Envista (NVST) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong results with 14.4% sales growth to $706 million and 9.5% core sales growth, driven by broad-based segment and geographic performance, especially in North America and Europe, despite lower demand in China.

• Adjusted EBITDA grew 25% to $99 million (14.0% margin), and adjusted EPS rose 50% to $0.36 year-over-year; GAAP net income more than doubled to $39 million, with GAAP EPS at $0.23.

• All major business segments posted positive growth, supported by continued investment in sales, marketing, and R&D.

• The board authorized a new $300 million share repurchase program through 2029, with $41 million remaining under the prior program at quarter-end and $42.6 million repurchased in Q1.

• Dental markets remained resilient despite macroeconomic volatility and geopolitical risks.

Financial highlights

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

• Adjusted gross margin expanded 100 bps to 55.8%; adjusted EBITDA margin rose 120 bps to 14.0%.

• Adjusted EPS was $0.36 (up from $0.24); GAAP EPS was $0.23 (up from $0.10); 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

• FY 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 within guidance; Q4 faces a headwind from fewer billing days.

• Guidance incorporates anticipated 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.

• Sufficient liquidity is expected for the next 12 months and beyond.