Executive Summary

Q1 FY25 revenue of $1,021.8M grew 0.9% YoY (1.0% cc) and landed in line with guidance; non-GAAP diluted EPS of $1.03 was at the high end of the range as mix and cost control expanded margins modestly .
Diagnostics (ex-COVID) led growth (+9% organic cc), powered by Molecular BV/CV/TV and Biotheranostics; Breast Health declined on softer gantry demand; Surgical grew modestly with strong OUS performance .
Full-year FY25 revenue guide cut by ~$100M to $4.05–$4.10B on FX and weaker Breast capital, but non-GAAP EPS guide maintained at $4.25–$4.35 via higher profitability and capital allocation; Q2 revenue guided to $995–$1,005M and non-GAAP EPS to $1.00–$1.03 .
Management flagged macro/policy headwinds (FX, potential PEPFAR disruption, tariff risk) and a cyclical Breast capital pause ahead of a new gantry in 2026; Diagnostics momentum and buybacks underpin EPS resilience .

What Went Well and What Went Wrong

What Went Well

Diagnostics strength: Molecular diagnostics up 6.7% (11.0% ex-COVID) with BV/CV/TV and Biotheranostics driving double-digit growth; organic Diagnostics ex-COVID +9.1% cc . CEO: “Non-GAAP earnings per share were at the high end of our range… improved profitability” .
Margin discipline: Non-GAAP gross margin up 80 bps to 61.6% and non-GAAP operating margin up 90 bps to 29.4% on favorable mix and efficiencies . CFO: “Substantial operating leverage… gives us confidence that we can grow earnings at a double-digit rate over time” .
Capital allocation: $189.3M operating cash flow and 6.8M shares repurchased for $517M; net leverage 0.6x supports continued deployment .

What Went Wrong

Breast Health softness: Segment revenue down 2.3% reported (–5.9% organic), driven by lower mammography capital; customers lengthening replacement cycles and waiting for next-gen platform; both U.S. and international down mid-single digits .
FX and policy headwinds: Stronger USD cut reported revenue by ~$9M in Q1 and now a ~$30M FY FX headwind; potential disruption to HIV testing revenue (up to ~$30M) from PEPFAR-related impacts; tariff risk on Mexico/Costa Rica-sourced products could pressure margins .
Skeletal Health interruption: Revenue –37.8% on delayed resumption of Horizon DXA shipments; expected to normalize by Q3 as manufacturing ramps .

Financial Results

Consolidated Performance (YoY by quarter; amounts in $M unless noted)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue	1,011.4	987.9	1,021.8
GAAP Diluted EPS ($)	0.82	0.76	0.87
Non-GAAP Diluted EPS ($)	1.06	1.01	1.03
GAAP Gross Margin (%)	55.4%	56.5%	56.8%
Non-GAAP Gross Margin (%)	61.1%	61.5%	61.6%
GAAP Operating Margin (%)	24.1%	23.3%	22.5%
Non-GAAP Operating Margin (%)	31.2%	30.0%	29.4%

Notes: Q1 FY25 revenue +0.9% YoY; non-GAAP EPS at high end of guidance; modest sequential margin progression vs Q4 .

Segment Mix – Q1 FY25

Segment ($M)	Q1 2025	YoY %	Commentary
Diagnostics	470.6	+5.1%	Molecular +6.7% (+11.0% ex-COVID) with BV/CV/TV and Biotheranostics; Diagnostics ex-COVID +9.1% cc
• Cytology & Perinatal	125.4	+4.5%	Easier comp aided growth
• Molecular Diagnostics	341.1	+6.7%	BV/CV/TV strong; Fusion attachment near 40% U.S. customers
• Blood Screening	4.1	–48.8%	Structural decline
Breast Health	369.1	–2.3%	Capital softness; service >40% of sales; Endomagnetics integration solid
• Breast Imaging	281.6	–6.6%	Lower gantry sales
• Interventional Breast Solutions	87.5	+14.7%	Endomagnetics contribution
GYN Surgical	166.3	+2.5%	International +~20%; U.S. impacted by IV fluid shortage but resolving
Skeletal Health	15.8	–37.8%	Horizon DXA shipping timing; ramp to normal by Q3

