Henry Schein, Inc.

Second-quarter 2026 global sales were $3.5 billion, up 6.7% from Q2 2025, driven by 4.6% internal local currency growth, 1.4% foreign exchange benefit, and 0.7% acquisition growth. GAAP net income was $94 million, or $0.82 per diluted share, versus $86 million, or $0.70, last year; non-GAAP net income was $145 million, or $1.27 per diluted share, versus $135 million, or $1.10. GAAP operating margin was 4.94%, up 27 basis points, and non-GAAP operating margin was 7.21%, up 25 basis points; adjusted EBITDA was $288 million versus $256 million, up 12.7%. For 2026, management raised total sales growth guidance to 4.5% to 5.5% from 3% to 5%, and non-GAAP diluted EPS guidance to $5.29 to $5.39 from $5.23 to $5.37. The company expects 2026 adjusted EBITDA to grow in the mid- to high single digits, assumes a non-GAAP tax rate of about 24%, and said operating cash flow remains on track to exceed net income for the full year.

Fred Lowery struck an upbeat but disciplined tone, saying the quarter showed strong sales performance, margin improvement, and early benefits from value creation initiatives. He emphasized faster growth, simplification, operational rigor, and deeper customer relationships as the core priorities, while also describing Henry Schein as a potential "practice improvement platform" rather than just a distributor. He highlighted Dentrix Ascend, own-brand products, DSOs, specialty, and Home Solutions as key growth vectors, and said the company sees a long runway to improve both revenue growth and profitability.

Ron South focused on the numbers and the bridge to the raised guide. He cited 4.6% internal local currency sales growth, 10.5% non-GAAP operating income growth, 15.5% non-GAAP EPS growth, and 25 basis points of non-GAAP operating margin expansion to 7.21%. He said the company repurchased about 2.6 million shares for $200 million at an average price of $76.69, ended the quarter with about $455 million authorized for repurchases, and generated $242 million of operating cash flow. On value creation, he reiterated a $125 million run rate exiting 2026 and more than $200 million of operating income improvement over the next few years, with about 40% of 2026 benefits from gross profit initiatives and 60% from G&A savings.

Analysts focused on what is driving the stronger-than-expected U.S. dental consumables growth, and management said it is seeing a bit more price than volume, with gains from own brands, DSOs, converting episodic buyers into regular customers, and exclusive products like Curodont. Questions also probed the value creation math and the modest EPS raise versus the revenue raise; management said the guide reflects later-year benefits, no further remeasurement gains, and the fact that some 2025 gains will not recur. Other questions centered on specialty margins, equipment trends, and AI in Henry Schein One, where management said premium implant strength in Europe boosted margins, U.S. equipment should return to growth in the second half, and AI is helping drive higher software tiers and more share of wallet.