Henry Schein Q1 2026 earnings, EPS up 14.8%
Henry Schein, Inc. reported solid first-quarter 2026 results, with net sales of $3.37 billion, up 6.3% from the prior year.
Rhea-AI Filing Summary
Henry Schein, Inc. reported solid first-quarter 2026 results, with net sales of $3.37 billion, up 6.3% from the prior year. GAAP diluted EPS rose to $0.92 from $0.88, while non-GAAP diluted EPS increased to $1.32 from $1.15, a 14.8% gain.
Adjusted EBITDA grew to $289 million from $259 million, reflecting improved profitability. The company repurchased 1.6 million shares for $125 million and reaffirmed its 2026 outlook, including non-GAAP EPS of $5.23–$5.37, total sales growth of 3%–5%, and mid-single-digit Adjusted EBITDA growth.
Positive
- Strong earnings expansion: Q1 2026 non-GAAP diluted EPS rose to $1.32 from $1.15, a 14.8% increase, and Adjusted EBITDA grew to $289 million from $259 million, indicating improved profitability.
- Confident 2026 outlook: Management reaffirmed 2026 guidance, including non-GAAP EPS of $5.23–$5.37, total sales growth of approximately 3%–5%, and mid-single-digit Adjusted EBITDA growth, while targeting over $200 million of operating income improvement over the next few years.
Negative
- Weaker GAAP profit and cash flow: GAAP net income attributable to Henry Schein declined to $107 million from $110 million, and operating activities used $97 million of cash in Q1 2026 versus providing $37 million in Q1 2025, reflecting less favorable working-capital movements.
Insights
Q1 2026 shows healthy EPS and EBITDA growth with guidance reaffirmed.
Henry Schein delivered Q1 2026 net sales of $3.37 billion, up 6.3% year over year, driven by Global Distribution and Value-Added Services growth of 6.1% and Global Specialty Products up 8.1%. Mix and cost control supported higher profitability.
GAAP diluted EPS increased to $0.92, while non-GAAP diluted EPS rose to $1.32, a 14.8% increase, and Adjusted EBITDA climbed to $289 million from $259 million. Management reaffirmed 2026 guidance, targeting non-GAAP EPS of $5.23–$5.37 and total sales growth of 3%–5%, suggesting confidence in ongoing value-creation initiatives expected to add over $200 million of operating income over the next few years.
One watchpoint is cash generation: operating activities used $97 million in Q1 2026 versus providing $37 million a year earlier, largely from working-capital movements such as lower accounts payable. Subsequent quarterly filings will clarify whether this is timing-related or a sustained cash-flow pressure.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Net sales: $3,368 million
GAAP diluted EPS: $0.92 per share
Non-GAAP diluted EPS: $1.32 per share
+5 more
8 metrics
Net sales
$3,368 million
Q1 2026 net sales, up 6.3% vs. Q1 2025
GAAP diluted EPS
$0.92 per share
Q1 2026 vs. $0.88 in Q1 2025 (4.5% growth)
Non-GAAP diluted EPS
$1.32 per share
Q1 2026 vs. $1.15 in Q1 2025 (14.8% growth)
Adjusted EBITDA
$289 million
Q1 2026 Adjusted EBITDA vs. $259 million in Q1 2025
GAAP net income
$107 million
Q1 2026 net income attributable to Henry Schein vs. $110 million prior year
Operating cash flow
-$97 million
Net cash used in operating activities in Q1 2026 vs. $37 million provided in Q1 2025
Share repurchases
$125 million
1.6 million shares repurchased in Q1 2026 at $77.64 average price
2026 non-GAAP EPS guidance
$5.23–$5.37
Reaffirmed full-year 2026 non-GAAP diluted EPS range
Key Terms
Adjusted EBITDA, non-GAAP diluted EPS, internal sales growth, restructuring and related costs, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA 3 for the quarter was $289 million and compares with first-quarter 2025 Adjusted EBITDA of $259 million."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
non-GAAP diluted EPS financial
"Q1 2026 non-GAAP diluted EPS of $1.32 compared to $1.15 non-GAAP diluted EPS in Q1 2025"
Non-GAAP diluted EPS (Earnings Per Share) is a measure of a company's profit allocated to each share of stock, calculated using adjusted earnings that exclude certain items like one-time expenses or gains. It provides a view of ongoing performance by removing irregular or non-recurring factors. Investors use it to better understand the company's core profitability and compare performance across different periods or companies.
