HSIC Stock Jumps on Q3 Earnings and Revenue Beat, '25 Outlook Up

Henry Schein, Inc. HSIC registered third-quarter 2025 adjusted earnings per share (EPS) of $1.38, up 13.1% from the year-ago period’s figure. The bottom line also surpassed the Zacks Consensus Estimate by 8.7%.

Excluding adjustments such as restructuring costs, acquisition intangible amortization, and others, the company reported a GAAP EPS of 84 cents compared with the year-ago quarter’s 78 cents.

HSIC’s Q3 Revenues in Detail

Henry Schein reported net sales of $3.34 billion, up 5.4% year over year. The metric also beat the Zacks Consensus Estimate by 2%.

Meanwhile, constant currency net sales increased 4% year over year.

Following the earnings announcement, HSIC stock rose 11.4% in pre-market trading today.

HSIC’s Q3 Segmental Analysis

Global Distribution and Value-Added Services

Sales in the segment rose 4.8% year over year on a reported basis (up 3.7% in constant currencies) to $2.84 billion. Our model forecast was $2.77 billion.

Global Dental Distribution merchandise sales for the quarter rose 2.9% in constant currencies, reflecting relatively consistent sales growth in local currencies across U.S. and international businesses.

Global Dental Distribution equipment sales increased 3.4% at cc. Sales improvement was driven by strong growth in Germany, as well as growth in the United States.

Global Medical Distribution sales for the quarter jumped 4.6% at cc, reflecting good underlying growth in medical products, pharmaceuticals, and the Home Solutions business. 

Global Value-added Services sales for the quarter increased 2.9% at cc. Sales growth was driven by consulting services.

Global Specialty Products

In the third quarter, the segment’s sales totaled $369 million, up 5.9% on a reported basis (3.9% in constant currencies). This reflected strong overall dental implant and endodontics sales growth. Our model forecast was $362.6 million.

Global Technology

The segment’s sales totaled $173 million, up 9.7% on a reported basis and up 9% at cc, led by accelerated adoption of cloud-based software and sales growth from recently launched revenue cycle management solutions. Our model projected $168.6 million for this segment.

HSIC’s Margin Performance

In the reported quarter, the gross profit totaled $1.03 billion, representing a 3.3% increase year over year. The gross margin contracted 56 basis points (bps) to 30.7% due to a 6% rise in the cost of sales.

SG&A expenses increased 5% to $760 million in the quarter under review. The adjusted operating profit was $266 million, down 1.1% year over year. The adjusted operating margin contracted 51 bps year over year to 8%.

Liquidity Position of HSIC

Henry Schein exited the third quarter of 2025 with cash and cash equivalents of $136 million compared with $145 million at the end of the second quarter.

Cumulative net cash provided by operating activities at the end of the third quarter was $331 million, down from the year-ago figure of $644 million.

Henry Schein, Inc. Price, Consensus and EPS Surprise

Henry Schein, Inc. price-consensus-eps-surprise-chart | Henry Schein, Inc. Quote

During the reported quarter, HSIC repurchased nearly 3.3 million shares of its common stock at an average price of $68.62 per share for a total of approximately $229 million. At the end of the third quarter, Henry Schein had $980 million authorized and available for future stock repurchases.

HSIC’s Updated 2025 Guidance

The company raised its full-year 2025 adjusted EPS forecast to the range of $4.88 to $4.96 (earlier $4.80-$4.94). The Zacks Consensus Estimate for the metric is currently pegged at $4.82.

Projected revenue growth for 2025 also increased to 3-4% (earlier 2-4%). The Zacks Consensus Estimate for revenues is currently pegged at $12.98 billion, indicating 2.5% year-over-year growth.

Our Take on HSIC

Henry Schein exited third-quarter 2025 with both earnings and revenues beating estimates. However, the contraction of both the margins is discouraging.

On a promising note, the company showed solid momentum, reflecting confidence in its core business fundamentals. Henry Schein announced value creation initiatives, expected to deliver more than $200 million of operating income improvement over the next few years. 

During the third quarter, the company successfully executed its BOLD+1 strategic plan. The plan was focused on growing the distribution business through increasing operational efficiency and enhancing customer experience, growing the dental and medical specialty businesses and corporate brand products, and further developing its digital footprint and digital solutions. Also, the raised 2025 guidance instills optimism among investors. 

HSIC’s Zacks Rank & Key Picks

HSIC currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Medpace Holdings MEDP, IDEXX Laboratories IDXX and Boston Scientific BSX.

Medpace, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter 2025 EPS of $3.86, which surpassed the Zacks Consensus Estimate by 10.29%. Revenues of $659.9 million beat the Zacks Consensus Estimate by 3.04%. You can see the complete list of today’s Zacks #1 Rank stocks here.

MEDP has an estimated earnings growth rate of 17.1% for 2025 compared with the industry’s 16.6% growth. The company beat on earnings in each of the trailing four quarters, the average surprise being 14.28%.

IDEXX, carrying a Zacks Rank #2 (Buy) at present, posted a third-quarter 2025 adjusted EPS of $3.40, exceeding the Zacks Consensus Estimate by 8.3%. Revenues of $1.11 billion topped the Zacks Consensus Estimate by 3.2%.

IDXX has an estimated historical earnings growth rate of 14.9% compared with the industry’s 10.1% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 6.08%.

Boston Scientific, currently carrying a Zacks Rank #2, reported a third-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion topped the Zacks Consensus Estimate by 1.9%.

BSX has an estimated long-term earnings growth rate of 16.4% compared with the industry’s 13.5% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 7.36%.

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This article originally published on Zacks Investment Research (zacks.com).

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