Envista Stock Rises Post Q4 Earnings & Revenue Beat, Gross Margin Down

Envista Holdings Corporation NVST reported adjusted earnings per share (EPS) of 38 cents in the fourth quarter of 2025, up 58.3% year over year. The bottom line surpassed the Zacks Consensus Estimate by 18.23%.

The adjustments include non-cash charges related to the amortization of acquisition-related and other intangible assets, restructuring costs and asset impairments, among others.

The company’s GAAP earnings were 20 cents compared with the year-ago quarter’s earnings of 1 cent per share.

Full-year 2025 adjusted earnings came in at $1.19 compared with 73 cents reported in 2024.

NVST’s Revenues

Revenues totaled $750.6 million in the reported quarter, up 15% year over year. The metric topped the Zacks Consensus Estimate by 11.16%.

Segment-wise, Specialty Products & Technologies sales totaled $475.9 million, up 15.8% year over year.

Revenues from Equipment & Consumables rose 13.5% year over year to $274.7 million in the quarter under review.

Envista Holdings Corporation Price, Consensus and EPS Surprise

Envista Holdings Corporation price-consensus-eps-surprise-chart | Envista Holdings Corporation Quote

For full-year 2025, the company reported revenues of $2.72 billion, up 8.3% from 2024.

Since the earnings announcement on Feb.5, NVST shares have rallied 22.5%, closing yesterday’s session at $30.26.  

NVST’s Operational Update

The gross profit in the reported quarter climbed 10.2% year over year to $410.6 million. The gross margin contracted 235 basis points (bps) to 54.7% due to a 21.3% increase in the cost of sales.

Selling, general and administrative expenses were up 1.8% year over year to $305.2 million. Research and development expenses rose 20.2% year over year to $32.1 million.

The operating profit of $73.3 million jumped 59% year over year. The operating margin expanded 270 bps to 9.8%.

NVST’s Financial Update

Envista ended the fourth quarter of 2025 with cash and cash equivalents of $1.21 billion compared with $1.07 billion at the end of 2024. Long-term debt in the fourth quarter was $1.45 billion compared with $1.28 billion at the end of 2024. 

Net cash provided by operating activities as of Dec. 31, 2025 was $275.7 million compared with $336.5 million a year ago.

Envista’s 2026 Guidance

For 2026, the company expects core sales growth between 2% and 4% and adjusted EBITDA margins in the range of 7%-13%. The Zacks Consensus Estimate for revenues is pegged at $2.84 billion, suggesting 4.4% growth from the year-ago reported figure.

Our Take on NVST

Envista closed the fourth quarter of 2025 with better-than-expected earnings and revenues. In Specialty Products & Technologies, the Orthodontics business continues to capture share as leading offerings in both Brackets & Wires and Clear Aligners provide the company with a distinct portfolio advantage. The implant business saw strong growth in both digital and regenerative segments. Consumables growth was also broad-based across the portfolio, including solid price performance. Envista continues to gain from strong contributions from EBS’ continuous improvement methodology.

The contraction of gross margin in the quarter is discouraging.

NVST’s Zacks Rank and Other Key Picks

Envista currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks from the broader medical space are Intuitive Surgical ISRG, Cardinal Health CAH and Align Technology ALGN.

Intuitive Surgical, currently sporting a Zacks Rank #1, reported a fourth-quarter 2025 adjusted EPS of $2.53, which surpassed the Zacks Consensus Estimate by 12.4%. Revenues of $2.87 billion beat the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 12.7% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 13.24%.

Cardinal Health, carrying a Zacks Rank #2 (Buy) at present, posted a second-quarter fiscal 2026 adjusted EPS of $2.63, exceeding the Zacks Consensus Estimate by 10%. Revenues of $65.6 billion topped the Zacks Consensus Estimate by 0.9%.

CAH has a long-term earnings growth rate of 15% compared with the industry’s 9.6% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 9.3%.

Align Technology, carrying a Zacks Rank #2 at present, posted a fourth-quarter 2025 adjusted EPS of $3.29, exceeding the Zacks Consensus Estimate by 10.1%. Revenues of $1.05 billion outperformed the Zacks Consensus Estimate by 5.3%.

ALGN has an estimated long-term earnings growth rate of 10.1% compared with the industry’s 9.5% growth. The company’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 6.16%.

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

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