AI Takeaway
HSIC delivered 4.0% revenue growth to $13.18B in FY2025 with flat net income of $398M, while EPS rose 7.2% to $3.27 diluted driven by aggressive share buybacks of $850M, though operating cash flow declined 16% and leverage increased notably.
Revenue
$13.18B
++4.03% YoY
EPS (Basic)
$3.29
++7.17% YoY
Gross Margin
31.1%
-0.55% YoY
Operating Income
$653M
++5.15% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
HSIC grew total revenue by 4.0% year-over-year to $13.18B in FY2025, up from $12.67B in the prior year, reflecting continued demand across its distribution and services businesses.
Source: Source: 10-K Income Statement
Gross profit grew only 2.2% to $4.11B while revenue grew 4.0%, causing gross margin to compress slightly from 31.69% to 31.14%, indicating cost of revenue grew faster (4.9%) than the top line.
Source: Source: 10-K Income Statement
SG&A expenses grew a modest 1.6% to $3.08B despite 4.0% revenue growth, helping operating income expand 5.2% to $653M and nudging operating margin up slightly from 4.90% to 4.95%.
Source: Source: 10-K Income Statement
2 more insights available
Upgrade to unlockTotal liabilities surged 19.3% to $6.42B in FY2025 while equity fell 4.4%, resulting in a debt-to-equity ratio of approximately 1.98x. This elevated leverage increases HSIC's sensitivity to interest rate changes and could constrain financial flexibility in a downturn.
Source: Source: 10-K Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.34 versus the $1.33 analyst consensus — a +1.1% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $13.18B | $12.67B | +4.03% |
Cost of Revenue | $9.08B | $8.66B | +4.87% |
Gross Profit | $4.11B | $4.02B | +2.22% |
Operating Income | $653M | $621M | +5.15% |
Net Income | $398M | $398M | 0.00% |
EPS (Basic) | $3.29 | $3.07 | +7.17% |
EPS (Diluted) | $3.27 | $3.05 | +7.21% |
SG&A Expense | $3.08B | $3.03B | +1.65% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $11.21B | $10.22B | +9.76% |
Current Assets | $4.46B | $3.98B | +12.08% |
Total Liabilities | $6.42B | $5.38B | +19.33% |
Current Liabilities | $3.23B | $2.8B | +15.16% |
Stockholders' Equity | $3.25B | $3.39B | -4.36% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $712M | $848M | -16.04% |
Investing Cash Flow | $-400M | $-430M | +6.98% |
Financing Cash Flow | $-188M | $-510M | +63.14% |
Share Buybacks | $850M | $385M | +120.78% |
D&A | $311M | $297M | +4.71% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 31.1% | 31.7% | -0.55% |
Operating Margin | 5.0% | 4.9% | +0.05% |
Net Margin | 3.0% | — | — |
ROE | 12.3% | — | — |
ROA | 3.5% | — | — |
Current Ratio | $1.383 | — | — |
Debt to Equity | $1.979 | — | — |
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HSIC reported FY2025 revenue of $13.18B, up 4.0% year-over-year, with operating income growing 5.2% to $653M. However, net income was flat at $398M and operating cash flow declined 16% to $712M, signaling some underlying financial pressures despite top-line growth.
HSIC's diluted EPS rose 7.2% to $3.27 in FY2025 despite net income remaining flat at $398M because the company repurchased $850M worth of shares — more than double the prior year's $385M — which significantly reduced the share count and boosted per-share earnings.
Key risks include a sharp rise in financial leverage (debt-to-equity of 1.98x after total liabilities surged 19.3%), a 16% decline in operating cash flow, and gross margin compression as cost of revenue grew faster than revenue. The sustainability of the elevated buyback program funded by debt is also a concern.
HSIC's gross margin declined slightly from 31.69% to 31.14% as cost of revenue grew faster than revenue, while operating margin improved marginally from 4.90% to 4.95% due to disciplined SG&A spending. Net margin held steady at approximately 3.02%, reflecting a thin-margin distribution business model.
HSIC's financial health shows mixed signals: the company maintains a current ratio of 1.38x indicating adequate short-term liquidity, but total liabilities jumped 19.3% to $6.42B and stockholders' equity fell 4.4% to $3.25B, pushing leverage to nearly 2x debt-to-equity. The 16% drop in operating cash flow to $712M warrants monitoring going forward.