Envista (NVST) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong results with 9.5% core sales growth, double-digit gains in Ortho, Consumables, and Diagnostics, and robust performance across all major business segments and geographies, despite macroeconomic uncertainty.

• Adjusted EBITDA grew 25% and adjusted EPS rose 50% year-over-year, driven by improved execution and operating discipline.

• GAAP net income more than doubled to $38.7 million, with diluted EPS at $0.23; adjusted diluted EPS was $0.36.

• The board authorized a new $300 million share repurchase program, reaffirming confidence in the business and 2026 guidance.

• Investments in sales, marketing, and R&D increased double digits, supporting future growth and innovation.

Financial highlights

• Q1 2026 sales reached $706 million, up 14.4% from $617 million in Q1 2025; core sales up 9.5% year-over-year.

• Adjusted gross margin was 55.8% (up 100 bps year-over-year); adjusted EBITDA margin was 14.0% (up 120 bps year-over-year).

• Adjusted EPS was $0.36, up from $0.24 year-over-year; non-GAAP tax rate was 26.1%.

• Free cash flow was negative $16 million, reflecting seasonal trends and increased CapEx; operating cash flow was negative $3 million.

• Cash and cash equivalents at quarter-end were $1.08 billion.

Outlook and guidance

• 2026 guidance reaffirmed: 2–4% core sales growth, 7–13% adjusted EBITDA growth, adjusted EPS of $1.35–$1.45, and ~100% free cash flow conversion.

• Q2 and Q3 expected to be within guidance range; Q4 will face a headwind from fewer billing days.

• Guidance incorporates expected VBP processes in China for ortho and implants starting Q2/Q3.

• Management expects continued growth in North America and Europe, with ongoing challenges in China.