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, internal local currency sales growth of 4.6%, and early benefits from value creation initiatives.

• Non-GAAP diluted EPS rose 15.5% to $1.27, GAAP diluted EPS was $0.82 (up 17.1% YoY), and adjusted EBITDA increased 12.7% to $288 million.

• Raised FY2026 guidance for non-GAAP diluted EPS to $5.29–$5.39, sales growth to 4.5%–5.5%, and adjusted EBITDA growth to mid to high-single digits.

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

• Advanced technology platforms, especially AI-enabled and cloud-based solutions, are driving higher customer profitability and engagement.

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 was $288 million (+12.7% YoY).

• GAAP operating margin was 4.94% (+27 bps YoY); non-GAAP operating margin was 7.21% (+25 bps YoY); gross margin improved to 31.8%.

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

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

Outlook and guidance

• FY2026 non-GAAP diluted EPS guidance raised to $5.29–$5.39, reflecting 6%-8% growth over 2025.

• FY2026 total sales growth expected at 4.5%–5.5%; adjusted EBITDA growth projected mid to high-single digits.

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

• 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 but not yet estimated.