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XRAY Stock Declines on Q3 Earnings Miss & Lower 2025 EPS View
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Key Takeaways
XRAY's Q3 EPS fell 26.5% year over year, missing the consensus estimate by 17.8%.
XRAY's revenues declined 4.9% to $904 million, with weakness in most segments except Wellspect Healthcare.
XRAY lowered 2025 EPS guidance to about $1.60, while maintaining its sales outlook of $3.6-$3.7 billion.
DENTSPLY SIRONA Inc. (XRAY - Free Report) reported third-quarter 2025 adjusted earnings per share (EPS) of 37 cents, down 26.5% year over year. The bottom line missed the Zacks Consensus Estimate by 17.8%.
GAAP loss per share in the quarter under review was $2.14 compared with $2.46 in the prior-year quarter.
DENTSPLY SIRONA’s Revenues
Revenues grossed $904 million in the reported quarter, down 4.9% year over year reportedly and 8% at constant currency (cc). However, the metric beat the Zacks Consensus Estimate by 0.3%.
The top line was dampened by weak performances in the majority of the segments.
Shares of the company lost nearly 8.8% in today’s pre-market trading. The company’s shares have plunged 33.5% in the year-to-date period against the industry’s gain of 9.2%. The broader S&P 500 Index has increased 16.7% in the same time frame.
Image Source: Zacks Investment Research
XRAY’s Segmental Analysis
DENTSPLY SIRONA generates revenues from four segments — Connected Technology Solutions, Essential Dental Solutions, Orthodontic and Implant Solutions and Wellspect Healthcare.
Connected Technology Solutions segment’s revenues in the third quarter of 2025 were $259 million, down 3.9% and 7% year over year on a reported basis and at cc, respectively. This figure compares to our third-quarter projection of $264.4 million.
Essential Dental Solutions segment’s revenues in the third quarter of 2025 totaled $357 million, down 3.4% year over year on a reported basis and 6.2% at cc. This figure compares to our third-quarter projection of $370.5 million.
Orthodontic and Implant Solutions segment’s revenues amounted to $205 million, down 15% and 17.1% year over year on a reported basis and at cc, respectively. This figure compares to our third-quarter projection of $195.2 million.
Wellspect Healthcare segment’s revenues totaled $83 million, up 15.6% and 9.3% year over year on a reported basis and at cc, respectively. This figure compares to our third-quarter projection of $73.9 million.
DENTSPLY SIRONA’s Geographic Revenues
U.S. revenues in the third quarter of 2025 amounted to $291 million, down 22.2% year over year on a reported basis. This figure compares to our third-quarter projection of $301.9 million.
Revenues from Europe in the third quarter of 2025 totaled $382 million, up 9.9% year over year on a reported basis and up 2.3% at cc. This figure compares to our third-quarter projection of $375 million.
Revenues from the Rest of World in the third quarter of 2025 were $231 million, up 0.3% year over year on a reported basis and 1.2% at cc. This figure compares to our third-quarter projection of $227.1 million.
XRAY’s Margin Analysis
In the quarter under review, DENTSPLY SIRONA’s adjusted gross profit declined 9.9% year over year to $475 million. The adjusted gross margin contracted 270 basis points (bps) to 52.6%. We had projected an adjusted gross margin of 54.4% for the third quarter.
Selling, general, and administrative expenses decreased 9% year over year to $355 million. Research and development expenses decreased 7.5% year over year to $37 million. Adjusted operating expenses of $356 million decreased 8.9% year over year.
Adjusted operating profit totaled $119 million, reflecting a 12.5% decrease from the prior-year quarter’s level. The adjusted operating margin in the third quarter contracted 110 bps to 13.2%.
DENTSPLY SIRONA’s Financial Update
The company exited third-quarter 2025 with cash and cash equivalents worth $363 million compared with $359 million at the end of the second quarter. Total debt at third-quarter 2025-end was $2.39 billion compared with $2.40 billion at second-quarter 2025-end.
Cumulative net cash provided by operating activities at the end of third-quarter 2025 totaled $134 million compared with $374 million in the prior-year period.
Meanwhile, DENTSPLY SIRONA has a consistent dividend-paying history, with its five-year annualized dividend growth being 11.57%.
XRAY’s Guidance
DENTSPLY SIRONA has reiterated its 2025 sales outlook.
The company continues to estimate its reported sales for the full year in the range of $3.60 billion to $3.70 billion. The Zacks Consensus Estimate is currently pegged at $3.65 billion.
Sales are expected to continue declining in the range of 4-5% on a constant currency basis.
XRAY lowered its adjusted EPS outlook for 2025 to approximately $1.60 from the prior projection of $1.80-$2.00. The Zacks Consensus Estimate is currently pegged at $1.87.
DENTSPLY SIRONA Inc. Price, Consensus and EPS Surprise
DENTSPLY SIRONA ended the third quarter of 2025 with weaker-than-expected results and a bottom-line decline. The weakness in the Essential Dental Solutions segment in the quarter was discouraging. The contraction of the adjusted gross and operating margins does not bode well for the stock.
A lower-than-expected earnings outlook led to the decline in pre-market trading.
XRAY’s Zacks Rank and Stocks to Consider
DENTSPLY SIRONA currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Solventum Corporation (SOLV - Free Report) , Boston Scientific Corporation (BSX - Free Report) and Alcon (ALC - Free Report) .
Solventum, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 4.1%. SOLV’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 13.91%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Solventum’s shares have gained 3.8% compared with the industry’s 2.6% growth so far this year.
Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 16.4%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.36%.
Boston Scientific’s shares have gained 10.9% compared with the industry’s 0.6% growth so far this year.
Alcon, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 10.3%. ALC’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 4.61%.
