Henry Schein (HSIC) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2 2026 results with 6.7% year-over-year sales growth to $3.5 billion and internal local currency sales growth of 4.6%.

• Non-GAAP diluted EPS rose 15.5% to $1.27; GAAP diluted EPS was $0.82, up 17.1% year-over-year.

• Value creation initiatives and technology advancements, especially in AI and cloud-based solutions, are driving higher profitability and engagement.

• Raised FY2026 guidance for non-GAAP diluted EPS to $5.29–$5.39 and sales growth to 4.5%–5.5%.

• Focused on accelerating growth, simplifying operations, operational rigor, and deepening customer relationships.

Financial highlights

• Q2 2026 global sales reached $3.5 billion, up 6.7% year-over-year; internal local currency sales growth was 4.6%.

• Non-GAAP operating income grew 10.5% to $250 million; non-GAAP net income was $145 million; GAAP net income was $94 million.

• Adjusted EBITDA for Q2 was $288 million, up 12.7% year-over-year.

• Gross margin improved to 31.8% (non-GAAP 31.83%).

• Q2 2026 GAAP operating margin was 4.94%; non-GAAP operating margin was 7.21%.

Outlook and guidance

• FY2026 total sales growth expected at 4.5%–5.5%; non-GAAP diluted EPS guidance raised to $5.29–$5.39.

• Adjusted EBITDA for 2026 projected to grow mid to high single digits from $1.1 billion base.

• Q4 earnings growth expected to exceed Q3, driven by sales momentum and value creation benefits.

• Guidance excludes restructuring, amortization, and other non-recurring items; assumes stable FX rates and no further remeasurement gains.

• The restructuring plan is expected to continue through 2027, with further charges anticipated.