internal sales growth financial
"Total net sales for the quarter were $3.4 billion, an increase of 6.3% ... and reflects 2.5% internal sales growth"
contingent consideration financial
"Represents a change in the fair value of contingent consideration of $1 million"
Contingent consideration is an additional payment agreed when one company buys another that will be paid later only if specific future targets are met, such as revenue, profit, or regulatory milestones. It matters to investors because it shifts risk between buyer and seller and affects the acquiring company's future cash flow and reported value — like promising a bonus after results are proven.
value creation initiatives financial
"value creation initiatives are expected to deliver over $200 million of operating income improvement"
Value creation initiatives are concrete actions a company takes to increase its worth for investors, such as cutting waste, improving operations, launching new products, selling noncore assets, or reallocating capital. Think of it like renovating a house before putting it on the market: the goal is to boost long‑term cash flow and profits so the business is more attractive and can command a higher price, which matters because it directly affects returns to shareholders.
Earnings Snapshot
Net sales: $3,368 million · Guidance included
Q1 2026
Net sales
$3,368 million
+6.3% vs. Q1 2025
GAAP net income attributable to Henry Schein, Inc.
$107 million
-2.3% vs. Q1 2025
GAAP diluted EPS
$0.92
+4.5% vs. Q1 2025
Non-GAAP net income
$153 million
+6.5% vs. Q1 2025
Non-GAAP diluted EPS
$1.32
+14.8% vs. Q1 2025
Adjusted EBITDA
$289 million
vs. $259 million in Q1 2025
Guidance
For 2026, non-GAAP diluted EPS is expected to be $5.23–$5.37, total sales growth approximately 3%–5% over 2025, and Adjusted EBITDA is expected to grow mid-single digits.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did Henry Schein (HSIC) perform financially in Q1 2026?
Henry Schein reported Q1 2026 net sales of $3.37 billion, up 6.3% year over year. GAAP diluted EPS rose to $0.92, while non-GAAP diluted EPS increased to $1.32, reflecting a 14.8% improvement versus Q1 2025.
What were Henry Schein’s key profitability metrics for Q1 2026?
GAAP net income attributable to Henry Schein was $107 million, slightly below $110 million a year earlier. Non-GAAP net income reached $153 million, and Adjusted EBITDA increased to $289 million from $259 million, showing stronger underlying operating performance.
How did Henry Schein’s major business segments grow in Q1 2026?
Global Distribution and Value-Added Services sales rose 6.1%, with Global Dental up 9.0% and Global Medical up 1.7%. Global Specialty Products sales increased 8.1%, and Global Technology sales grew 7.0%, supported mainly by 6.9% internal sales growth.
What 2026 guidance did Henry Schein reaffirm in this 8-K filing?
Henry Schein reaffirmed 2026 non-GAAP diluted EPS guidance of $5.23–$5.37, expects total sales growth of about 3%–5% over 2025, and projects mid-single-digit Adjusted EBITDA growth, excluding specified items such as restructuring costs and amortization of acquired intangibles.
What are Henry Schein’s value creation initiatives mentioned in the Q1 2026 results?
Management expects value creation initiatives to deliver over $200 million of annual operating income improvement over the next few years, including a $125 million run-rate by year-end 2026, alongside continued execution of its strategic plan.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
,
,
(Address of principal executive offices)
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)
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions:
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Trading
Symbol(s)
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on which registered
The
Nasdaq
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule
12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Item 2.02. Results of Operations and Financial Condition.
On May 5, 2026, Henry Schein, Inc. issued a press release reporting the financial results for the three months
ended March 28, 2026. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by
reference.
The information in this Item 2.02 and the press release attached as Exhibit 99.1 are considered furnished to the
Securities and Exchange Commission and are not deemed filed for purposes of Section 18 of the Securities Exchange
Act of 1934, as amended.
Item 9.01. Financial Statements and Exhibits
(a) Not applicable.
(b) Not applicable.
(c) Not applicable.
(d) Exhibit 99.1 – Press Release dated May 5, 2026.
Exhibit 104 - Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly authorized.
HENRY SCHEIN, INC.
By:
/s/ Ronald N. South
Ronald N. South
Senior Vice President and
Chief Financial Officer
(Authorized Signatory and Principal
Financial and Accounting Officer)
May 5, 2026
EXHIBIT INDEX
Exhibit No.
