Henry Schein (HSIC) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 results with 5.2% sales growth, non-GAAP EPS up 13.1% to $1.38, and GAAP EPS up to $0.84, with all segments contributing and notable market share gains in distribution and technology.

• Raised 2025 non-GAAP diluted EPS guidance to $4.88–$4.96 and total sales growth to 3–4%, reflecting strong Q3 results and a $28 million remeasurement gain.

• Value creation initiatives are expected to deliver over $200 million in operating income improvements over the next few years.

• Board approved KKR's right to increase stock ownership up to 19.9% and a $750 million increase in share repurchase authorization.

• Continued strategic investments, including a phased rollout of a new global eCommerce platform and partnership with Amazon Web Services for generative AI integration.

Financial highlights

• Q3 2025 global sales reached $3.34 billion, up 5.2% year-over-year, with 4.0% constant currency growth and 0.7% from acquisitions.

• Q3 2025 GAAP net income was $101 million ($0.84 per diluted share); non-GAAP net income was $167 million ($1.38 per diluted share).

• Adjusted EBITDA for Q3 2025 was $295 million, up 10% year-over-year.

• Operating cash flow for Q3 2025 was $174 million; year-to-date operating cash flow was $644 million.

• Gross margin for Q3 2025 was 30.7%, down 56 bps year-over-year, mainly due to product mix.

Outlook and guidance

• 2025 non-GAAP diluted EPS guidance raised to $4.88–$4.96, with total sales growth expected at 3–4% over 2024 and adjusted EBITDA to grow mid-single digits.

• Full-year non-GAAP effective tax rate expected at 24%–25%.

• Guidance assumes stable FX rates and mitigated tariff effects.

• The 2024 restructuring plan is expected to continue through 2027, with further charges anticipated.

• Company expects to benefit from OBBBA tax changes, reducing current income tax liabilities.