HENRY SCHEIN REPORTS STRONG 2026 THIRD QUARTER AND RAISES FY2026 GUIDANCE
HENRY SCHEIN INC (HSIC) filed an SEC Form 8-K — Results of Operations and Financial Condition. -1- more FOR IMMEDIATE RELEASE HENRY SCHEIN REPORTS STRONG 2026 THIRD QUARTER AND RAISES FY2026 GUIDANCE ● Q3 2026 GAAP diluted EPS of $1.06, up 26.2% versus prior year; Q3 2026 non-GAAP diluted EPS of $1.56, up 13.0% versus prior year ● 4.0% total sales growth, driven by 8.6% U.
How this was made
The 30-second read
Why it matters
The raised guidance reflects robust sales growth and improved margins, likely prompting short‑covering and new buying.
Market read
Guidance lift is a fresh, material disclosure that can move HSIC and related healthcare distribution stocks.
What to watch
The guidance excludes potential restructuring costs and litigation settlements, which could affect net earnings.
HENRY SCHEIN REPORTS STRONG 2026 THIRD QUARTER AND RAISES FY2026 GUIDANCE
Third-quarter total net sales increased 4.0%, GAAP diluted EPS increased 26.2%, adjusted non-GAAP diluted EPS excluding tariff refunds and remeasurement gains increased 19.1%, and the Company raised FY2026 non-GAAP diluted EPS guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total net salesGAAP | $3.5B | – | 4.0% |
| Q3 2026 total net sales, internal sales growthother | 3.1% | – | 3.1% |
| Q3 2026 total net sales, acquisition sales growthother | 0.7% | – | 0.7% |
| Q3 2026 total net sales, foreign currency exchange impactother | 0.2% | – | 0.2% |
| Q3 2026 cost of salesGAAP | $2.37B | – | – |
| Q3 2026 gross profitGAAP | $1.10B | – | – |
| Q3 2026 selling, general and administrative expenseGAAP | $819M | – | – |
| Q3 2026 depreciation and amortizationGAAP | $71M | – | – |
| Q3 2026 restructuring and related costsGAAP | $22M | – | – |
| Q3 2026 operating incomeGAAP | $193M | – | – |
| Q3 2026 interest incomeGAAP | $9M | – | – |
| Q3 2026 interest expenseGAAP | −$42M | – | – |
| Q3 2026 income taxesGAAP | −$37M | – | – |
| Q3 2026 net incomeGAAP | $126M | – | – |
| Q3 2026 net income attributable to Henry Schein, Inc.GAAP | $119M | – | 17.1% |
| Q3 2026 diluted EPS attributable to Henry Schein, Inc.GAAP | $1.06 | – | 26.2% |
| Q3 2026 non-GAAP net income attributable to Henry Schein, Inc.non-GAAP | $175M | – | 4.7% |
| Q3 2026 non-GAAP diluted EPS attributable to Henry Schein, Inc.non-GAAP | $1.56 | – | 13.0% |
| Q3 2026 adjusted non-GAAP diluted EPS attributable to Henry Schein, Inc., excluding net tariff refunds and remeasurement gainsnon-GAAP | $1.37 | – | 19.1% |
| Q3 2026 net tariff refunds benefit, net of taxnon-GAAP | −$190K | – | – |
| Q3 2026 remeasurement gains, net of taxnon-GAAP | - | – | – |
| Q3 2026 Adjusted EBITDAnon-GAAP | $321M | – | – |
| Q3 2026 Adjusted EBITDA marginnon-GAAP | 9.24% | – | growing 40 basis points |
| First nine months of 2026 total net salesGAAP | $10.3B | – | 5.6% |
| First nine months of 2026 total net sales, internal sales growthother | 3.4% | – | 3.4% |
| First nine months of 2026 total net sales, acquisition sales growthother | 0.7% | – | 0.7% |
| First nine months of 2026 total net sales, foreign currency exchange impactother | 1.5% | – | 1.5% |
| First nine months of 2026 gross profitGAAP | $3.28B | – | – |
| First nine months of 2026 operating incomeGAAP | $546M | – | – |
| First nine months of 2026 net income attributable to Henry Schein, Inc.GAAP | $320M | – | 7.6% |
| First nine months of 2026 diluted EPS attributable to Henry Schein, Inc.GAAP | $2.80 | – | 15.7% |
| First nine months of 2026 non-GAAP net income attributable to Henry Schein, Inc.non-GAAP | $473M | – | 6.2% |
| First nine months of 2026 non-GAAP diluted EPS attributable to Henry Schein, Inc.non-GAAP | $4.14 | – | 14.0% |
| First nine months of 2026 adjusted non-GAAP diluted EPS attributable to Henry Schein, Inc., excluding net tariff refunds and remeasurement gainsnon-GAAP | $3.87 | – | 14.8% |
| First nine months of 2026 Adjusted EBITDAnon-GAAP | $898M | – | – |
| First nine months of 2026 Adjusted EBITDA marginnon-GAAP | 8.72% | – | growing 41 basis points |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q3 2026 U.S. Distribution and Value-Added Services Merchandise7.0% local internal growth and 1.6% acquisition growth | $660M | – | 8.6% |
| Q3 2026 U.S. Distribution and Value-Added Services Equipment1.6% local internal growth | $220M | – | 1.6% |
| Q3 2026 U.S. Distribution and Value-Added Services Value-Added Services-7.6% local internal growth | $53M | – | -7.6% |
