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Henry Schein: Henry Schein Delivers Strong Q4 2025 Results with 7.7% Sales Growth

Henry Schein reported a robust fourth quarter 2025, with global sales reaching $3.4 billion, representing a 7.7% increase compared to the prior year, driven by 5.8% constant currency sales growth and a 1.9% increase from foreign currency exchange. The GAAP operating margin for the fourth quarter of 2025 was 4.76%, a decrease of 10 basis points compared to the prior year, while the non-GAAP operating margin was 7.42%, relatively flat compared to the prior year. The company's GAAP net income was $101 million or $0.85 per diluted share, beating estimates of $0.74 per diluted share, while actual EPS came out at $1.34 relative to estimates at $1.3 for the full year.

HSIC

USD 83.35

3.45%

A-Score: 4.4/10

Publication date: February 24, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Record U.S. Dental Equipment Sales: U.S. dental equipment sales grew 10.6%, highest since post-COVID 2021 recovery, driven by market share gains.
  • Global Specialty Products Growth: Global Specialty Products sales rose 14.6% (11.1% constant currency), led by implant and biomaterials business expansion.
  • Non-GAAP Operating Income Shift: High-growth, high-margin business contributions now account for nearly 50% of total operating income.
  • Share Repurchases: $200 million spent on repurchasing 2.8 million shares at $71.10 average price in Q4 2025.
  • 2026 Financial Guidance: Expects 3-5% sales growth and $5.23-$5.37 non-GAAP diluted EPS, reflecting 5-8% growth from 2025's $4.97.

Segment Performance

The Global Distribution and Value-Added Services group sales grew by 7.0%, driven by U.S. dental merchandise sales growth of 3.6%, U.S. dental equipment sales growth of 10.6%, and international dental equipment sales growth of 13.9%. The Global Specialty Products group sales grew 14.6% or 11.1% in constant currency, driven by solid growth in the implant and biomaterials business. According to Stanley Bergman, the company's performance was driven by "continuing momentum resulting in higher sales growth in 15 quarters."

Valuation and Outlook

With a P/E Ratio of 25.63 and an EV/EBITDA of 13.69, the market seems to have priced in a certain level of growth for Henry Schein. For 2026, the company expects sales growth of 3% to 5% over 2025 and non-GAAP diluted EPS of $5.23 to $5.37, reflecting growth of 5% to 8% compared to 2025 non-GAAP diluted EPS of $4.97. Analysts estimate next year's revenue growth at 3.9%, which is in line with the company's guidance. The company's ROIC of 6.63% and ROE of 11.58% indicate a decent return on investment.

Strategic Initiatives

The company is focused on its BOLD+1 strategic plan, which is driving the direction of the company towards high-growth, high-margin businesses. Henry Schein is also making substantial progress in rolling out its global e-commerce platform, which is expected to enhance customer experience and drive growth. The company's value creation initiatives are expected to achieve annual run-rate operating income improvement of over $125 million by the end of 2026.

Henry Schein's A-Score