Accuray (ARAY) Stock Forecast & Price Target

Accuray is benefiting from a transformation plan that is expected to improve operating profitability by about $25M on an annualized basis, signaling a meaningful step-change in earnings power. The company already recognized $10M in cost and margin improvements through F3Q and reiterated roughly $12M of expected benefits for FY26, suggesting execution is progressing as planned despite $6.5M in F3Q restructuring charges. With restructuring costs expected to decline sequentially and all transformation initiatives targeted for completion by the end of FY26, the setup supports better margins, stronger cash generation, and a more resilient operating profile.

Accuray is facing a deteriorating fundamental setup as geopolitical uncertainty in the Middle East and continued headwinds in China are delaying shipments indefinitely, disrupting both Product and Service revenue and forcing management to withdraw its FY2026 guide. F3Q revenue fell 7% y/y to $104.8M, product revenue missed expectations at $49.7M, gross orders slipped to $48.5M for only a 1.0x book-to-bill, and adj. EBITDA of $3.8M again came in below consensus, underscoring weak commercial execution. Even with cost cuts and a below-1x NTM EV/Sales valuation, declining revenue, lower gross margins, and limited visibility on profitability suggest the stock remains vulnerable despite the depressed multiple.