Henry Schein (HSIC) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2 2026 results with total sales up 6.7% year-over-year to $3.5 billion and internal local currency sales growth of 4.6%; non-GAAP diluted EPS rose 15.5% to $1.27, and GAAP diluted EPS increased to $0.82.

• Value creation initiatives and operational rigor drove earnings growth, with early benefits supporting double-digit earnings growth expectations for 2027.

• Raised full-year 2026 guidance based on strong first-half performance and sustained momentum across dental, medical, and technology segments.

• Focused on accelerating growth, simplifying operations, and deepening customer relationships to create sustainable shareholder value.

• Technology platforms, especially AI-enabled and cloud-based solutions, are key growth drivers.

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 EPS rose 15.5% to $1.27; adjusted EBITDA increased 12.7% to $288 million.

• GAAP net income for Q2 2026 was $94 million ($0.82/diluted share); non-GAAP net income was $145 million ($1.27/diluted share).

• Gross margin improved to 31.8% (non-GAAP); Q2 2026 operating margin was 4.94% (GAAP) and 7.21% (non-GAAP).

• Operating cash flow for Q2 2026 was $242 million; share repurchases totaled $200 million in Q2, with $455 million remaining authorized.

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 growth projected at mid to high single digits.

• Guidance excludes restructuring, amortization, remeasurement gains, and tariff refunds; assumes stable FX rates.

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

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