Dentsply Sirona Cuts 2026 Adjusted Earnings Outlook

The Tip Desk · November 6, 2026 · 3 min read

The dental-products maker posted $836 million of third-quarter net sales and lowered full-year adjusted EPS to $1.20 to $1.30.

Dentsply Sirona Inc. (XRAY) reported third-quarter 2026 net sales of $836 million, a 7.6% year-over-year decline that widened from a 4.1% drop in the second quarter. Constant-currency sales were down 7.0%.

The world’s largest diversified manufacturer of professional dental products and technologies said the year-over-year contraction accelerated in the quarter after a milder second-quarter decline. GAAP results swung to a net loss attributable to Dentsply Sirona of $2 million, or $0.01 a share, from net income of $37 million, or $0.18 a share, in the prior quarter.

Gross profit was $443 million. GAAP gross margin compressed to 52.9% from 54.9% in the second quarter. Adjusted gross margin fell to 54.5% from 56.4%. Adjusted EBITDA declined to $146 million, a 17.3% margin, from $190 million, or a 21.3% margin. Adjusted EPS dropped to $0.29 from $0.52.

Gross profit and adjusted EBITDA included a $39 million benefit from a refinement of the estimate to eliminate unrealized profit in inventory. The company said the adjustment reduces the reported net loss and increases adjusted net income by approximately $30 million and that equivalent impacts are not expected in future.

Orthodontic and Implant Solutions sales were $171 million, down 16.6% as reported and 16.2% in constant currency, after a 13.2% as-reported year-over-year decline in the second quarter. Connected Technology Solutions sales were $230 million, down 11.0% as reported and 10.1% in constant currency, after a 1.5% as-reported decline in the prior quarter. Essential Dental Solutions sales were $343 million, down 4.0% as reported and 3.6% in constant currency.

Wellspect Healthcare was the exception. Sales were $92 million, up 10.1% as reported and 11.0% in constant currency, after a 7.1% as-reported increase in the second quarter. The company said it achieved record quarterly sales for Wellspect and completed the U.S. Surity portfolio with the launch of the Surity Urinary Management System.

President and Chief Executive Officer Dan Scavilla said the company continued to make progress on its Return-to-Growth Action Plan despite challenging industry-wide conditions, citing record Wellspect sales, progress in implants and endodontics, and broader customer access through an expanded U.S. dealer network. He said the focus is now on execution.

Operating cash flow was $32 million in the third quarter of 2026, compared with $79 million a year earlier, which the company attributed primarily to unfavorable working capital. Free cash flow was $0 million versus $55 million in the second quarter. Cash and cash equivalents were $195 million as of September 30, 2026, down from $239 million at June 30.

The company repurchased 1.2 million shares for about $13 million in the third quarter, bringing first-nine-months buybacks to $25 million.

Dentsply Sirona updated its 2026 outlook to approximately $3.5 billion in net sales and adjusted EPS of $1.20 to $1.30, excluding a $0.17 one-time benefit from tariff refunds. That replaces a maintained range of $3.5 billion to $3.6 billion in net sales and $1.40 to $1.50 adjusted EPS.