Description
99.1
Press Release dated May 5, 2026.
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
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FOR IMMEDIATE RELEASE
HENRY SCHEIN REPORTS FIRST QUARTER 2026 FINANCIAL RESULTS
●
Q1 2026 GAAP diluted EPS of $0.92 compared to $0.88 GAAP diluted EPS in Q1 2025
●
Q1 2026 non-GAAP diluted EPS of $1.32 compared to $1.15 non-GAAP diluted EPS in Q1 2025
●
Reaffirming guidance for 2026 sales, non-GAAP diluted EPS, and Adjusted EBITDA
●
Confirming that value creation initiatives are expected to deliver over $200 million of operating income
improvement over the next few years, with $125 million run-rate by year-end 2026
MELVILLE, N.Y., May 5, 2026 –
Henry Schein, Inc. (Nasdaq: HSIC), the world’s largest provider of health care
solutions to office-based dental and medical practitioners, today reported financial results for the first quarter ended March
28, 2026.
“I am pleased with our strong first quarter results that reflect continuing momentum from the second half of last year
as we grow market share and expand gross margins. Our growth outlook, combined with the progress made on value-creation
initiatives and a strong start to the year, reinforces my confidence that we will deliver on our 2026 financial guidance,” said
Fred Lowery, Chief Executive Officer of Henry Schein. “I am committed to the Company’s goal of achieving greater than
$200 million of annual operating income improvement within the next few years, with a $125 million run-rate by the end of
2026. These initiatives, along with continued execution of our strategic plan, will contribute to us achieving high-single digit
to low-double digit earnings growth in the coming years.”
“Over the last two months as I have immersed myself in the business and spoken with customers, suppliers and
employees, it is clear that Henry Schein has great assets with a differentiated platform to serve as a trusted partner to
healthcare practitioners worldwide. As we look ahead, I’m excited by the significant opportunities to accelerate growth
through the use of technology, improve operational execution, and become a more agile company,” added Mr. Lowery.
First Quarter 2026 Financial Results
●
Total net sales
reflects 2.5% internal sales growth, 0.7% sales growth from acquisitions, and a 3.1% increase resulting from foreign
currency exchange. First quarter sales growth is detailed in Exhibit A
1
.
●
Global Distribution and Value-Added Services sales
sales growth, 0.6% sales growth from acquisitions, and a 3.0% increase resulting from foreign currency exchange
compared with the first quarter of 2025. The main components are:
●
Global Dental Distribution merchandise sales
growth, compared with the first quarter of 2025, with continuing strong momentum in the U.S.
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●
Global Dental Distribution equipment sales
growth, compared with the first quarter of 2025.
●
Global Medical Distribution sales
compared with the first quarter of 2025.
●
Global Value-Added Services sales
for the
quarter increased 10.6%, and by 7.8% internal sales growth,
compared with the first quarter of 2025.
●
Global Specialty Products sales
growth from acquisitions, and a 4.7% increase resulting from foreign currency exchange, compared with the first
quarter of 2025.
●
Global Technology sales
decrease due to a business disposal, and a 1.4% increase resulting from foreign currency exchange, compared with
the first quarter of 2025.
●
GAAP net income
2
4
, and compares with first-quarter
2025 GAAP net income of $110 million, or $0.88 per diluted share.
●
Non-GAAP net income
2
for the quarter was $153 million, or $1.32
per diluted share
4
, and compares with first-
quarter 2025 non-GAAP net income of $143 million, or $1.15 per diluted share.
●
Adjusted EBITDA
3
$259 million.
●
In the first quarter of 2026, the Company acquired a controlling interest in its S.I.N. distributor in the U.S. to enhance
its position in the value implant market and support its business integration strategy. This transaction resulted in a
remeasurement gain of $11 million.
Share Repurchases
During the first quarter of 2026, the Company repurchased approximately 1.6 million shares of common stock at an
average price of $77.64 per share for a total of $125 million.
At the end of the quarter, Henry Schein had $655 million authorized and available for future stock repurchases.
2026 Financial Guidance
Henry Schein today reaffirmed its financial guidance for 2026. Guidance is for current continuing operations and
does not include the impact of restructuring expenses and related costs, amortization expense of acquired intangible assets,
the impairment of intangible assets, changes in contingent consideration, costs associated with shareholder advisory matters,
select implementation-related costs supporting value creation initiatives, and litigation settlements. This guidance also
assumes that foreign currency exchange rates remain generally consistent with current levels.
