Hologic (HOLX) AI Stock Analysis

• Market Cap: $16.70B
• Dividend Yield: N/A
• Average Volume (3M): 2.47M
• Price to Earnings (P/E): 30.2
• Beta (1Y): -0.01
• Revenue Growth: 1.74%
• EPS Growth: -25.29%
• Country: US
• Employees: 7,063
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.13
• Shares Outstanding: 223,065,570
• 10 Day Avg. Volume: 1,783,409
• 30 Day Avg. Volume: 2,465,344
• PEG Ratio: -1.06
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 3.71
• P/FCF Ratio: 15.23
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 3.81
• Enterprise Value/Gross Profit: 7.36
• Enterprise Value/Ebitda: 14.09
• 1Y Price Target: $77.56
• Price Target Upside: 3.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $85.00 ▲(13.51% Upside)

Hologic's overall stock score is driven by strong technical indicators and a positive corporate event with the acquisition agreement. Financial performance shows stability but highlights areas needing improvement, particularly in profitability and cash flow. The high valuation may pose a risk, but the acquisition premium suggests market confidence.

Positive Factors

Acquisition Agreement

The acquisition by Blackstone and TPG suggests strong market confidence and potential for accelerated growth, enhancing Hologic's strategic position in women's health.

Revenue Growth

Exceeding revenue expectations indicates strong demand for Hologic's products, supporting its market position and potential for sustained growth.

Balance Sheet Strength

Improved leverage management enhances financial stability, providing flexibility for future investments and growth opportunities.

Negative Factors

Declining Margins

Margin compression indicates potential cost pressures or competitive challenges, which could impact long-term profitability if not addressed.

Profitability Challenges

Declining return on equity reflects reduced profitability, suggesting the need for strategic initiatives to enhance operational efficiency and shareholder value.

Cash Flow Concerns

Negative free cash flow growth indicates potential issues in cash generation, which could limit the company's ability to fund operations and growth initiatives.

Hologic Business Overview & Revenue Model

Company Description

Hologic, Inc. develops, manufactures, and supplies diagnostics products, medical imaging systems, and surgical products for women's health through early detection and treatment in the United States, Europe, the Asia-Pacific, and internationally. It operates through four segments: Diagnostics, Breast Health, GYN Surgical, and Skeletal Health. The company provides Aptima molecular diagnostic assays to detect the infectious microorganisms; Aptima viral load tests for HIV, Hepatitis C, and Hepatitis B; Aptima SARS-CoV-2 and Panther Fusion SARS-CoV-2 assays for the detection of SARS-CoV-2; ThinPrep System for use in cytology applications; Rapid Fetal Fibronectin Test that assists physicians in assessing the risk of pre-term birth; and various diagnostic tests for the detection of Group B Streptococcus. It also offers breast imaging and analytics, such as 2D and 3D digital mammography systems and reading workstations, minimally invasive breast biopsy guidance systems and devices, breast biopsy site markers and localization, specimen radiology, and ultrasound and connectivity solutions; and breast conserving surgery products. In addition, the company provides NovaSure Endometrial Ablation System for the treatment of abnormal uterine bleeding; MyoSure Hysteroscopic Tissue Removal System for the removal of fibroids, polyps, and other pathology within the uterus; and Fluent Fluid Management System that provides liquid distention during diagnostic and operative hysteroscopic procedures. Further, it offers Horizon DXA, a dual energy X-ray system; and the Fluoroscan Insight FD mini C-arm to perform minimally invasive orthopedic surgical procedures. The company sells its products through direct sales and service forces, and independent distributors and sales representatives. Hologic, Inc. was incorporated in 1985 and is headquartered in Marlborough, Massachusetts.

How the Company Makes Money

Hologic generates revenue through multiple key streams, primarily from the sale of medical devices, diagnostic products, and surgical products. The company earns a significant portion of its income from its Diagnostics segment, which includes molecular diagnostics and cytology and histology products. Additionally, the Breast Health segment contributes heavily to revenue through the sale of imaging systems and related services. Hologic also benefits from recurring revenue through its service and maintenance contracts. Strategic partnerships with healthcare providers and research institutions further enhance its earnings potential, alongside the growing demand for women's health services and advancements in medical technology.

Hologic Financial Statement Overview

Summary

Hologic shows resilience in revenue growth but faces challenges with declining margins and profitability. The balance sheet is strong, with improved leverage, but profitability metrics have weakened. Cash flow management shows areas for improvement, particularly in cash generation and efficiency.

Income Statement

Hologic's income statement shows a mixed performance. The company has experienced a slight revenue growth of 1.5% in the most recent year, indicating a recovery from previous declines. However, margins have compressed over time, with gross profit margin decreasing from 67.39% in 2021 to 51.65% in 2025. Net profit margin also declined from 33.23% in 2021 to 13.80% in 2025. Despite these challenges, the company remains profitable, but the declining margins suggest potential cost pressures or competitive challenges.

