Henry Schein (NASDAQ:HSIC) Posts Earnings Results

Key Points

• Q1 beat and updated guidance: Henry Schein reported non‑GAAP EPS of $1.32 versus $1.20 expected, revenue +6.3% year‑over‑year and raised FY2026 non‑GAAP EPS guidance to $5.23–$5.37 with sales growth targeted ~3–5%.
• Strategic push under new CEO: CEO Fred Lowry is executing a 100‑day plan to sharpen operations and accelerate AI/software and BOLD+1 initiatives, with management targeting $125M run‑rate savings by end‑2026 and >$200M longer‑term operating‑income improvement to drive faster EPS growth.
• Near‑term risks and cash flow pressure: Medical demand was weak from a light flu season, freight costs pose margin risk, operating cash flow was negative $97M in Q1, and $12M of restructuring charges plus uncertain restructuring costs mean no GAAP guidance was provided.

Henry Schein (NASDAQ:HSIC - Get Free Report) announced its quarterly earnings data on Tuesday. The company reported $1.32 earnings per share for the quarter, beating analysts' consensus estimates of $1.20 by $0.12, Zacks reports. Henry Schein had a net margin of 3.02% and a return on equity of 15.16%. During the same quarter last year, the firm earned $1.15 EPS. The firm's quarterly revenue was up 6.3% compared to the same quarter last year. Henry Schein updated its FY 2026 guidance to 5.230-5.370 EPS.

Here are the key takeaways from Henry Schein's conference call:

• New CEO Fred Lowry is executing a 100‑day plan to sharpen operational execution, accelerate AI/software offerings, and better leverage the company's BOLD+1 platform to convert existing competitive advantages into faster growth.
• Q1 results were strong — global sales of $3.4B (+6.3%), non‑GAAP EPS $1.32 vs $1.15 a year ago, and adjusted EBITDA up 11.6%, driven by U.S. dental strength and Global Technology momentum.
• Management reiterated full‑year 2026 guidance (total sales growth ~3–5%, non‑GAAP EPS $5.23–$5.37) and reaffirmed value‑creation goals of a $125M run‑rate by end‑2026 and >$200M annual operating‑income improvement longer term, supporting a high single‑digit to low double‑digit EPS growth outlook.
• The medical segment was pressured by a light flu season that reduced point‑of‑care diagnostic test demand, and rising oil/freight costs present margin risk even though management says mitigation measures are available.
• Near‑term financial uncertainty remains — operating cash flow was negative $97M in Q1 (seasonal), the company recorded $12M of restructuring charges, and it did not provide GAAP guidance because restructuring costs are not yet estimable.

Henry Schein Price Performance

Shares of NASDAQ HSIC opened at $70.52 on Tuesday. The company has a debt-to-equity ratio of 0.59, a current ratio of 1.38 and a quick ratio of 0.76. The stock has a market capitalization of $8.09 billion, a price-to-earnings ratio of 22.02, a PEG ratio of 2.19 and a beta of 0.82. The firm's 50 day simple moving average is $76.59 and its 200-day simple moving average is $74.85. Henry Schein has a 12 month low of $61.94 and a 12 month high of $89.29.

Insider Activity

In related news, Director Philip A. Laskawy sold 2,844 shares of the firm's stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $80.36, for a total transaction of $228,543.84. Following the sale, the director owned 21,961 shares in the company, valued at approximately $1,764,785.96. This trade represents a 11.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Mark E. Mlotek sold 5,925 shares of Henry Schein stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $80.80, for a total transaction of $478,740.00. Following the completion of the transaction, the executive vice president directly owned 80,554 shares of the company's stock, valued at $6,508,763.20. The trade was a 6.85% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 105,911 shares of company stock valued at $8,574,982 in the last three months. Corporate insiders own 0.89% of the company's stock.

Hedge Funds Weigh In On Henry Schein

A number of hedge funds have recently bought and sold shares of the business. CYBER HORNET ETFs LLC purchased a new stake in shares of Henry Schein in the second quarter valued at approximately $25,000. MUFG Securities EMEA plc purchased a new position in shares of Henry Schein during the 2nd quarter valued at approximately $27,000. Federated Hermes Inc. acquired a new stake in Henry Schein in the 4th quarter valued at $32,000. Los Angeles Capital Management LLC acquired a new stake in Henry Schein in the 4th quarter valued at $37,000. Finally, Palisade Asset Management LLC purchased a new stake in Henry Schein in the 3rd quarter worth $100,000. Hedge funds and other institutional investors own 96.62% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on HSIC shares. Wall Street Zen cut Henry Schein from a "strong-buy" rating to a "buy" rating in a research note on Sunday, April 26th. Citigroup assumed coverage on shares of Henry Schein in a research report on Wednesday, April 15th. They set a "buy" rating and a $100.00 price target for the company. JPMorgan Chase & Co. increased their price objective on shares of Henry Schein from $78.00 to $92.00 and gave the stock an "overweight" rating in a research note on Wednesday, February 25th. Morgan Stanley reissued an "underweight" rating and set a $64.00 target price (up from $61.00) on shares of Henry Schein in a report on Friday, April 24th. Finally, Mizuho boosted their target price on shares of Henry Schein from $81.00 to $88.00 and gave the company a "neutral" rating in a research report on Wednesday, February 25th. Six investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $87.75.

Henry Schein Company Profile

Henry Schein, Inc is a leading global distributor of healthcare products and services, primarily serving office-based dental, medical and animal health practitioners. The company operates through three principal segments—Schein Dental, Schein Medical and Animal Health—each offering a comprehensive portfolio of consumable products, equipment, instruments and related value-added services. With a focus on improving practice efficiency and patient care, Henry Schein provides everything from dental restorative materials and orthodontic appliances to vaccines, pharmaceuticals and diagnostic devices for physicians, as well as pet health products and veterinary equipment for animal health professionals.

In addition to its broad product offering, Henry Schein delivers a suite of technology and service solutions aimed at streamlining workflows and enhancing clinical outcomes.

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