HSIC Q4 Earnings & Revenues Beat Estimates, Margins Down

Henry Schein, Inc. HSIC registered fourth-quarter 2025 adjusted earnings per share (EPS) of $1.34, up 12.6% from the year-ago period’s figure. The bottom line also surpassed the Zacks Consensus Estimate by 3.1%.

Excluding adjustments, such as restructuring costs, acquisition intangible amortization and others, the company reported a GAAP EPS of 85 cents compared with the year-ago quarter’s 74 cents.

Full-year 2025 adjusted EPS of $4.97 was up 4.8% from the year-ago period’s figure. The bottom line surpassed the Zacks Consensus Estimate by 1.2%.

HSIC’s Revenues in Detail

Henry Schein reported fourth-quarter net sales of $3.44 billion, up 7.8% year over year. The metric also beat the Zacks Consensus Estimate by 3.1%. 

This reflects 4.9% internal sales growth, 0.9% sales growth from acquisitions and a 1.9% increase resulting from foreign currency exchange. 

Full-year 2025 net sales of $13.18 billion were up 4% year over year. The metric beat the Zacks Consensus Estimate by 0.8%. 

HSIC’s Q4 Segmental Analysis

Global Distribution and Value-Added Services

Sales in the segment rose 7% year over year on a reported basis (up 5.2% in constant currencies) to $2.89 billion. Our model forecast was $2.81 billion.

Global Dental Distribution merchandise sales for the quarter rose 3.7% in constant currencies, reflecting continuing strong sales momentum from the prior quarter.

Global Dental Distribution equipment sales increased 9.1% at cc. Sales improvement was driven by strong growth in the United States, Germany, Brazil, Canada and Australia.

Global Medical Distribution sales for the quarter jumped 4.8% at cc, reflecting good underlying growth in medical products despite softness in the respiratory product category. 

Global Value-added Services sales for the quarter increased 8.5% at cc. Sales growth was driven by consulting services.

Global Specialty Products

Sales totaled $422 million, up 14.6% on a reported basis (11.1% in constant currencies). This reflected strong overall dental implant and endodontics sales growth. Our model forecast was $389.7 million.

Global Technology

The segment’s sales totaled $173 million, up 8.4% on a reported basis and up 7.6% at cc, led by accelerated adoption of cloud-based software and sales growth from recently launched revenue cycle management solutions. Our model projected $175.5 million for this segment.

HSIC’s Margin Performance

In the reported quarter, the gross profit totaled $1.06 billion, representing 7% increase year over year. The gross margin contracted 19 basis points (bps) to 30.9% due to an 8% rise in the cost of sales.

SG&A expenses increased 9.5% to $808 million in the quarter under review. The adjusted operating profit was $255 million, flat year over year. The adjusted operating margin contracted 57 bps year over year to 7.4%.

Liquidity Position of HSIC

Henry Schein exited the fourth quarter of 2025 with cash and cash equivalents of $156 million compared with $122 million at the end of the fourth quarter of 2024.

Cumulative net cash provided by operating activities at the end of the reported quarter was $712 million, down from the year-ago figure of $848 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 2.8 million shares of its common stock at an average price of $71.10 per share for a total of approximately $200 million. At the end of the reported quarter, Henry Schein had $780 million authorized and available for future stock repurchases.

HSIC’s 2026 Guidance

The company expects 2026 total sales growth to be between 3% and 5%. The Zacks Consensus Estimate for sales is currently pegged at $13.53 billion, indicating 3.5% year-over-year growth.

Non-GAAP diluted EPS for 2026 is expected to be in the band of $5.23-$5.37. The Zacks Consensus Estimate for earnings is pegged at $5.27. 

Our Take on HSIC

Henry Schein exited fourth-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. The company saw strong sales growth across all its businesses, particularly in its global equipment, specialty products and technology businesses.

During the fourth quarter, it successfully executed its BOLD+1 strategic plan. 

HSIC’s Zacks Rank & Key Picks

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

Some better-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 (Strong Buy), 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% rise. The company’s earnings beat 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, which outpaced 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% rise. 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, which exceeded 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% rise. The company’s earnings outpaced estimates in three of the trailing four quarters and missed in one, the average surprise being 6.16%.

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

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