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HSIC beat Q1 estimates, with EPS up 14.8% and revenues rising 6.3% year over year.
HSIC saw growth across segments, led by distribution, specialty products and technology sales gains.
HSIC expanded gross margin to 31.8% and expects 3%-5% sales growth for full-year 2026.
Henry Schein, Inc. (HSIC - Free Report) registered first-quarter 2026 adjusted earnings per share (EPS) of $1.32, up 14.8% from the year-ago period’s figure. The bottom line also surpassed the Zacks Consensus Estimate by 10.3%.
Excluding adjustments, such as restructuring costs, acquisition intangible amortization and others, the company reported a GAAP EPS of 92 cents compared with the year-ago quarter’s 88 cents.
HSIC’s Revenues in Detail
Henry Schein reported first-quarter net sales of $3.37 billion, up 6.3% year over year. The metric also beat the Zacks Consensus Estimate by 1.15%.
Excluding 0.7% sales growth from acquisitions and a 3.1% increase from foreign currency exchange, internal sales growth was 2.5%.
HSIC’s Q1 Segmental Analysis
Sales in the Global Distribution and Value-Added Services segment was $2.84 billion, up 6.1% year over year on a reported basis and reflects 2.5% internal sales growth. Our model forecast was $2.77 billion.
Within this, Global Dental Distribution merchandise sales reflected 3% internal sales growth year over year, with continuing strong momentum in the United States.
Henry Schein, Inc. Price, Consensus and EPS Surprise
Global Dental Distribution equipment sales witnessed 3.5% internal sales growth. Global Medical Distribution sales for the quarter saw 1.3% internal sales growth. Global Value-added Services sales highlighted 7.8% internal sales growth in the quarter.
The Global Specialty Products segment reported $397 million in sales, up 8.1% on a reported basis (1.7% internal sales growth). Our model forecast was $405.9 million.
Lastly, sales in Global Technology totaled $173 million, up 7% on a reported basis and reflected 6.9% internal sales growth. Our model projected $175.6 million for this segment.
HSIC’s Margin Performance
In the reported quarter, the gross profit totaled $1.07 billion, representing a 7% increase year over year. The gross margin expanded 20 basis points (bps) to 31.8% despite a 6% rise in the cost of sales.
SG&A expenses increased 9.6% to $809 million in the quarter under review. The adjusted operating profit was $261 million, down 0.4% year over year. The adjusted operating margin contracted 52 bps year over year to 7.7%.
Liquidity Position of HSIC
Henry Schein exited the first quarter of 2026 with cash and cash equivalents of $128 million compared with $156 million at the end of 2025.
Cumulative net cash used in operating activities at the end of the reported quarter was $97 million compared with cash inflow of $37 million a year ago.
During the reported quarter, HSIC repurchased nearly 1.6 million shares of its common stock at an average price of $77.64 per share for a total of approximately $125 million. At the end of the reported quarter, Henry Schein had $655 million authorized and available for future stock repurchases.
HSIC’s 2026 Guidance
The company continues to expect 2026 total sales growth to be between 3% and 5%. The Zacks Consensus Estimate for sales is currently pegged at $13.69 billion, indicating 3.9% year-over-year growth.
Non-GAAP diluted EPS for 2026 is expected to be in the band of $5.23-$5.37. The Zacks Consensus Estimate for earnings is pegged at $5.30.
Our Take on HSIC
Henry Schein exited the first quarter of 2026 with better-than-expected earnings and revenues. Performance reflects sustained momentum from the second half of last year, with market share gains and gross margin expansion. During the quarter, the company acquired a controlling interest in its S.I.N. distributor in the United States to enhance its position in the value implant market and support its business integration strategy. HSIC management also confirmed that the value creation initiatives are expected to deliver more than $200 million of operating income improvement over the next few years, with a $125 million run rate by the end of 2026.
HSIC’s Zacks Rank & Key Picks
HSIC currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are BrightSpring Health Services (BTSG - Free Report) , Intuitive Surgical (ISRG - Free Report) and Labcorp Holdings (LH - Free Report) .
BrightSpring Health Services, currently carrying a Zacks Rank #2 (Buy), reported first-quarter 2026 adjusted EPS of 36 cents, which surpassed the Zacks Consensus Estimate by 34.5%. Revenues of $3.61 billion beat the Zacks Consensus Estimate by 8.35%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BTSG has an estimated long-term earnings growth rate of 47.2% compared with the industry’s 14.5% growth. The company topped earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 14.61%.
Intuitive Surgical, carrying a Zacks Rank #2 at present, posted first-quarter 2026 adjusted EPS of $2.50, exceeding the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion topped the Zacks Consensus Estimate by 6.2%.
ISRG has an earnings yield of 2.1% compared to the industry’s negative 0.9% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.82%.
Labcorp, carrying a Zacks Rank #2 at present, posted first-quarter 2026 adjusted EPS of $4.25, exceeding the Zacks Consensus Estimate by 3.8%. Revenues of $3.54 billion outperformed the Zacks Consensus Estimate by 1%.
LH has an earnings yield of 6.9% compared with the industry’s 4.5% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 3.31%.
