Hologic reported GAAP diluted EPS of $0.79 and non-GAAP EPS of $1.04 for the quarter ended December 27, 2025, falling short of the consensus non-GAAP forecast of $1.09. Total revenue came in at $1,047.8 million, up 2.5% year-over-year but missing analyst estimates. On an organic basis, excluding the impact of divested businesses and COVID-19 related sales, revenue rose 2.9%, or 1.6% on a constant currency basis, signaling modest underlying growth tempered by shifts in product demand.

Gross margins contracted by 80 basis points to 56.0% on a GAAP basis, and non-GAAP gross margins declined 150 basis points to 60.1%, driven primarily by $15.3 million in increased tariff expenses. Operating expenses of $326.6 million on a non-GAAP basis were flat year-over-year, helping to limit an operating margin decline to 40 basis points to 29.0% non-GAAP. Adjusted EBITDA rose 1.3% to $330.4 million, while non-GAAP net income decreased 1.3% to $235.5 million.

Diagnostics revenue slipped 1.3% to $464.4 million, with molecular diagnostics down 3.5% as COVID-19 assay sales fell 35.8% to $4.4 million. Breast Health revenue grew 1.8% to $375.9 million, supported by strong interventional breast solutions sales. Surgical revenue led growth at 8.7%, reaching $180.8 million thanks to MyoSure and the Gynesonics acquisition. Cash flow from operations climbed 21.4% to $229.9 million, and the company ended the quarter with $2.17 billion in cash and equivalents and an adjusted net leverage ratio of 0.3x.