HSIC

It has been about a month since the last earnings report for Henry Schein (HSIC). Shares have added about 0.9% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Henry Schein due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts. Henry Schein, Inc. reported second-quarter 2026 adjusted earnings of $1.27 per share, up 15.5% year over year. The bottom line surpassed the Zacks Consensus Estimate by 4.1%. Net sales rose 6.7% to $3.46 billion and beat the consensus estimate by 2.8%. Results benefited from 4.6% internal sales growth, with gains across distribution, specialty products and technology. Acquisitions contributed 0.7% to growth, while foreign currency movements added 1.4%. Henry Schein’s Distribution Business Gains Global Distribution and Value-Added Services sales increased 6.6% to $2.91 billion. The segment generated 4.5% internal growth, a 0.6% contribution from acquisitions and a 1.5% foreign exchange benefit. Global Medical Distribution sales advanced 4% to $1.06 billion, supported by 3.9% internal growth. Global Value-Added Services sales increased 5.1% to $61 million, reflecting 3.7% internal growth. U.S. Distribution and Value-Added Services sales rose 4.6% to $1.95 billion. International sales in the segment climbed 10.7% to $965 million, aided by 5.5% internal growth and a 4.5% currency benefit. HSIC’s Specialty and Technology Sales Rise Global Specialty Products sales increased 8.7% to $419 million. Internal growth was 3.2%, acquisitions contributed 3.4% and foreign currency exchange added 2.1%. Global Technology sales advanced 8.2% to $181 million. Internal sales grew 9.1%, partly offset by a 1.3% reduction related to a business disposal. Foreign exchange contributed 0.4%. Technology delivered the company’s highest internal growth rate among its major reporting categories. The performance complemented steady gains in dental merchandise, medical distribution and specialty products. HSIC’s Margin Performance In the reported quarter, gross profit totaled $1.10 billion, representing an 8.4% increase year over year. The gross margin expanded 48 basis points (bps) to 31.8% despite a 6% rise in the cost of sales. Selling, general and administrative expenses increased 6.8% to $831 million. Operating income rose 13.2% to $171 million, while the operating margin expanded 28 bps year over year to 4.9%. Liquidity Position of HSIC Henry Schein exited the second quarter of 2026 with cash and cash equivalents of $157 million compared with $138 million at March-end. Cumulative net cash provided by operating activities at the end of the reported quarter was $145 million compared with $157 million a year ago. Henry Schein Raises Its 2026 Outlook Management raised its 2026 adjusted earnings guidance to $5.29-$5.39 per share, from the earlier $5.23-$5.37 range. The Zacks Consensus Estimate for earnings currently stands at $5.32 per share. The company also lifted its total sales growth forecast to 4.5%-5.5% from 3%-5%. The Zacks Consensus Estimate for sales is currently pegged at $13.72 billion, indicating 4.1% year-over-year growth. Adjusted EBITDA is now expected to grow at a mid- to high-single-digit rate, compared with the prior expectation of mid-single-digit growth. Management cited sustained business momentum, margin improvement and early benefits from its value creation initiatives. The updated outlook assumes foreign exchange rates remain generally consistent with current levels. It excludes future tariff refunds, remeasurement gains and several items that management does not consider representative of underlying performance. It turns out, fresh estimates flatlined during the past month. At this time, Henry Schein has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Henry Schein has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Henry Schein is part of the Zacks Medical - Dental Supplies industry. Over the past month, Conmed (CNMD), a stock from the same industry, has gained 0.3%. The company reported its results for the quarter ended June 2026 more than a month ago. Conmed reported revenues of $343.49 million in the last reported quarter, representing a year-over-year change of +0.3%. EPS of $1.38 for the same period compares with $1.15 a year ago. For the current quarter, Conmed is expected to post earnings of $1.00 per share, indicating a change of -7.4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. Conmed has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Henry Schein, Inc. (HSIC) : Free Stock Analysis Report CONMED Corporation (CNMD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Align Technology ALGN is dealing with a new U.K. tax issue in 2026. A July Upper Tribunal decision overturned the prior value-added tax exemption for clear aligners, adding a fresh earnings and pricing variable. The ruling arrives as international Clear Aligner demand remains healthy but foreign exchange, softer retail demand and scanner mix continue to complicate the margin picture. Align recorded an estimated $37.5 million liability, including interest, after the U.K. Upper Tribunal reversed the earlier VAT-exemption ruling. The charge makes the dispute an immediate earnings matter rather than a legal issue with only future consequences. The accrual also contributed to higher second-quarter operating expenses. Those expenses rose 10.7% year over year to $603.4 million, with the U.K. VAT accrual and higher employee compensation among the main drivers. In the past year, ALHC shares have risen 25.1% compared with the industry’s 21.5% growth. Image Source: Zacks Investment Research From Sept. 7, 2026, Align plans to charge 20% VAT on applicable U.K. Invisalign aligners and Vivera retainers while keeping list prices unchanged. That changes the economics of an established product line without changing published list prices. The development adds another pricing variable in the U.K. Align already expects 2026 Clear Aligner average selling prices to be flat to slightly down from 2025, reflecting broader mix pressure across countries and products. Per the Zacks Consensus Estimate, the company’s 2026 revenues are pegged at $4.17 billion, indicating 3.3% year over year growth. Image Source: Zacks Investment Research Align plans to appeal the tribunal decision, so the final financial outcome remains unresolved. The $37.5 million liability is already recorded, but the longer-term cost and operating consequences will depend on how the appeal process develops. That distinction matters for investors. The current accrual is visible in 2026 results, while the durability of the VAT treatment remains uncertain and could continue to influence how Align manages the U.K. business. Foreign exchange was already weighing on profitability before the VAT issue became more prominent. In the second quarter, currency movements reduced gross margin by about 0.8 percentage points and operating margin by about 1.4 points year over year. The broader dental market provides useful context. DENTSPLY SIRONA Inc. XRAY manufactures professional dental products and technologies across equipment, consumables and specialty products. Henry Schein, Inc. HSIC supplies office-based dental practitioners with merchandise, equipment and technology solutions, making both relevant industry reference points even though Align’s VAT dispute is company-specific. International Clear Aligner growth remains a counterweight. Second-quarter volume increased at double-digit rates in both EMEA and APAC, while Latin America delivered record second-quarter shipments. That geographic momentum supports Align’s broader 2026 volume outlook. Management now expects Clear Aligner volume growth of approximately 6%, leaving investors to weigh expanding international demand against the incremental cost and uncertainty concentrated in the U.K. The VAT ruling has already created a measurable charge, while the appeal leaves the longer-term impact unsettled. For 2026, the issue adds to currency and mix pressures rather than standing alone as the only driver of Align’s earnings outlook. ALGN currently carries a Zacks Rank #3 (Hold), with a Value Score of B, Growth Score of B, VGM Score of B and Momentum Score of F. The B scores are favorable within the Style Score framework, but the F Momentum Score signals weak timing support. That combination is consistent with monitoring the appeal and operating impact rather than treating the VAT ruling by itself as a decisive bullish or bearish catalyst. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Align Technology, Inc. (ALGN) : Free Stock Analysis Report DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report Henry Schein, Inc. (HSIC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Henry Schein delivered a positive second quarter, with results exceeding Wall Street’s expectations and earning a strong market response. Management attributed the outperformance to accelerating internal sales growth, robust gains in its global dental merchandise segment, and early benefits from value creation initiatives. CEO Frederick Lowery emphasized the company’s success in converting occasional buyers into engaged customers and highlighted strong market share gains, particularly in the U.S. and Canada. The company also cited the expansion of its Henry Schein One technology platform and growth in its own-brand and specialty products as key contributors to the quarter’s momentum. Is now the time to buy HSIC? Find out in our full research report (it’s free). Revenue: $3.46 billion vs analyst estimates of $3.37 billion (6.7% year-on-year growth, 2.6% beat) Adjusted EPS: $1.27 vs analyst estimates of $1.24 (2.5% beat) Adjusted EBITDA: $288 million vs analyst estimates of $276.4 million (8.3% margin, 4.2% beat) Management slightly raised its full-year Adjusted EPS guidance to $5.34 at the midpoint Operating Margin: 4.9%, in line with the same quarter last year Organic Revenue rose 4.6% year on year (beat) Market Capitalization: $9.82 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Jeffrey Johnson (Baird) asked about the sustainability of U.S. dental consumables growth. CEO Frederick Lowery explained that recent growth was more price-driven than volume-based and credited successful promotions converting episodic buyers into regular customers. Jason Bednar (Piper Sandler) pressed on the timing and recognition of value creation benefits. CFO Ronald South responded that most operating income improvements from these initiatives