Henry Schein Raises 2026 Earnings Outlook After Dental Sales

The Tip Desk · November 3, 2026 · 4 min read

Third-quarter sales reached $3.5 billion, up 4.0%, as U.S. dental merchandise rose 8.6% and the company lifted full-year non-GAAP EPS to $5.50–$5.56.

Henry Schein, Inc. (HSIC), the world’s largest provider of healthcare solutions to office-based dental and medical practitioners, reported $3.5 billion in sales for the third quarter ended September 26, 2026, with total growth of 4.0% and internal growth of 3.1% in local currencies.

The pace of sales growth slowed from the second quarter, when total sales rose 6.7% and internal growth was 4.6%. GAAP diluted earnings were $1.06 a share, up 26.2% from the year-earlier third quarter. Non-GAAP diluted earnings were $1.56 a share, up 13.0%.

Chief Executive Officer Fred Lowery said the company delivered another strong quarter that increases its confidence in the momentum it is building, citing U.S. dental merchandise sales growth of 8.6% driven primarily by volume in a stable market and 19% adjusted earnings per share growth. He said the strategy is translating into stronger financial results, including gaining share in key businesses, improving portfolio mix, and realizing benefits of value-creation initiatives.

U.S. dental merchandise sales of $660 million rose 8.6% from a year earlier, which the company attributed primarily to volume from market share gains. U.S. dental equipment rose 1.6% and U.S. value-added services fell 7.6%. Total U.S. Distribution and Value-Added Services sales were $2.04 billion.

Global Distribution and Value-Added Services sales increased 3.7% in total, reflecting 2.9% internal growth, 0.5% from acquisitions, and 0.3% from foreign currency. Global dental merchandise sales rose 7.0% in total and 5.1% internally. Global dental equipment rose 2.3% in total and 2.4% internally. Global medical distribution sales rose 1.1% in total and 1.0% internally. Global value-added services sales decreased 4.8% on both a reported and internal basis.

Global Specialty Products sales increased 6.1% in total, reflecting 3.4% internal growth, 2.6% from acquisitions, and 0.1% from foreign currency. Global Technology sales increased 5.2% in total, reflecting 6.5% internal growth, a 1.3% decrease from a business disposal, and no foreign-currency impact.

GAAP net income attributable to Henry Schein was $119 million. Non-GAAP net income was $175 million. The company recognized a $0.19 a share net benefit from tariff refunds in the third quarter of 2026, compared with a $0.23 a share remeasurement gain in the third quarter of 2025. Excluding those items, non-GAAP diluted EPS was $1.37, up 19.1% from $1.15 a year earlier.

Adjusted EBITDA was $321 million, with the margin up 40 basis points to 9.24% from the year-ago third quarter.

For the first nine months of 2026, total net sales were $10.3 billion, up 5.6% in total, with 3.4% internal growth, 0.7% from acquisitions, and 1.5% from foreign currency. GAAP diluted EPS for the nine months was $2.80 a share, up 15.7%. Non-GAAP diluted EPS was $4.14 a share, up 14.0%. Adjusted EBITDA for the nine months was $898 million, with the margin up 41 basis points to 8.72%.

During the third quarter the company repurchased about 1.4 million shares at an average $86.67 a share for $125 million. For the year to date it repurchased about 5.7 million shares at an average $79.50 a share for $450 million. At quarter-end it had about $330 million authorized and available for future repurchases.

Henry Schein raised its 2026 non-GAAP diluted EPS guidance to $5.50 to $5.56 from $5.29 to $5.39 and raised Adjusted EBITDA growth to high-single-digits from mid to high-single-digits. It left 2026 total sales growth at 4.5% to 5.5%. The company said the updated EPS guidance includes the third-quarter net benefit from tariff refunds, targeted and limited fourth-quarter growth investments that will contribute to growth in 2027, and improved underlying business performance. The updated guidance assumes no significant tariff refunds or remeasurement gains for the remainder of 2026. Guidance is for current continuing operations and excludes restructuring expenses and related costs, amortization of acquired intangibles, intangible impairments, changes in contingent consideration, select implementation-related costs supporting value-creation initiatives, and litigation settlements. It assumes foreign-exchange rates remain generally consistent with current levels.