GET DAILY SIGNALSHenry Schein (HSIC) Reports Strong Q3 2026 Earnings with +19% EPS Growth and Upgraded Outlook
Key Takeaways
- Henry Schein reported third quarter 2026 adjusted earnings per share (EPS) of $1.56, up 19% year over year and well above the consensus estimate of $1.36.
- Net sales rose 4.0% to $3.47 billion, though the figure came in slightly below the roughly $3.48 billion analysts had expected.
- The company raised its full-year 2026 adjusted EPS guidance to a range of $5.50 to $5.56, above the consensus estimate of $5.39.
- Adjusted EBITDA reached $321 million, up 8.8%, with adjusted EBITDA margin expanding 40 basis points to 9.24%.
- U.S. dental merchandise sales grew 8.6%, driven primarily by volume and market share gains in a stable dental market.
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Earnings Context and Why It Matters
Henry Schein stands as the world's largest provider of healthcare solutions to office-based dental and medical practitioners, so its quarterly results offer a clear window into demand trends in dental and ambulatory care. The company has posted consistent earnings beats, topping consensus EPS estimates in six of the past eight quarters while advancing a multi-year plan to improve operating margins. Third-quarter results come against a backdrop of ongoing cost inflation and softer point-of-care diagnostics, so the ability to turn revenue growth into stronger profitability remains central for investors. The raised full-year outlook reflects management confidence as the year winds down.
Reported Results
For the fiscal third quarter ended September 26, 2026, Henry Schein delivered adjusted EPS of $1.56, marking a 19% rise from the prior-year period and roughly a 14.7% beat relative to the $1.36 consensus. Net sales increased 4.0% to $3.47 billion from $3.34 billion a year earlier, falling just short of the approximately $3.48 billion expected by analysts.
Profitability stood out. Adjusted EBITDA rose to $321 million from $295 million in the year-ago quarter, an 8.8% gain that exceeded revenue growth and expanded the adjusted EBITDA margin by 40 basis points to 9.24%. U.S. dental merchandise sales advanced 8.6%, led by higher volumes rather than pricing, while global dental distribution merchandise revenue climbed 7.0%. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Management raised its fiscal 2026 outlook, now guiding to adjusted EPS of $5.50 to $5.56 — above the $5.39 consensus midpoint — and lifted its adjusted EBITDA growth expectation to high-single-digit growth. The updated guidance includes net tariff refund benefits recognized in the third quarter, with no significant additional refunds assumed for the balance of the year.
Market Reaction and Investor Sentiment
The initial market response was subdued. Despite the stronger profit and raised guidance, Henry Schein shares declined roughly 0.72% in premarket trading after the report. The modest top-line miss and the role of tariff refunds in supporting the earnings beat appeared to limit enthusiasm. Sentiment stays supported by the pattern of consistent EPS beats, expanding adjusted margins, and the improved full-year outlook. Investors continue to weigh the staying power of U.S. dental merchandise momentum against softer diagnostics demand and challenges in markets such as Brazil.
Forward Outlook and Key Factors to Monitor
Looking ahead, attention turns to whether Henry Schein can maintain margin expansion through the fourth quarter and into fiscal 2027. Management highlighted continued strength in order levels, which remain above both prior-year and prior-quarter figures, and noted that the U.S. dental market stays stable with steady patient traffic.
One area to follow is the mix of growth drivers. The third-quarter outperformance relied on volume-led U.S. dental merchandise gains and tariff refund benefits rather than broad pricing power. With no significant additional tariff refunds expected for the rest of the year, investors will look for underlying operations to sustain the momentum.
Cost pressures remain relevant. The company continues to manage inflation in cost of goods sold through productivity efforts, strategic pricing, and lower-priced company-owned brands. Discretionary dental procedures have shown some softness as patients consider out-of-pocket costs, though management has indicated this has not materially altered current growth expectations.
Finally, the technology segment and AI-enabled solutions represent an emerging catalyst, with cloud-based platform subscribers continuing to grow. Investors will likely track whether these higher-margin businesses advance toward the company’s operating income targets alongside further progress on its value creation initiatives.
Exploring AI Tools for Deeper Analysis
In my analysis of names like Henry Schein, I often turn to Tickeron’s AI-powered tools to cross-check patterns and signals across the healthcare distribution space. The AI Screener stands out for its ability to filter thousands of stocks and ETFs by technical patterns, fundamentals, trends, and performance metrics, helping surface comparable setups more efficiently than manual methods. From what I see, it provides a structured approach to identifying momentum and breakout candidates in the sector.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
HSIC in upward trend: price rose above 50-day moving average on November 02, 2026
HSIC moved above its 50-day moving average on November 02, 2026 date and that indicates a change from a downward trend to an upward trend. In 24 of 35 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 69%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 31 of 55 cases where HSIC's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 56%.
The Momentum Indicator moved above the 0 level on November 02, 2026. You may want to consider a long position or call options on HSIC as a result. In 53 of 97 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 55%.
The Moving Average Convergence Divergence (MACD) for HSIC just turned positive on October 13, 2026. Looking at past instances where HSIC's MACD turned positive, the stock continued to rise in 22 of 44 cases over the following month. The odds of a continued upward trend are 50%.
Following a +2.60% 3-day Advance, the price is estimated to grow further. Considering data from situations where HSIC advanced for three days, in 160 of 294 cases, the price rose further within the following month. The odds of a continued upward trend are 54%.
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HSIC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 57%.
HSIC broke above its upper Bollinger Band on October 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for HSIC entered a downward trend on October 19, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 22 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 45 (best 1 - 100 worst), indicating steady price growth. HSIC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 64 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.058) is normal, around the industry mean (12.613). P/E Ratio (25.035) is within average values for comparable stocks, (10.633). Projected Growth (PEG Ratio) (1.715) is also within normal values, averaging (2.016). Dividend Yield (0.000) settles around the average of (0.138) among similar stocks. P/S Ratio (0.750) is also within normal values, averaging (4.260).
The Tickeron Profit vs. Risk Rating rating for this company is 81 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. HSIC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock worse than average.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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a distributer of healthcare products and services
Industry MedicalDistributors
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