●
2026 non-GAAP diluted EPS attributable to Henry Schein, Inc. is unchanged and expected to be $5.23 to $5.37.
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●
2026 total sales growth is unchanged and expected to be approximately 3% to 5% over 2025.
●
2026 Adjusted EBITDA
3
Adjustments to 2026 GAAP Net Income and Diluted EPS
The Company is providing guidance for 2026 diluted EPS and for 2026 Adjusted EBITDA on a non-GAAP basis, as
noted above. The Company is not providing a reconciliation of its 2026 non-GAAP diluted EPS guidance to its projected
2026 diluted EPS prepared on a GAAP basis, or its 2026 Adjusted EBITDA guidance to net income prepared on a GAAP
basis. This is because the Company is unable to provide without unreasonable effort an estimate of restructuring expenses
and related costs, including its ongoing value-creation initiatives, and the corresponding tax effect, which will be included in
the Company’s 2026 diluted EPS and net income, prepared on a GAAP basis. The inability to provide this reconciliation is
due to the uncertainty and inherent difficulty of predicting the occurrence, magnitude, financial impact and timing of related
costs.
Management does not believe these items are representative of the Company’s underlying business performance. For
the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be
material to future results.
First-Quarter 2026 Conference Call Webcast
The Company will hold a conference call to discuss first-quarter 2026 financial results today, beginning at 8:00 a.m.
Eastern time. Individual investors are invited to listen to the conference call through Henry Schein’s website by visiting
https://investor.henryschein.com/webcasts. In addition, a replay will be available beginning shortly after the call has ended
for a period of one week.
The Company will be posting slides that provide a summary of its first-quarter 2026 financial results on its website at
https://investor.henryschein.com/financials/quarterly-results/.
About Henry Schein, Inc.
Henry Schein, Inc. (Nasdaq: HSIC) is a solutions company for health care professionals powered by a network of
people and technology. With more than 25,000 Team Schein Members worldwide, the Company's network of trusted
advisors provides more than 1 million customers globally with more than 300 valued solutions that help improve operational
success and clinical outcomes. Our Business, Clinical, Technology and Supply Chain solutions help office-based dental and
medical practitioners work more efficiently so they can provide quality care more effectively. These solutions also support
dental laboratories, government and institutional health care clinics, as well as other alternate care sites.
Henry Schein operates through a centralized and automated distribution network, with a selection of more than
300,000 branded products and Henry Schein corporate brand products in our main distribution centers.
A FORTUNE 500 Company and a member of the S&P 500® index, Henry Schein is headquartered in Melville,
N.Y., and has operations or affiliates in 34 countries and territories. The Company's sales reached $13.2 billion in 2025, and
have grown at a compound annual rate of approximately 11.0 percent since Henry Schein became a public company in 1995.
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For more information, visit Henry Schein at www.henryschein.com, Facebook.com/HenrySchein,
Instagram.com/HenrySchein, and @HenrySchein on X.
Cautionary Note Regarding Forward-Looking Statements and Use of Non-GAAP Financial Information
In accordance with the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995, we provide the
following cautionary remarks regarding important factors that, among others, could cause future results to differ materially from the
forward-looking statements, expectations and assumptions expressed or implied herein. All forward-looking statements made by us are
subject to risks and uncertainties and are not guarantees of future performance. These forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements or industry results to be
materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
terms as “may,” “could,” “expect,” “intend,” “believe,” “plan,” “estimate,” “forecast,” “project,” “anticipate,” “to be,” “to make”, “have
confidence or confident that it will” or other comparable terms. A fuller discussion of our operations, financial condition and status of
litigation matters, including factors that may affect our business and future prospects, is contained in documents we have filed with the
United States Securities and Exchange Commission, or SEC, including our Annual Report on Form 10-K, and will be contained in all
subsequent periodic filings we make with the SEC. These documents identify in detail important risk factors that could cause our actual
performance to differ materially from current expectations.
