Henry Schein Inc (NASDAQ:HSIC) Beats Q3 2025 Earnings Estimates and Raises Full-Year Guidance

Henry Schein Inc (NASDAQ:HSIC) has reported financial results for the third quarter of 2025, delivering a performance that notably exceeded analyst expectations on profitability while coming in just shy on the top line. The company also raised its full-year earnings guidance, signaling confidence in its ongoing operational momentum.

Earnings and Revenue Versus Estimates

The dental and medical products distributor posted a mixed quarter relative to analyst forecasts, with a clear strength in earnings per share.

• Non-GAAP EPS: Reported $1.38 per diluted share, surpassing the analyst consensus estimate of $1.30.
• Revenue: Reported $3.34 billion, slightly below the analyst estimate of $3.34 billion.

The ability to deliver stronger-than-expected earnings despite a marginal revenue miss suggests improved operational efficiency and cost management during the quarter. This outperformance on the bottom line appears to be the primary driver behind the positive market reaction.

Market Reaction

The market responded favorably to the earnings beat and raised guidance. In pre-market trading, Henry Schein's stock was up approximately 7%, indicating strong investor approval of the results. This positive price action reflects investor focus on the company's profitability and future earnings potential, as outlined in its updated guidance, outweighing the slight revenue shortfall.

Third Quarter 2025 Financial Highlights

The company's press release detailed record results for the quarter, highlighting broad-based growth and a recovery from past challenges.

• Sales Growth: Total net sales increased 5.2% year-over-year to $3.3 billion, with internal sales growth of 3.3%.
• Segment Performance: All major segments showed growth, with Global Technology sales leading the way with a 9.7% increase. Global Dental Distribution equipment sales grew 5.5%, and Global Specialty Products sales increased 5.9%.
• Profitability: GAAP net income was $101 million, up from $99 million in the prior year. More significantly, non-GAAP net income rose to $167 million from $155 million, and Adjusted EBITDA improved to $295 million from $268 million.
• Capital Return: The company repurchased 3.3 million shares of common stock for a total of $229 million during the quarter.

Updated 2025 Financial Guidance

In a key takeaway from the report, Henry Schein raised its full-year outlook, reflecting the solid third-quarter performance and a positive trajectory.

• The company raised its 2025 non-GAAP EPS guidance to a range of $4.88 to $4.96, up from the previous range of $4.80 to $4.94. This new range implies year-over-year growth of 3% to 5%.
• Total sales growth guidance was also raised to approximately 3% to 4% over 2024, compared to the prior outlook of 2% to 4% growth.

This upgraded guidance compares favorably to the current analyst consensus, which sits near the bottom of the company's new EPS range, further bolstering investor confidence.

Strategic Developments

Management emphasized that the disruptive effects of a 2023 cyber incident are now "fully behind us," allowing the company to refocus on growth initiatives. The company also highlighted progress on its "BOLD+1" strategy and value-creation initiatives in partnership with KKR, which it believes can deliver over $200 million in operating income improvements in the coming years. Notably, the board approved an amendment allowing KKR to increase its ownership stake in Henry Schein to up to 19.9%.

For a detailed look at historical earnings, future estimates, and analyst projections, you can review the earnings and estimates data for HSIC.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. The information presented should not be construed as a recommendation to buy or sell any security. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.