F3Q Disrupted by MidEast & China Geopolitics, FY26 Guide Withdrawn; DG to Hold

Research evidence excerpt

F3Q Disrupted by MidEast & China Geopolitics, FY26 Guide Withdrawn; DG to Hold

USA | Medical Supplies & Devices

Accuray EquityMayResearch12, 2026

RATING | TARGET | ESTIMATE CHANGEF3Q Disrupted by MidEast & China Geopolitics,

RATING HOLD (BUY)FY26 Guide Withdrawn; DG to Hold

PRICE $0.34^

We are downgrading ARAY from Buy to Hold following the F3Q miss, and

the withdrawing of their FY guide. This is driven by Middle East geopolitical PRICE TARGET | % TO PT $0.35 ($3.05) | +2%

uncertainties that resulted in indefinite delays in shipments in EIMEA growth 52W HIGH-LOW $2.10 - $0.28

regions, along with continued uncertainties in the China JV business. While FLOAT (%) | ADV MM (USD) 91.0% | 0.51

mgmt will provide an update in F4Q, we believe some of the issues facing the MARKET CAP $42.6M

company are more structural. We are downgrading to Hold, and lowering PT TICKER ARAY ^Prior trading day's closing price unless otherwise

to $0.35. noted.

Steady String of Disappointments Through Past 3 Yrs: ARAY had undergone a period of strategic FY (Jun) CHANGE TO JEFe JEF vs CONS

transformations over the past 3 yrs, during which mgmt had frequently lowered financial guidance, 2026 2027 2026 2027

citing external macroeconomic and geopolitical headwinds. FY24-26 showed consistent patterns REV -8% -10% NA NA

in guidance revisions, performance challenges, and strategic focus areas. During that period, ARAY

EPS -40% -50% NA NA

had missed 6 of the past 12 Qs on EBITDA vs cons, and 3 out of the past 12 Qs on revs.

ARAY had repeatedly revised their financial guidance downward due to persistent external 2026 ($) Q1A Q2A Q3A Q4 FY

disruptions, particularly driven by China, the Middle East and the N. Africa (MENA) region. In EPS (0.18) (0.11) (0.09) (0.10) (0.35)