would materialize in the second half, especially Q3 and Q4. Elizabeth Anderson (Evercore ISI) inquired about the split of gross margin improvements and prospects in specialty categories. Lowery highlighted dynamic pricing, own-brand expansion, and anticipated greater growth in value implants due to the S.I.N. 360 acquisition. Jonathan Block (Stifel) sought clarity on U.S. dental equipment trends versus traditional and digital segments. Lowery and South confirmed expected growth for the remainder of the year, supported by a healthy backlog and modest gains in digital equipment, particularly scanners. Kevin Caliendo (UBS) questioned why specialty growth was stronger in Europe than in the U.S. Lowery attributed this to differing market dynamics, with the U.S. market being more consumer-driven and slower-growing than Europe. Going forward, the StockStory team will watch (1) the pace of AI-enabled technology adoption and its impact on recurring revenue, (2) realization of targeted value creation and cost savings, especially as outsourcing and procurement initiatives expand, and (3) further gains in specialty dental and Home Solutions medical segments. Continued execution on portfolio optimization and integration of new leadership structures will also be critical markers for progress. Henry Schein currently trades at $88.07, up from $86.51 just before the earnings. Is there an opportunity in the stock? Find out in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 8:00 a.m. ET Chief Executive Officer - Fred Lowery Senior Vice President and Chief Financial Officer - Ron South Vice President of Investor Relations and Strategic Financial Project Officer - Graham Stanley Operator: Good morning, ladies and gentlemen, and welcome to Henry Schein's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded. I would now like to introduce your host for today's call, Graham Stanley, Henry Schein's Vice President of Investor Relations and Strategic Financial Project Officer. Please go ahead, Graham. Graham Stanley: Thank you, operator, and my thanks to each of you for joining us to discuss Henry Schein's financial results for the second quarter of 2026. With me on today's call are Fred Lowery, Chief Executive Officer; and Ron South, Senior Vice President and Chief Financial Officer. Before we begin, I'd like to state that certain comments made during this call will include information that is forward-looking. Risks and uncertainties involved in the company's business may affect the matters referred to in forward-looking statements, and the company's performance may materially differ from those expressed in or indicated by such statements. These forward-looking statements are qualified in their entirety by the cautionary statements contained in Henry Schein's filings with the Securities and Exchange Commission and included in the Risk Factors section of those filings. In addition, all comments about the markets we serve, including end market growth rates and market share, are based upon the company's internal analysis and estimates. Today's remarks will include both GAAP and non-GAAP financial results. We believe the non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable the comparison of financial results between periods where certain items may vary independently 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 GAAP measures. Reconciliations between GAAP and non-GAAP measures are included in Exhibit B of today's press release and can be found in the Financials and Filings section of our Investor Relations website under the Supplemental Information heading and also in our quarterly earnings presentation also posted on our Investor Relations website. The content of this conference call contains time-sensitive information that is accurate only as of the date of the live broadcast, August 4, 2026. Henry Schein undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call. Lastly, during today's Q&A session, please limit yourself to a single question so that we can accommodate questions for as many as you as possible. And with that, I'd like to turn the call over to Fred Lowery. Frederick Lowery: Thank you, Graham. Good morning, everyone, and thank you for joining us. I'm very excited to share our results with you today, so let's dive right in. We delivered strong sales performance and margin improvement in the second quarter, driven by sustained momentum across our businesses and solid operational execution by the team. Internal local currency sales growth accelerated compared to the first quarter. This acceleration, combined with the strong gross margins and the early benefits from value creation initiatives drove strong earnings growth. Our first half performance and the sustained momentum have positioned us to raise our full year 2026 guidance. Ron will provide more details later in the call. Before we get into more detail on the quarter, I want to share some feedback from various stakeholders I've met in my first month here at Henry Schein and also some of my thoughts on why I'm confident in our opportunities ahead to accelerate growth. Our customers value the range of products and the integrated technology solutions we offer to support the growing complexity of operating a health care practice. And they see Henry Schein as a reliable business partner due to our consistent execution, our product quality and our responsiveness. Our supplier partners also recognize our deep customer relationships, and they want to do more business with us. And our growth helps ensure we remain their partner of choice. In addition to customers and suppliers, I spent a lot of time talking with employees and shareholders who are optimistic about our plans to improve, including making decisions faster, simplifying how we operate and executing more consistently for the benefit of our customers. Henry Schein has great assets and capabilities, and our customer reach is really unmatched. What's exciting is that after my first few months at the company, I have an increased conviction that there is significant opportunity to improve our revenue growth and improve our profitability and ultimately become the platform to help health care practitioners operate a better practice. So as we sharpen our focus, our priorities ahead are accelerating growth, simplifying our business, driving operational rigor and further deepening our customer relationships, all of which we believe will create sustainable shareholder value. With respect to accelerating growth, we're already pursuing several key initiatives to do more for our customers, and these initiatives are beginning to pay off. For example, we're advancing our Henry Schein One technology platforms, including AI-enabled solutions to improve workflows and collections, enhance practice performance and strengthen patient engagement. This functionality is embedded in our Dentrix Ascend and our data shows that customers who convert to Dentrix Ascend are seeing a clear improvement in their profitability. June was a record month for the number of new Dentrix Ascend customers, growing both our customer base and capturing share of wallet. While our average monthly revenue per customer for Henry Schein One is approximately $500, our average monthly revenue for Dentrix Ascend customers is approximately $800. And is growing as customers recognize the value of the new integrated capabilities and upgrade to higher levels of functionality. We're also accelerating our sales in our own brand products, including our corporate brands by leveraging our One Schein approach and aligning our go-to-market strategies across the business. For example, in endodontics, our Edge brand, which we started distributing through our U.S. dental distribution business last year has very strong sales growth. We also have a leading position in the fast-growing DSO segment of the market, which is driven especially by the middle market segment. As these DSOs continue to consolidate the dental market, this structural advantage should allow us to outgrow the broader dental market. And finally, we've expanded our medical business to attractive high-growth areas, including our Home Solutions business, which grew sales in the high single digits last quarter. To simplify our business, we're taking an integrated versus a decentralized approach across several areas. For example, we are implementing shared service back-office functions globally and centralizing our indirect procurement. We also need to make it easier for us to work with each other as well as for our customers to work with us. So we're eliminating internal silos and aligning individual incentives with broader company-wide goals. We're also evaluating our portfolio with a focus on businesses that drive higher growth and higher returns. Finally, we're driving operational rigor by delivering what we expect to be at least $200 million in operating income improvements from value creation initiatives over the next few years. But this is not just about the $200 million. It's about creating a high-performance culture of accountability and continuous improvement while also increasing customer satisfaction. Complementing these efforts is a deliberate approach to capital deployment to ensure that resources are allocated to maximize long-term value. Across all of these efforts, a relentless focus on customer success will guide how we prioritize and how we execute. By helping customers operate more efficiently, making better decisions and deliver better care, we can strengthen our relationships and further enhance our competitive position. As a result, we expect to accelerate growth and expand our market share, deliver stronger financial performance and create durable shareholder value. With disciplined execution and working smarter as one team, we expect to deliver a better customer experience and a more profitable business. Now let's turn to the second quarter results. Our markets remain stable and durable and have good underlying fundamentals and a long runway for growth. We're not seeing a significant impact on patient volumes resulting from higher oil prices, and we believe markets -- the markets that we serve are resilient to economic pressure. Our dental merchandise business was strong globally, and we made further gains in market share in the quarter. Our U.S. dental merchandise sales performance continued to outpace the market, led by our corporate brands and by our exclusive