Henry Schein Inc (NASDAQ:HSIC) closed its 2025 fiscal year on a strong note, reporting fourth-quarter results that surpassed analyst expectations and providing a steady outlook for the year ahead. The company’s performance, coupled with a significant share repurchase program, appears to have been received positively by the market in early trading.
Earnings and Revenue: A Clean Beat
The global distributor of healthcare products delivered a solid top and bottom-line beat for the fourth quarter, capping off a year of measured growth.
- Revenue: The company reported Q4 net sales of $3.44 billion, exceeding the analyst consensus estimate of approximately $3.41 billion. This represents a 7.7% increase compared to the fourth quarter of 2024.
- Earnings Per Share (Non-GAAP): Adjusted diluted EPS came in at $1.34, beating the Street’s forecast of $1.33. This compares to $1.19 per share in the prior-year period.
For the full year 2025, total net sales reached $13.2 billion, a 4.0% increase over 2024. Non-GAAP net income for the year was $605 million, or $4.97 per diluted share, matching the dollar amount of 2024 but showing growth on a per-share basis.
Market Reaction and Capital Return
The market’s initial reaction to the report has been favorable. In pre-market trading following the earnings release, Henry Schein’s stock showed an uptick of approximately 1.8%. This positive movement suggests investors are encouraged by the earnings beat and the company’s forward guidance.
A significant factor in the shareholder return story is the company’s aggressive share repurchase activity. During the fourth quarter, Henry Schein bought back 2.8 million shares for $200 million. For the full year, repurchases totaled a substantial $850 million, reducing the share count by approximately 12.1 million shares. The company ended the year with $780 million still authorized for future buybacks.
Strategic Highlights and Segment Performance
Chairman and CEO Stanley Bergman highlighted the results as evidence of successful execution under the company’s strategic plan. The press release emphasized broad-based strength, with particular momentum in the second half of the year. Key segment performances for the quarter included:
- Global Dental Equipment Sales: Increased 12.2%, showing strong demand in key markets like the U.S., Germany, and Brazil.
- Global Specialty Products: Sales grew 14.6%, driven by dental implants and endodontics.
- Global Technology: Sales rose 8.4%, fueled by cloud-based software adoption.
The company also noted the impending leadership transition, with Fred Lowery set to succeed Bergman as CEO in the coming week.
2026 Guidance vs. Analyst Expectations
Looking ahead, Henry Schein provided its financial outlook for 2026. The guidance appears generally in line with, or slightly above, current analyst projections, indicating expectations for continued steady growth.
- Sales Growth: The company expects total sales growth of approximately 3% to 5% over 2025. Based on the 2025 sales of $13.2 billion, this implies a 2026 revenue range of roughly $13.6 billion to $13.86 billion. This aligns with the current analyst consensus estimate for 2026 sales of about $13.8 billion.
- Earnings Per Share: Management guided for 2026 non-GAAP diluted EPS in the range of $5.23 to $5.37. The midpoint of this guidance, $5.30, sits comfortably above the current consensus estimate for Q1 2026 EPS of $1.29, though full-year 2026 EPS estimates from analysts were not provided in the context for a direct comparison. The guidance suggests confidence in mid-single-digit growth in Adjusted EBITDA.
Conclusion
Henry Schein’s fourth-quarter earnings report delivered a straightforward beat on both revenue and profit, supported by robust performance across its dental, specialty, and technology businesses. The company’s commitment to returning capital to shareholders is evident in its substantial buyback program. The provided 2026 guidance reinforces a narrative of stable, executable growth, which seems to have resonated positively with investors in the immediate aftermath of the release.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice, nor a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
