Accuray (NASDAQ:ARAY) Announces Quarterly Earnings Results, Meets Estimates

Accuray (NASDAQ:ARAY) announced its quarterly earnings data on Wednesday. The medical equipment provider reported ($0.11) earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of ($0.11), FiscalAI reports. The firm had revenue of $102.24 million for the quarter, compared to analysts’ expectations of $100.86 million. Accuray had a negative net margin of 8.15% and a negative return on equity of 57.29%.

Here are the key takeaways from Accuray’s conference call:

• Announced a comprehensive transformation to sharpen accountability and cut costs, including a ~15% workforce reduction and a target of roughly $25 million in annualized operating profitability (about $12 million benefit expected in FY2026), with approximately $10 million of restructuring charges to be recognized across FY26.
• Revised fiscal 2026 guidance downward: revenue now expected at $440–$450 million (vs. $471–$485M prior) and Adjusted EBITDA of $22–$25 million (vs. $31–$35M prior), citing continued China volatility and persistent tariff headwinds.
• Service revenue showed resilience—up 4% to $57.2 million—and management is pivoting to a solutions-oriented, higher-margin service strategy and structured distributor programs to grow recurring revenue and improve margins.
• Product revenue declined 26% to $45 million and product growth margins fell sharply (19.7% vs. 43.5% a year ago), largely due to fewer China unit releases, tariff-related cost increases, and weaker product mix (including 0 CyberKnife shipments this quarter).

Accuray Price Performance

Shares of ARAY opened at $0.60 on Friday. The company has a debt-to-equity ratio of 2.06, a quick ratio of 0.76 and a current ratio of 1.56. Accuray has a 52-week low of $0.56 and a 52-week high of $2.95. The stock has a 50 day simple moving average of $0.89 and a 200 day simple moving average of $1.26. The firm has a market capitalization of $68.02 million, a PE ratio of -2.07 and a beta of 1.15.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on ARAY. Wall Street Zen raised Accuray from a “sell” rating to a “hold” rating in a research note on Monday, January 5th. BTIG Research decreased their target price on Accuray from $4.00 to $2.00 and set a “buy” rating for the company in a research report on Thursday. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Accuray in a research note on Monday, December 29th. One research analyst has rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $2.00.

Accuray News Roundup

Here are the key news stories impacting Accuray this week:

• Positive Sentiment: BTIG cut its price target from $4.00 to $2.00 but kept a “Buy” rating, which still represents substantial upside versus the current share price and could support the stock if sentiment stabilizes. BTIG lowers price target to $2; keeps Buy
• Neutral Sentiment: Q2 fiscal results: Accuray reported EPS of ($0.11), matching consensus, and revenue of $102.24M, slightly above estimates — results that are broadly in line with expectations but do not materially change the outlook on their own. Accuray Reports Fiscal 2026 Second Quarter Financial Results
• Neutral Sentiment: Management commentary and details from the earnings call are available in published transcripts; these are key for investors seeking color on product demand, margins, and cadence of shipments. Q2 2026 Earnings Call Transcript (Seeking Alpha)
• Neutral Sentiment: Company filings/press materials (press release and slide deck) published with the results provide the detailed financials and supporting slides for investor review. Q2 2026 Press Release & Slide Deck
• Negative Sentiment: FY-2026 guidance was lowered: the company provided revenue guidance of $440M–$450M versus the consensus ~ $466.7M. A below-consensus revenue outlook is the main near-term negative catalyst pressuring the stock as it implies slower top-line growth than investors expected. Guidance update reviewed (MarketBeat)

Institutional Investors Weigh In On Accuray

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Public Employees Retirement System of Ohio acquired a new position in shares of Accuray during the third quarter worth about $35,000. Tower Research Capital LLC TRC lifted its stake in Accuray by 604.2% in the 2nd quarter. Tower Research Capital LLC TRC now owns 35,177 shares of the medical equipment provider’s stock valued at $48,000 after acquiring an additional 30,182 shares in the last quarter. BNP Paribas Financial Markets boosted its position in Accuray by 32.4% during the 3rd quarter. BNP Paribas Financial Markets now owns 39,369 shares of the medical equipment provider’s stock worth $66,000 after acquiring an additional 9,633 shares during the last quarter. Ameriprise Financial Inc. bought a new position in shares of Accuray during the 3rd quarter worth approximately $73,000. Finally, Envestnet Asset Management Inc. grew its stake in shares of Accuray by 408.0% during the 3rd quarter. Envestnet Asset Management Inc. now owns 59,204 shares of the medical equipment provider’s stock worth $99,000 after acquiring an additional 47,550 shares in the last quarter. 64.08% of the stock is currently owned by institutional investors and hedge funds.

About Accuray

Accuray Incorporated (NASDAQ: ARAY) is a global medical device company that develops, manufactures and markets innovative radiation therapy solutions for the treatment of cancer. The company’s flagship products include the CyberKnife® System, a robotic radiosurgery platform offering sub-millimeter precision, and the TomoTherapy® System, which combines helical computed tomography (CT) imaging with intensity-modulated radiation therapy (IMRT). More recently, Accuray introduced the Radixact® System, an advanced iteration of its TomoTherapy technology designed to enhance treatment speed and clinical workflow.

Accuray’s suite of products enables clinicians to deliver highly targeted radiation doses while minimizing exposure to surrounding healthy tissue.