Henry Schein Q2 Earnings Miss Estimates, Revenue Grows 3.3%

Henry Schein's Q2 EPS dropped 11% to $1.10, missing analyst expectations by 7.6%. Revenue reached $3.24 billion, increasing 3.3% compared to the prior-year period. Profitability and margins fell due to softening U.S. dental sales and declining GAAP and non-GAAP net income and Adjusted EBITDA compared to the prior-year period. The company's focus on expanding specialty products, technology solutions, and value-added services, as well as strategic acquisitions and partnerships, remains key to its success.

Henry Schein, Inc. (Nasdaq: HSIC) reported its second-quarter 2025 financial results, showing mixed performance with a notable drop in earnings per share (EPS) and a slight increase in revenue. The company's quarterly GAAP diluted EPS fell to $0.70, a 11% decline compared to the same period in 2024, which was $0.80 per share [1]. Non-GAAP diluted EPS dropped to $1.10, down 11% from $1.23 in the second quarter of 2024 [1].

Total net sales for the quarter reached $3.2 billion, a 3.3% increase from the prior-year period. This growth was driven by a 1.9% internal sales growth, a 0.8% sales growth from acquisitions, and a 0.6% increase due to foreign currency exchange [1].

However, profitability and margins fell due to softening U.S. dental sales. Global Dental Distribution merchandise sales increased by 0.3%, but decreased 0.4% in constant currencies compared to the same period last year. U.S. volume increased at lower average selling prices, partly due to lower glove pricing and time-limited targeted sales initiatives [1].

The company's Specialty Products and Technology Groups continued to deliver strong results, driven primarily by sales from innovative products and solutions, and cost efficiencies [1]. Global Technology sales increased by 7.4%, with practice management systems like Dentrix Ascend and Dentally cloud-based solutions contributing significantly to this growth [1].

Henry Schein's focus on expanding specialty products, technology solutions, and value-added services, as well as strategic acquisitions and partnerships, remains key to its success. The company is maintaining its guidance for 2025, expecting non-GAAP diluted EPS to be $4.80 to $4.94, reflecting growth of 1% to 4% over 2024 [1].

The company also reported that it repurchased approximately 3.7 million shares of common stock at an average price of $70.88 per share for a total of $259 million during the second quarter of 2025 [1].

References:
[1] https://investor.henryschein.com/news-releases/news-release-details/henry-schein-reports-second-quarter-2025-financial-results