Henry Schein : Q1 2026 Earnings Conference Call

Published: 2026-05-05 07:45:10 ET HSIC

Published on 05/05/2026 at 07:45 am EDT

Financial Results & Outlook

May 5, 2026

We believe the value-creation initiatives, along with continued execution of our strategic plan, will contribute to us achieving high-single digit to low-double digit earnings growth in the coming years.

Key Takeaways

Strong first quarter results reflects continuing momentum from the second half of last year as we grow market share and expand gross margins.

Reaffirming guidance for 2026 total sales growth of 3% to 5% over 2025, non-GAAP diluted EPS in the range of $5.23 to $5.37, and mid-single digit Adjusted EBITDA growth.

Committed to the company's goal of achieving greater than $200 million of annual operating income improvement within the next few years, with a $125 million run-rate by the end of 2026.

Q1 Financial Highlights

Non-GAAP Diluted EPS*

Compares with $1.15 in Q1 2025, reflecting

growth of 14.8% y/y

Global Sales Growth**

Reflects continuing momentum from the

second half of last year

Adjusted EBITDA

Compares with $259M in Q1 2025, reflecting

growth of 11.6% y/y

Global Distribution and Value-Added Services Group Sales Growth**

+6.1%

Reflects continuing strong momentum in the U.S.

Global Specialty Products Group Sales Growth**

+8.1%

Sales growth driven by value implants and acquisitions.

Global Technology Group Sales Growth**

Reflects continued demand for our cloud-based software and technology solutions

* Refer to slide 19 for our GAAP to Non-GAAP Reconciliation.

** Refer to slide 6 for components of sales growth.

*** Refer to slide 14 for a reconciliation of Non-GAAP Adjusted EBITDA.

Q1 2026 Consolidated Results*

Q1 2026

Q1 2025

(in millions of USD except EPS)

(GAAP)

y/y ∆

(Non-GAAP)

y/y ∆

Total Sales

$3,368

$3,168

6.3%

$3,368

$3,168

6.3%

Operating Income

$182

$175

3.9%

$253

$230

10.4%

Operating Margin

5.41%

5.53%

-12 bps

7.53%

7.25%

28 bps

Diluted EPS

$0.92

$0.88

4.5%

$1.32

$1.15

14.8%

Adjusted EBITDA

n/a

$289

$259

11.6%

*Refer to slide 19 for our GAAP to Non-GAAP Reconciliation and to slide 14 for a reconciliation of Non-GAAP Adjusted EBITDA.

Q1 2026 Henry Schein Sales Performance

Products

Sales

($'million)

Total Sales Growth %

Growth %

LCI

Growth %

Commentary*

Global Dental Merchandise

$1,292

9.0%

4.2%

3.0%

U.S. Dental merchandise sales grew 4.1%, with sales growth continuing to accelerate.

International Dental merchandise sales grew 1.8% driven by sales growth in the U.K., Italy and Brazil.

Global Dental Equipment

$417

8.6%

3.5%

U.S. Dental equipment sales grew 3.4% driven by sales of traditional equipment as practitioners, particularly DSOs, remain confident in investing in their dental practices.

International Dental equipment sales grew 3.6%, with solid growth in traditional equipment. Equipment sales growth was especially good in Germany, U.K., Canada, Australia and New Zealand.

Global Value-Added Services

$57

10.6%

9.0%

7.8%

Value -Added Services sales growth was driven by both our U.S. and international businesses.

Global Medical

$1,073

1.7%

1.4%

1.3%

U.S. Medical sales grew 1.2% with strong growth in Home Solutions and dialysis, partially offset by lower sales of point-of-care diagnostic test products related to respiratory illness, resulting from a light flu season.

Global Distribution &

Value-Added Services Group

$2,839

6.1%

3.1%

2.5%

Growth reflects continued strong momentum in the U.S.

Global Specialty Products Group

$397

8.1%

3.4%

1.7%

Sales growth driven by value implants and acquisitions.

Global Technology Group

$173

7.0%

5.6%

6.9%

U.S. sales growth was driven by strong revenue growth in our Dentrix Ascend practice management software business.

International sales growth was driven by our Dentally cloud-based practice management software product.

TOTAL NET SALES**

$3,368

6.3%

3.2%

2.5%

* Commentary reflects LCI.

** Segment Gross Sales less eliminations.

Dental markets remain stable and healthy, and we are gaining market share. The non-acute care U.S.

Medical market remains strong, and our Home Solutions business continues to grow well.