products such as Curodont. With our unique product offering, along with new sales reps, we are expanding our share of wallet and converting occasional buyers to actively engaged customers. Merchandise sales growth also accelerated internationally with markets like Canada standing out. In Canada, we continue to take market share. Our advantage in Canada goes well beyond our portfolio breadth, though. It's also our best-in-class technology service, our ability to attract top talent and the depth of our customer relationships that really differentiates us there. The U.S. Dental Equipment sales remain on pace for the quarter given the tough comparable from U.S. dental school orders in the second quarter of last year. We continue to drive sales growth from our exclusive supplier sponsored promotions and our backlog remains healthy, and we expect U.S. equipment growth for the rest of the year. International equipment growth was broad-based and continues to be good. The non-acute care U.S. medical market remains solid, and our government-related and Home Solutions businesses continue to grow well. Despite lower demand for point-of-care diagnostic tests, our medical business saw good underlying growth. Our specialty product sales were also solid in the quarter. Overall, implant growth in Europe was high single digits with premium implants led by our Camlog brand, which is the market leader in Central Europe and value implants led by our Biotech Dental and Medentis brands. We achieved more modest growth in the U.S. where our Tapered Pro Conical implant drove positive results as well as our S.I.N. 360 which was recently launched in the U.S. Finally, sales growth in endodontic products was also good in aggregate across all of our businesses. Our global technology business, Henry Schein One, delivered another quarter of strong growth with sustained momentum in cloud-based software and technology solutions. Almost 13,000 customers now subscribe to our Dentrix Ascend and Dentally cloud-based platforms. And we're seeing more customers move toward our higher featured packages, which is increasing our monthly revenue per customer. Additionally, approximately 90% of Henry Schein One's revenue is recurring. This creates a highly predictable business model. By leveraging the data from our market-leading practice management system, we are now broadly embedding AI tools in our software for which our customers are recognizing meaningful benefits. The recent launch of our next-generation AI clinical workflow has been met with strong market reception, reinforcing Henry Schein's position at the forefront of the industry's AI transformation. Some examples include our voice-enabled clinical note documentation, our patient insurance eligibility analysis, claims and collection management as well as clinical diagnosis and treatment analysis. These new capabilities help to drive productivity for private practice, for group practices and for DSOs. As dental practice labor costs continue to rise, our customers are looking to Henry Schein to help them operate more efficiently. These technology solutions uniquely position us to address this growing need. A few weeks ago, I spent some time with our Henry Schein One team in Utah. And while I'm excited about the capabilities that we've recently launched and even more confident in the opportunities that are ahead. Henry Schein One's vision includes expanding AI deeper into the clinical and operational workflows through additional capabilities. So I'll make one quick announcement. Coming soon is the launch of an MCP layer that enables practices to query their own data with AI applications and agents. This allows them to identify revenue opportunities as well as to drive further operational efficiencies in a targeted manner. Now I'll highlight the progress that we've made advancing our strategic plan during the quarter. Our overall margins expanded, partially driven by our high-growth, high-margin businesses, which now represent almost 50% of total operating income. We remain on track to exceed our goal of over 50% by the end of our strategic planning cycle in 2027. Additionally, our own brands, including our corporate brands, continue to grow well at almost twice the rate of other merchandise sales. Our value creation plans remain a top focus for our team, and we are on track to achieve our goals. I'd like to go a click deeper and share some of the key initiatives supporting these value creation plans. First, we've selected our global outsourcing provider to support finance and customer service and have begun implementing Phase 1 within our U.S. businesses. We expect to see initial benefits from labor cost efficiencies starting in the third quarter, and we expect this project alone to deliver more than half of the G&A savings in our $200 million goal. Second, we've set up a procurement office to identify preferred suppliers and consolidate indirect spend across our businesses. This is already yielding results for us. And third, we've started to use our sales data to identify margin opportunities, enabling more dynamic and disciplined pricing, which is helping us expand our gross profits. As we look towards next year, we're planning to implement several new initiatives, including broadening the scope of our outsourcing initiative, expanding our AI capabilities to drive productivity and implementing new supply chain software to improve efficiencies, reduce inventory and streamline our purchasing processes. Each of these products should contribute to additional savings and help us progress toward our goal of double-digit earnings growth next year. I'm encouraged that our momentum continued in the second quarter, and I'm incredibly excited as we transform into the value creation platform for our customers. With that, I'll now turn to Ron to review in more detail our second quarter results and our full year 2026 guidance. Ron? Ronald South: Thank you, Fred, and good morning, everyone. Today, I will review the financial highlights for the second quarter. We were encouraged by the underlying strength across the business as demonstrated by some key financial metrics for the quarter, including strong internal local currency sales growth of 4.6%, non-GAAP operating income growth of 10.5% and non-GAAP earnings per share growth of 15.5%. Starting with our second quarter sales results. Global sales were $3.5 billion, with sales growth of 6.7% compared with the second quarter of 2025. This reflects internal local currency sales growth of 4.6%, a 1.4% increase resulting from foreign currency exchange and 0.7% sales growth from acquisitions. Our GAAP operating margin for the second quarter of 2026 was 4.94%, an increase of 27 basis points compared to the prior year GAAP operating margin. On a non-GAAP basis, the operating margin for the second quarter was 7.21%, up 25 basis points compared to the prior year, driven by gross margin expansion in all segments. Second quarter 2026 GAAP net income was $94 million or $0.82 per diluted share. This compares with prior year GAAP net income of $86 million or $0.70 per diluted share. Our second quarter 2026 non-GAAP net income was $145 million or $1.27 per diluted share. This compares with prior year non-GAAP net income of $135 million or $1.10 per diluted share. Foreign currency exchange favorably impacted our second quarter diluted EPS by approximately $0.01 versus the prior year. We did not record any remeasurement gains in the second quarter of 2026. This compares with a remeasurement gain of $3.6 million in the second quarter of 2025. Finally, adjusted EBITDA for the second quarter of 2026 was $288 million compared with second quarter 2025 adjusted EBITDA of $256 million or 12.7% growth. Turning to our sales results. The components of sales growth for the second quarter are included in Exhibit A in this morning's earnings release. I will now provide the primary highlights of the main sales drivers for each reporting segment. Global Distribution and Value-Added Services group sales grew by 6.6%, reflecting good sales momentum across most regions. Looking at the components of that growth, U.S. Dental Merchandise sales grew 8.3% with 6.5% internal local currency sales growth, resulting from a combination of pricing and increased volume. Our U.S. Dental Merchandise sales growth continues to accelerate. We believe patient traffic remained stable throughout the quarter and that we achieved market share gains. U.S. Dental Equipment sales declined 1.1%, primarily due to lower traditional equipment sales growth, which was negatively impacted by a few large dental school orders last year. We did experience modest growth in our digital equipment category and expect U.S. Dental Equipment growth for the rest of this year. U.S. Medical Distribution sales grew 3.8% despite continued headwinds in point-of-care diagnostic product sales. We were especially pleased with the growth in our government-related businesses and our Home Solutions business. International Dental Merchandise sales grew 11.1% with 5.4% internal local currency sales growth, driven by sales growth in Canada, France, Brazil and Australia. International Dental Equipment sales grew 8.7% with internal local currency sales growth of 5.4%. We achieved good sales growth in traditional equipment with modest growth in the digital equipment category. Equipment sales growth was especially good in Canada, Germany, Spain and the U.K. Finally, global value-added services sales grew 5.1% with 3.7% internal local currency sales growth, driven by our business solutions services in both the U.S. and internationally, partially offset by lower financial service revenues in the U.S. Turning to the Global Specialty Products Group. Sales grew 8.7% with 3.2% internal local currency sales growth. Sales growth was driven by implants and biomaterials in both our premium and value products. Premium implant sales growth continues to be strong in Europe and grew modestly in the U.S. Value implant sales growth was driven by S.I.N. 360 in the U.S. and by our European brands. Our Global Technology Group also posted good results with total sales growth of 8.2% with 9.1% internal local currency sales growth. In the U.S., we continue to have strong revenue growth in our Dentrix Ascend practice management business. Internationally, sales growth was driven by our Dentally cloud-based practice management software product. Regarding restructuring