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 delivered broad-based revenue growth in Q2 FY2026, with internal constant currency sales rising 4.6% driven by strength in dental merchandise and technology solutions. Management attributed the improvement in profitability to favorable product mix and early benefits from value creation initiatives. However, results included $29 million in restructuring charges from the ongoing 2024 Plan, and operating cash flow declined from the prior year period, reflecting higher working capital needs.
Revenue
$3.46B
+6.73% YoY
EPS (Diluted)
$0.82
+17.14% YoY
Gross Margin
31.8%
+0.5 pts YoY
Operating Income
$171M
+13.25% YoY
Source: SEC XBRL
Henry Schein (HSIC) reported Q2 FY2026 revenue of $3.46B, up 6.7% year over year. Operating margin was 4.9%, up 0.2 points from 4.7% a year earlier. HSIC's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 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% |
| Jun 2025 | 1.10 | 1.22 | Miss -9.5% |
3 reported segments · SEC XBRL
Segment revenue totals $3.46B, which is the $3.46B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure HSIC itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Internal constant currency sales grew 4.6%, with dental merchandise up 5.9%, dental equipment 2.2%, medical 3.9%, specialty products 3.2%, and technology up 9.1%—the highest internal growth rate among segments.
Source: 10-Q Item 2 MD&A
Gross margin improvement to 31.8% was attributed to favorable business mix and early benefits from value creation initiatives, particularly in the distribution segment.
Source: 10-Q Item 2 MD&A
The company recorded $29 million in restructuring charges, primarily for severance and facility exits, as part of a multi-year plan to integrate acquisitions and right-size operations.
Source: 10-Q Item 2 MD&A
Frederick M. Lowery assumed the role of CEO on March 2, 2026, succeeding Stanley Bergman, who retired; the Board also appointed a new Chairman.
Source: 10-Q Item 2 MD&A
Tariffs did not materially impact Q2 results, and the company received immaterial refunds of certain tariffs; additional refunds are expected in Q3 FY2026.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 0 high, 4 medium, 1 low
Year-to-date operating cash flow fell 7.6% to $145 million despite higher net income, signaling potential working capital pressures or cash conversion issues.
Source: 10-Q Cash Flow Statement (XBRL)
The 2024 restructuring plan, with $41 million in charges year-to-date, could disrupt operations, incur further costs, or fail to achieve targeted efficiencies given its multi-year timeline.
Source: 10-Q Income Statement (XBRL)
Total liabilities increased 10.8% and equity declined 8.4%, raising the debt-to-equity ratio to 2.11; interest expense rose due to higher borrowings, potentially straining financial flexibility.
Source: 10-Q Balance Sheet (XBRL)
The recent appointment of a new CEO in March 2026 could lead to shifts in strategy or execution, posing a risk to near-term operational stability.
Source: 10-Q Item 2 MD&A
Evolving U.S. tariffs and potential retaliatory measures could increase import costs or disrupt supply chains; while not material in Q2, future policy changes could impact margins.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.46 $B | 3.24 $B | +6.73% |
Cost of Revenue $B | 2.36 $B | 2.22 $B | +5.98% |
Gross Profit $B | 1.10 $B | 1.02 $B | +8.37% |
Operating Income $M | 171.00 $M | 151.00 $M | +13.25% |
Net Income $M | 94.00 $M | 86.00 $M | +9.30% |
EPS (Basic) $ | 0.83 $ | 0.71 $ | +16.90% |
EPS (Diluted) $ | 0.82 $ | 0.70 $ | +17.14% |
SG&A Expense $M | 831.00 $M | 778.00 $M | +6.81% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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.
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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