Accuray Q2 2026 Earnings Call Insights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy ARAY?
Source: seekingalpha
- Transformation Overview: CEO Steve LaNeve highlighted Accuray's comprehensive transformation plan aimed at enhancing operating profitability by approximately $25 million annually through cost structure optimization and organizational realignment, targeting about $12 million in benefits for fiscal 2026.
- Declining Financial Performance: The company reported net revenue of $102.2 million for Q2, down 12% year-over-year, with product revenue at $45 million, a 26% decline, while service revenue showed resilience at $57.2 million, up 4% from the previous year.
- Guidance Reduction: Accuray lowered its fiscal 2026 revenue guidance to $440 million to $450 million and adjusted EBITDA guidance to $22 million to $25 million, reflecting ongoing volatility in China and external pressures such as tariffs.
- Market Risks and Challenges: Management acknowledged that ongoing tariffs and geopolitical instability pose challenges to demand patterns and margin performance, emphasizing the need to focus on consistent execution amid a more challenging global environment, despite strong service revenue and backlog.
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Analyst Views on ARAY
Wall Street analysts forecast ARAY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARAY is 4.00 USD with a low forecast of 4.00 USD and a high forecast of 4.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 0.752
Low
4.00
Averages
4.00
High
4.00
Current: 0.752
Low
4.00
Averages
4.00
High
4.00
About ARAY
Accuray Incorporated is a radiation therapy company. The Company develops, manufactures, sells and supports solutions that are designed to deliver radiation treatments for complex cases. Its solutions are designed to advance patient care: during each individual treatment, throughout the treatment process, and at each stage of the cancer treatment journey, from curative to palliative treatments. Its technologies, the CyberKnife and TomoTherapy platforms, including the Radixact System, its TomoTherapy platform, are designed to deliver advanced treatments, including stereotactic radiosurgery (SRS), stereotactic body radiation therapy (SBRT), intensity modulated radiation therapy (IMRT), image-guided radiation therapy (IGRT), and adaptive radiation therapy (ART). In addition to these products, it also provides services, which include post-contract customer support (warranty period services and post-warranty services), installation services, training, and other professional services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Accuray Q2 2026 Earnings Call Insights
- Transformation Overview: CEO Steve LaNeve highlighted Accuray's comprehensive transformation plan aimed at enhancing operating profitability by approximately $25 million annually through cost structure optimization and organizational realignment, targeting about $12 million in benefits for fiscal 2026.
- Declining Financial Performance: The company reported net revenue of $102.2 million for Q2, down 12% year-over-year, with product revenue at $45 million, a 26% decline, while service revenue showed resilience at $57.2 million, up 4% from the previous year.
- Guidance Reduction: Accuray lowered its fiscal 2026 revenue guidance to $440 million to $450 million and adjusted EBITDA guidance to $22 million to $25 million, reflecting ongoing volatility in China and external pressures such as tariffs.
- Market Risks and Challenges: Management acknowledged that ongoing tariffs and geopolitical instability pose challenges to demand patterns and margin performance, emphasizing the need to focus on consistent execution amid a more challenging global environment, despite strong service revenue and backlog.
See More
Accuray Scheduled to Announce Q2 Earnings on February 4th
- Earnings Announcement Schedule: Accuray (ARAY) is set to release its Q2 earnings on February 4th after market close, with consensus EPS estimate at -$0.11 and revenue forecast at $100.86 million, reflecting a 13.2% year-over-year decline.
- Historical Performance Review: Over the past year, Accuray has only beaten EPS estimates 25% of the time, while it has exceeded revenue estimates 75% of the time, indicating relative stability in revenue but poor EPS performance.
- Expectation Revisions: In the last three months, there have been no upward revisions to EPS estimates, with one downward adjustment, while revenue estimates also saw no upward revisions and two downward adjustments, reflecting market caution regarding the company's future performance.
- Latest Earnings Results: In Q1 2026, Accuray reported a GAAP EPS of -$0.18, missing estimates by $0.12, while revenue of $93.9 million exceeded expectations by $2.55 million, demonstrating resilience in revenue despite ongoing profitability pressures.
