Radiation safety company Mirion (NYSE: MIR) fell short of the market’s revenue expectations in Q2 CY2026, but sales rose 19.7% year on year to $266.8 million. Its non-GAAP profit of $0.12 per share was 17% above analysts’ consensus estimates.

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“Our second quarter performance reflects margin expansion across both operating segments, increased adjusted free cash flow, and continued orders and backlog growth,” commented Mirion’s Chairman and Chief Executive Officer Thomas Logan.

Company Overview

With its technology protecting workers in over 130 countries and equipment used in 80% of cancer centers worldwide, Mirion Technologies (NYSE: MIR) provides radiation detection, measurement, and monitoring solutions for medical, nuclear energy, defense, and scientific research applications.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years.

With $1.02 billion in revenue over the past 12 months, Mirion is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels. On the bright side, it can grow faster because it has more room to expand.

As you can see below, Mirion grew its sales at an impressive 10.2% compounded annual growth rate over the last five years. This is a great starting point for our analysis because it shows Mirion’s demand was higher than many business services companies.

We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Mirion’s annualized revenue growth of 11.7% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.

This quarter, Mirion’s revenue grew by 19.7% year on year to $266.8 million but fell short of Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 14.5% over the next 12 months, an improvement versus the last two years. This projection is commendable and implies its newer products and services will fuel better top-line performance.

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Adjusted Operating Margin

Adjusted operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. It also removes various one-time costs to paint a better picture of normalized profits.

Mirion was profitable over the last five years but held back by its large cost base. Its average adjusted operating margin of 3% was weak for a business services business.

On the plus side, Mirion’s adjusted operating margin rose by 13.2 percentage points over the last five years, as its sales growth gave it immense operating leverage.

In Q2, Mirion generated an adjusted operating margin profit margin of 9.3%, up 3.1 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions.

Mirion’s full-year EPS dropped 4.5%, or 1.1% annually, over the last four years. We’ll keep a close eye on the company as diminishing earnings could imply changing secular trends and preferences.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

Mirion’s EPS grew at a remarkable 16.7% compounded annual growth rate over the last two years, higher than its 11.7% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Diving into Mirion’s quality of earnings can give us a better understanding of its performance. Mirion’s adjusted operating margin has expanded over the last two years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

In Q2, Mirion reported adjusted EPS of $0.12, up from $0.11 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Mirion’s full-year EPS to grow 18.8% from $0.49 to $0.58.

Key Takeaways from Mirion’s Q2 Results

It was good to see Mirion beat analysts’ EPS expectations this quarter. On the other hand, its full-year EPS guidance missed and its revenue fell slightly short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded up 1.1% to $16.98 immediately after reporting.

Is Mirion an attractive investment opportunity right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).