Q1 2026 Global Distribution & Value-Added Services Group

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

Global Distribution & Value-Added Services

Sales Growth (%)

10.6%

7.8%

6.1%

1.7% 1.3%

2.5%

3.5%

3.0%

8.6%

9.0%

Global Dental Global Dental Global Value-Merchandise Equipment Added Services

Global Medical

Sales:

Total sales growth of 6.1% with LCI sales growth of 2.5%.

Continued strong momentum in the U.S. Dental Merchandise and Equipment sales, as well as favorable FX impact, overcame some softness in

the Medical business.

$190

$180

$170

$160

$150

$140

Segment Operating Income

$167

$183

(in millions)

7.0%

6.5%

6.0%

5.5%

5.0%

Segment Operating Margin %

6.3%

6.4%

Segment Operating Income:

Operating Income was up 9.3% year-over-year, and we achieved margin expansion.

Segment Operating Margin:

19bps Increase in operating margin driven by gross margin expansion of 35bps.

Underlying markets remain healthy with European volumes ahead of the U.S.

Q1 2026 Global Specialty Products Group

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

-2.0%

Sales Growth (%)

1.7%

8.1%

Sales:

Total sales growth of 8.1% with LCI sales

growth of 1.7%.

Sales growth was driven by value implants and acquisitions.

Segment Operating Income

(in millions)

$70

$56

$58

$60

$50

$40

$30

$20

$10

16.0%

15.0%

14.0%

13.0%

12.0%

11.0%

10.0%

Segment Operating Margin %

14.6%

15.3%

Segment Operating Income: Operating income was up 2.8% year-over-year and includes growth from acquisition activity and benefited from foreign currency exchange.

Segment Operating Margin: Reflects lower gross margin related to product mix.

Reflects continued demand for our cloud-based software and technology solutions.

Q1 2026 Global Technology Group

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

Sales Growth (%)

7.0% 6.9%

Sales:

Total sales growth of 7.0% with LCI sales

growth of 6.9%.

Sales growth was driven by our cloud-based practice management software product.

$50

$40

$30

$20

$10

Segment Operating Income

$42

$46

(in millions)

30.0%

25.0%

20.0%

15.0%

10.0%

Segment Operating Margin %

25.8%

26.8%

Segment Operating Income:

Operating income was up 11.1% year-over-year.

Segment Operating Margin:

Operating margin improvement throughout the portfolio.

Balanced Capital Allocation Strategy

Q1 2026

Operating Cashflow

Debt-to-Adjusted EBITDA ratio as of March 28, 2026*

Maintain investment grade balance sheet

Acquisitions

$24M

Invested Q1

Remaining share repurchase authorization at the end of Q1

Capital allocation for the first quarter primarily focused on share repurchases.

$125M

Share repurchases Q1

Return of Capital to Shareholders

$25M

Invested Q1

Capital Expenditures

*Refer to slide 14 for a reconciliation of Non-GAAP Adjusted EBITDA. Debt reflects long-term debt, bank credit lines and letters of credit.

Financial Guidance - FY2026

Reaffirmed 2026 full year guidance

Assumes stable dental and medical end-markets during the year.

Expect benefits from value creation programs to be weighted towards the second half of the year.

As of May 5, 2026*

Guidance for FY2026

Total Sales growth over 2025 Actuals

+3% to +5%

Adjusted EBITDA growth over 2025 Actuals

Mid-Single Digits

2026 Non-GAAP Diluted EPS

$5.23 to $5.37

The Company is providing guidance for 2026 diluted EPS and for 2026 Adjusted EBITDA on a non-GAAP basis, as noted above. The Company is not providing a reconciliation of its 2026 non-GAAP diluted EPS guidance to its projected 2026 diluted EPS prepared on a GAAP basis, or its 2026 Adjusted EBITDA guidance to net income prepared on a GAAP basis. This is because the Company is unable to provide without unreasonable effort an estimate of restructuring expenses and related costs, including its ongoing value-creation initiatives, and the corresponding tax effect, which will be included in the Company's 2026 diluted EPS and net income, prepared on a GAAP basis. The inability to provide this reconciliation is due to the uncertainty and inherent difficulty of predicting the occurrence, magnitude, financial impact and timing of related costs.

Management does not believe these items are representative of the Company's underlying business performance. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.

*FY2026 Guidance is as of May 5, 2026 and should not be considered an update of guidance beyond that date. Guidance is for current continuing operations and does not include the impact of restructuring expenses and related costs, amortization expense of acquired intangible assets, the impairment of intangible assets, changes in contingent consideration, costs associated with shareholder advisory matters, select implementation-related costs supporting value creation initiatives, and litigation settlements.

