Henry Schein Inc. (NASDAQ:HSIC) reported third-quarter adjusted earnings above Wall Street expectations on Tuesday, supported by stronger dental merchandise sales and improved operating profitability. However, revenue fell slightly short of analyst forecasts, sending the healthcare solutions provider’s shares 0.72% lower in premarket trading.
For the quarter ended September 26, 2026, Henry Schein posted adjusted earnings per share of $1.56, exceeding the consensus estimate of $1.36 by $0.20. Revenue increased 4.0% to $3.47 billion from $3.34 billion a year earlier, narrowly missing market expectations of $3.48 billion.
The company also raised its full-year adjusted earnings guidance and improved its outlook for adjusted EBITDA growth, reflecting confidence in its operating performance.
Henry Schein’s adjusted earnings per share of $1.56 represented a 19% increase compared with the prior-year period, according to the company.
The result exceeded analysts’ expectations by approximately 14.7%, demonstrating stronger profitability despite the modest revenue shortfall.
Quarterly revenue rose by approximately $130 million year over year, supported by growth in the company’s dental distribution operations.
Although sales were around $10 million below consensus estimates, the company delivered improved adjusted operating margins and earnings growth.
Chief Executive Officer Fred Lowery highlighted the progress made during the quarter.
“We delivered another strong quarter that increases our confidence in the momentum we are building at Henry Schein,” Lowery said.
“I am very pleased with the U.S. dental merchandise sales growth of 8.6% driven primarily by volume in a stable market and our 19% adjusted earnings per share growth.”
The results reflected stronger sales volumes in the company’s US dental merchandise business and improved profitability across its operations.
Henry Schein’s US dental merchandise business delivered sales growth of 8.6% during the third quarter.
The increase was primarily driven by higher sales volumes associated with market share gains, rather than broader market expansion.
Management described the US dental market as stable, indicating that the company’s performance benefited from its competitive position within the sector.
The strong domestic sales growth contributed to a 7.0% increase in global dental distribution merchandise revenue.
The results demonstrated the importance of Henry Schein’s dental distribution business to its overall financial performance.
The company supplies products and services to healthcare professionals, including dental practices, making merchandise sales an important indicator of customer demand and distribution activity.
Henry Schein reported adjusted EBITDA of $321 million for the third quarter, compared with $295 million in the corresponding period of 2025.
The increase of approximately 8.8% outpaced the company’s 4.0% revenue growth, reflecting improved adjusted operating profitability.
Adjusted EBITDA margin expanded by 40 basis points to 9.24%.
The margin improvement indicates that Henry Schein generated a higher level of adjusted operating earnings relative to revenue.
Stronger dental merchandise sales and improved operating efficiency contributed to the company’s earnings performance.
The increase in adjusted EBITDA also supported management’s decision to raise its full-year profitability expectations.
Following its third-quarter results, Henry Schein increased its adjusted earnings outlook for fiscal 2026.
The company now expects adjusted earnings per share of between $5.50 and $5.56.
The midpoint of the revised range is $5.53, exceeding the analyst consensus estimate of $5.39.
The updated forecast reflects management’s expectations for continued profitability during the final quarter of the year.
Henry Schein also raised its adjusted EBITDA growth outlook to high-single-digit growth, compared with its previous expectation of mid- to high-single-digit growth.
The revision indicates stronger anticipated adjusted operating earnings growth than previously forecast.
Both guidance changes follow a quarter in which adjusted EPS increased 19% and adjusted EBITDA margin improved.
Henry Schein stated that its revised 2026 guidance incorporates net tariff refund benefits recognised during the third quarter.
However, the company does not anticipate significant additional tariff refunds or remeasurement gains during the remainder of the financial year.
This distinction is important when assessing the sustainability of the company’s earnings performance.
The tariff-related benefits contributed to the updated outlook, but management’s assumptions do not depend on substantial further gains from these items.
Investors will therefore be assessing the company’s underlying operating performance alongside the effect of the refunds already recognised.
The updated guidance provides a clearer indication of management’s expectations for the remainder of 2026 under those assumptions.
Henry Schein continued returning capital to shareholders through its share repurchase programme during the third quarter.
The company bought back approximately 1.4 million shares at an average price of $86.67 per share.
Total expenditure on the repurchases reached approximately $125 million.
Share buybacks reduce the number of outstanding shares and can support earnings per share, depending on the timing and scale of the purchases.
The repurchases formed part of Henry Schein’s capital allocation activities during a period of improved adjusted profitability.
The company did not provide additional details in the reported results regarding future repurchase plans.
Henry Schein’s third-quarter performance demonstrated stronger adjusted earnings and operating profitability, despite revenue falling slightly below analyst expectations.
US dental merchandise sales growth of 8.6% and global dental distribution merchandise growth of 7.0% supported the company’s results, while adjusted EBITDA increased to $321 million.
Management responded by raising its full-year adjusted EPS forecast to $5.50–$5.56 and upgrading its adjusted EBITDA growth outlook to high-single digits.
The revised guidance includes tariff refund benefits recognised during the third quarter but assumes no significant additional benefits from these items for the remainder of 2026.
Investors will be monitoring whether Henry Schein can sustain dental merchandise sales growth, maintain its improved operating margins and deliver on its higher earnings expectations.
Henry Schein is a global provider of healthcare products, technology and services to dental and medical professionals. The company supplies equipment, consumables and practice management solutions to healthcare providers, supporting clinical operations and business efficiency across its distribution and technology businesses.
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