Risk factors and uncertainties that could cause actual results to differ materially from current and historical results include, but
are not limited to: our dependence on third parties for the manufacture and supply of our products and where we manufacture products,
our dependence on third parties for raw materials or purchased components; risks relating to the achievement of our strategic growth
objectives, including anticipated results of restructuring and value creation initiatives; risks related to the Strategic Partnership Agreement
with KKR Hawaii Aggregator L.P. entered into in January 2025; transitions in senior company leadership (including, without limitation,
the transition to a new Chief Executive Officer); our ability to develop or acquire and maintain and protect new products (particularly
technology and specialty products) and services and utilize new technologies that achieve market acceptance with acceptable margins;
transitional challenges associated with acquisitions and joint ventures, including the failure to achieve anticipated synergies/benefits, as
well as significant demands on our operations, information systems, legal, regulatory, compliance, financial and human resources
functions in connection with acquisitions, dispositions and joint ventures; certain provisions in our governing documents that may
discourage third-party acquisitions of us; adverse changes in supplier rebates or other purchasing incentives; risks related to the sale of
corporate brand products; risks related to activist investors; security risks associated with our information systems and technology
products and services, such as cyberattacks or other privacy or data security breaches (including the October 2023 incident); effects of a
highly competitive (including, without limitation, competition from third-party online commerce sites) and consolidating market;
political, economic, and regulatory influences on the health care industry; risks from expansion of customer purchasing power and multi-
tiered costing structures; increases in shipping costs for our products or other service issues with our third-party shippers, and increases in
fuel and energy costs; changes in laws and policies governing manufacturing, development and investment in territories and countries
where we do business; general global and domestic macro-economic and political conditions, including inflation, deflation, recession,
unemployment (and corresponding increase in under-insured populations), consumer confidence, sovereign debt levels, fluctuations in
energy pricing and the value of the U.S. dollar as compared to foreign currencies and changes to other economic indicators failure to
comply with existing and future regulatory requirements, including relating to health care; risks associated with the EU Medical Device
Regulation; failure to comply with laws and regulations relating to health care fraud or other laws and regulations; failure to comply with
laws and regulations relating to the collection, storage and processing of sensitive personal information or standards in electronic health
records or transmissions; changes in tax legislation, changes in tax rates and availability of certain tax deductions; risks related to product
liability, intellectual property and other claims; risks associated with customs policies or legislative import restrictions; risks associated
with disease outbreaks, epidemics, pandemics (such as the COVID-19 pandemic), or similar wide-spread public health concerns and other
natural or man-made disasters; risks associated with our global operations; the threat or outbreak of war (including, without limitation,
geopolitical wars), terrorism or public unrest (including, without limitation, the wars in Ukraine and Iran, the Israel-Gaza war and other
unrest and threats in the Middle East and the possibility of a wider European or global conflict); changes to laws and policies governing
foreign trade, tariffs and sanctions or greater restrictions on imports and exports, including changes to international trade agreements and
the current imposition of (and the potential for additional) tariffs by the U.S. on numerous countries and retaliatory tariffs; supply chain
disruption; litigation risks; new or unanticipated litigation developments and the status of litigation matters; our dependence on our senior
management, employee hiring and retention, increases in labor costs or health care costs, and our relationships with customers, suppliers
and manufacturers; and disruptions in financial markets. The order in which these factors appear should not be construed to indicate their
relative importance or priority.
We caution that these factors may not be exhaustive and that many of these factors are beyond our ability to control or predict.
Accordingly, any forward-looking statements contained herein should not be relied upon as a prediction of actual results. We undertake
no duty and have no obligation to update forward-looking statements except as required by law.
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Income prepared under generally accepted accounting principles (GAAP). These non-GAAP financial measures adjust the Company’s
actual results prepared under GAAP to exclude certain items. In the schedule attached to the press release, the non-GAAP measures have
been reconciled to and should be considered together with the Consolidated Statements of Income. Management believes that non-GAAP
financial measures provide investors with useful supplemental information about the financial performance of our business, enable
comparison of financial results between periods where certain items may vary independent of business performance and allow for greater
transparency with respect to key metrics used by management in operating our business. The impact of certain items that are excluded
include integration and restructuring costs, amortization of acquisition-related assets, the insurance claim recovery associated with the
cybersecurity incident, changes in contingent consideration, costs associated with shareholder advisory matters and select value creation
consulting costs, and litigation settlements because the amount and timing of such charges are significantly impacted by the timing, size,
number and nature of the acquisitions we consummate and occur on an unpredictable basis. These non-GAAP financial measures are
presented solely for informational and comparative purposes and should not be regarded as a replacement for corresponding, similarly
captioned, GAAP measures.
