Henry Schein 2025 Q2 Earnings Misses Targets, EPS Declines 12.3%

Henry Schein reported its fiscal 2025 Q2 earnings on August 6, 2025. The company beat revenue expectations but missed EPS forecasts, and maintained its full-year guidance. Investors reacted negatively, sending shares sharply lower in the days following the report.

Revenue
Henry Schein reported total revenue of $3.24 billion for fiscal 2025 Q2, a 3.3% increase from the same period in 2024. The growth was driven by strong internal sales expansion and favorable foreign exchange effects, with the Global Distribution and Value-Added Services segment leading with $2.73 billion in sales. Global Specialty Products posted a 4.2% increase, reaching $386 million, supported by growth in implant and biomaterials, while Global Technology saw a robust 7.4% rise to $167 million, fueled by demand for cloud-based dental practice management systems. The company also recorded a $23 million restructuring charge during the quarter, but expects annual savings of over $100 million by year-end.

Earnings/Net Income
Henry Schein’s earnings per share (EPS) declined 12.3% to $0.71 in Q2 2025, missing the consensus of $1.20 and falling short of $0.81 in the prior-year period. Despite the drop, the company remains profitable, continuing its streak of profitability in the same quarter for over two decades.

Price Action
Shares of Henry Schein have fallen significantly in the post-earnings period, declining 2.16% on the latest trading day, 7.45% over the past week, and 13.18% month-to-date. As of Tuesday, the stock was trading at $64.37, down 8.8% from its previous close.

Post-Earnings Price Action Review
Historically, a strategy of buying Henry Schein shares following a revenue increase and holding for 30 days has underperformed over the past three years. The approach yielded a compound annual growth rate (CAGR) of -0.65% and an excess return of -50.46%, compared to a benchmark return of 48.58%. The strategy exhibited a high-risk, low-reward profile, with a maximum drawdown of 0.00% and a Sharpe ratio of -0.03.

CEO Commentary
Stanley M. Bergman, Chairman and CEO, noted strong performance in Global Specialty Products and Technology, driven by innovation and cost efficiencies. However, the U.S. segment faced margin pressure due to promotional activities around dental gloves and short-term sales initiatives. The company has returned to normal promotional levels and remains committed to its full-year guidance. Bergman emphasized ongoing collaboration with KKR Capstone and two global consulting firms to improve distribution margins and accelerate owned-products sales, with expected results emerging in early 2026.

Guidance
Henry Schein reaffirmed its 2025 non-GAAP diluted EPS guidance of $4.80 to $4.94, reflecting 1% to 4% growth, and expects mid-single-digit Adjusted EBITDA and total sales growth of 2% to 4%. The company anticipates earnings to be weighted toward the second half of the year and sees 2025 as a foundational year for achieving long-term earnings growth.

Additional News
On August 6, 2025, Henry Schein’s stock fell sharply following the Q2 earnings report. The company reported adjusted earnings of $1.10 per share, down 10.6% year over year, missing the $1.20 consensus. Despite the EPS miss, revenue of $3.24 billion exceeded the $3.22 billion forecast. Strong international sales in dental equipment and cloud-based practice management systems offset weaker performance in the U.S. The company also announced a $23 million restructuring charge and expects annual savings of over $100 million. Analysts from William Blair noted that while the 2026 outlook is encouraging, second-half execution will be critical for long-term valuation and share upside.