Hologic delivered a solid second quarter, surpassing Wall Street’s expectations for both revenue and non-GAAP earnings. Management attributed this outperformance to improved commercial execution in the Breast Health segment, particularly in imaging and interventional sales, as well as ongoing progress in diagnostics and surgical divisions. CEO Stephen MacMillan emphasized that “the operative word for Hologic in the third quarter was progress,” pointing to a rebound in previously challenged business areas and the successful integration of recent acquisitions, such as Endomag. The company also highlighted operational discipline, including expense control and tariff mitigation, as contributors to the positive results.
Is now the time to buy HOLX? Find out in our full research report (it’s free).
Hologic (HOLX) Q2 CY2025 Highlights:
- Revenue: $1.02 billion vs analyst estimates of $1.01 billion (1.2% year-on-year growth, 1.7% beat)
- Adjusted EPS: $1.08 vs analyst estimates of $1.05 (2.7% beat)
- Adjusted EBITDA: $340.9 million vs analyst estimates of $336.4 million (33.3% margin, 1.3% beat)
- Revenue Guidance for Q3 CY2025 is $1.04 billion at the midpoint, roughly in line with what analysts were expecting
- Management raised its full-year Adjusted EPS guidance to $4.25 at the midpoint, a 1.1% increase
- Operating Margin: 24.9%, in line with the same quarter last year
- Constant Currency Revenue was flat year on year (3.1% in the same quarter last year)
- Market Capitalization: $15.11 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Hologic’s Q2 Earnings Call
- Douglas Anthony Schenkel (Wolfe Research) asked about the sustainability of mid-single-digit growth into next year, and CFO Karleen Oberton noted that China and HIV testing headwinds will persist into the first half, but core businesses should offset these impacts.
- Jack Meehan (Nephron Energy) questioned capital allocation and M&A plans. CEO Stephen MacMillan stated there are no immediate large deals planned, with a continued focus on smaller acquisitions and buybacks, and highlighted Endomag’s strong integration.
- Patrick Bernard Donnelly (Citi) requested insight into visibility for the Breast Health rebound. MacMillan cited improved sales discipline and Endomag’s performance as key drivers behind increased confidence for growth in the next quarter.
- Vijay Muniyappa Kumar (Evercore) asked about the organic growth calculation excluding discontinued products and COVID-related sales. Oberton clarified that these are excluded from organic growth figures going forward.
- Lu Li (UBS) inquired about the timing and revenue impact of new Panther Fusion assays, with Oberton expecting meaningful contribution starting in late 2026 or early 2027, but these will be incremental rather than transformative additions.
Catalysts in Upcoming Quarters
In upcoming quarters, StockStory analysts will be monitoring (1) execution of the Breast Health rebound, particularly the success of the end-of-life gantry replacement strategy and the Envision platform rollout; (2) the pace of molecular diagnostics adoption and menu expansion on Panther Fusion; and (3) the company’s ability to further mitigate tariff-related margin pressures. Sustained performance in international surgical markets and continued integration of recent acquisitions will also be closely tracked.
Hologic currently trades at $68.24, up from $64.96 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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