1
See Exhibit A for details of sales growth. Internal sales growth is calculated from total net sales using constant foreign
currency exchange rates and excludes sales from acquisitions.
2
3
See Exhibit C for a reconciliation of GAAP net income to Adjusted EBITDA.
4
CONTACTS: Investors
Ronald N. South
Senior Vice President and Chief Financial Officer
ronald.south@henryschein.com
(631) 843-5500
Graham Stanley
Vice President, Investor Relations and Strategic Financial Project Officer
graham.stanley@henryschein.com
(631) 843-5500
Media
Tim Vassilakos
Vice President, Global Corporate Communications
timothy.vassilakos@henryschein.com
(516) 510-0926
(TABLES TO FOLLOW)
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HENRY SCHEIN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except share and per share data)
(unaudited)
Three Months Ended
March 28,
March 29,
2026
2025
Net sales
$
3,368
$
3,168
Cost of sales
2,298
2,168
Gross profit
1,070
1,000
Operating expenses:
Selling, general and administrative
809
738
Depreciation and amortization
67
62
Restructuring and related costs
12
25
Operating income
182
175
Other income (expense):
Interest income
7
6
Interest expense
(39)
(35)
Other, net
-
(1)
Income before taxes, equity in earnings of affiliates and noncontrolling interests
150
145
Income taxes
(38)
(35)
Equity in earnings of affiliates, net of tax
-
3
Net income
112
113
Less: Net income attributable to noncontrolling interests
(5)
(3)
Net income attributable to Henry Schein, Inc.
$
107
$
110
Earnings per share attributable to Henry Schein, Inc.:
Basic
$
0.93
$
0.89
Diluted
$
0.92
$
0.88
Weighted-average common shares outstanding:
Basic
114,939,640
123,776,073
Diluted
116,061,244
124,848,221
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HENRY SCHEIN, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except share data)
March 28,
December 27,
2026
2025
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
138
$
156
Accounts receivable, net of allowance for credit losses of $96 and $90
1,719
1,651
Inventories, net
2,014
2,002
Prepaid expenses and other
625
655
Total current assets
4,496
4,464
Property and equipment, net
618
621
Operating lease right-of-use assets
312
301
Goodwill
4,284
4,213
Other intangibles, net
1,007
1,018
Investments and other
587
598
Total assets
$
11,304
$
11,215
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
1,043
$
1,154
Bank credit lines
1,046
764
Current maturities of long-term debt
35
33
Operating lease liabilities
78
78
Accrued expenses:
Payroll and related
262
340
Taxes
192
179
Other
641
680
Total current liabilities
3,297
3,228
Long-term debt
2,327
2,310
Deferred income taxes
158
146
Operating lease liabilities
263
251
Other liabilities
437
486
Total liabilities
6,482
6,421
Redeemable noncontrolling interests
903
895
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value, 1,000,000 shares authorized,
none outstanding
-
-
Common stock, $0.01 par value, 480,000,000 shares authorized,
114,424,682 issued and outstanding on March 28, 2026 and
115,771,149 issued and outstanding on December 27, 2025
1
1
Additional paid-in capital
167
177
Retained earnings
3,287
3,293
Accumulated other comprehensive loss
(189)
(226)
Total Henry Schein, Inc. stockholders' equity
3,266
3,245
Noncontrolling interests
653
654
Total stockholders' equity
3,919
3,899
Total liabilities, redeemable noncontrolling interests and stockholders' equity
$
11,304
$
11,215
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HENRY SCHEIN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)/(unaudited)
Three Months Ended
March 28,
March 29,
2026
2025
Cash flows from operating activities:
Net income
$
112
$
113
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization
81
73
Impairment charge on intangible assets
-
1
Non-cash restructuring and related charges
2
1
Stock-based compensation expense
3
5
Provision for losses on trade and other accounts receivable
6
2
Provision for (benefit from) deferred income taxes
2
(7)
Equity in earnings of affiliates
-
(3)
Distributions from equity affiliates
3
2
Changes in unrecognized tax benefits
(1)
2
Other
(27)
(27)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable
(69)
(74)
Inventories
8
(14)
Other current assets
6
75
Accounts payable and accrued expenses
(223)
(112)
Net cash provided by (used in) operating activities
(97)
37
Cash flows from investing activities:
Purchases of property and equipment
(25)
(31)
Payments related to equity investments and business acquisitions,
net of cash acquired
(24)
(51)
Proceeds from loan to affiliate
1
-
Capitalized software costs
(14)
(12)
Other
(1)
(5)
Net cash used in investing activities
(63)
(99)
Cash flows from financing activities:
Net change in bank credit lines
283
215
Proceeds from issuance of long-term debt
57
150
Principal payments for long-term debt
(39)
(15)
Proceeds from issuance of stock upon exercise of stock options
1
1
Payments for repurchases and retirement of common stock
(125)
(161)
Payments for taxes related to shares withheld for employee taxes
(9)
(12)
Distributions to noncontrolling shareholders
(16)
(4)
Payments for contingent consideration
-
(12)
Acquisitions of noncontrolling interests in subsidiaries
(32)
(73)
Net cash provided by financing activities
120
89
Effect of exchange rate changes on cash and cash equivalents
22
(22)
Net change in cash and cash equivalents
(18)
5
Cash and cash equivalents, beginning of period
156
122
Cash and cash equivalents, end of period
$
138
$
127
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Exhibit A - First Quarter Sales
Henry Schein, Inc.
