Henry Schein Inc Earnings Summary
Henry Schein, Inc., a leading global provider of healthcare products and services, has announced its financial results for the third quarter of 2025, reflecting a successful period characterized by significant gains in revenue and income. The company reported robust growth, driven by strong performance across all segments and strategic initiatives that have positioned it for future success.
Henry Schein Inc Results
The financial metrics for the third quarter of 2025 showcase the company's steady progress compared to the previous year and quarter. Below is a summary of key financial metrics.
| Financial Metric | Q3 2025 | Q3 2024 | Year-over-Year Change |
|---|---|---|---|
| Total Revenue ($ billion) | 3.3 | N/A | N/A |
| GAAP Net Income ($ million) | 101 | 99 | 2% |
| GAAP EPS ($) | 0.84 | 0.78 | 7.7% |
| Non-GAAP EPS ($) | 1.38 | 1.22 | 13.1% |
| Adjusted EBITDA ($ million) | 295 | 268 | 10.1% |
The company's total net sales reached $3.3 billion, marking a 5.2% increase from the third quarter of 2024. GAAP net income stood at $101 million, or $0.84 per diluted share, reflecting a 2% rise from the same quarter last year. Meanwhile, non-GAAP net income reached $167 million, translating to $1.38 per diluted share, a significant improvement of 13.1% year-over-year.
Revenue Breakdown
Henry Schein's revenue performance across its major segments witnessed a healthy increase, enabling the company to surpass previous estimates. The revenue breakdown is detailed below.
| Segment | Year-over-Year Growth (%) | Constant Currency Growth (%) |
|---|---|---|
| Global Distribution & Services | 4.8 | 3.7 |
| Global Dental Merchandise | 4.6 | 2.9 |
| Global Dental Equipment | 5.5 | 3.4 |
| Global Medical Distribution | 4.7 | 4.6 |
| Global Value-Added Services | 3.3 | 2.9 |
| Global Specialty Products | 5.9 | 3.9 |
| Global Technology | 9.7 | 9.0 |
Analysis of Segment Performance:
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Global Distribution and Services: This segment demonstrated a 4.8% growth, with internal sales growth accounting for 3.3%. This was primarily driven by consistent sales in both dental and medical distribution, as well as a slight boost from acquisitions and foreign currency exchanges.
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Dental Formats: This saw a respectable increase, with merchandise sales up by 4.6% and equipment sales jumping by 5.5%, driven by robust growth in Germany and the U.S.
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Medical Distribution: There was a 4.7% increase due to the rising demand for medical products, pharmaceuticals, and the Home Solutions business.
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Value-Added Services: Consulting services spearheaded a sales growth of 3.3%, with minor gains from currency exchanges.
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Specialty Products and Technology: Both showed strong performance, with specialty products achieving 5.9% growth, driven by dental implants and endodontics sales, while technology soared with a 9.7% increase due to the adoption of cloud-based software and new revenue cycle management solutions.
Key Developments
Henry Schein announced several critical developments in the quarter. The company raised its 2025 guidance for non-GAAP diluted EPS and expects sales growth between 3% to 4%. In addition, a Strategic Partnership Agreement was amended, allowing KKR to increase its stock ownership up to 19.9%, indicating a strategic alignment for future growth.
Further, Henry Schein revealed value creation initiatives envisaged to provide over $200 million in operating income improvements in the coming years. These initiatives are expected to enhance the company's long-term financial outlook.
Comments from Company Officers
Stanley M. Bergman, Chairman of the Board and CEO, expressed satisfaction with the quarterly results: "We are pleased with our financial results for the third quarter, with sales growth accelerating in each of our reportable segments, demonstrating solid market share gains in our distribution businesses. Our successful execution of the BOLD+1 strategy sets the foundation for strong future growth."
Bergman also highlighted the collaboration with KKR: "With continued input from KKR, we have made good progress on advancing the value creation initiatives, which are poised to deliver significant improvements in operating income."
Dividends and Share Repurchases
During the third quarter of 2025, Henry Schein repurchased 3.3 million shares of common stock, amounting to a total of $229 million. The company completed its Accelerated Stock Repurchase plan and holds $980 million authorized for future stock repurchases, underscoring its commitment to returning value to shareholders.
Henry Schein Inc Stock Forecast
Given Henry Schein's robust financial performance and strategic initiatives, the company seems well-positioned for continued growth. The stock price is currently at $2.28, with a market capitalization of approximately $8.2 billion. Based on the current trends and positive outlook, the stock price is projected to range between $2.15 and $2.45 in the coming quarters, reflecting potential fluctuations due to market conditions and strategic developments.
In conclusion, Henry Schein, Inc.'s strategic focus on growth, innovation, and partnership will likely drive its future financial success, including sustained revenue increases and enhanced shareholder value.
