Henry Schein, Inc.

What they do

Henry Schein distributes more than 300,000 branded and corporate brand products to over one million customers worldwide, including dental practices, laboratories, physician practices, and ambulatory surgery centers. The company operates through three reportable segments: Global Distribution and Value-Added Services, Global Specialty Products, and Global Technology. It employs more than 25,000 people, operates in 34 countries and territories, and maintains 38 distribution centers and 17 manufacturing facilities.

Revenue drivers

• Global Distribution and Value-Added Services — Distributes national and corporate brand merchandise, equipment, and technical services to dental and medical markets, and includes financial services, continuing education, and consulting. This is the largest segment, with Q2 2026 sales up 6.6%, including 4.5% internal growth.
• Global Specialty Products — Manufactures and sells dental implant and biomaterial products, endodontic, orthodontic, and orthopedic products. Q2 2026 sales increased 8.7%, with 3.2% internal growth and 3.4% from acquisitions.
• Global Technology — Develops and distributes practice management software and e-services to health care providers. Q2 2026 sales rose 8.2%, with 9.1% internal growth partly offset by a business disposal.
• Global Dental Distribution — The dental distribution business within Global Distribution includes merchandise and equipment sales. In Q2 2026, merchandise sales grew 9.7% (5.9% internal) and equipment sales grew 3.8% (2.2% internal).

Recent performance

For Q2 2026, total net sales were $3.5 billion, up 6.7% year over year, reflecting 4.6% internal growth, 0.7% from acquisitions, and 1.4% from foreign currency. GAAP net income was $94 million, or $0.82 per diluted share, compared with $86 million, or $0.70, in Q2 2025. Non-GAAP net income was $145 million, or $1.27 per diluted share, versus $135 million, or $1.10, a year earlier. Adjusted EBITDA was $288 million versus $256 million. First-half 2026 net sales were $6.8 billion, up 6.5%, with GAAP net income of $201 million, or $1.74 per diluted share.

Strategy

Management is focused on value creation initiatives aimed at accelerating growth, simplifying the business, and driving operational rigor. The company raised its full-year 2026 guidance, citing first-half momentum and early benefits from these initiatives. CEO Fred Lowery emphasized deepening customer relationships and sustainable shareholder value creation. The company continues to pursue acquisitions, which contributed 0.7% to first-half sales growth.

Risks

• Supplier dependence — In 2025, the top 10 suppliers in Global Distribution and Value-Added Services accounted for approximately 24% of aggregate purchases, and the largest supplier accounted for 4%.
• Limited long-term supply contracts — The company obtains a significant volume of products from third parties with whom it generally does not have long-term contracts, creating risk of supply interruptions.
• Manufacturing raw material reliance — In its specialty manufacturing (dental implants, endodontics, orthopedics), the company depends on third parties for raw materials and purchased components.
• Fragmented and competitive industry — The distribution industry is fragmented, with office-based practitioners typically purchasing from more than one distributor, so retaining primary supplier status is important.

Outlook

For full-year 2026, management guided to non-GAAP diluted EPS of $5.29 to $5.39, Adjusted EBITDA growth in the mid-to-high single digits, and sales growth of 4.5% to 5.5%. The company expects continued momentum from value creation plans and operational execution. CEO Fred Lowery stated that first-half performance positions the company to raise guidance.