Alcon’s shares have declined 12.6% compared to a flat industry so far this year.
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XRAY Stock Declines on Q3 Earnings Miss & Lower 2025 EPS View
Key Takeaways
DENTSPLY SIRONA Inc. (XRAY - Free Report) reported third-quarter 2025 adjusted earnings per share (EPS) of 37 cents, down 26.5% year over year. The bottom line missed the Zacks Consensus Estimate by 17.8%.
GAAP loss per share in the quarter under review was $2.14 compared with $2.46 in the prior-year quarter.
DENTSPLY SIRONA’s Revenues
Revenues grossed $904 million in the reported quarter, down 4.9% year over year reportedly and 8% at constant currency (cc). However, the metric beat the Zacks Consensus Estimate by 0.3%.
The top line was dampened by weak performances in the majority of the segments.
Shares of the company lost nearly 8.8% in today’s pre-market trading. The company’s shares have plunged 33.5% in the year-to-date period against the industry’s gain of 9.2%. The broader S&P 500 Index has increased 16.7% in the same time frame.
Image Source: Zacks Investment Research
XRAY’s Segmental Analysis
DENTSPLY SIRONA generates revenues from four segments — Connected Technology Solutions, Essential Dental Solutions, Orthodontic and Implant Solutions and Wellspect Healthcare.
Connected Technology Solutions segment’s revenues in the third quarter of 2025 were $259 million, down 3.9% and 7% year over year on a reported basis and at cc, respectively. This figure compares to our third-quarter projection of $264.4 million.
Essential Dental Solutions segment’s revenues in the third quarter of 2025 totaled $357 million, down 3.4% year over year on a reported basis and 6.2% at cc. This figure compares to our third-quarter projection of $370.5 million.
Orthodontic and Implant Solutions segment’s revenues amounted to $205 million, down 15% and 17.1% year over year on a reported basis and at cc, respectively. This figure compares to our third-quarter projection of $195.2 million.
Wellspect Healthcare segment’s revenues totaled $83 million, up 15.6% and 9.3% year over year on a reported basis and at cc, respectively. This figure compares to our third-quarter projection of $73.9 million.
DENTSPLY SIRONA’s Geographic Revenues
U.S. revenues in the third quarter of 2025 amounted to $291 million, down 22.2% year over year on a reported basis. This figure compares to our third-quarter projection of $301.9 million.
Revenues from Europe in the third quarter of 2025 totaled $382 million, up 9.9% year over year on a reported basis and up 2.3% at cc. This figure compares to our third-quarter projection of $375 million.
Revenues from the Rest of World in the third quarter of 2025 were $231 million, up 0.3% year over year on a reported basis and 1.2% at cc. This figure compares to our third-quarter projection of $227.1 million.
XRAY’s Margin Analysis
In the quarter under review, DENTSPLY SIRONA’s adjusted gross profit declined 9.9% year over year to $475 million. The adjusted gross margin contracted 270 basis points (bps) to 52.6%. We had projected an adjusted gross margin of 54.4% for the third quarter.
Selling, general, and administrative expenses decreased 9% year over year to $355 million. Research and development expenses decreased 7.5% year over year to $37 million. Adjusted operating expenses of $356 million decreased 8.9% year over year.
Adjusted operating profit totaled $119 million, reflecting a 12.5% decrease from the prior-year quarter’s level. The adjusted operating margin in the third quarter contracted 110 bps to 13.2%.
DENTSPLY SIRONA’s Financial Update
The company exited third-quarter 2025 with cash and cash equivalents worth $363 million compared with $359 million at the end of the second quarter. Total debt at third-quarter 2025-end was $2.39 billion compared with $2.40 billion at second-quarter 2025-end.
Cumulative net cash provided by operating activities at the end of third-quarter 2025 totaled $134 million compared with $374 million in the prior-year period.
Meanwhile, DENTSPLY SIRONA has a consistent dividend-paying history, with its five-year annualized dividend growth being 11.57%.
XRAY’s Guidance
DENTSPLY SIRONA has reiterated its 2025 sales outlook.
The company continues to estimate its reported sales for the full year in the range of $3.60 billion to $3.70 billion. The Zacks Consensus Estimate is currently pegged at $3.65 billion.
Sales are expected to continue declining in the range of 4-5% on a constant currency basis.
XRAY lowered its adjusted EPS outlook for 2025 to approximately $1.60 from the prior projection of $1.80-$2.00. The Zacks Consensus Estimate is currently pegged at $1.87.
DENTSPLY SIRONA Inc. Price, Consensus and EPS Surprise
DENTSPLY SIRONA Inc. price-consensus-eps-surprise-chart | DENTSPLY SIRONA Inc. Quote
Our Take on DENTSPLY SIRONA
DENTSPLY SIRONA ended the third quarter of 2025 with weaker-than-expected results and a bottom-line decline. The weakness in the Essential Dental Solutions segment in the quarter was discouraging. The contraction of the adjusted gross and operating margins does not bode well for the stock.
A lower-than-expected earnings outlook led to the decline in pre-market trading.
XRAY’s Zacks Rank and Stocks to Consider
DENTSPLY SIRONA currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Solventum Corporation (SOLV - Free Report) , Boston Scientific Corporation (BSX - Free Report) and Alcon (ALC - Free Report) .
Solventum, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 4.1%. SOLV’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 13.91%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Solventum’s shares have gained 3.8% compared with the industry’s 2.6% growth so far this year.
Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 16.4%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.36%.
Boston Scientific’s shares have gained 10.9% compared with the industry’s 0.6% growth so far this year.
Alcon, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 10.3%. ALC’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 4.61%.
Alcon’s shares have declined 12.6% compared to a flat industry so far this year.