Henry Schein Stock Earnings Reports

Henry Schein reported a strong start to 2026 with Q1 global sales of $3.4 billion, up 6.3% YoY (2.5% internal, 3.1% FX, 0.7% acquisitions). Non-GAAP operating margin expanded to 7.53% (up 28 bps YoY) and non-GAAP diluted EPS was $1.32 for the quarter (vs. $1.15 prior year). Key growth drivers were U.S. dental merchandise and equipment, international dental equipment/merchandise (notably U.K., Italy, Brazil), and Global Technology (cloud practice-management growth, +25% cloud customers y/y). Medical sales were weighed down by lower point-of-care respiratory test demand due to a light flu season, while Home Solutions and dialysis performed well. Value implants grew strongly (high single-digits), while premium implants were flat-to-low-single-digit. The company is advancing a value-creation program targeting >$200M of annual operating-income improvement within a few years, with a $125M run rate targeted by end-2026; early savings and gross-profit initiatives contributed to Q1 margin improvement and are expected to be weighted to the back half of 2026. Henry Schein completed a transaction gaining control of S.I.N. 360 (recording an $11M remeasurement gain) and repurchased ~1.6M shares ($125M) in Q1. Operating cash flow was negative $97M (seasonal), and the company reiterated full-year 2026 non-GAAP guidance: total sales growth ~3%–5% and non-GAAP diluted EPS $5.23–$5.37, with adjusted EBITDA expected to grow mid-single-digits over 2025. Management emphasized focus on technology (AI-integrated clinical/workflow tools), operational execution, pricing/mix optimization (own-brand growth), and deeper DSO relationships to sustain market-share gains. Risks highlighted include oil-driven freight cost pressure, potential restructuring charges, and variability in remeasurement gains from JV integrations.