Envista (NVST) Q2 2026 earnings summary

Executive summary

• Achieved $731 million in Q2 2026 sales, with 5% core growth year-over-year and balanced contributions from both reporting segments and all major geographies.

• Adjusted EBITDA increased 28% and adjusted EPS rose 58% year-over-year; free cash flow conversion was 158%.

• Net income more than doubled year-over-year for the quarter ($53.7M vs. $26.4M), reflecting improved operating margins and tariff refunds.

• Raised full-year 2026 guidance for core growth, adjusted EBITDA, and adjusted EPS.

• 2.4 million shares repurchased in Q2.

Financial highlights

• Q2 2026 revenue was $731M, up 7.1% year-over-year; core sales up 5% year-over-year.

• Adjusted gross margin was 55.1%, up 70 basis points; adjusted EBITDA margin at 14.7%, up 230 basis points.

• Adjusted EPS was $0.41, up 58% year-over-year; GAAP diluted EPS was $0.33.

• Free cash flow was $105M, a 38% increase year-over-year, including a $13M IEEPA tariff recovery.

• Cash and cash equivalents totaled $1.13B at quarter-end.

Outlook and guidance

• Full-year 2026 guidance: 3.5%-4.5% core growth, 11%-14% adjusted EBITDA growth, adjusted EPS of $1.50-$1.55, and ~100% free cash flow conversion.

• Second half revenue growth expected to be lower due to billing day effects; Q4 core growth expected to be flat to slightly down.

• Currency exchange rates and global economic conditions remain key variables for the remainder of the year.

• Full-year tax rate expected at 26%, two points lower than initial guidance.