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HSIC Q1 Earnings & Revenues Surpass Estimates, Gross Margin Rises
Key Takeaways
Henry Schein, Inc. (HSIC - Free Report) registered first-quarter 2026 adjusted earnings per share (EPS) of $1.32, up 14.8% from the year-ago period’s figure. The bottom line also surpassed the Zacks Consensus Estimate by 10.3%.
Excluding adjustments, such as restructuring costs, acquisition intangible amortization and others, the company reported a GAAP EPS of 92 cents compared with the year-ago quarter’s 88 cents.
HSIC’s Revenues in Detail
Henry Schein reported first-quarter net sales of $3.37 billion, up 6.3% year over year. The metric also beat the Zacks Consensus Estimate by 1.15%.
Excluding 0.7% sales growth from acquisitions and a 3.1% increase from foreign currency exchange, internal sales growth was 2.5%.
HSIC’s Q1 Segmental Analysis
Sales in the Global Distribution and Value-Added Services segment was $2.84 billion, up 6.1% year over year on a reported basis and reflects 2.5% internal sales growth. Our model forecast was $2.77 billion.
Within this, Global Dental Distribution merchandise sales reflected 3% internal sales growth year over year, with continuing strong momentum in the United States.
Henry Schein, Inc. Price, Consensus and EPS Surprise
Henry Schein, Inc. price-consensus-eps-surprise-chart | Henry Schein, Inc. Quote
Global Dental Distribution equipment sales witnessed 3.5% internal sales growth. Global Medical Distribution sales for the quarter saw 1.3% internal sales growth. Global Value-added Services sales highlighted 7.8% internal sales growth in the quarter.
The Global Specialty Products segment reported $397 million in sales, up 8.1% on a reported basis (1.7% internal sales growth). Our model forecast was $405.9 million.
Lastly, sales in Global Technology totaled $173 million, up 7% on a reported basis and reflected 6.9% internal sales growth. Our model projected $175.6 million for this segment.
HSIC’s Margin Performance
In the reported quarter, the gross profit totaled $1.07 billion, representing a 7% increase year over year. The gross margin expanded 20 basis points (bps) to 31.8% despite a 6% rise in the cost of sales.
SG&A expenses increased 9.6% to $809 million in the quarter under review. The adjusted operating profit was $261 million, down 0.4% year over year. The adjusted operating margin contracted 52 bps year over year to 7.7%.
Liquidity Position of HSIC
Henry Schein exited the first quarter of 2026 with cash and cash equivalents of $128 million compared with $156 million at the end of 2025.
Cumulative net cash used in operating activities at the end of the reported quarter was $97 million compared with cash inflow of $37 million a year ago.
During the reported quarter, HSIC repurchased nearly 1.6 million shares of its common stock at an average price of $77.64 per share for a total of approximately $125 million. At the end of the reported quarter, Henry Schein had $655 million authorized and available for future stock repurchases.
HSIC’s 2026 Guidance
The company continues to expect 2026 total sales growth to be between 3% and 5%. The Zacks Consensus Estimate for sales is currently pegged at $13.69 billion, indicating 3.9% year-over-year growth.
Non-GAAP diluted EPS for 2026 is expected to be in the band of $5.23-$5.37. The Zacks Consensus Estimate for earnings is pegged at $5.30.
Our Take on HSIC
Henry Schein exited the first quarter of 2026 with better-than-expected earnings and revenues. Performance reflects sustained momentum from the second half of last year, with market share gains and gross margin expansion. During the quarter, the company acquired a controlling interest in its S.I.N. distributor in the United States to enhance its position in the value implant market and support its business integration strategy. HSIC management also confirmed that the value creation initiatives are expected to deliver more than $200 million of operating income improvement over the next few years, with a $125 million run rate by the end of 2026.
HSIC’s Zacks Rank & Key Picks
HSIC currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are BrightSpring Health Services (BTSG - Free Report) , Intuitive Surgical (ISRG - Free Report) and Labcorp Holdings (LH - Free Report) .
BrightSpring Health Services, currently carrying a Zacks Rank #2 (Buy), reported first-quarter 2026 adjusted EPS of 36 cents, which surpassed the Zacks Consensus Estimate by 34.5%. Revenues of $3.61 billion beat the Zacks Consensus Estimate by 8.35%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BTSG has an estimated long-term earnings growth rate of 47.2% compared with the industry’s 14.5% growth. The company topped earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 14.61%.
Intuitive Surgical, carrying a Zacks Rank #2 at present, posted first-quarter 2026 adjusted EPS of $2.50, exceeding the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion topped the Zacks Consensus Estimate by 6.2%.
ISRG has an earnings yield of 2.1% compared to the industry’s negative 0.9% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.82%.
Labcorp, carrying a Zacks Rank #2 at present, posted first-quarter 2026 adjusted EPS of $4.25, exceeding the Zacks Consensus Estimate by 3.8%. Revenues of $3.54 billion outperformed the Zacks Consensus Estimate by 1%.
LH has an earnings yield of 6.9% compared with the industry’s 4.5% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 3.31%.