It has been about a month since the last earnings report for Dentsply International (XRAY Quick QuoteXRAY - Free Report) . Shares have lost about 13.5% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Dentsply due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

XRAY Stock Down as Q1 Earnings Miss Estimates, Margins Contract

DENTSPLY SIRONA reported first-quarter 2026 adjusted earnings per share of 27 cents, down 39% year over year. The bottom line missed the Zacks Consensus Estimate by 3.6%.

GAAP loss per share in the quarter under review was 5 cents against earnings per share of 10 cents in the prior-year quarter.

DENTSPLY SIRONA’s Revenues

Revenues totaled $880 million in the reported quarter, up 0.1% year over year reportedly but down 6.7% at constant currency (cc). The metric beat the Zacks Consensus Estimate by 5.1%.

The top line was driven by strength in Connected Technology Solutions and Wellspect Healthcare segments, partially offset by weakness in Essential Dental Solutions and Orthodontic and Implant Solutions segments.

XRAY’s Segmental Analysis

Connected Technology Solutions segment’s revenues in the first quarter of 2026 totaled $246 million, up 4.4% but down 2.9% year over year on a reported and constant-currency basis, respectively. Our projection was $227.8 million for the metric.

Essential Dental Solutions segment’s revenues totaled $350 million, down 0.9% year over year on a reported basis and 7.2% at cc. Our projection was $341.2 million for the metric.

Orthodontic and Implant Solutions segment’s revenues amounted to $199 million, down 8.1% and 13.5% year over year on a reported basis and at cc, respectively. Our projection for the metric was $197.9 million.

Wellspect Healthcare segment’s revenues totaled $85 million, up 15% and 3.4% year over year on a reported basis and at cc, respectively. Our projection was $79.2 million for the metric.

DENTSPLY SIRONA’s Geographic Revenues

Beginning first-quarter 2026, DENTSPLY SIRONA started reporting under new regional segments as follows — North and South America as Americas, Europe, the Middle East, and Africa (“EMEA”) and Asia Pacific (“APAC”). The company used to report under US, Europe and Rest of World geographic segments.

Revenues from Americas were down 9.1% year over year on a reported basis and 10.7% at cc.

Revenues from EMEA were up 6.9% year over year on a reported basis but down 5.6% at cc.

Revenues from APAC improved 6.3% year over year on a reported basis and 2.7% at cc.

XRAY’s Margin Analysis

In the quarter under review, DENTSPLY SIRONA’s adjusted gross profit declined 9.7% year over year to $447 million. The adjusted gross margin contracted 560 basis points (bps) to 50.7%. We had projected an adjusted gross margin of 52.5% for the first quarter.

Selling, general, and administrative expenses decreased 2% year over year to $351 million. Research and development expenses increased 22.2% to $44 million. Adjusted operating expenses increased 1.4% year over year to $366 million.

Adjusted operating profit totaled $81 million, reflecting a 39.6% decrease from the prior-year quarter’s level. The adjusted operating margin contracted 590 bps to 9.2%. We had projected an adjusted operating margin of 12.7% for the first quarter.

DENTSPLY SIRONA’s Financial Update 

 The company exited first-quarter 2026 with cash and cash equivalents worth $190 million compared with $326 million at the end of the fourth quarter of 2025. Total debt was $2.24 billion compared with $2.33 billion in the previous quarter.

Cumulative net cash provided by operating activities at the end of first-quarter 2026 was $40 million compared with $7 million in the prior-year period.

XRAY’s Guidance

DENTSPLY SIRONA has maintained its 2026 sales and earnings outlook.

The company continues to expect full-year sales in the range of $3.5 billion to $3.6 billion.

XRAY continues to expect 2026 adjusted EPS in the range of $1.40-$1.50.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

VGM Scores

Currently, Dentsply has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Dentsply has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Dentsply is part of the Zacks Medical - Dental Supplies industry. Over the past month, Cardinal Health (CAH Quick QuoteCAH - Free Report) , a stock from the same industry, has gained 2.3%. The company reported its results for the quarter ended March 2026 more than a month ago.

Cardinal reported revenues of $60.94 billion in the last reported quarter, representing a year-over-year change of +11%. EPS of $3.17 for the same period compares with $2.35 a year ago.

For the current quarter, Cardinal is expected to post earnings of $2.41 per share, indicating a change of +15.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.5% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Cardinal. Also, the stock has a VGM Score of A.