See More
Accuray (NASDAQ:ARAY) to Report Q2 FY2026 Financial Results on February 4, 2026
- Earnings Call Schedule: Accuray is set to hold a conference call on February 4, 2026, at 1:30 PM PT (4:30 PM ET) to report its Q2 FY2026 financial results, reflecting the company's commitment to transparency and investor communication.
- Dial-in Information: The call can be accessed via US number 1-833-316-0563 and international number 1-412-317-5747, indicating the company's effort to provide accessible participation channels for global investors, enhancing its appeal to international stakeholders.
- Replay Availability: A replay of the call will be available approximately one hour after its conclusion, with US number 1-855-669-9658 and international number 1-412-317-0088, conference ID 8587254, ensuring that investors who cannot attend live can still access critical information, thereby improving information accessibility.
- Webcast and Replay: The call will be live-streamed on the company's investor relations website and will remain available until the announcement of Q3 FY2026 results, showcasing Accuray's modernization in information dissemination and enhancing investor engagement.
See More
Accuray Initiates Strategic Transformation Plan Expected to Boost Annual Profit by $25 Million
- Strategic Transformation Initiated: Accuray has announced the first phase of its comprehensive strategic transformation plan aimed at enhancing accountability and cost control, with an expected annual profit increase of approximately $25 million, thereby strengthening the company's market competitiveness.
- Organizational Structure Optimization: The plan will streamline the commercial structure, centralize core functions, and elevate global service and product development heads to report directly to the CEO, reallocating resources to support sales growth.
- Layoffs and Outsourcing: The company anticipates a global headcount reduction of about 15%, with expected cost savings of approximately $12 million in fiscal 2026 achieved through layoffs and outsourcing non-core activities, further enhancing profitability.
- Restructuring Charges Expected: Accuray expects to incur around $11 million in restructuring charges during the second, third, and fourth quarters of fiscal 2026, primarily related to workforce reductions and facility consolidations, ensuring the smooth implementation of the transformation plan.
See More
Accuray Announces $25 Million Profit Improvement Plan with 15% Workforce Reduction
- Organizational Restructuring: Accuray has announced the first phase of its strategic transformation plan aimed at enhancing competitiveness and supporting long-term strategy through organizational optimization and outsourcing of non-core activities.
- Workforce Optimization: The plan will affect approximately 15% of employees, with an expected annual operating profit improvement of $25 million, of which about $12 million is anticipated to be realized in fiscal 2026.
- Cost Control: The restructuring is expected to incur approximately $11 million in charges, primarily related to workforce reductions, facility consolidations, and contract terminations, ensuring the company remains agile in future market competition.
- Strategic Support: Accuray's strategic lending partner TCW has expressed support for the plan, viewing it as a crucial step to strengthen the foundation for future growth and margin expansion.
See More
BTIG Reaffirms Buy Rating on Accuray, Reduces Price Target to $4
Real-time Intelligence: Benzinga Pro offers the fastest news alerts for traders to stay updated on market movements.
Exclusive Content: Subscribers gain access to unique stories and insights generated by Benzinga reporters.
Community Engagement: Over 10,000 serious traders are part of the Benzinga Pro community, enhancing their trading strategies.
Market Winning Tools: The platform is designed to help traders win in the markets every day with accurate stock market intelligence.
See More
Accuray Q2 2026 Earnings Call Insights
- Transformation Overview: CEO Steve LaNeve highlighted Accuray's comprehensive transformation plan aimed at enhancing operating profitability by approximately $25 million annually through cost structure optimization and organizational realignment, targeting about $12 million in benefits for fiscal 2026.
- Declining Financial Performance: The company reported net revenue of $102.2 million for Q2, down 12% year-over-year, with product revenue at $45 million, a 26% decline, while service revenue showed resilience at $57.2 million, up 4% from the previous year.
- Guidance Reduction: Accuray lowered its fiscal 2026 revenue guidance to $440 million to $450 million and adjusted EBITDA guidance to $22 million to $25 million, reflecting ongoing volatility in China and external pressures such as tariffs.
- Market Risks and Challenges: Management acknowledged that ongoing tariffs and geopolitical instability pose challenges to demand patterns and margin performance, emphasizing the need to focus on consistent execution amid a more challenging global environment, despite strong service revenue and backlog.
