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HSIC's Q3 earnings rose 13% to $1.56 per share, beating estimates by 16.4%, while revenues grew 4%.
U.S. dental merchandise sales, up 8.6%, and technology growth of 5.2% supported Henry Schein's results.
HSIC raised its 2026 adjusted EPS outlook to $5.50-$5.56 while maintaining its sales growth forecast.
Henry Schein, Inc. (HSIC - Free Report) reported third-quarter 2026 adjusted earnings of $1.56 per share, up 13% year over year. The bottom line surpassed the Zacks Consensus Estimate by 16.4%.
Net sales rose 4% to $3.47 billion, in line with the consensus estimate. Results benefited from 3.1% internal sales growth, supported by strong U.S. dental merchandise sales, which increased 8.6%. Acquisitions contributed 0.7% to growth, while foreign currency movements added 0.2%.
Following the announcement, HSIC’s shares edged down 0.1% in the pre-market session today.
HSIC's Distribution Business Gains
Global Distribution and Value-Added Services sales increased 3.7% to $2.94 billion. The segment generated 2.9% internal growth, a 0.5% contribution from acquisitions and a 0.3% foreign exchange benefit.
Global Dental Distribution merchandise sales advanced 7% to $1.30 billion, reflecting 5.1% internal growth. Global Dental Distribution equipment sales increased 2.3% to $449 million, supported by 2.4% internal growth.
Global Medical Distribution sales increased 1.1% to $1.14 billion, reflecting 1% internal growth.
HSIC's Specialty and Technology Sales Rise
Global Specialty Products sales increased 6.1% to $391 million. Internal growth was 3.4%, acquisitions contributed 2.6% and foreign currency exchange added 0.1%.
Global Technology sales advanced 5.2% to $181 million. Internal sales grew 6.5%, partly offset by a 1.3% reduction related to a business disposal. Foreign exchange had no impact.
Technology delivered the company's highest internal growth rate among its major reporting categories. The performance complemented gains in dental merchandise and specialty products.
Henry Schein's Margin Performance
In the reported quarter, gross profit totaled $1.11 billion, representing a 7.7% increase year over year. Gross margin expanded approximately 111 basis points (bps) to 31.8%, despite a 2.3% rise in the cost of sales.
Selling, general and administrative expenses increased 7.8% to $819 million. Operating income rose 17.7% to $193 million, while operating margin expanded approximately 65 bps to 5.6%.
HSIC's Liquidity and Share Repurchases
Henry Schein exited the third quarter with cash and cash equivalents of $184 million compared with $157 million at the end of second quarter.
Net cash provided by operating activities totaled $161 million compared with $174 million a year earlier. For the first nine months, operating cash flow was $306 million compared with $331 million in the prior-year period.
The company repurchased approximately 1.4 million shares for $125 million during the quarter. Year-to-date repurchases totaled $450 million, with approximately $330 million remaining under its share repurchase authorization.
Henry Schein, Inc. Price, Consensus and EPS Surprise
Management raised its 2026 adjusted earnings guidance to $5.50-$5.56 per share from the earlier $5.29-$5.39 projection. The updated outlook reflects improved underlying business performance, third-quarter tariff refund benefits and targeted growth investments planned for the fourth quarter. The Zacks Consensus Estimate for earnings is currently pinned at $5.36 per share.
The company has maintained its total sales growth forecast of 4.5-5.5%. The Zacks Consensus Estimate for sales is currently pegged at $13.85 billion, indicating 5% year-over-year growth.
Our Take
Henry Schein exited the third quarter with earnings beating estimates and revenues matching the same. Performance was driven by sustained momentum across the company’s businesses and solid operational execution by the team. Henry Schein also gained share in key businesses, improving the portfolio mix, maintaining a disciplined approach to capital allocation and realizing the benefits of its value creation initiative. The raised earnings guidance for the year is also very promising.
HSIC’s Zacks Rank and Key Picks
Henry Schein currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Medpace (MEDP - Free Report) and GE HealthCare Technologies (GEHC - Free Report) .
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted third-quarter 2026 adjusted EPS of $3.00, exceeding the Zacks Consensus Estimate by 14.94%. Revenues of $3.05 billion topped the Zacks Consensus Estimate by 5.84%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ISRG has an earnings yield of 2.5% against the industry’s negative 2.1% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 15.12%.
Medpace, currently carrying a Zacks Rank #2, reported third-quarter 2026 adjusted EPS of $4.84, which surpassed the Zacks Consensus Estimate by 8.76%. Revenues of $716 million beat the Zacks Consensus Estimate by 1.02%.
MEDP has an estimated long-term earnings growth rate of 14.3% compared with the industry’s 13.2% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 9.77%.
GE HealthCare, currently carrying a Zacks Rank #2, reported third-quarter 2026 adjusted EPS of $1.34, which topped the Zacks Consensus Estimate by 10.74%. Revenues of $5.51 billion beat the Zacks Consensus Estimate by 2.87%.
GEHC has an earnings yield of 6.5% compared with the industry’s 2.8%. The company beat earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.15%.
