Henry Schein (HSIC) Down 9.4% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Henry Schein (HSIC). Shares have lost about 9.4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Henry Schein due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Henry Schein, Inc. before we dive into how investors and analysts have reacted as of late.

HSIC Q4 Earnings & Revenues Beat Estimates, Margins Down

Henry Schein, Inc. (HSIC) registered fourth-quarter 2025 adjusted earnings per share (EPS) of $1.34, up 12.6% from the year-ago period’s figure. The bottom line also surpassed the Zacks Consensus Estimate by 3.1%.

Excluding adjustments, such as restructuring costs, acquisition intangible amortization and others, the company reported a GAAP EPS of 85 cents compared with the year-ago quarter’s 74 cents.

Full-year 2025 adjusted EPS of $4.97 was up 4.8% from the year-ago period’s figure. The bottom line surpassed the Zacks Consensus Estimate by 1.2%.

HSIC’s Revenues in Detail

Henry Schein reported fourth-quarter net sales of $3.44 billion, up 7.8% year over year. The metric also beat the Zacks Consensus Estimate by 3.1%.

This reflects 4.9% internal sales growth, 0.9% sales growth from acquisitions and a 1.9% increase resulting from foreign currency exchange.

Full-year 2025 net sales of $13.18 billion were up 4% year over year. The metric beat the Zacks Consensus Estimate by 0.8%.

HSIC’s Q4 Segmental Analysis

Global Distribution and Value-Added Services

Sales in the segment rose 7% year over year on a reported basis (up 5.2% in constant currencies) to $2.89 billion. Our model forecast was $2.81 billion.

Global Dental Distribution merchandise sales for the quarter rose 3.7% in constant currencies, reflecting continuing strong sales momentum from the prior quarter.

Global Dental Distribution equipment sales increased 9.1% at cc. Sales improvement was driven by strong growth in the United States, Germany, Brazil, Canada and Australia.

Global Medical Distribution sales for the quarter jumped 4.8% at cc, reflecting good underlying growth in medical products despite softness in the respiratory product category.

Global Value-added Services sales for the quarter increased 8.5% at cc. Sales growth was driven by consulting services.

Global Specialty Products

Sales totaled $422 million, up 14.6% on a reported basis (11.1% in constant currencies). This reflected strong overall dental implant and endodontics sales growth. Our model forecast was $389.7 million.

Global Technology

The segment’s sales totaled $173 million, up 8.4% on a reported basis and up 7.6% at cc, led by accelerated adoption of cloud-based software and sales growth from recently launched revenue cycle management solutions. Our model projected $175.5 million for this segment.

HSIC’s Margin Performance

In the reported quarter, the gross profit totaled $1.06 billion, representing 7% increase year over year. The gross margin contracted 19 basis points (bps) to 30.9% due to an 8% rise in the cost of sales.

SG&A expenses increased 9.5% to $808 million in the quarter under review. The adjusted operating profit was $255 million, flat year over year. The adjusted operating margin contracted 57 bps year over year to 7.4%.

Liquidity Position of HSIC

Henry Schein exited the fourth quarter of 2025 with cash and cash equivalents of $156 million compared with $122 million at the end of the fourth quarter of 2024.

Cumulative net cash provided by operating activities at the end of the reported quarter was $712 million, down from the year-ago figure of $848 million.

During the reported quarter, HSIC repurchased nearly 2.8 million shares of its common stock at an average price of $71.10 per share for a total of approximately $200 million. At the end of the reported quarter, Henry Schein had $780 million authorized and available for future stock repurchases.

HSIC’s 2026 Guidance

The company expects 2026 total sales growth to be between 3% and 5%. The Zacks Consensus Estimate for sales is currently pegged at $13.53 billion, indicating 3.5% year-over-year growth.

Non-GAAP diluted EPS for 2026 is expected to be in the band of $5.23-$5.37. The Zacks Consensus Estimate for earnings is pegged at $5.27 per share.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

Currently, Henry Schein has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Henry Schein has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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