costs, the company recorded restructuring expenses of $29 million or $0.18 per diluted share during the second quarter of 2026 as we continue to advance our value creation initiatives. We continue to expect to achieve our goal of achieving greater than $200 million of operating income improvement resulting from our value creation initiatives with a $125 million run rate by the end of 2026 and for these projects to continue into the early part of 2028, providing us confidence as we progress toward our goal of double-digit earnings growth. Regarding the operating income improvements in 2026 from our value creation initiatives, we expect approximately 40% of the in-year operating income improvement to originate from the gross profit initiatives and 60% from G&A expense savings. Beyond 2026, the benefits are expected to be more heavily weighted to G&A savings. Regarding share repurchases, during the second quarter of 2026, the company repurchased approximately 2.6 million shares of common stock at an average price of $76.69 per share for a total of $200 million. At the end of the quarter, we had approximately $455 million authorized and available for future stock repurchases. Turning to our cash flow. We generated strong operating cash flow of $242 million in the second quarter of 2026, driven by higher net income and working capital management. Operating cash flow remains on track to exceed net income for the full year. Turning to our 2026 financial guidance. At this time, we are not able to provide without unreasonable effort, an estimate of restructuring costs, including those related to ongoing value creation initiatives. Therefore, we are not providing GAAP guidance. Our 2026 guidance is for current continuing operations and does not include the impact of restructuring expenses and related costs and other items described in our press release. Guidance does not include any remeasurement gains for the remainder of 2026 or any future benefits from tariff refunds. Note that total remeasurement gains in fiscal year 2025 were $38 million. And in 2026, we expect total remeasurement gains of $11 million, which was already recorded in the first quarter. Our guidance also assumes that foreign currency exchange rates will remain generally consistent with current levels. Our 2026 total sales growth is now expected to be in the range of 4.5% to 5.5% over 2025 compared to our previous guidance of 3% to 5%. This reflects approximately 3.5% to 4.5% of expected internal local currency sales growth in the second half of the year versus actual internal local currency sales growth of 3.6% in the first half of the year despite a higher prior year comparison in the second half of the year. For 2026, we now expect non-GAAP diluted EPS attributable to Henry Schein, Inc. to be in the range of $5.29 to $5.39, reflecting growth of 6% to 8% compared to 2025 non-GAAP diluted EPS of $4.97. Our prior guidance was a range of $5.23 to $5.37. This raise in guidance reflects stronger underlying expected sales performance, partially offset by lower remeasurement gains than originally anticipated. Our value creation projects remain on track, and the benefits for the year are unchanged from prior guidance. We expect earnings growth in the fourth quarter to exceed that in the third quarter, reflecting continuing sales momentum and increasing benefits from value creation projects. In addition, as a reminder, we recorded a $28 million remeasurement gain in the third quarter of 2025, which will not recur in 2026. Regarding taxes, we are assuming an estimated non-GAAP effective tax rate of approximately 24% for the full year, and our 2026 adjusted EBITDA is expected to grow in the mid- to high single digits off a base of 2025 adjusted EBITDA of $1.1 billion. So with that overview of our business and recent financial results, we're ready to take questions. Operator? Operator: [Operator Instructions] And our first question is from the line of Jeff Johnson with Baird. Jeffrey Johnson: Congratulations on a very solid quarter here. So Fred, I wanted to talk just on the U.S. dental consumables market and kind of your performance expectations going forward. I think through the first half of the year, you're just over 4%. Maybe help us understand how much of that do you believe is underlying volume growth versus maybe a combination of price and if you're seeing any increased mix here from some of your manufacturers. So one, just the components of that growth, maybe from a high level, I'm sure you don't want to break it down in great detail. But then as you do comp into tougher comps in the second half on the U.S. consumables side, how should we think conceptually about that 4% or just north of 4% you put up in the first half? Can we stay around that number against those tougher comps? Or just again, conceptually, how would you set up -- maybe help us set up our models as we go into the back half of the year? Frederick Lowery: Yes, Jeff, thanks for the question. Yes, so as I think about the consumable growth and merch growth, I would say that we're -- first off, we're excited about the growth that we're seeing. Secondly, we're seeing a little more price than volume. We expect to continue to see a similar range of growth in the second half that we saw in the first half. Comps get a little more difficult, but we do expect to see that. And what's really driving is really a point here. Last year, we did some promotions starting in the second half of the year, where we really went after some of our episodic customers or customers who were not consistently buying from us. And that promotion and those promotions seem to really work and where we've really converted many of those customers into actively engaged customers that are continuing to buy from us. So we expect to continue to see that in the second half of the year and see that growth rate remain in the same range with the exception of the higher comps that we're seeing. Operator: Our next question is from the line of Jason Bednar with Piper Sandler. Jason Bednar: Congrats on another good quarter here, everyone. Ron, I wanted to come to you on the value creation math. I appreciate the additional color today around some of the mix of the contributions. Bigger picture, you're standing behind the commentary of the $125 million run rate contribution to EBIT exiting this year. Easy math has something like $35 million or better year-over-year EBIT dollar growth before we even consider organic growth, which is obviously very strong. So consensus is only modeling something like $10 million in EBIT growth in the second half of the year. I don't know. I guess maybe an odd question for you. What do you think is being mismodeled or misunderstood by consensus by all of us when you're -- again, you're putting up good results and you stand behind that value creation commitment? Ronald South: No, thanks for the question, Jason. And as we look at the value creation initiatives, we -- our guidance takes into account a range of potential outcomes. And -- but we still believe that we have a good track to achieve that run rate of $125 million of operating income improvements as we exit 2026. A lot of those improvements are going to be realized -- the in-year improvements will be realized towards the end of the year, Q3, Q4. And as Fred mentioned in the prepared remarks, we have -- we've now engaged a third party to help us with -- we're kind of internally calling our global business services. We have other initiatives that are now gaining great traction as we get into the second half of the year. So all of that is contemplated as we provide the guidance. And we'll be able to provide more details in terms of our actual achievements there as we get into, I'd say, the Q3 results as well. Keep in mind also that if you're looking purely at year-over-year results, last year, we did have some fairly significant remeasurement gains in the second half of the year, specifically a $28 million gain in the third quarter that it's necessary to normalize for. As we mentioned, our assumption on guidance for the balance of the year is no further remeasurement gains this year. Operator: Our next question is from the line of Elizabeth Anderson with Evercore ISI. Elizabeth Anderson: Congrats on the quarter. I was wondering if you could give us a little bit more color on the 40% of cost savings that you said were coming from the gross margin line. Is that sort of split between the pricing initiatives and sort of better growth in sort of higher-margin areas? Anything else to consider there? And sort of maybe, Fred, one for you more broadly is like if we think about these specialty categories, what are some places where you see further opportunities to accelerate growth as we get into maybe '26 and beyond that? Frederick Lowery: Yes. So just on the first one, the 40%, you're exactly right. It includes our initiatives around improving our gross profit, leveraging data better to have a more dynamic view of our pricing, not dynamic pricing, but our pricing is more dynamic and finding opportunities to both raise price where it makes sense and opportunities to lower price if it makes sense in order to drive more volume. And then also, as I mentioned earlier, we're seeing really good growth from our corporate brands and our own brands, and that continues to drive our gross profit as well. So those are the 2 main drivers there. And then the second question around specialty, we're excited about the specialty business. And one of the things we didn't talk a lot about but our new products in specialty are really exciting. So we expect to see greater growth in specialty, particularly in our implant business as we completed the majority -- or took a majority stake in S.I.N. 360 in Q1. We're working to align that strategy. And where we're seeing growth in the U.S., in particular, is in the value -- in the value segment. And so we believe we have a very good offering there, and we'll see further growth in that value segment. And frankly, we have very leading brands in Europe, and we saw really good strong growth in the implant business in Europe. So we're excited about our implant business and excited about the future growth of that from a specialty standpoint. Operator: Our next question is from the line of Allen Lutz with Bank of America. Allen Lutz: I want to follow up on Elizabeth's question around the gross margin. Really nice expansion across all 3 segments, and