Selected KPIs and Cash/Leverage

KPI	Q1 2025
Cash from Operations ($M)	189.3
Share Repurchases	6.8M shares; $517M
Cash & Equivalents	$1.782B
Adjusted Net Leverage	0.6x
COVID-19 Revenue ($M)	$43.6 ($16.9 assays; $26.7 related)

Guidance Changes

Metric	Period	Previous Guidance (Nov 4, 2024)	Current Guidance (Feb 5, 2025)	Change
Revenue ($B)	FY 2025	$4.150–$4.200	$4.050–$4.100	Lowered
GAAP EPS ($)	FY 2025	3.53–3.63	3.51–3.61	Lowered (narrowly)
Non-GAAP EPS ($)	FY 2025	4.25–4.35	4.25–4.35	Maintained
Revenue ($B)	Q2 2025	—	$0.995–$1.005	New
GAAP EPS ($)	Q2 2025	—	0.80–0.83	New
Non-GAAP EPS ($)	Q2 2025	—	1.00–1.03	New
Tax Rate	FY 2025	~19.5%	~19.5%	Maintained
Diluted Shares	FY 2025	~235M	~230M	Lower (buybacks)
Gross Margin	FY 2025	—	“Low 60s” (non-GAAP)	New qualitative
Operating Margin	FY 2025	—	“Low 30s” (non-GAAP)	New qualitative
Other income/(expense), net	FY 2025	—	$(40)–$(45)M	New
Divisional Guide	FY 2025	—	Diagnostics mid-SD ex-COVID; Breast Health low SD decline incl. Endomag; Surgical high SD incl. Gynesonics	New
COVID-19 Assay Revenue	FY/Q2 2025	—	~$35M FY; ~$9M Q2	New
COVID-19 Related Items	FY/Q2 2025	—	~$100M FY; ~$25M Q2	New
Blood Screening Revenue	FY/Q2 2025	—	~$20M FY; ~$5M Q2	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 & Q4 FY24)	Current Period (Q1 FY25)	Trend
Diagnostics momentum	Q3: Org. Diagnostics ex-COVID +6.0% cc; Molecular ex-COVID +10.5% cc . Q4: Diagnostics +6.5%; Molecular +9.4% .	Diagnostics ex-COVID +9.1% cc; Molecular +6.7% (+11.0% ex-COVID). Emphasis on BV/CV/TV and Biotheranostics; Fusion attach ~40% in U.S. .	Positive, accelerating ex-COVID growth; continued menu/attach expansion.
Breast Health capital	Q3: Breast +6.9% on strong gantry and service . Q4: Breast +6.4%, service strength; Endomag added .	Breast –2.3% (–5.9% organic); customers lengthening cycles; 2025 softer; new gantry targeted for 2026 .	Near-term cyclical softness; anticipation of 2026 refresh.
Margins	Q3/Q4 non-GAAP OM ~31%/30% with sequential improvement .	Non-GAAP OM 29.4%; guide for FY low-30s; leverage from mix and efficiencies .	Stable-high; expected step-up 2H.
FX/Macro	Q4: steady; strong cash/ROIC .	FX headwind (~$30M FY); policy risks (PEPFAR disruption up to ~$30M; tariff risk) .	Worsened FX/policy backdrop.
Capital allocation	Q3/Q4: buybacks ongoing .	$517M repurchases Q1; diluted shares guided ~230M FY .	Supportive for EPS.

