Henry Schein’s first quarter results were well received by the market, with outperformance driven by robust gains in U.S. dental and global technology segments. CEO Frederick Lowery pointed to ongoing market share gains and stable dental procedure volumes as key contributors, while highlighting that merchandise price increases and continued investments from dental service organizations (DSOs) underpinned growth. The medical business was impacted by a lighter flu season, which weighed on demand for point-of-care diagnostic products, but this was offset by solid growth in Home Solutions and technology-driven offerings.
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Henry Schein (HSIC) Q1 CY2026 Highlights:
- Revenue: $3.37 billion vs analyst estimates of $3.34 billion (6.3% year-on-year growth, 0.8% beat)
- Adjusted EPS: $1.32 vs analyst estimates of $1.22 (8.4% beat)
- Adjusted EBITDA: $289 million vs analyst estimates of $275.1 million (8.6% margin, 5.1% beat)
- Management reiterated its full-year Adjusted EPS guidance of $5.30 at the midpoint
- Operating Margin: 5.4%, in line with the same quarter last year
- Organic Revenue rose 2.5% year on year (miss)
- Market Capitalization: $7.86 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Henry Schein’s Q1 Earnings Call
- Jason Bednar (Piper Sandler) asked about the sustainability of gross margin gains amid rising oil prices. CFO Ronald South explained that dynamic pricing, proprietary brand growth, and cost mitigation efforts should help preserve margins, barring a major oil price spike.
- Elizabeth Anderson (Evercore ISI) inquired about specialty product growth cadence and key surprises for the new CEO. South said specialty growth should improve as the year progresses, while CEO Frederick Lowery cited customer and supplier relationships as key strengths.
- Jeffrey Johnson (Baird) pressed on how Henry Schein can sustain earnings growth without recurring restructuring. Lowery emphasized building lasting capabilities in pricing, branding, and process improvement to drive ongoing margin expansion.
- Joseph Federico (Stifel) requested clarification on premium versus value implant trends. South confirmed that value implants are outpacing premium, with premium growth flat to slightly positive, especially in the U.S.
- Michael Sarcone (Jefferies) sought details on digital equipment demand. South noted strong demand for intraoral scanners, with lower-priced entrants expanding the base for future digital equipment sales.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will watch (1) the pace of adoption for AI-powered and cloud-based dental software, (2) the progression of cost savings and value creation initiatives—especially as benefits are weighted to the second half, and (3) the recovery in medical segment sales, particularly outside point-of-care diagnostics. Execution in proprietary brands and digital offerings will also be key for tracking sustained margin gains.
Henry Schein currently trades at $68.99, down from $72.02 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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