you talked about 40% of the benefits you're seeing this year coming from gross profit. As we think about the second quarter results, how much of the gross margin expansion benefits are embedded in 2Q? And then should we expect more in 3Q, 4Q? Or is this the right run rate for the rest of 2026? Ronald South: Allen, I think that there's -- we did see some margin benefit in the second quarter. As we mentioned in the prepared remarks, we're also seeing, for example, better growth in some of our own brands versus third-party brands, and those do carry better gross margins, and that starts to show itself there. I think as we continue to get some growth in specialty and the ongoing growth in the technology segment as well, those obviously are accretive to that overall margin. So within distribution, we're beginning to see some of the early benefits of the value creation initiative. I think we can build on that as we get into the second half of the year. There's always other factors that come into play in terms of mix. We will expect, for example, better equipment sales in the second half of the year. Equipment sales are typically at a lower margin than merchandise. But I think that as we progress in the year, we will continue to see some -- and I'll refer to it more as gross profit improvements and gross profit benefits. Sometimes it doesn't always show up in margin percentage, but if it grows our gross profit dollars, we consider that to be what the primary goal is there. Operator: The next question is from the line of Jonathan Block with Stifel. Joseph Federico: Joe Federico on for John. Maybe just to clarify on the U.S. dental equipment. I know you had tough comps in the quarter due to the onetime dynamics last year. But you expect year-over-year growth throughout the remainder of the year on a quarterly basis, right? And then maybe just quickly, how are the trends between traditional and digital? We've obviously seen broadly some pressure on digital equipment. So if you can just rehash those dynamics in this quarter and then how you're seeing them play out to date in the second half, that would be great. Frederick Lowery: Yes. So I'll take the first part, and then I'll let Ron talk about the digital piece. But yes, yes, you're exactly right. We did have some tougher comps in Q2 we expect to see growth in the next 2 quarters in equipment. Our bookings look strong, and we feel good about seeing that business grow in the second half of the year. So just on the split between digital and non-digital, I'll let Ron take that. Ronald South: Yes, certainly. So Joe, I think as you're aware, our equipment business tends to be about 2/3 of it is the traditional equipment and about 1/3 of it is digital. We did see -- in the U.S., we did see low double -- I'm sorry, low single-digit growth in digital in the quarter. And that's despite some ongoing lower average selling prices, for example, with scanners. We're seeing good volume growth on the scanners. So we did get some scanner growth even though the demand for scanners tends to be more towards the lower price entries in the market as opposed to some of the higher-priced scanners that are available. So digital, we got modest growth. I think we can continue with that modest growth going forward. And as Fred said, on the traditional side, the backlog gives us really good visibility into what we think we can accomplish in the balance of the year, hence, the statement that we do expect equipment growth for the rest of the year. Operator: The next question is from the line of John Stansel with JPMorgan. John Stansel: Great. I just want to drill in on specialty margins expanded nicely year-over-year. I think in previous quarters, we've discussed the idea that value implants outgrowing premium implants creates a bit of a margin headwind. Is it fair to say that reversed this quarter? Or how are we thinking about the mix contribution from premium versus value in this quarter and then the durability of that going forward? Ronald South: John, yes, I'll take that one. I think that the margin expansion is an indication of the strength of the premium implants business in Europe right now. We get very good margins on our revenues there, and we did see very good growth. The premium implant growth in the U.S. was a little more modest, but in Europe, it was quite good. Having said that, we're pleased with the value implant growth in the U.S. as we continue to get some traction and introduce the S.I.N. 360 value implant within the U.S. But I would say the mix had a bit of a shift given the strength of the premium implant business in Europe. We also saw kind of across the board good margins on endodontics and a few other products within that segment as well. Operator: The next question is from the line of Kevin Caliendo with UBS. Kevin Caliendo: Congrats on a really good quarter. I'm interested, you're talking about specialty in Europe. There's been some questions on it. But the dynamics there, we also saw this from another specialty player where EMEA was strong and international was strong and the U.S. wasn't. Is this a reflection of Henry Schein's products and specifically? Or is there something going on in the U.S. market? Is it more just consumer-driven versus EU? I'm just trying to understand why the strength exists in EU and not in the Americas right now for specialty. Frederick Lowery: Yes. I think it's a market issue, a market difference in the U.S. versus in EMEA. And so I think the market in the U.S. is more consumer like as it relates to implants relative to what you see in EMEA. So we believe we took share in the U.S. market, but in the quarter, that is for our premium implants and frankly, for implants in general. But the market is just not growing as fast in the U.S. as it is in EMEA. Operator: Our next question is from the line of Glen Santangelo with Barclays. Glen Santangelo: I just wanted to come back to this faster-than-expected sort of consumable number. In your prepared remarks, I think you sort of suggested that patient volumes continue to be stable, but the better growth was really coming from market share gains. And I was wondering if you could elaborate on that a little bit and give us maybe a better sense for where the market share is coming from. And then, Ron, as you sort of look at the quarterly results, is there any story to tell intra-quarter between like April, May and June? Or was the growth pretty ratable throughout the quarter? Frederick Lowery: Yes. I think the share -- thanks for the question. The share gain is coming from a couple of places. One, our own brands continue to grow faster than our third-party brands. So we're growing there. Secondly, we continue to -- we have a strong position with DSOs and structurally, we see DSOs growing faster than the rest of the market. So that obviously plays into our growth rate. And then the third thing is we continue to, as I mentioned earlier, convert customers from being episodic buyers to being actively buying from us consistently. And so we're seeing growth there. And then the final thing is, as I think about some of our exclusive products that we have and others don't, Curodont would be an example, we're seeing good growth from our exclusive products. So those things together allow us to -- allowed us in the quarter to outpace the market, and we expect for that to continue to happen. Ronald South: Yes. And Glen, regarding the second half of your question, I would say the second quarter, we saw what I would consider to be a fairly steady, consistent pattern over the course of the quarter. In second quarter tends to be -- at least within the quarter, tends to be a little more predictable than perhaps what you might see in the first quarter where you might have weather disruptions or illness disruptions within the market. But the second quarter was pretty steady. I would say we did -- we felt like we had a good strong finish to the quarter, which is always encouraging. But for the most part, it was a very -- it was a fairly steady quarter, April, May to June. Operator: The next question is from the line of Brandon Vazquez with William Blair. Brandon Vazquez: Congrats on a nice quarter. Maybe I'll focus on 2 kind of broader high-level questions because a lot of near-term things have been asked. Fred, as you had mentioned portfolio. I'm not sure portfolio rationalization or optimization was the exact phrase you used, but maybe spend a second talking to us about what exactly that means? What are you looking for within the portfolio that should or should not be there? And then the higher-level question to follow up on that is just, Fred, as you look at this organization, not in 1 year, but like 3 years out, what do you think the biggest differences investors should expect given a lot of the changes that are going now, both from an operational and a commercial perspective? Frederick Lowery: Yes. Thanks for the question. As it relates to the portfolio, we're obviously -- we're taking a look at the portfolio. I mean I don't expect major changes to the portfolio. But as we've laid out, our priorities are really focused around accelerating growth and driving better returns. We're looking for places in the portfolio that don't line up with that. And will there be some pruning to the portfolio? I mean we'll see, and we'll obviously let you know what we find going forward. And I think secondly, I'll just take that to extend that to what's our thinking on M&A. I think you'll see us be very disciplined from an M&A perspective and focusing on things that are highly strategic, meaning things that help us continue to build this platform for value creation for our customers. So things that we will be the natural owner of or the rightful owner of in order to support our customers better and things that are going to help us grow faster and deliver really great returns to our shareholders. So that's how I'm thinking about the portfolio. And as we make decisions around that, we'll obviously get back to you. As you think about a few years out, I mean, we're going to obviously deliver on our commitments short term. But longer term, we expect to see this business accelerate growth and do it more profitably. But ultimately, be positioned less as a distributor, even though we'll be a great distributor for our customers, but really be positioned as the practice improvement platform for our customers, where we're able to help our