Henry Schein raises its 2026 profit outlook despite missing third-quarter revenue expectations
Full-year adjusted earnings guidance moves to $5.50 to $5.56 a share from $5.29 to $5.39, and adjusted EBITDA growth is now seen in the high single digits.
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Henry Schein raised its 2026 profit guidance on Tuesday even though third-quarter revenue of $3.47B came in below the $3.55B expected. It now sees full-year non-GAAP diluted earnings per share of $5.50 to $5.56, up from a prior range of $5.29 to $5.39. Adjusted EBITDA growth is now guided to the high single digits, up from mid-to-high single digits.
The quarter itself was soft on both lines. Earnings per share of $1.37, excluding a net tariff refund benefit, were $0.01 below expectations. A weaker top line paired with a clearly higher profit target suggests management is relying on market share gains and cost discipline, not revenue growth, to hit its numbers.
CEO Fred Lowery said U.S. dental merchandise sales grew 8.6%, mainly on market share gains, and that this drove 19.1% adjusted EPS growth excluding tariff refunds and prior-year remeasurement gains. The tariff refund was a one-time item that flattered this quarter's comparison, and it will not be there to help the next one.
The company also bought back about 1.4 million shares for $125m in the quarter. About $330m remains authorized, which looks like a sign that management thinks the shares undervalue its improved earnings outlook.
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Henry Schein announces that Emmanuel Caprais, former Senior Vice President and Chief Financial Officer of ITT, will become the company's Senior Vice President and Chief Financial Officer effective November 4, 2026, after joining in an advisory capacity on October 12, 2026 to support the transition. Current CFO Ronald N. South, who has served in the role for four years and with the company for nearly two decades, will transition to a Senior Advisor role effective November 4, 2026. Mr. Caprais will report to Chief Executive Officer Frederick M. Lowery.