Henry Schein raises 2026 EPS outlook as U.S. dental sales grow

Transcript intelligence

What changed

Management reported 8.6% year-over-year growth in U.S. dental merchandise sales, driven primarily by volume and market-share gains, and raised 2026 non-GAAP EPS guidance. The quarter included a $28 million tariff-refund benefit through cost of goods sold; management also described limited incremental Q4 investment focused on customer wins and share of wallet.

Guidance delta

Management raised 2026 non-GAAP EPS guidance to $5.50–$5.56. The supplied analysis attributes the change to tariff refunds and limited Q4 investments; the tariff-refund contribution should be distinguished from underlying operating progress.

Key takeaways

• U.S. dental merchandise sales grew 8.6% year over year, primarily from volume and market-share gains.
• Management reported adjusted non-GAAP EPS growth of 19.1% to $1.37.
• The 2026 non-GAAP EPS outlook was raised to $5.50–$5.56.
• A $28 million tariff-refund benefit flowed through cost of goods sold; recurrence is uncertain.
• Management cited roughly 200 monthly additions to its practice-management platforms and continued rollout of exclusive products.

Management priorities

• Keep investment in Q4 limited and focused on new customer wins and increasing share of wallet.
• Continue development of AI-enabled features in Henry Schein 1 and Dentrix Ascend, and expand exclusive products including Versalis.
• Advance shared services, outsourcing, procurement centralization, and selective bolt-on acquisitions.