customers really optimize their businesses, help them grow faster and help them do it more productively. So that's what we're focused on is really improving -- helping our customers improve their situation. If we do that well, we should be able to reach our goals of accelerating growth and doing it more profitably. Operator: Our next question is from the line of David Larsen with BTIG. David Larsen: Congratulations on the really good growth you delivered. Can you talk a little bit more about the AI efforts, Dentrix, the software, the technology? You mentioned you're going to be creating like an analyzer solution. How many of your Dentrix customers buy the merch through you as like -- and you're like their core distributor. What is the growth potential there? All of that sounds really important to me because your dentists can basically accelerate their volume growth, which obviously benefits you and them. Just any more color there would be very helpful. Frederick Lowery: Yes. Thanks for the question. I appreciate your excitement about it because I'm super excited about our technology business as well. Let me start with the AI piece. I mean the thing that's really exciting is not just the capabilities that we're launching the AI capabilities that we're launching into our PMS platforms. But it's also the fact that we're using AI to develop those capabilities. And so we're able to bring new capabilities to market faster. And that, I think, will continue to help us accelerate our growth. As we add capabilities to the PMS systems, our customers are recognizing the utility and the benefit and they're moving up to higher order packages where -- so we're getting share of wallet gains, but we're also getting share of market gains by adding more customers to our cloud-based PMS. So that's quite exciting. The second part that you mentioned is what's the connection between customers that are buying merchandise from us or buying products from us and using our PMS system. And we haven't really connected those dots publicly. But what I would say to you is that is a real opportunity for us to make sure that it's easier for customers to do business with us. And if you have our PMS system, it makes a lot of sense for you to buy all of your merchandise from us. And that is part of the customer value proposition to us being the practice improvement platform for our customers. So we're excited about continuing to see that happen and helping to allow that 90% of recurring revenue from our PMS system to help to drive the rest of our business as well. Operator: The next question is from the line of Michael Sarcone with Jefferies. Michael Sarcone: I guess the company just put out a press release on some changes to the executive management committee and the new Henry Schein leadership team. I was wondering if you could kind of unpack that a little bit and elaborate on some of the changes you're making and what you hope to accomplish there. Frederick Lowery: Yes. Thanks for the question. We announced some changes to the leadership team really with a goal of doing a couple of things. One is just getting closer to customers and being able to increase the speed at which we make decisions and to increase our pace and frankly, improve our execution consistency. So what that really looks like is that we removed the layer, which puts me a little closer to the business. We integrated our supply chain more deeply into our distribution business, which puts us closer to the customer. And I think you'll see that continue to increase our executional capability. I do want to just take a moment and just thank Michael and Mark and Jim, 3 long-serving executives here over 100 years of experience, and I am incredibly grateful for their contributions to the business. And I'm even more grateful that they've decided to stay on as senior advisers to me and to the leadership team in support of the company going forward. So I feel like we're in a really great place from a leadership team standpoint, and we'll continue to add the right capabilities to deliver on the opportunity set that's in front of us. Operator: The next question is from the line of Steven Valiquette with Mizuho. Steven Valiquette: Just for the Specialty Products Group, you mentioned the profit growth in the segment was 19.9%, and some of that was organic versus inorganic. So apologies if I missed it, but I just wanted to get just the approximate breakdown within that specialty area, how much of that profit growth was organic versus inorganic? Ronald South: Thanks for the question. I think that a significant majority of that is going to be organic. We did have an acquisition within the Specialty Group in the back half of 2025 that is contributing to some of that operating income growth, but a significant majority of that is organic. And I think that equally important, I think we had some improvements in the operating margins within that business as well. So some good efficiencies, we continue to make some operating changes within the Specialty Group, consolidating some operations, again, going to market more as a singular business as opposed to a portfolio approach, and we're beginning to see some of the benefits of those changes start to emerge in the financial results. Operator: The next question comes from the line of Michael Cherny with Leerink Partners. Michael Cherny: Maybe circling back to the value creation program. It's encouraging to hear that you're sticking on the opportunity cost cut side. How are you thinking about the flip side, though, and the potential to reinvest some of those savings? Obviously, I know you're targeting double-digit growth. But given we've heard so much about share gain opportunities here, what does it look like on the far side once you get to that $200 million run rate? Frederick Lowery: Yes. When I -- listen, I think that we actually call value creation internally value creation for growth. So we're absolutely committed to the $125 million run rate by the end of this year and the $200 million over a few years. But we're not going to stop there. I mean we're going to continue to create space in the P&L so that we can invest in the opportunities to help us get to -- help us to accelerate growth. So I think what we've committed to, those are hard commitments, but just believe that we're continuing to work to optimize our business, and we'll make the appropriate investments to drive -- to take advantage of the opportunity set from a growth standpoint. Operator: Our next question is from the line of Vik Chopra with BMO. Vikramjeet Chopra: Congrats on a nice quarter. I'll just keep it to one. So you raised your revenue guidance but only modestly increased the EPS guidance. Can you talk about the factors preventing the stronger earnings flow-through from the higher sales outlook, please? Ronald South: Well, from a sales perspective, we continue -- like we said, we expect internal growth to actually be slightly better than the internal growth we had in the first half of the year. I do think from a sales perspective, we will not get the foreign exchange benefits like that we experienced in the first half of the year, that's taken into consideration in the overall revenue growth. From an EPS perspective, it reflects that improvement in sales, but it also reflects our -- an adjustment to our expectations, for example, around remeasurement gains. We are not expecting any further remeasurement gains in the balance of the year. That means the full year remeasurement gain benefit will be $11 million. Our original expectations were within a range, but that $11 million was very much towards the low end of that range. So that is reflected within our revised EPS guide as well. Operator: Our next question is from the line of Daniel Grosslight with Citi. Daniel Grosslight: I'll focus a little bit on the Medical segment, the U.S. Medical segment. Fairly good growth despite the headwinds in point-of-care diagnostics. I was hoping you can provide maybe a little bit more detail on the size of that headwind and when you guys think that this should start to abate? And then on the strength you're seeing in the government-related and Home Solutions side of the business, I'm curious if you could kind of parse out or double-click on some of the areas of strength within those 2 segments. Ronald South: Sure. I'll address that. I think in terms of the core medical business, the impact on revenues from the diagnostic products is less significant in the middle of the year, meaning Q2, Q3 versus Q4, Q1 when there's a greater rate of respiratory illness. Having said that, -- we did see lower demand in Q2 for those products this year versus last year. But we did get the very good growth. You mentioned the Home Solutions business, and we did get very good growth there. That growth, as we mentioned in the prepared remarks, was approaching double digits. It was high single digits. And I think that's really just a function of continuing to make gain ways in terms of -- as we expand available products as we expand into different geographies from some of the acquisitions we've done on the Home Solutions side over the last couple of years, and we're starting to see some of the benefits of that. So that's -- those have been good investments for us. We do see greater growth in Home Solutions markets, and we also do that at better margins than we get in core medical markets. So that has been an area of focus and continue to be so. Operator: The next question is from the line of Mike Petusky with Barrington Research. Michael Petusky: Just one more time to go back to the value creation topic. I'm just wondering, I don't think I've heard you guys speak about this, perhaps I'm wrong, but I don't think I have. In terms of the sequencing by geography and some of these initiatives, whether it's pricing optimization, integrating M&A, labor cost efficiencies, sort of enhancing your technology. Can you just speak to if there is some meaningful sequencing of, hey, we need to go after this initiative in the U.S. first and then OUS, et cetera. I was just wondering if you could speak to that. Frederick Lowery: Yes. Thanks for the question. Yes, I wouldn't -- obviously, we've sequenced our projects around what makes sense. I don't know that I would use the regional lens. It does just so happen that we did start with finance and customer service in the U.S. But in some of the other projects, as I look -- think