View the Zacks #1 Rank List
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HSIC Q3 Earnings Beat, Revenues Match, '26 EPS View Up, Stock Down
Key Takeaways
Henry Schein, Inc. (HSIC - Free Report) reported third-quarter 2026 adjusted earnings of $1.56 per share, up 13% year over year. The bottom line surpassed the Zacks Consensus Estimate by 16.4%.
Net sales rose 4% to $3.47 billion, in line with the consensus estimate. Results benefited from 3.1% internal sales growth, supported by strong U.S. dental merchandise sales, which increased 8.6%. Acquisitions contributed 0.7% to growth, while foreign currency movements added 0.2%.
Following the announcement, HSIC’s shares edged down 0.1% in the pre-market session today.
HSIC's Distribution Business Gains
Global Distribution and Value-Added Services sales increased 3.7% to $2.94 billion. The segment generated 2.9% internal growth, a 0.5% contribution from acquisitions and a 0.3% foreign exchange benefit.
Global Dental Distribution merchandise sales advanced 7% to $1.30 billion, reflecting 5.1% internal growth. Global Dental Distribution equipment sales increased 2.3% to $449 million, supported by 2.4% internal growth.
Global Medical Distribution sales increased 1.1% to $1.14 billion, reflecting 1% internal growth.
HSIC's Specialty and Technology Sales Rise
Global Specialty Products sales increased 6.1% to $391 million. Internal growth was 3.4%, acquisitions contributed 2.6% and foreign currency exchange added 0.1%.
Global Technology sales advanced 5.2% to $181 million. Internal sales grew 6.5%, partly offset by a 1.3% reduction related to a business disposal. Foreign exchange had no impact.
Technology delivered the company's highest internal growth rate among its major reporting categories. The performance complemented gains in dental merchandise and specialty products.
Henry Schein's Margin Performance
In the reported quarter, gross profit totaled $1.11 billion, representing a 7.7% increase year over year. Gross margin expanded approximately 111 basis points (bps) to 31.8%, despite a 2.3% rise in the cost of sales.
Selling, general and administrative expenses increased 7.8% to $819 million. Operating income rose 17.7% to $193 million, while operating margin expanded approximately 65 bps to 5.6%.
HSIC's Liquidity and Share Repurchases
Henry Schein exited the third quarter with cash and cash equivalents of $184 million compared with $157 million at the end of second quarter.
Net cash provided by operating activities totaled $161 million compared with $174 million a year earlier. For the first nine months, operating cash flow was $306 million compared with $331 million in the prior-year period.
The company repurchased approximately 1.4 million shares for $125 million during the quarter. Year-to-date repurchases totaled $450 million, with approximately $330 million remaining under its share repurchase authorization.
Henry Schein, Inc. Price, Consensus and EPS Surprise
Henry Schein, Inc. price-consensus-eps-surprise-chart | Henry Schein, Inc. Quote
Henry Schein's 2026 Outlook
Management raised its 2026 adjusted earnings guidance to $5.50-$5.56 per share from the earlier $5.29-$5.39 projection. The updated outlook reflects improved underlying business performance, third-quarter tariff refund benefits and targeted growth investments planned for the fourth quarter. The Zacks Consensus Estimate for earnings is currently pinned at $5.36 per share.
The company has maintained its total sales growth forecast of 4.5-5.5%. The Zacks Consensus Estimate for sales is currently pegged at $13.85 billion, indicating 5% year-over-year growth.
Our Take
Henry Schein exited the third quarter with earnings beating estimates and revenues matching the same. Performance was driven by sustained momentum across the company’s businesses and solid operational execution by the team. Henry Schein also gained share in key businesses, improving the portfolio mix, maintaining a disciplined approach to capital allocation and realizing the benefits of its value creation initiative. The raised earnings guidance for the year is also very promising.
HSIC’s Zacks Rank and Key Picks
Henry Schein currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Medpace (MEDP - Free Report) and GE HealthCare Technologies (GEHC - Free Report) .
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted third-quarter 2026 adjusted EPS of $3.00, exceeding the Zacks Consensus Estimate by 14.94%. Revenues of $3.05 billion topped the Zacks Consensus Estimate by 5.84%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ISRG has an earnings yield of 2.5% against the industry’s negative 2.1% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 15.12%.
Medpace, currently carrying a Zacks Rank #2, reported third-quarter 2026 adjusted EPS of $4.84, which surpassed the Zacks Consensus Estimate by 8.76%. Revenues of $716 million beat the Zacks Consensus Estimate by 1.02%.
MEDP has an estimated long-term earnings growth rate of 14.3% compared with the industry’s 13.2% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 9.77%.
GE HealthCare, currently carrying a Zacks Rank #2, reported third-quarter 2026 adjusted EPS of $1.34, which topped the Zacks Consensus Estimate by 10.74%. Revenues of $5.51 billion beat the Zacks Consensus Estimate by 2.87%.
GEHC has an earnings yield of 6.5% compared with the industry’s 2.8%. The company beat earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.15%.