Accuray Posts Weaker Q3 Results, Withdraws 2026 Guidance

Accuray ( (ARAY) ) just unveiled an update.

Accuray reported fiscal third-quarter 2026 results on May 6, 2026, showing total net revenue of $104.8 million, down 7% year-on-year, with product revenue falling 13% and service revenue slipping 1%, while gross margin compressed to 24.1% on higher parts, logistics, and duties costs. The company posted a net loss of $11.8 million versus a $1.3 million loss a year earlier, adjusted EBITDA declined to $3.8 million, gross product orders dropped to $48.5 million, backlog fell 21% to $356.2 million, and cash and restricted cash slipped to $44.4 million.

For the first nine months of fiscal 2026, net revenue declined 9% to $301.0 million, with product revenue down 21% and service revenue up 3%, while gross margin fell to 25.4% and net loss widened sharply to $47.3 million, alongside a swing in adjusted EBITDA to a negative $2.3 million from a positive $18.8 million. Despite these pressures, management said its transformation plan is tracking ahead of expectations with roughly $10 million of cost and margin improvements through the third quarter and lower underlying operating expenses when restructuring and prior-year compensation reversals are excluded, but it withdrew fiscal 2026 guidance due to Middle East geopolitical uncertainty delaying installations and impacting product shipments and service revenue, even as it prepares to showcase new customer-driven product enhancements at the ESTRO Congress in Stockholm in May 2026.

The most recent analyst rating on (ARAY) stock is a Buy with a $2.00 price target. To see the full list of analyst forecasts on Accuray stock, see the ARAY Stock Forecast page.

Spark’s Take on ARAY Stock

According to Spark, TipRanks’ AI Analyst, ARAY is a Neutral.

ARAY scores low primarily due to weak financial performance (return to losses and high leverage with a thin equity cushion) and bearish technical trend signals. The latest earnings call further pressures the outlook via a meaningful guidance cut and margin deterioration, partially offset by strong orders/backlog and cost-reduction initiatives. Valuation provides limited support given negative earnings and no dividend yield data.

To see Spark’s full report on ARAY stock, click here.

More about Accuray

Accuray Incorporated is a medical device company that develops and sells radiation therapy systems for cancer treatment, with a focus on real-time adaptation to patient and tumor motion during treatment. The company targets global healthcare providers and leverages strategic partnerships across imaging, software, workflow, clinical research, and operational execution to bolster its oncology technology platform and strengthen its position in the radiotherapy market.

Accuray, based in Madison, Wis., trades on Nasdaq under the ticker ARAY and is working through a transformation plan launched in December aimed at improving margins and profitability. Recent leadership changes include the appointment of Paul Miele as chief commercial officer, bringing experience in scaling capital medical device businesses to drive profitable growth and enhance commercial execution worldwide.

Average Trading Volume: 1,304,191

Technical Sentiment Signal: Sell

Current Market Cap: $54.65M

Find detailed analytics on ARAY stock on TipRanks’ Stock Analysis page.