about the ones affecting gross profit, we're doing that globally and not just in the U.S. So I think it just depends on the project itself. But we are taking a phased approach, and we're seeing really good progress in Phase 1. We expect to start seeing more benefit in the second half of the year from that, and we'll continue to methodically work our plan to deliver on the full $200 million over the next few years. Operator: There are no further questions at this time. I'd like to turn the floor back to Fred Lowery for closing comments. Frederick Lowery: Thank you, and thank you for your questions. And to conclude, I'd just like to maybe just a quick recap. Our second quarter results demonstrated really strong underlying double-digit earnings growth, driven by internal local currency sales growth and strong margins, combined with some initial value creation benefits, we expect this momentum to continue. We are, therefore, raising our full year 2026 guidance while maintaining a conservative and disciplined stance by excluding any additional remeasurement gains, which had previously been in our projections, thereby providing clarity to the underlying business growth. We're executing against a clear plan grounded in our strong foundation, and we expect to continue to create shareholder value through accelerating growth, simplifying our business and driving operational rigor. This includes our value creation for growth initiatives, which are on track to plan. To sum it up, we're energized by what lies ahead, and we look forward to updating you on our continued progress throughout the year. Thank you for your interest in Henry Schein, and enjoy the rest of the day. Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Henry Schein, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Henry Schein wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Henry Schein (HSIC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Henry Schein, Inc. HSIC reported second-quarter 2026 adjusted earnings of $1.27 per share, up 15.5% year over year. The bottom line surpassed the Zacks Consensus Estimate by 4.1%. Net sales rose 6.7% to $3.46 billion and beat the consensus estimate by 2.8%. Results benefited from 4.6% internal sales growth, with gains across distribution, specialty products and technology. Acquisitions contributed 0.7% to growth, while foreign currency movements added 1.4%. Following the announcement, HSIC’s shares edged up 0.1% in the pre-market session today. Global Distribution and Value-Added Services sales increased 6.6% to $2.91 billion. The segment generated 4.5% internal growth, a 0.6% contribution from acquisitions and a 1.5% foreign exchange benefit. Global Medical Distribution sales advanced 4% to $1.06 billion, supported by 3.9% internal growth. Global Value-Added Services sales increased 5.1% to $61 million, reflecting 3.7% internal growth. Henry Schein, Inc. price-consensus-eps-surprise-chart | Henry Schein, Inc. Quote U.S. Distribution and Value-Added Services sales rose 4.6% to $1.95 billion. International sales in the segment climbed 10.7% to $965 million, aided by 5.5% internal growth and a 4.5% currency benefit. Global Specialty Products sales increased 8.7% to $419 million. Internal growth was 3.2%, acquisitions contributed 3.4% and foreign currency exchange added 2.1%. Global Technology sales advanced 8.2% to $181 million. Internal sales grew 9.1%, partly offset by a 1.3% reduction related to a business disposal. Foreign exchange contributed 0.4%. Technology delivered the company’s highest internal growth rate among its major reporting categories. The performance complemented steady gains in dental merchandise, medical distribution and specialty products. In the reported quarter, gross profit totaled $1.10 billion, representing an 8.4% increase year over year. The gross margin expanded 48 basis points (bps) to 31.8% despite a 6% rise in the cost of sales. Selling, general and administrative expenses increased 6.8% to $831 million. Operating income rose 13.2% to $171 million, while the operating margin expanded 28 bps year over year to 4.9%. Henry Schein exited the second quarter of 2026 with cash and cash equivalents of $157 million compared with $138 million at March-end. Cumulative net cash provided by operating activities at the end of the reported quarter was $145 million compared with $157 million a year ago. Management raised its 2026 adjusted earnings guidance to $5.29-$5.39 per share, from the earlier $5.23-$5.37 range. The Zacks Consensus Estimate for earnings currently stands at $5.32 per share. The company also lifted its total sales growth forecast to 4.5%-5.5% from 3%-5%. The Zacks Consensus Estimate for sales is currently pegged at $13.72 billion, indicating 4.1% year-over-year growth. Adjusted EBITDA is now expected to grow at a mid- to high-single-digit rate, compared with the prior expectation of mid-single-digit growth. Management cited sustained business momentum, margin improvement and early benefits from its value creation initiatives. The updated outlook assumes foreign exchange rates remain generally consistent with current levels. It excludes future tariff refunds, remeasurement gains and several items that management does not consider representative of underlying performance. Henry Schein exited the second quarter with both earnings and revenue beating estimates. Performance was driven by sustained momentum across the company’s businesses and solid operational execution by the team. Henry Schein also benefited from the early impact of its value creation initiatives, which supported stronger adjusted bottom-line growth. The raised guidance for the year is also very promising. Henry Schein currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are Labcorp Holdings LH, Quest Diagnostics DGX and Medpace MEDP. Labcorp, carrying a Zacks Rank #2 (Buy), reported second-quarter 2026 adjusted EPS of $4.99, which surpassed the Zacks Consensus Estimate by 4.18%. Revenues of $3.73 billion beat the Zacks Consensus Estimate by 0.36%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. LH has an earnings yield of 5.9% compared with the industry’s 4.1% yield. The company's earnings beat estimates in each of the trailing four quarters, the average surprise being 3.09%. Quest Diagnostics, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $3.12, exceeding the Zacks Consensus Estimate by 11%. Revenues of $3.04 billion topped the Zacks Consensus Estimate by 2.1%. DGX has an earnings yield of 4.7%, almost in line with the industry’s yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 5.77%. Medpace, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $4.25, exceeding the Zacks Consensus Estimate by 4.17%. Revenues of $707.3 million outperformed the consensus mark by 1.12%. MEDP has an historical five-year earnings growth rate of 30.5% compared with the industry’s 5.6% growth. In the trailing four quarters, the company delivered an average earnings beat of 10.16%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Henry Schein, Inc. (HSIC) : Free Stock Analysis Report Labcorp Holdings Inc. (LH) : Free Stock Analysis Report Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report Medpace Holdings, Inc. (MEDP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). 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Henry Schein (HSIC) reported $3.46 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 6.7%. EPS of $1.27 for the same period compares to $1.10 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $3.36 billion, representing a surprise of +2.8%. The company delivered an EPS surprise of +4.1%, with the consensus EPS estimate being $1.22. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Henry Schein performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Geographic Revenue- International Distribution and Value-Added Services- Dental: $935 million versus the four-analyst average estimate of $889.96 million. The reported number represents a year-over-year change of +10.9%. Geographic Revenue- International Distribution and Value-Added Services- Medical: $30 million versus the four-analyst average estimate of $30.38 million. The reported number represents a year-over-year change of +7.1%. Geographic Revenue- U.S. Distribution and Value-Added Services: $1.95 billion compared to the $1.9 billion average estimate based on four analysts. The reported number represents a change of +4.6% year over year. Geographic Revenue- U.S. Distribution and Value-Added Services- Dental- Merchandise: $652 million versus the four-analyst average estimate of $613.29 million. The reported number represents a year-over-year change of +8.3%. Net Sales- Global Specialty Products: $419 million compared to the $406.78 million average estimate based on five analysts. The reported number represents a change of +8.6% year over year. Net Sales- Global Technology: $181 million versus the five-analyst average estimate of $174.78 million. The reported number represents a year-over-year change of +8.4%. Net Sales- Global Distribution and Value-Added Services: $2.91 billion versus $2.82 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +6.6% change. Net Sales- Eliminations: $-53 million versus $-44.68 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +20.5% change. Net Sales- Global Distribution and Value-Added Services- Global Dental: $1.85 billion compared to the $1.78 billion average estimate based on four analysts. The reported number represents a change of +8.1% year over year. Net Sales- Global Distribution and Value-Added Services- Global Medical: $1.06 billion versus $1.05 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +4% change. Geographic Revenue- International Distribution and Value-Added Services: $965 million compared to the $920.35 million average estimate based on four analysts. The reported number represents a change of +10.8% year over year. Net Sales- Global Distribution and Value-Added Services- Global Dental- Global Equipment: $456 million versus $454.24 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +3.9% change. View all Key Company Metrics for Henry Schein here>>> Shares of Henry Schein have returned -0.1% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Henry Schein, Inc. (HSIC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Henry Schein, Inc.? Here are five stocks we like better. Strong Q2 performance: Henry Schein’s sales rose 6.7% to $3.5 billion, while non-GAAP EPS increased 15.5% to $1.27 and adjusted EBITDA grew 12.7% to $288 million. Margin expansion across all segments supported the earnings gains. Growth across key businesses: U.S. dental merchandise sales increased 8.3%, international dental sales grew at double-digit rates, and the technology segment rose 8.2% with nearly 13,000 cloud-platform subscribers. The company also cited market-share gains and stable dental patient traffic. 