Management Commentary

CEO Steve MacMillan: “Total revenue finished in line with our guidance on a constant currency basis, and improved profitability helped us post non-GAAP earnings per share at the high end of our range.”
COO Essex Mitchell on Diagnostics: “Revenue of $470.6 million grew 5.2% and 9.1% organically excluding COVID… our BV CV/TV assay also had another outstanding quarter of strong double-digit growth… nearly 40% of our U.S. customers now have a Fusion system.”
CFO Karleen Oberton on guidance reset: “We are lowering our revenue guidance range by $100 million… offset by… a significant strengthening of the U.S. dollar… lower sales of our Breast Health capital… and policy changes… [but] maintaining our non-GAAP EPS guidance of $4.25 to $4.35.”
CEO on Breast cycle: “We… had 3 quarters in a row of 27%+ Breast Health growth… a bolus… The long-term trend… is below what it was in 2023… likely a down market this year… with something on the horizon [new gantry] to reaccelerate in ’26.”

Q&A Highlights

Breast capital outlook: Market softness (post-chip rebound) and customer pausing ahead of the 2026 gantry drive a 2025 lull; down market expected this year with reacceleration in 2026 .
Diagnostics competitive position: Confidence in core lab channel and BV/CV runway; Biotheranostics growth; Fusion sidecar unlocks broader PCR menu; installed base supports multi-year utilization growth .
Policy/FX risk: PEPFAR-related disruption could reduce FY revenue by up to ~$30M; tariff risk for Mexico/Costa Rica manufacturing; FX now a ~$30M headwind .
Gynesonics: ~$25M revenue contribution assumed for the final three FY quarters; modest near-term EPS dilution from planned investments .
Pacing: Q2 typically weaker on deductibles; improvement expected in Q3 and Q4, with Breast growth in Q4 exit; gross/operating margins to step up in 2H .

Estimates Context

S&P Global consensus EPS and revenue estimates for Q1 FY25 and near-term periods were unavailable at the time of this analysis due to a provider rate limit. As a result, vs-consensus comparisons cannot be provided at this time (Values would be retrieved from S&P Global).
Company framing: Q1 non-GAAP EPS of $1.03 was at the high end of management guidance; Q2 revenue and non-GAAP EPS guided to $995–$1,005M and $1.00–$1.03, respectively .

Key Takeaways for Investors

Diagnostics ex-COVID is the structural growth engine (9% organic cc in Q1), supported by BV/CV/TV, Biotheranostics, and rising Fusion attachments, driving durable mix and margin benefits .
Breast Health is in a cyclical capital trough; service/consumables and Endomagnetics mitigate, with a 2026 gantry launch as a potential re-acceleration catalyst; expect a stronger exit rate in Q4 FY25 .
Despite lower FY25 revenue guidance on FX and Breast capital, EPS resilience (maintained non-GAAP EPS guide) reflects operating leverage and buybacks; watch 2H margin step-up and share count tailwind .
Near-term trading setup hinges on confidence in Q2 trough and 2H rebound; Diagnostics delivery and incremental updates on Breast pipeline/enVision/M.gen could drive sentiment .
Policy and FX remain swing factors (PEPFAR, tariffs on Mexico/Costa Rica, USD strength); potential for noise in Diagnostics virology and Surgical/Gynesonics margins if tariffs materialize .
Cash generation and low leverage (0.6x) enable continued M&A and buybacks to augment growth/EPS compounding; track Gynesonics and Endomagnetics integrations for incremental top-line lift .

Appendix: Additional Financial Detail

Additional Q1 highlights:
- U.S. revenue $757.9M (+0.6%); International $263.9M (+1.7%, +2.1% cc) .
- GAAP net income $201.0M (–18.5% YoY); non-GAAP net income $238.6M (+0.9% YoY); Adjusted EBITDA $326.0M (+3.5%) .
- Non-GAAP operating expenses $329.0M (+0.5%); Q1 typically peak OpEx; ex-Endomagnetics, OpEx down 2.3% YoY .

All figures above are sourced from Hologic’s Q1 FY25 Form 8-K/press release and earnings call, Q4 FY24 press release, and Q3 FY24 press release as cited.

HOLOGIC INC (HOLX)·Q1 2025 Earnings Summary