Henry Schein Raises 2026 EPS Outlook as Q3 Non-GAAP EPS Rises 13.0% to $1.56
Henry Schein raised its 2026 non-GAAP EPS forecast to $5.50 to $5.56 from $5.29 to $5.39 after third-quarter non-GAAP EPS rose 13.0% to $1.56, helped by 8.6% growth in U.S. dental merchandise sales.
Net sales rose 4.0% to $3.47 billion from $3.34 billion for the quarter ended Sept. 26, according to the earnings release Henry Schein filed with an 8-K on Tuesday. Internal growth in local currencies was 3.1%, acquisitions added 0.7% and currency added 0.2%. GAAP net income rose to $119 million from $101 million, and GAAP diluted EPS increased 26.2% to $1.06 from $0.84.
The quarter included a $0.19 per share net benefit from tariff refunds, while the year-ago quarter had a $0.23 per share remeasurement gain. Excluding both, non-GAAP EPS rose 19.1% to $1.37 from $1.15, the company said.
"We delivered another strong quarter that increases our confidence in the momentum we are building at Henry Schein," CEO Fred Lowery said in the release, pointing to U.S. dental merchandise growth "driven primarily by volume in a stable market."
Dental gains share
Global Dental Distribution merchandise sales grew 7.0%, with 5.1% internal growth, which the company tied mainly to volume from market share gains in the U.S. Dental equipment sales rose 2.3%. Global Medical Distribution sales increased 1.1%, while Global Value-Added Services sales fell 4.8%.
Global Specialty Products sales grew 6.1%, including 3.4% internal growth and 2.6% from acquisitions. Global Technology sales rose 5.2%, with internal growth of 6.5% partly offset by a business disposal.
Adjusted EBITDA increased 8.8% to $321 million from $295 million, and the adjusted EBITDA margin widened 40 basis points to 9.24%.
Guidance raised
Beyond the higher EPS range, Henry Schein now expects 2026 adjusted EBITDA growth in the high single digits, up from mid- to high-single digits. It kept its total sales growth forecast at 4.5% to 5.5%. The company said the outlook includes the tariff refund benefit recognized in the third quarter and targeted growth investments in the fourth quarter, and assumes no significant tariff refunds or remeasurement gains for the rest of the year.
Buybacks
Henry Schein repurchased $125 million of stock in the third quarter at an average price of $86.67 per share and $450 million year to date at an average of $79.50. It had an estimated $330 million remaining under its repurchase authorization at quarter-end, the company said.
By the numbers
- Net sales: $3.47 billion, up 4.0%
- Non-GAAP diluted EPS: $1.56, up 13.0%
- GAAP diluted EPS: $1.06, up 26.2%
- U.S. dental merchandise sales: up 8.6%
- Adjusted EBITDA: $321 million, up 8.8%
- 2026 non-GAAP EPS outlook: $5.50 to $5.56, raised
Sources
- Henry Schein Form 8-K with third-quarter 2026 earnings release, filed Nov. 3, 2026 (accession 0001000228-26-000059)
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