Q1 2026 Worldwide Financial Results*

(in millions of USD except EPS)

Q1 2026 (Non-GAAP)

Q1 2025 (Non-GAAP)

y/y ∆

Total sales

$3,368

$3,168

6.3%

Gross profit

1,070

1,000

7.1%

Gross margin

31.79%

31.55%

24 bps

Operating expenses (Non-GAAP)**

817

770

6.1%

Operating income (Non-GAAP)**

$253

$230

10.4%

Operating margin (Non-GAAP)**

7.53%

7.25%

28 bps

Net income attributable to Henry Schein, Inc. (Non-GAAP)**

$153

$143

6.5%

Earnings per share (Non-GAAP)**

$1.32

$1.15

14.8%

Effective tax rate (Non-GAAP)**

25.2%

24.9%

*Refer to slide 19 for our GAAP to Non-GAAP Reconciliation.

**GAAP Results as follows:

Q1 2026: Operating expenses $888, Operating income $182, Operating margin 5.41%, Net income $107, Earnings per share $0.92, Effective tax rate 25.5% Q1 2025: Operating expenses $825, Operating income $175, Operating margin 5.53%, Net income $110, Earnings per share $0.88, Effective tax rate 24.9%

Adjusted EBITDA

(in millions of USD)

Q1 2026

Q1 2025

Net Income attributable to Henry Schein, Inc. (GAAP)

$107

$110

Income attributable to noncontrolling interests

Net Income (GAAP)

112

113

Interest income

(7)

(6)

Interest expense

Income taxes

Depreciation and amortization

Restructuring and related costs

Cyber incident-insurance proceeds, net of third-party advisory expenses

(20)

Impairment of intangible assets

Change in contingent consideration

(2)

Costs associated with shareholder advisory matters and select implementation related value creation consulting costs

13 8

Equity in earnings of affiliates, net of tax - (3)

Adjusted EBITDA (Non-GAAP) $289 $259

Adjusted EBITDA is a non-GAAP measure that we calculate in the manner reflected on Exhibit C. We define Adjusted EBITDA as net income, excluding (i) net income attributable to noncontrolling interests, (ii) interest income and expense, (iii) income taxes, (iv) depreciation and amortization, (v) restructuring and related costs, (vi) cyber incident-insurance proceeds, net of third-party advisory expenses, (vii) impairment of intangible assets, (viii) change in contingent consideration, (ix) costs associated with shareholder advisory matters and select implementation related value creation consulting costs, and (x) equity in earnings of affiliates, net of tax. Amounts may not sum due to rounding.

Q1 2026 Sales Summary

Global Distribution and Value-Added Services Group

(in millions of USD)

Q1 2026

Q1 2025

y/y ∆

y/y LCI ∆

Merchandise

$624

$591

5.6%

4.1%

Equipment

194

187

3.4%

Value-Added Services

6.2%

Total Dental

866

823

5.1%

4.1%

Medical

1,043

1,030

1.3%

1.2%

Total U.S. Distribution

and Value-Added Services

$1,909

$1,853

3.0%

2.5%

Merchandise

668

594

12.5%

1.8%

Equipment

223

197

13.4%

3.6%

Value-Added Services

41.0%

18.9%

Total Dental

900

798

13.0%

2.4%

Medical

16.1%

4.7%

Total International Distribution

and Value-Added Services

$930

$823

13.1%

2.5%

Global Dental

1,766

1,621

9.0%

3.2%

Global Medical

1,073

1,055

1.7%

1.3%

Total Global Distribution

and Value-Added Services Group

$2,839

$2,676

6.1%

2.5%

Q1 2026 Sales Summary

Global Specialty Products Group*

(in millions of USD)

Q1 2026

Q1 2025

y/y ∆

y/y LCI ∆

Global Specialty Products Group

$397

$367

8.1%

1.7%

*Global Specialty Products Group includes certain expenses related to managing owned-brands that support sales in the distribution businesses.

