DENTSPLY SIRONA (XRAY) Q3 2026 earnings summary

Executive summary

• Q3 net sales were $836M, down 7.6% reported and 7.0% in constant currency; lower dental sales were partly offset by record Wellspect growth.

• Return-to-Growth actions expanded U.S. sales coverage, dealer access, clinical education and innovation investment amid challenging industry conditions.

Financial highlights

• Adjusted EPS was $0.29 versus $0.42; adjusted EBITDA was $146M versus $167M, with a 17.3% margin, down 110 bps YoY.

• Reported operating income was $37M versus an operating loss of $218M; net loss was $2M versus $427M, with prior-year impairment charges a major comparison factor.

• Q3 gross profit was $443M versus $441M; reported gross margin was 52.9% versus 48.8%, while adjusted gross margin was 54.5% versus 52.6%.

• Nine-month sales were $2.614B versus $2.719B; net income was $25M versus a $452M loss.

• Q3 operating cash flow was $32M versus $79M, primarily due to unfavorable working capital; free cash flow was $0M versus $40M.

Outlook and guidance

• FY26 sales outlook was lowered to ~$3.5B from $3.5B–$3.6B; adjusted EPS was cut to $1.20–$1.30 from $1.40–$1.50.

• Updated adjusted EPS outlook excludes a $0.17 tariff-refund benefit; no quantitative reconciliation to GAAP EPS was provided because certain items are not reasonably predictable.

• EMEA underperformance and the Middle East conflict drove roughly three-fourths of the EPS reduction; tax and strategic investment accounted for the balance, partly offset by cost actions and the inventory benefit.

• U.S. sales turning positive by Q4 remained a stretch; Q4 guidance assumes some market upticks and mix improvement.

• FY26 capital expenditures are expected at $165M–$185M; 2026 R&D investment is expected at ~5% of annual sales.