the first FDA-approved mammography focusing technology of its kind — is set to be commercially introduced in the coming months.

Hologic’s Competitor Updates

GE HealthCare GEHC recentlyannounced that it will supply more than 300 CT (computed tomography) scanners under Indonesia’s Strengthening Indonesia’s Health Referral Network program to deliver equitable, high-quality care to more than 280 million Indonesians. As part of a competitively awarded, multi-year contract, GE HealthCare will supply the advanced CT scanners to public hospitals across all 38 provinces, including urban and remote areas.

Quest Diagnostics DGX and Cornwell Health have completed the previously announced transaction to establish a laboratory services joint venture to expand access to innovative, quality and affordable laboratory services in Michigan. Equity ownership of the joint venture, named Diagnostic Lab of Michigan, LLC, will be shared 51% by Quest and 49% by Corewell Health.

HOLX Stock Performance, Valuation and Estimates

In the past three months, Hologic shares have risen 11% compared with the industry’s 3.7% growth. 

Hologic is trading at a forward five-year price-to-sales (P/S) of 3.83X, lower than the industry average of 4.11X.

See how analysts are projecting Hologic’s fiscal 2026 and 2027 earnings.

HOLX stock currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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