Balance Sheet

Hologic's balance sheet reflects a stable financial position with a decreasing debt-to-equity ratio, from 1.12 in 2020 to 0.52 in 2025, indicating improved leverage management. The equity ratio has remained relatively stable, suggesting a balanced capital structure. Return on equity has decreased from 44.36% in 2021 to 0% in 2025, reflecting reduced profitability. Overall, the balance sheet shows strength in managing debt but highlights a need for improved profitability.

Cash Flow

The cash flow statement reveals some concerns, with free cash flow growth turning negative in recent years, indicating potential cash generation issues. The operating cash flow to net income ratio has decreased, suggesting less efficient cash conversion. Despite these challenges, the company maintains a strong free cash flow to net income ratio of 0.94, indicating good cash generation relative to earnings. The cash flow performance suggests a need for improved cash management and operational efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.04B	4.10B	4.03B	4.03B	4.86B	5.63B
Gross Profit	2.09B	2.50B	2.23B	2.07B	3.00B	3.80B
EBITDA	1.09B	1.02B	1.30B	1.11B	2.11B	2.86B
Net Income	557.10M	565.70M	789.50M	456.00M	1.30B	1.87B
Balance Sheet
Total Assets	8.81B	9.01B	9.16B	9.14B	9.07B	8.92B
Cash, Cash Equivalents and Short-Term Investments	1.88B	2.20B	2.33B	2.72B	2.34B	1.17B
Total Debt	2.52B	2.63B	2.66B	2.90B	2.92B	3.14B
Total Liabilities	3.96B	3.97B	4.03B	4.12B	4.20B	4.70B
Stockholders Equity	4.84B	5.05B	5.13B	5.02B	4.88B	4.22B
Cash Flow
Free Cash Flow	938.70M	920.10M	1.15B	901.00M	2.00B	2.15B
Operating Cash Flow	1.07B	1.06B	1.29B	1.05B	2.13B	2.33B
Investing Cash Flow	-946.30M	-482.70M	-781.00M	-152.10M	-206.30M	-1.33B
Financing Cash Flow	-835.60M	-777.20M	-1.11B	-483.20M	-756.00M	-529.80M

Hologic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 74.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOLX, the sentiment is Positive. The current price of 74.88 is above the 20-day moving average (MA) of 74.80, above the 50-day MA of 74.58, and above the 200-day MA of 66.61, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 58.84 is Neutral, neither overbought nor oversold. The STOCH value of 78.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HOLX.

Hologic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ISRG	80 Outperform	$207.41B	77.44	16.90%	―	22.18%	21.37%
HOLX	76 Outperform	$16.70B	30.16	11.12%	―	1.74%	-25.29%
RMD	76 Outperform	$36.63B	25.84	25.41%	0.92%	9.36%	29.56%
WST	68 Neutral	$19.80B	40.81	16.94%	0.32%	4.90%	-0.26%
BDX	67 Neutral	$58.46B	34.86	6.54%	2.13%	8.23%	-2.04%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BAX	47 Neutral	$10.64B	―	-4.70%	2.75%	-21.20%	-325.40%

Hologic Corporate Events

Hologic Updates Restricted Stock Unit Award Agreement

On November 4, 2025, Hologic, Inc.’s Compensation Committee approved a revised form of Restricted Stock Unit Award Agreement, indicating a strategic update in the company’s compensatory arrangements for certain officers. This revision may impact the company’s operational dynamics and could have implications for its stakeholders, reflecting a potential shift in how the company incentivizes its leadership.

The most recent analyst rating on (HOLX) stock is a Hold with a $76.00 price target. To see the full list of analyst forecasts on Hologic stock, see the HOLX Stock Forecast page.

Hologic Announces Acquisition Agreement with Blackstone and TPG

On October 21, 2025, Hologic, Inc. announced its entry into a definitive agreement to be acquired by Blackstone and TPG for up to $79 per share, valuing the company at approximately $18.3 billion. This acquisition, which includes a 46% premium on Hologic’s stock price prior to media reports, aims to strengthen Hologic’s leadership in women’s health and accelerate its growth. The transaction is expected to close in the first half of 2026, pending shareholder and regulatory approvals, and will result in Hologic’s delisting from Nasdaq. The deal includes significant minority investments from ADIA and GIC, and Hologic’s stockholders will receive $76 per share in cash plus a contingent value right of up to $3 per share based on future revenue milestones.

The most recent analyst rating on (HOLX) stock is a Hold with a $73.00 price target. To see the full list of analyst forecasts on Hologic stock, see the HOLX Stock Forecast page.