Henry Schein Beats Q3 Estimates and Raises Full-Year 2026 Guidance as Dental Sales Surge

Henry Schein reported third-quarter 2026 net sales of $3.5 billion, up 4.0% from a year earlier, with 3.1% internal growth in local currencies. Non-GAAP diluted earnings per share came in at $1.56, beating analyst estimates by $0.20 and rising 13.0% from the prior-year period, or 19.1% when stripping out current-quarter net tariff refunds and prior-year remeasurement gains. GAAP diluted EPS grew 26.2% to $1.06. Revenue was essentially in line with consensus, beating by roughly $20 million.

The quarter was driven primarily by U.S. dental merchandise sales growth of 8.6%, which management attributed to volume gains rather than price increases, reflecting market share wins across private practices and emerging dental service organizations. The company is executing a Value Creation plan targeting $200 million in operating income improvements, with a $125 million run rate targeted by the end of 2026, achieved through management delayering, centralized indirect procurement, and expanded shared services.

Henry Schein raised its full-year 2026 non-GAAP diluted EPS guidance to a range of $5.50 to $5.56, up from the prior range of $5.29 to $5.39 set after the second quarter, and lifted its Adjusted EBITDA growth outlook to high-single digits. Management cited strong operating performance, net tariff refund benefits, and targeted growth investments as the basis for the increase.

Despite the earnings beat and guidance raise, shares fell roughly 4.6% on the session. Analysts and investors flagged softness in discretionary dental procedures such as orthodontics, though management said this segment is relatively small and does not materially affect growth expectations. CFO Ronald South noted no direct correlation yet between weaker consumer confidence measures and the company's dental business. Emmanuel Caprais is set to succeed South as CFO effective November 4, 2026. CEO Frederick Lowery said share repurchases remain a near-term priority given his view that the stock is undervalued, while the company retains flexibility for strategic acquisitions.