See More
Accuray Scheduled to Announce Q2 Earnings on February 4th
- Earnings Announcement Schedule: Accuray (ARAY) is set to release its Q2 earnings on February 4th after market close, with consensus EPS estimate at -$0.11 and revenue forecast at $100.86 million, reflecting a 13.2% year-over-year decline.
- Historical Performance Review: Over the past year, Accuray has only beaten EPS estimates 25% of the time, while it has exceeded revenue estimates 75% of the time, indicating relative stability in revenue but poor EPS performance.
- Expectation Revisions: In the last three months, there have been no upward revisions to EPS estimates, with one downward adjustment, while revenue estimates also saw no upward revisions and two downward adjustments, reflecting market caution regarding the company's future performance.
- Latest Earnings Results: In Q1 2026, Accuray reported a GAAP EPS of -$0.18, missing estimates by $0.12, while revenue of $93.9 million exceeded expectations by $2.55 million, demonstrating resilience in revenue despite ongoing profitability pressures.
See More
Accuray (NASDAQ:ARAY) to Report Q2 FY2026 Financial Results on February 4, 2026
- Earnings Call Schedule: Accuray is set to hold a conference call on February 4, 2026, at 1:30 PM PT (4:30 PM ET) to report its Q2 FY2026 financial results, reflecting the company's commitment to transparency and investor communication.
- Dial-in Information: The call can be accessed via US number 1-833-316-0563 and international number 1-412-317-5747, indicating the company's effort to provide accessible participation channels for global investors, enhancing its appeal to international stakeholders.
- Replay Availability: A replay of the call will be available approximately one hour after its conclusion, with US number 1-855-669-9658 and international number 1-412-317-0088, conference ID 8587254, ensuring that investors who cannot attend live can still access critical information, thereby improving information accessibility.
- Webcast and Replay: The call will be live-streamed on the company's investor relations website and will remain available until the announcement of Q3 FY2026 results, showcasing Accuray's modernization in information dissemination and enhancing investor engagement.
See More
Accuray Initiates Strategic Transformation Plan Expected to Boost Annual Profit by $25 Million
- Strategic Transformation Initiated: Accuray has announced the first phase of its comprehensive strategic transformation plan aimed at enhancing accountability and cost control, with an expected annual profit increase of approximately $25 million, thereby strengthening the company's market competitiveness.
- Organizational Structure Optimization: The plan will streamline the commercial structure, centralize core functions, and elevate global service and product development heads to report directly to the CEO, reallocating resources to support sales growth.
- Layoffs and Outsourcing: The company anticipates a global headcount reduction of about 15%, with expected cost savings of approximately $12 million in fiscal 2026 achieved through layoffs and outsourcing non-core activities, further enhancing profitability.
- Restructuring Charges Expected: Accuray expects to incur around $11 million in restructuring charges during the second, third, and fourth quarters of fiscal 2026, primarily related to workforce reductions and facility consolidations, ensuring the smooth implementation of the transformation plan.
See More
Accuray Announces $25 Million Profit Improvement Plan with 15% Workforce Reduction
- Organizational Restructuring: Accuray has announced the first phase of its strategic transformation plan aimed at enhancing competitiveness and supporting long-term strategy through organizational optimization and outsourcing of non-core activities.
- Workforce Optimization: The plan will affect approximately 15% of employees, with an expected annual operating profit improvement of $25 million, of which about $12 million is anticipated to be realized in fiscal 2026.
- Cost Control: The restructuring is expected to incur approximately $11 million in charges, primarily related to workforce reductions, facility consolidations, and contract terminations, ensuring the company remains agile in future market competition.
- Strategic Support: Accuray's strategic lending partner TCW has expressed support for the plan, viewing it as a crucial step to strengthen the foundation for future growth and margin expansion.
See More
BTIG Reaffirms Buy Rating on Accuray, Reduces Price Target to $4
Real-time Intelligence: Benzinga Pro offers the fastest news alerts for traders to stay updated on market movements.
Exclusive Content: Subscribers gain access to unique stories and insights generated by Benzinga reporters.
Community Engagement: Over 10,000 serious traders are part of the Benzinga Pro community, enhancing their trading strategies.
Market Winning Tools: The platform is designed to help traders win in the markets every day with accurate stock market intelligence.
See More
