Accuray Incorporated (NASDAQ:ARAY) announced the first phase of a broad strategic, operational and organizational transformation designed to tighten cost controls, clarify accountability and accelerate execution, with management targeting a meaningful improvement in profitability once the changes are fully implemented.
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The initial phase of the plan focuses on reshaping the company's operating model to support faster decision-making and stronger sales execution.
Accuray said the actions are expected to improve operating profitability by approximately $25 million on an annualized run-rate basis when fully in place.
The company is streamlining its commercial structure, centralizing and globalizing core functions, and adjusting reporting lines so that the global heads of service and product development report directly to the CEO.
Accuray is also optimizing its workforce and physical footprint to better align with strategic priorities.
The company is outsourcing selected non-core activities.
Management is also evaluating facilities, implementing programs to improve both direct and indirect spending efficiency, and reallocating engineering resources toward higher-return initiatives and third-party solution integration.
As part of these efforts, Accuray plans to reduce its global headcount by approximately 15%.
The company said compensation and benefits savings will represent the majority of the expected profit improvement. Roughly $12 million of the savings are anticipated to be realized in fiscal 2026, with nearly all initiatives expected to be fully implemented by the end of that fiscal year.
The transformation will carry near-term costs. Accuray expects to incur restructuring charges totaling about $11 million across its fiscal second, third and fourth quarters.
Despite the restructuring, the company reaffirmed its full-year fiscal 2026 forecast.
Accuray reported a first-quarter 2026 loss of 16 cents per share, missing the consensus loss of six cents. Sales reached $93.94 million, down 7% year over year, beating the consensus of $91.35 million.
The radiation therapy solutions provider reaffirmed fiscal 2026 sales guidance of $471 million-$485 million compared to the consensus of $475.15 million.
ARAY Price Action: Accuray stock is down 1.90% at $1.03 at publication on Tuesday.
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