Q1 2026 Sales Summary

Global Technology Group

(in millions of USD)

Q1 2026

Q1 2025

y/y ∆

y/y LCI ∆

U.S. HS One

$131

$123

6.8%

International HS One

9.8%

9.0%

Global HS One

166

155

7.4%

7.2%

Other

-1.1%

Global Technology Group

$173

$162

7.0%

6.9%

Q1 2026 GAAP to Non-GAAP Income Statements

(in millions of USD except EPS)

Costs Associated with Q1 2026 Restructuring Acquisition Change in Shareholder Advisory

GAAP And Related Intangible Contingent Matters and Select Q1 2026

Costs Amortization Consideration Implementation Related Non-GAAP

Value Creation

Consulting Costs

Total sales

$3,368

Gross profit

1,070

Selling, general and administrative

809

(1)

(13)

795

Depreciation and amortization

(45)

Restructuring and related costs

(12)

Operating income

$182

$12

$45

$13

$253

Net interest expense and other

(32)

Income before taxes

150

221

Income taxes

(38)

(3)

(11)

(3)

(55)

Net income

112

166

Less: Net income attributable to noncontrolling interests

(5)

(1)

(7)

(13)

Net income attributable to Henry Schein, Inc.

107

153

Earnings per share (Diluted)

$0.92

$0.07

$0.23

$0.01

$0.08

$1.32

Amounts may not sum due to rounding.

GAAP to Non-GAAP Reconciliation

Q1 2026 Financial Highlights

Henry Schein, Inc.

First Quarter 2026 Analyst Presentation Q1 2026 - Financial Highlights

(in millions, except per share data)

Reconciling Items

GAAP

Restructuring and Related Costs

Acquisition Intangible Amortization

Cyber Incident-Insurance Proceeds, Net of Third-Party Advisory Expenses

Change in Contingent Consideration

Impairment of Intangible Assets

Costs Associated with Shareholder Advisory Matters and Select Implementation Related Value Creation Consulting Costs

Non-GAAP

Net Sales

$ 3,168

$ 3,368

6.3%

$ 3,168

$ 3,368

6.3%

Operating Income

175

182

3.9%

$ 25

$ 12

$ 43

$ 45

$ (20)

$ - $ (2)

$ 1

$ - $ 8

$ 13

230

253

10.4%

Operating Margin

5.53%

5.41%

(12) bps

7.25%

7.53%

28 bps

Net Income

110

107

-2.3%

$ 17

$ 8

$ 27

$ (15)

$ - $ (2)

$ 1

$ -

$ - $ 6

$ 10

143

153

6.5%

Diluted EPS

$ 0.88

$ 0.92

4.5%

$ 0.14

$ 0.07

$ 0.21

$ 0.23

$ (0.12)

$ - $ (0.02)

$ 0.01

$ -

$ - $ 0.05

$ 0.08

$ 1.15

$ 1.32

14.8%

Q1 2025 Q1 2026 Growth Q1 2025 Q1 2026 Q1 2025 Q1 2026 Q1 2025 Q1 2026 Q1 2025 Q1 2026 Q1 2025 Q1 2026 Q1 2025 Q1 2026 Q1 2025 Q1 2026 Growth

GAAP to Non-GAAP Reconciliation

2025 Financial Highlights

Henry Schein, Inc.

Fourth Quarter 2025 Analyst Presentation Full Year 2025 Financial Highlights

(in millions, except per share data)

Restructuring

Acquisition

Cyber Incident-Insurance Proceeds, Net of Third-Party

Reconciling Items

Change in

Impairment of

Costs Associated

GAAP

and Related Costs

Intangible Amortization

Advisory Expenses

Contingent Consideration

Litigation Settlements

Capitalized Assets

Intangible Assets

with Shareholder Advisory Matters

Non-GAAP

Net Sales

$ 12,673

$ 13,184

4.0%

$12,673

$13,184

4.0%

Operating Income

$ 621

$ 653

5.2%

$ 110

$ 105

$ 184

$ 179

$ (31)

$ (20)

$ 45

$ (2)

$ 5

$ 12

$ - $ 1

$ 16

$ 2

$ 36

$ 949

$ 972

2.4%

Operating Margin

4.90%

4.96%

6 bps

7.49%

7.37%

(12) bps

Net Income

$ 390

$ 398

2.2%

$ 79

$ 72

$ 112

$ 109

$ (23)

$ (15)

$ 35

$ (2)

$ 4

$ 6

$ - $ -

$ 12

$ 2

$ 27

$ 605

-0.1%

Diluted EPS

$ 3.05

$ 3.27

7.2%

$ 0.62

$ 0.59

$ 0.88

$ 0.90

$(0.18)

$(0.12)

$ 0.27

$ (0.02)

$ 0.03

$ 0.05

$ - $ -

$ 0.10

$ 0.01

$ 0.22

$ 4.74

$ 4.97

4.9%

2024 2025 Growth 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 Growth

Disclaimer

Henry Schein Inc. published this content on May 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 05, 2026 at 11:44 UTC.