Key Highlights

  • Non-GAAP diluted EPS of USD 1.56 rose 13.0% and topped the consensus estimate of USD 1.36, aided by Tariff refunds.
  • Net sales of USD 3.471 billion rose 4.0% but sat marginally below the consensus estimate of USD 3.48 billion.
  • U.S. dental merchandise sales grew 8.6%, while adjusted EBITDA reached USD 321 million with a Margin of 9.24%.
  • Full year non-GAAP diluted EPS guidance was raised to USD 5.50 to 5.56 from USD 5.29 to 5.39.

Henry Schein, Inc. (NASDAQ:HSIC) reported third quarter 2026 non-GAAP diluted EPS of USD 1.56, up 13.0% from the prior year and above a consensus estimate of USD 1.36. GAAP diluted EPS was USD 1.06, up 26.2%. Net sales rose 4.0% to USD 3.471 billion from USD 3.339 billion, slightly below a consensus estimate of USD 3.48 billion, with internal sales growth of 3.1% in local currencies, 0.7% from acquisitions and 0.2% from currency. The non-GAAP result includes a USD 0.19 per share net benefit from tariff refunds, against a USD 0.23 remeasurement gain in the prior year quarter. Excluding both items, non-GAAP diluted EPS was USD 1.37 against USD 1.15, a 19.1% increase.

Segment Growth and Profitability

Global dental merchandise sales rose 7.0% in total and 5.1% internally, while U.S. dental merchandise sales grew 8.6%, which the company attributed mainly to Volume and Market Share gains. Dental equipment sales rose 2.3%, medical distribution rose 1.1%, specialty products rose 6.1% and technology rose 5.2%, while value-added services fell 4.8%. Gross Profit rose to USD 1.105 billion from USD 1.026 billion, and Operating Income increased to USD 193 million from USD 164 million as restructuring costs fell to USD 22 million from USD 34 million. Adjusted EBITDA rose to USD 321 million from USD 295 million, and the margin widened 40 basis points. Chief Executive Officer Fred Lowery said the quarter built momentum, pointing to share gains, portfolio mix and disciplined Capital allocation.

Raised 2026 Guidance and Buybacks

The company raised 2026 non-GAAP diluted EPS guidance to USD 5.50 to 5.56 and now guides adjusted EBITDA growth to the high-single-digit range, up from mid to high-single-digits. Total sales growth guidance was left at 4.5% to 5.5%. The updated range includes the net tariff refund benefit recognized in the third quarter, targeted and limited growth investments in the fourth quarter that the company said contribute to 2027 growth, and improved underlying performance, and it assumes no significant tariff refunds or remeasurement gains for the rest of 2026. The company repurchased about 1.4 million shares for USD 125 million in the quarter at an average price of USD 86.67, and about USD 330 million remained authorized.

Guidance Step-Up and Earnings Quality Against Prior Figures

The new full year EPS guidance midpoint of USD 5.53 compares with a prior midpoint of USD 5.34, a gain of USD 0.19 that equals the per share tariff refund benefit booked in the third quarter. Nine month non-GAAP diluted EPS of USD 4.14 leaves USD 1.36 to USD 1.42 to reach the guided range. Third quarter non-GAAP EPS of USD 1.56 compares with USD 1.37 excluding items. Nine month repurchases of USD 450 million compare with USD 330 million of remaining authorization, while interest expense rose to USD 42 million from USD 38 million.