Henry Schein (HSIC) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered 6.3% year-over-year sales growth to $3.4 billion, driven by strong U.S. Dental, Global Technology, and value-added services, with market share gains and favorable foreign exchange rates.

• Non-GAAP diluted EPS rose 14.8% to $1.32, GAAP diluted EPS increased to $0.92, and high-growth, high-margin businesses now approach 50% of total operating income.

• Value creation initiatives and strategic execution are expected to deliver over $200 million in operating income improvement, with $125 million run-rate by year-end 2026.

• Strategic focus on operational excellence, technology, and customer experience, with ongoing restructuring and leadership transition.

• Guidance for 2026 reaffirmed, with continued integration of acquisitions and efficiency improvements.

Financial highlights

• Q1 2026 global sales reached $3.4 billion, up 6.3% year-over-year; non-GAAP operating margin was 7.53% (up 28 bps), and gross margin improved to 31.8%.

• Non-GAAP net income was $153 million ($1.32 per diluted share), GAAP net income was $107 million ($0.92 per diluted share).

• Adjusted EBITDA grew 11.6% to $289 million.

• Operating expenses rose 7.8% to $888 million, mainly due to higher SG&A and amortization.

• Foreign currency exchange contributed 3.1% to total sales growth and favorably impacted EPS by $0.03.

Outlook and guidance

• 2026 full-year sales growth expected at 3%–5% over 2025, with non-GAAP diluted EPS guidance of $5.23–$5.37 and mid-single digit Adjusted EBITDA growth.

• Value creation benefits are expected to be weighted toward the second half of 2026.

• The restructuring plan initiated in 2024 will continue through 2027, with ongoing charges anticipated.

• Guidance assumes stable end markets, ability to mitigate higher oil prices, and continued integration of acquisitions.