| Q3 2026 U.S. Distribution and Value-Added Services Medical1.0% local internal growth | $1.11B | – | 1.0% |
| Q3 2026 Total U.S. Distribution and Value-Added Services2.6% local internal growth and 0.6% acquisition growth | $2.04B | – | 3.2% |
| Q3 2026 Total International Distribution and Value-Added Services3.3% local internal growth, 0.7% acquisition growth, and 0.8% foreign exchange impact | $901M | – | 4.8% |
| Q3 2026 Global Merchandise5.1% local internal growth, 1.3% acquisition growth, and 0.6% foreign exchange impact | $1.29B | – | 7.0% |
| Q3 2026 Global Equipment2.4% local internal growth and -0.1% foreign exchange impact | $449M | – | 2.3% |
| Q3 2026 Global Value-Added Services-4.8% local internal growth | $62M | – | -4.8% |
| Q3 2026 Global Dental4.1% local internal growth, 0.9% acquisition growth, and 0.4% foreign exchange impact | $1.81B | – | 5.4% |
| Q3 2026 Global Medical1.0% local internal growth and 0.1% foreign exchange impact | $1.14B | – | 1.1% |
| Q3 2026 Total Global Distribution and Value-Added Services2.9% local internal growth, 0.5% acquisition growth, and 0.3% foreign exchange impact | $2.94B | – | 3.7% |
| Q3 2026 Global Specialty Products3.4% local internal growth, 2.6% acquisition growth, and 0.1% foreign exchange impact | $391M | – | 6.1% |
| Q3 2026 Global Technology6.5% local internal growth, -1.3% acquisition or disposition growth, and 0.0% foreign exchange impact | $181M | – | 5.2% |
FY2026 outlook
- Revenue2026 total sales growth 4.5% to 5.5%
- Note2026 non-GAAP diluted EPS $5.50 to $5.56
- Note2026 Adjusted EBITDA growth High-single-digits
- NoteGuidance 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, select implementation-related costs supporting value creation initiatives, and litigation settlements.
- NoteThe updated guidance assumes no significant tariff refunds or remeasurement gains for the remainder of 2026.
Capital returns
- During the third quarter of 2026, the Company repurchased approximately 1.4 million shares of common stock at an average price of $86.67 per share for a total of $125 million.
- For the year-to-date, the Company repurchased approximately 5.7 million shares of common stock at an average price of $79.50 per share for a total of $450 million.
- At the end of the quarter, Henry Schein had approximately $330 million authorized and available for future stock repurchases.
What drove it
- Total Q3 sales growth reflected 3.1% internal sales growth, 0.7% sales growth from acquisitions, and a 0.2% increase resulting from foreign currency exchange.
- U.S. dental merchandise sales grew 8.6%, driven primarily by volume from market share gains.
- Global Specialty Products sales increased 6.1% in total, reflecting 3.4% internal sales growth, 2.6% sales growth from acquisitions, and a 0.1% increase resulting from foreign currency exchange.
- Global Technology sales increased 5.2% in total, reflecting 6.5% internal sales growth, a 1.3% sales decrease due to a business disposal, and no impact from foreign currency exchange.
- The Company recognized a $0.19 per diluted share net benefit from tariff refunds in the third quarter of 2026.
Concerns
- Global Value-Added Services sales for the quarter decreased 4.8%, on both a reported and internal sales growth basis.
- U.S. Distribution and Value-Added Services Value-Added Services sales were $53 million and declined 7.6%.
- Global Medical sales increased 1.1% in total.
- Q3 2026 net cash provided by operating activities was $161 million, compared with $174 million in Q3 2025.
- Bank credit lines were $1,000 million at September 26, 2026, compared with $764 million at December 27, 2025.
What to watch
- FY2026 non-GAAP diluted EPS guidance of $5.50 to $5.56.
- FY2026 total sales growth guidance of 4.5% to 5.5%.
- FY2026 Adjusted EBITDA growth guidance of High-single-digits.
- Targeted and limited growth-investments in the fourth quarter which will contribute to growth in 2027.
- The Company assumes no significant tariff refunds or remeasurement gains for the remainder of 2026.
- U.S. dental merchandise volume and market share gains.
- Global Value-Added Services sales performance.
Balance sheet and cash flow
- Cash and cash equivalents were $184 million at September 26, 2026, compared with $156 million at December 27, 2025.
- Bank credit lines were $1,000 million at September 26, 2026, compared with $764 million at December 27, 2025.
