SHERIDAN, WYOMING – May 7, 2025 – Hologic, Inc. (Nasdaq: HOLX), a leader in medical technologies focused on women’s health, today announced its financial results for the second quarter of fiscal 2025. The company reported revenue of $1,005.3 million, slightly surpassing the upper end of its guidance, despite a decline in overall earnings per share (EPS) due to non-cash impairment charges. Hologic’s performance was primarily driven by strong demand in its diagnostics and skeletal businesses, along with ongoing profitability improvements and strategic share buybacks.
Strong Performance in Diagnostics and Surgical Segments
Hologic’s diagnostics segment generated revenue of $453.6 million, reflecting a modest increase of 0.8% compared to the previous year, or 1.5% in constant currency. This growth was primarily driven by higher molecular diagnostics sales, particularly in its BV CV/TV and respiratory assays, as well as oncology testing from Biotheranostics.
- Molecular diagnostics revenue increased by 1.0%, or 1.7% in constant currency, led by strong sales in respiratory assays and oncology testing.
- Breast Health revenue experienced a decline of 7.4%, attributed to lower sales of mammography capital equipment, partially offset by increased service contract revenue.
- Surgical revenue rose by 4.2%, boosted by the acquisition of Gynesonics and robust international sales.
Excluding the impact of COVID-19-related revenues and acquisitions, Hologic’s organic revenue saw a decrease of 1.4%, with organic growth in molecular diagnostics and surgical segments partially offsetting declines in breast health.
Adjusted Earnings Exceed Guidance
While Hologic reported a GAAP diluted EPS loss of $0.08, significantly lower than the previous year’s $0.72, the company’s non-GAAP EPS was $1.03, at the high end of the forecasted range. The drop in GAAP EPS was primarily attributed to non-cash impairment charges on intangible assets totaling $220.9 million. Non-GAAP earnings, which exclude these charges, remained stable compared to the prior year.
Stephen P. MacMillan, Chairman, President, and CEO of Hologic, commented, "We delivered on our financial commitments in the second quarter, exceeding revenue expectations and finishing at the high end of our guidance range for non-GAAP EPS. This performance was driven by our diagnostics and skeletal businesses, strong profitability, and strategic capital allocation, including share buybacks."
Strategic Capital Allocation and Future Outlook
Hologic’s capital allocation strategy also contributed to its strong performance, with the company repurchasing 3.0 million shares for $200 million during the quarter. The company ended the quarter with cash and cash equivalents of $1.43 billion, reinforcing its strong financial position.
Looking forward, Hologic has maintained its annual revenue guidance of $4.05 billion to $4.10 billion for fiscal 2025. However, the company has lowered its EPS guidance slightly due to ongoing geopolitical factors and tariff-related pressures. For the third quarter of fiscal 2025, Hologic anticipates revenue in the range of $1.00 billion to $1.01 billion and non-GAAP EPS between $1.04 and $1.07.
Key Financial Highlights for Q2 Fiscal 2025
- Revenue: $1,005.3 million, down 1.2% year-over-year.
- GAAP EPS: Loss of $0.08, compared to $0.72 in Q2 fiscal 2024.
- Non-GAAP EPS: $1.03, in line with guidance.
- Diagnostics Revenue: $453.6 million, up 0.8%, driven by molecular diagnostics.
- Surgical Revenue: $162.5 million, up 4.2%, reflecting growth from the Gynesonics acquisition.
- Breast Health Revenue: $356.2 million, down 7.4%, due to lower sales of mammography equipment.
Conclusion
Hologic’s Q2 fiscal 2025 results demonstrate resilience in the face of market challenges. While the company has adjusted its EPS guidance for the remainder of the year, its solid revenue growth in diagnostics and surgical businesses positions it well for continued success. Hologic remains focused on strategic investments and operational improvements, aiming to drive long-term value for its shareholders.
For more information on Hologic’s latest financial performance, visit www.hologic.com.