Henry Schein, Inc. (HSIC) reported fourth‑quarter 2025 results that surpassed analyst expectations, with revenue of $3.44 billion—up 7.7% year‑over‑year—and GAAP earnings per share of $0.85, a beat against consensus estimates of $0.74 or $1.02. Non‑GAAP EPS reached $1.34, outpacing the $1.30 estimate by $0.04. The earnings beat was driven by strong demand in the company’s dental equipment, specialty products, and technology segments, coupled with disciplined cost management and an ongoing share‑repurchase program that helped lift earnings per share.
The company’s global equipment and specialty products divisions posted robust growth, while its technology business continued to expand, contributing to the overall revenue increase. A favorable product mix shift toward higher‑margin items helped offset modest cost inflation in raw materials and logistics, supporting the company’s ability to maintain earnings momentum.
Margin analysis shows that the non‑GAAP operating margin remained flat year‑over‑year, despite a 19‑basis‑point contraction in gross margin driven by higher cost of sales. Adjusted operating margin contracted 57 basis points, reflecting the impact of a mix shift toward lower‑margin specialty products and the cost of integrating new acquisitions. Nevertheless, the company’s pricing power in core dental and technology markets helped stabilize profitability.
For 2026, Henry Schein reaffirmed its sales guidance of $13.58 billion to $13.84 billion—representing a 3% to 5% increase over 2025—and an adjusted EPS range of $5.23 to $5.37. The guidance signals management’s confidence in continued execution of the 2025‑2027 BOLD+1 strategic plan, which focuses on high‑margin growth and operational efficiencies. The company also announced that Fred Lowery will assume the CEO role next week, succeeding Stanley M. Bergman, a transition that underscores leadership continuity.
Market reaction to the results was positive: analysts at Baird upgraded the stock to “Outperform,” while JP Morgan maintained an “Overweight” rating. The earnings beat and steady guidance, combined with the BOLD+1 plan, reinforced investor confidence in Henry Schein’s growth trajectory.
Management emphasized the company’s progress, stating, “The growth we have achieved, especially over the second half of 2025, demonstrates the effective execution of our 2025‑2027 BOLD+1 strategic plan, and positions us well for the future.” The upcoming CEO transition to Fred Lowery is expected to further strengthen the company’s strategic direction.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.