2026 First Quarter
Sales Summary
(in millions)
(unaudited)
Q1 2026 over Q1 2025
Constant Currency
Growth
Q1 2026
Q1 2025
Local
Internal
Growth
Acquisition
Growth
Total
Constant
Currency
Growth
Foreign
Exchange
Impact
Total Sales
Growth
U.S. Distribution and Value-Added
Services
Merchandise
$
624
$
591
4.1%
1.5%
5.6%
0.0%
5.6%
Equipment
194
187
3.4%
0.0%
3.4%
0.0%
3.4%
Value-Added Services
48
45
6.2%
0.0%
6.2%
0.0%
6.2%
Total Dental
866
823
4.1%
1.0%
5.1%
0.0%
5.1%
Medical
1,043
1,030
1.2%
0.1%
1.3%
0.0%
1.3%
Total U.S. Distribution and Value-Added
Services
1,909
1,853
2.5%
0.5%
3.0%
0.0%
3.0%
International Distribution and Value-
Added Services
Merchandise
668
594
1.8%
1.1%
2.9%
9.6%
12.5%
Equipment
223
197
3.6%
0.0%
3.6%
9.8%
13.4%
Value-Added Services
9
7
18.9%
9.5%
28.4%
12.6%
41.0%
Total Dental
900
798
2.4%
0.8%
3.2%
9.8%
13.0%
Medical
30
25
4.7%
0.0%
4.7%
11.4%
16.1%
Total International Distribution and
Value-Added Services
930
823
2.5%
0.8%
3.3%
9.8%
13.1%
Global Distribution and Value-Added
Services
Global Merchandise
1,292
1,185
3.0%
1.2%
4.2%
4.8%
9.0%
Global Equipment
417
384
3.5%
0.0%
3.5%
5.1%
8.6%
Global Value-Added Services
57
52
7.8%
1.2%
9.0%
1.6%
10.6%
Global Dental
1,766
1,621
3.2%
1.0%
4.2%
4.8%
9.0%
Global Medical
1,073
1,055
1.3%
0.1%
1.4%
0.3%
1.7%
Total Global Distribution and Value-
Added Services
2,839
2,676
2.5%
0.6%
3.1%
3.0%
6.1%
Global Specialty Products
397
367
1.7%
1.7%
3.4%
4.7%
8.1%
Global Technology
173
162
6.9%
-1.3%
5.6%
1.4%
7.0%
Eliminations
(41)
(37)
n/a
n/a
n/a
n/a
n/a
Total Global
$
3,368
$
3,168
2.5%
0.7%
3.2%
3.1%
6.3%
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Exhibit B
Henry Schein, Inc.
2026 First Quarter
Reconciliation of reported GAAP net income and diluted EPS attributable to Henry Schein, Inc.
to non-GAAP net income and diluted EPS attributable to Henry Schein, Inc.
(in millions, except per share data)
(unaudited)
First Quarter
%
2026
2025
Growth
Net income attributable to Henry Schein, Inc.
$
107
$
110
(2.3)
%
Diluted EPS attributable to Henry Schein, Inc.
