Medical equipment distributor Henry Schein announced Tuesday that it surpassed fourth-quarter earnings expectations while projecting annual profits that align closely with Wall Street forecasts, bolstered by recovering demand for dental and medical equipment.
Following a challenging 2025 characterized by inconsistent patient appointments and declining demand for expensive procedures, industry analysts anticipate the American dental sector will find stability in 2026.
Although patient numbers are gradually increasing and demand for clear dental aligners shows signs of strength in certain areas, analysts warn the sector remains vulnerable to household spending constraints, indicating a complete recovery could require additional time.
The quarterly performance and yearly profit projections from Henry Schein suggest “potential signs of improved demand in areas that have been volatile,” according to Leerink Partners analyst Michael Cherny.
Competitor Align Technology, which manufactures Invisalign products, also exceeded fourth-quarter projections due to robust demand for its dental alignment products.
Henry Schein’s Chief Executive Officer Stanley Bergman noted that fourth-quarter revenue represented the company’s strongest sales performance in 15 quarters, supported by gains in equipment, specialty products, and technology divisions.
Revenue from the company’s dental distribution equipment division increased 12.2% during the fourth quarter compared to the previous year, with notable expansion in the United States, Germany, Brazil, Canada, and Australia.
The company’s adjusted earnings reached $1.34 per share, exceeding analyst projections of $1.30 for the quarter ending December 27.
Total quarterly revenue climbed 7.7% to $3.44 billion, surpassing the anticipated $3.35 billion.
Revenue from the global distribution and value-added services division increased 7.0% to $2.89 billion. The global specialty products segment, encompassing dental implants and biomaterials, saw revenue jump 14.6% to $422 million.
For 2026, the company projects adjusted earnings between $5.23 and $5.37 per share, with the middle range exceeding analysts’ average projection of $5.29, based on LSEG data.
Henry Schein anticipates total annual revenue growth of 3% to 5% from 2025’s $13.2 billion in sales. Industry analysts had projected 2026 revenue of $13.54 billion.
