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Hologic’s $1.88 Billion Cash Cushion: Can Breast Health Finally Return To Growth?

Hologic, Inc. reported third quarter fiscal 2025 revenue of $1.024 billion, up 0.4% year-over-year and approximately $14 million above the high end of guidance. Non-GAAP EPS increased 1.9% to $1.08, exceeding guidance by $0.01. Non-GAAP operating margin remained above 30%, supported by expense discipline and tariff mitigation. Operating cash flow reached $343 million, increasing cash to $1.88 billion and supporting net leverage of 0.6x. Segment performance was mixed but broadly aligned with expectations. Diagnostics generated $448.9 million of revenue, up 0.9%, or 2.9% organically excluding COVID-related sales, despite reduced U.S. aid in Africa and challenges in China. Molecular Diagnostics grew 7.3% domestically excluding COVID, led by BV, CV/TV, and Panther Fusion assays. The Genius digital cytology rollout contributed positively, although cytology and perinatal revenue declined 2.2% because of a reduced China forecast. Management expects adoption of the platform to support growth over multiple quarters. Breast Health revenue declined 5.