$
0.92
$
0.88
4.5
%
Non-GAAP Adjustments, net of tax and attribution to noncontrolling interests
Restructuring and related costs (1)
$
8
$
17
Acquisition intangible amortization (2)
27
27
Cyber incident-insurance proceeds, net of third-party advisory expenses (3)
-
(15)
Change in contingent consideration (4)
1
(2)
Costs associated with shareholder advisory matters and select implementation related
value creation consulting costs (5)
10
6
Non-GAAP adjustments to net income
$
46
$
33
Non-GAAP adjustments to diluted EPS
$
0.39
$
0.27
Non-GAAP net income attributable to Henry Schein, Inc.
$
153
$
143
6.5
%
Non-GAAP diluted EPS attributable to Henry Schein, Inc.
$
1.32
$
1.15
14.8
%
Management believes that non-GAAP financial measures provide investors with useful supplemental information about the financial
performance of our business, enable comparison of financial results between periods where certain items may vary independent of
business performance and allow for greater transparency with respect to key metrics used by management in operating our business.
These non-GAAP financial measures are presented solely for informational and comparative purposes and should not be regarded as a
replacement for corresponding, similarly captioned, GAAP measures. Net income growth rates are based on actual values and may not
recalculate due to rounding. Amounts may not sum due to rounding.
(1)
Restructuring and Related Costs
The following table presents details of our restructuring and related costs:
First Quarter
2026
2025
Restructuring and related costs - pre-tax, as reported
$
12
$
25
Income tax benefit
(3)
(7)
Amount attributable to noncontrolling interests
(1)
(1)
Restructuring and related costs, net
$
8
$
17
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(2)
Acquisition Intangible Amortization
The following table presents details of amortization of acquired intangible assets:
First Quarter
2026
2025
Acquisition intangible amortization - pre-tax, as reported
$
45
$
43
Income tax benefit
(11)
(10)
Amount attributable to noncontrolling interests
(7)
(6)
Acquisition intangible amortization, net
$
27
$
27
(3)
Represents cyber insurance proceeds, net of one time professional and other fees related to remediation of our Q4 2023 cyber
incident. During Q1 2025, we received insurance proceeds of $20 million ($15 million, net of taxes) under this policy
representing the remaining insurance recovery of losses related to the cyber incident.
(4)
Represents a change in the fair value of contingent consideration of $1 million ($1 million, net of taxes) and ($2) million (($2)
million, net of taxes) recorded during Q1 2026 and Q1 2025, respectively, related to certain 2023 and 2025 acquisitions.
(5)
Represents costs associated with shareholder advisory matters and select implementation related value creation consulting
costs of $13 million ($10 million, net of taxes) and $8 million ($6 million, net of taxes) recorded during Q1 2026 and Q1 2025,
respectively.
-12-
###
Exhibit C
Henry Schein, Inc.
2026 First Quarter
Reconciliation of reported GAAP net income to Adjusted EBITDA
(in millions)
(unaudited)
First Quarter
2026
2025
Net income attributable to Henry Schein, Inc. (GAAP)
$
107
$
110
Income attributable to noncontrolling interests
5
3
Net income (GAAP)
112
113
Definitional adjustments:
Interest income
(7)
(6)
Interest expense
39
35
Income taxes
38
35
Depreciation and amortization
81
73
Non-GAAP adjustments:
Restructuring and related costs
12
25
Cyber incident-insurance proceeds, net of third-party advisory expenses
-
(20)
Impairment of intangible assets
-
1
Change in contingent consideration
1
(2)
Costs associated with shareholder advisory matters and select implementation related value creation consulting costs
13
8
Other adjustments:
Equity in earnings of affiliates, net of tax
-
(3)
Adjusted EBITDA (non-GAAP)
$
289
$
259
Adjusted EBITDA is a non-GAAP measure that we calculate in the manner reflected on Exhibit C. We define Adjusted EBITDA as net income, excluding (i)
net income attributable to noncontrolling interests, (ii) interest income and expense, (iii) income taxes, (iv) depreciation and amortization, (v) restructuring and
related costs, (vi) cyber incident-insurance proceeds, net of third-party advisory expenses, (vii) impairment of intangible assets, (viii) change in contingent
consideration, (ix) costs associated with shareholder advisory matters and select implementation related value creation consulting costs, and (x) equity in
earnings of affiliates, net of tax. Amounts may not sum due to rounding.