Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Henry Schein (HSIC) delivered 6.3% revenue growth to $3.37B in Q1 2026, but net income declined 2.7% to $107M as SG&A expenses surged 9.6% and operating cash flow turned sharply negative at -$97M.
Revenue
$3.37B
+6.31% YoY
EPS (Diluted)
$0.92
+4.55% YoY
Gross Margin
31.8%
+0.2 pts YoY
Operating Income
$182M
+4.00% YoY
Source: SEC XBRL
Henry Schein (HSIC) reported Q1 FY2026 revenue of $3.37B, up 6.3% year over year. Operating margin was 5.4%, down 0.1 points from 5.5% a year earlier. Operating cash flow was negative $97M. HSIC's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.27 | 1.26 | Beat +0.7% |
| Mar 2026This filing | 1.32 | 1.24 | Beat +6.3% |
| Dec 2025 | 1.34 | 1.33 | Beat +1.1% |
| Sep 2025 | 1.38 | 1.30 | Beat +5.8% |
Adjusted (non-GAAP) EPS of $1.32 versus the $1.24 analyst consensus — a +6.3% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.92.
Compiled by AI from this SEC filing
Total revenue increased 6.3% year-over-year to $3.37B in Q1 2026, up from $3.17B in Q1 2025, indicating solid demand across Henry Schein's dental and medical distribution segments.
Source: 10-Q Income Statement, Q1 2026
Selling, General & Administrative expenses rose 9.6% YoY to $809M, outpacing revenue growth of 6.3% and gross profit growth of 7.0%, compressing the operating margin slightly from 5.52% to 5.40%.
Source: 10-Q Income Statement, Q1 2026
Gross margin held relatively steady at 31.77%, a modest improvement from 31.57% in the prior year period, suggesting the company maintained pricing discipline despite a 6.0% rise in cost of revenue to $2.30B.
Source: 10-Q Income Statement & Key Ratios, Q1 2026
Operating cash flow swung to -$97M in Q1 2026 from +$37M in Q1 2025, a decline of $134M or -362.2%, likely reflecting working capital build-up as current assets grew 11.4% to $4.50B.
Source: 10-Q Cash Flow Statement, Q1 2026
Total liabilities grew 12.5% YoY to $6.48B while stockholders' equity declined 1.3% to $3.27B, pushing the debt-to-equity ratio to 1.98x, indicating rising financial leverage that warrants monitoring.
Source: 10-Q Balance Sheet, Q1 2026
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Henry Schein generated -$97M in operating cash flow in Q1 2026, a dramatic reversal from +$37M in Q1 2025. This cash burn, if sustained, could strain liquidity and limit the company's ability to fund operations, investments, or shareholder returns without additional borrowing.
Source: 10-Q Cash Flow Statement, Q1 2026
SG&A expenses grew 9.6% YoY to $809M, significantly faster than revenue growth of 6.3%. This cost creep is compressing operating margins and could erode profitability further if the company cannot achieve operating leverage in subsequent quarters.
Source: 10-Q Income Statement, Q1 2026
The debt-to-equity ratio reached 1.98x as total liabilities rose 12.5% to $6.48B while equity contracted 1.3% to $3.27B. Elevated leverage increases the company's vulnerability to interest rate changes and limits financial flexibility.
Source: 10-Q Balance Sheet, Q1 2026
Despite a 6.3% increase in revenue, net income fell 2.7% YoY to $107M, highlighting that top-line growth is not translating to bottom-line improvement. The net margin of 3.18% is thin and susceptible to further compression from cost pressures.
Source: 10-Q Income Statement, Q1 2026
Current liabilities grew 13.0% YoY to $3.30B, faster than current assets which grew 11.4% to $4.50B, resulting in a current ratio of 1.36x. While still above 1.0x, the narrowing cushion suggests tightening short-term liquidity.
Source: 10-Q Balance Sheet, Q1 2026
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.37 $B | 3.17 $B | +6.31% |
Cost of Revenue $B | 2.30 $B | 2.17 $B | +6.00% |
Gross Profit $B | 1.07 $B | 1.00 $B | +7.00% |
Operating Income $M | 182.00 $M | 175.00 $M | +4.00% |
Net Income $M | 107.00 $M | 110.00 $M | -2.73% |
EPS (Basic) $ | 0.93 $ | 0.89 $ | +4.49% |
EPS (Diluted) $ | 0.92 $ | 0.88 $ | +4.55% |
SG&A Expense $M | 809.00 $M | 738.00 $M | +9.62% |
Answers draw on this SEC filing and the data on this page
Henry Schein achieved a 6.7% revenue increase and 17.1% diluted EPS growth in Q2 FY2026, supported by internal demand across all segments and improved gross margin.
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.
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