2026 outlook raised: Henry Schein now expects full-year sales growth of 4.5%–5.5% and non-GAAP EPS of $5.29–$5.39. Its value-creation program remains targeted at more than $200 million in operating-income improvements, with outsourcing and other efficiency initiatives expected to begin contributing more significantly in the second half. Henry Schein (NASDAQ:HSIC) reported higher second-quarter sales, operating margins and earnings, citing accelerating internal sales growth, market-share gains in dental merchandise and early benefits from its value-creation program. The company also raised its full-year sales and adjusted earnings guidance. Chief Executive Officer Fred Lowery said the company’s second-quarter performance reflected sustained momentum across its businesses, strong gross margins and operational execution. He said Henry Schein is focused on accelerating growth, simplifying its operations, strengthening customer relationships and improving profitability. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “Our first half performance and the sustained momentum have positioned us to raise our full year 2026 guidance,” Lowery said. Global sales totaled $3.5 billion in the second quarter, up 6.7% from the prior-year period. The increase included 4.6% internal local-currency sales growth, a 1.4% benefit from foreign exchange and 0.7% growth from acquisitions, according to Senior Vice President and Chief Financial Officer Ron South. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? GAAP net income rose to $94 million, or $0.82 per diluted share, from $86 million, or $0.70 per diluted share, a year earlier. On a non-GAAP basis, net income was $145 million, or $1.27 per diluted share, compared with $135 million, or $1.10 per diluted share, in the second quarter of 2025. Non-GAAP operating income increased 10.5%, while non-GAAP diluted earnings per share rose 15.5%, South said. Adjusted EBITDA grew 12.7% to $288 million. → Why Rare Earth Processing Could Be the Real 2027 Opportunity GAAP operating margin expanded 27 basis points year over year to 4.94%, while non-GAAP operating margin increased 25 basis points to 7.21%. South attributed the non-GAAP margin improvement to gross-margin expansion across all segments. Henry Schein’s Global Distribution and Value-Added Services Group posted sales growth of 6.6%. U.S. dental merchandise sales increased 8.3%, including 6.5% internal local-currency growth, driven by pricing and higher volume. Lowery said the company believes patient traffic remained stable and that it gained market share during the period. Lowery said U.S. dental merchandise growth included “a little more price than volume,” and the company expects growth in a similar range during the second half despite more challenging comparisons. He cited growth in company-owned brands, strength with dental support organizations, conversion of occasional purchasers into more active customers, and demand for exclusive products including Curadont. U.S. dental equipment sales declined 1.1%, primarily due to difficult comparisons with several large dental-school orders in the prior-year quarter. The company reported modest growth in digital equipment and said its backlog supports expectations for U.S. dental equipment growth during the remainder of 2026. U.S. medical distribution sales grew 3.8%, despite lower demand for point-of-care diagnostic products. Government-related operations and Home Health Solutions were areas of strength. Lowery said Home Health Solutions sales rose at a high-single-digit pace and that the business offers faster growth and better margins than the broader core medical market. International dental merchandise sales increased 11.1%, including 5.4% internal local-currency growth, led by Canada, France, Brazil and Australia. International dental equipment sales rose 8.7%, with 5.4% internal local-currency growth. The Global Specialty Products Group recorded sales growth of 8.7%, including 3.2% internal local-currency growth. Implant and biomaterials sales contributed to the gain. Lowery said premium implant growth was particularly strong in Europe, while U.S. growth was more modest because the domestic implant market was not expanding as quickly as Europe, the Middle East and Africa. The Global Technology Group grew sales 8.2%, including 9.1% internal local-currency growth. Nearly 13,000 customers now subscribe to the company’s Dentrix Ascend and Dentally cloud-based platforms. About 90% of Henry Schein One revenue is recurring, Lowery said. June set a record for new Dentrix Ascend customers, according to Lowery. Average monthly revenue per customer is approximately $500 across Henry Schein One, compared with approximately $800 for Dentrix Ascend customers. The company said customers are increasingly upgrading to higher-featured packages. Henry Schein reiterated its goal of generating more than $200 million in operating-income improvements from value-creation initiatives over the next several years, including a $125 million run rate by the end of 2026. The company recorded $29 million in restructuring expenses during the second quarter related to these efforts. South said the company expects about 40% of its 2026 operating-income improvement from gross-profit initiatives and 60% from general and administrative expense savings. Beyond 2026, benefits are expected to be more heavily weighted toward G&A savings. Lowery said the company has selected a global outsourcing provider for finance and customer-service functions and has begun the first phase in the United States. Initial labor-cost benefits are expected to begin in the third quarter. He said the project is expected to account for more than half of the G&A savings tied to the $200 million target. Other initiatives include centralizing indirect procurement, using sales data to identify pricing and margin opportunities, expanding artificial intelligence capabilities, and deploying supply-chain software intended to improve efficiency, reduce inventory and streamline purchasing. The company also announced leadership changes intended to remove a management layer, place executives closer to the business and customers, integrate supply chain more closely with distribution, and improve decision-making speed and execution consistency. Henry Schein raised its full-year sales growth outlook to 4.5% to 5.5%, from its prior range of 3% to 5%. The company expects second-half internal local-currency sales growth of approximately 3.5% to 4.5%. The company now expects 2026 non-GAAP diluted earnings per share of $5.29 to $5.39, representing 6% to 8% growth from 2025 non-GAAP EPS of $4.97. Its previous outlook was $5.23 to $5.37 per share. South said the higher outlook reflects stronger expected underlying sales performance, partially offset by lower remeasurement gains than originally anticipated. Henry Schein expects no additional remeasurement gains for the remainder of 2026. The company expects fourth-quarter earnings growth to exceed third-quarter growth as sales momentum continues and value-creation initiatives generate increasing benefits. During the second quarter, Henry Schein repurchased approximately 2.6 million shares for $200 million at an average price of $76.69 per share. The company had approximately $455 million remaining under its share-repurchase authorization at quarter-end. Henry Schein, Inc is a leading global distributor of healthcare products and services, primarily serving office-based dental, medical and animal health practitioners. The company operates through three principal segments—Schein Dental, Schein Medical and Animal Health—each offering a comprehensive portfolio of consumable products, equipment, instruments and related value-added services. With a focus on improving practice efficiency and patient care, Henry Schein provides everything from dental restorative materials and orthodontic appliances to vaccines, pharmaceuticals and diagnostic devices for physicians, as well as pet health products and veterinary equipment for animal health professionals. In addition to its broad product offering, Henry Schein delivers a suite of technology and service solutions aimed at streamlining workflows and enhancing clinical outcomes. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Henry Schein Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Henry Schein (HSIC) came out with quarterly earnings of $1.27 per share, beating the Zacks Consensus Estimate of $1.22 per share. This compares to earnings of $1.1 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.10%. A quarter ago, it was expected that this health care products maker would post earnings of $1.2 per share when it actually produced earnings of $1.32, delivering a surprise of +10%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Henry Schein, which belongs to the Zacks Medical - Dental Supplies industry, posted revenues of $3.46 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.80%. This compares to year-ago revenues of $3.24 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Henry Schein shares have added about 14.5% since the beginning of the year versus the S&P 500's gain of 11%. While Henry Schein has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Henry Schein was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.35 on $3.45 billion in revenues for the coming quarter and $5.32 on $13.72 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Dental Supplies is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Becton Dickinson (BDX), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This medical device manufacturer is expected to post quarterly earnings of $3.14 per share in its upcoming report, which represents a year-over-year change of -14.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Becton Dickinson's revenues are expected to be $4.89 billion, down 11.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Henry Schein, Inc. (HSIC) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research