- Current maturities of long-term debt were $142 million at September 26, 2026, compared with $33 million at December 27, 2025.
- Long-term debt was $2,382 million at September 26, 2026, compared with $2,310 million at December 27, 2025.
- Q3 2026 net cash provided by operating activities was $161 million, compared with $174 million in Q3 2025.
- First nine months of 2026 net cash provided by operating activities was $306 million, compared with $331 million in the first nine months of 2025.
- Q3 2026 purchases of property and equipment were $(30) million, compared with $(33) million in Q3 2025.
- First nine months of 2026 purchases of property and equipment were $(85) million, compared with $(96) million in the first nine months of 2025.
- Q3 2026 capitalized software costs were $(15) million, compared with $(12) million in Q3 2025.
- First nine months of 2026 capitalized software costs were $(45) million, compared with $(38) million in the first nine months of 2025.
Analysis
Henry Schein reported a strong third quarter, with total net sales of $3.5 billion, up 4.0%, including 3.1% internal sales growth. The sales result was led by U.S. dental merchandise, where sales increased 8.6%, driven primarily by volume from market share gains. Global Specialty Products sales increased 6.1%, while Global Technology sales increased 5.2%. Global Medical sales increased 1.1%, and Global Value-Added Services sales decreased 4.8%.
Profit growth exceeded reported sales growth. GAAP net income attributable to Henry Schein, Inc. was $119 million, and GAAP diluted EPS was $1.06, up 26.2%. Non-GAAP diluted EPS was $1.56, up 13.0%. The quarter included a $0.19 per diluted share net benefit from tariff refunds, while the prior-year quarter included a $0.23 per diluted share remeasurement gain. Excluding those items, adjusted non-GAAP diluted EPS was $1.37 compared with $1.15 in the prior-year period, an increase of 19.1%.
Adjusted EBITDA was $321 million, compared with $295 million in the prior-year quarter, and Adjusted EBITDA margin grew 40 basis points to 9.24%. For the first nine months, Adjusted EBITDA was $898 million compared with $810 million, and Adjusted EBITDA margin grew 41 basis points to 8.72%. The year-to-date results included $10.3 billion in total net sales, up 5.6%, GAAP diluted EPS of $2.80, up 15.7%, and non-GAAP diluted EPS of $4.14, up 14.0%.
Capital allocation remained focused on share repurchases. The Company repurchased approximately 1.4 million shares for $125 million during the quarter and approximately 5.7 million shares for $450 million year-to-date. Cash and cash equivalents were $184 million at September 26, 2026, while bank credit lines were $1,000 million and long-term debt was $2,382 million. Q3 net cash provided by operating activities was $161 million, compared with $174 million in the prior-year quarter.
Management raised FY2026 non-GAAP diluted EPS guidance to $5.50 to $5.56 from $5.29 to $5.39 and raised Adjusted EBITDA growth guidance to High-single-digits from Mid to high-single-digits. Total sales growth guidance remained 4.5% to 5.5%. The outlook includes the third-quarter net tariff refund benefit, targeted and limited fourth-quarter growth-investments expected to contribute to growth in 2027, and improved underlying business performance. It assumes no significant tariff refunds or remeasurement gains for the remainder of 2026.
Management, verbatim
We delivered another strong quarter that increases our confidence in the momentum we are building at Henry Schein.
Fred Lowery, Chief Executive Officer of Henry Schein
Our strategy is translating into stronger financial results. We are gaining share in key businesses, improving our portfolio mix, maintaining a disciplined approach to capital allocation, and realizing the benefits of our value creation initiatives.
Fred Lowery, Chief Executive Officer of Henry Schein
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported Q3 and first-nine-month operating metrics were not provided.
- GAAP gross margin was not reported.
- Free cash flow was not reported.
- Dividend payments or dividend declaration were not reported.
- FY2026 GAAP diluted EPS guidance was not provided.
- FY2026 gross margin, operating expense, and tax-rate guidance were not provided.
- A prior outlook document was not provided; therefore, no actual-versus-prior-guidance comparison is presented.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Henry Schein is the world’s largest provider of dental and medical products to office‑based practitioners. The 8‑K filing reports Q3 2026 results and updates FY2026 guidance.
Ticker impact
Henry Schein raised FY2026 non‑GAAP EPS guidance to $5.50‑$5.56 and lifted total sales growth outlook to 4.5‑5.5% in its 8‑K filing.
likely upward pressure as investors price in higher earnings expectations
The company reported 26% YoY GAAP EPS growth and increased sales, then explicitly raised FY2026 guidance, a material new data point that can move the stock.
Market effects
Dental and medical distribution sector may see broader optimism as the largest provider signals stronger demand.
U.S. healthcare distribution firms could benefit from similar demand trends.
Limited to healthcare supply chain; no immediate global macro effect.
Counterpoint
If the guidance assumes no further tariff refunds, actual earnings could fall short if refunds diminish, tempering upside.
Key entities
- CompanyHenry Schein Inc.
Provider of healthcare solutions; ticker HSIC.
