| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 64 | 25.7x | 17.8x | Around median | |
Growth | 36 | 6.5% | 7.1% | Bottom tier | |
Quality | 61 | 8.1% | 4.5% | Around median | |
Safety | 55 | 3.5x | 2.6x | Around median | |
Capital Return | 62 | — | 2.12% | Around median | |
Momentum | 83 | 28.9% | 2.9% | Top tier | |
Sentiment | 84 | 12 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Henry Schein operates as a global distributor of healthcare products and services, with a clear focus on dental practices and non-hospital medical markets. It generates revenue from dental supplies and equipment, medical distribution, implants and biomaterials, endodontic products, as well as cloud software and practice management solutions through Henry Schein One. The technology business adds a degree of stability to the model, as approximately 90% of Henry Schein One’s revenue is recurring, while specialty products and the company’s proprietary brands improve the quality and margins of the mix.
In Q2 fiscal 2026, revenue reached $3.5 billion, representing year-over-year growth of 6.7%, including local internal growth of 4.6%, a positive currency impact of 1.4%, and acquisition growth of 0.7%. Gross profit was $1.1 billion, GAAP net income was $94 million, and diluted earnings per share were $0.82, compared with net income of $86 million and earnings per share of $0.70 in the comparable quarter. GAAP operating margin increased by 27 basis points to 4.94%, while adjusted operating margin increased by 25 basis points to 7.21%.
Growth was broad-based across the operating mix in Q2 fiscal 2026: Global Distribution and Value-Added Services Group sales increased 6.6%, Global Specialty Products Group sales increased 8.7%, and Global Technology Group sales increased 8.2%. Within distribution, U.S. dental merchandise sales increased 8.3% and international merchandise sales increased 11.1%, while U.S. dental equipment sales declined 1.1%. Higher-growth, higher-margin businesses now represent approximately 50% of total operating income, with a target of exceeding 50% by the end of the strategic planning cycle in fiscal 2027.
The analyst consensus is Buy, with an average price target of $92.33, within a wide range of $64 to $110. The average target is very close to the upper end of the 52-week range of $92.18, while the breadth of the targets highlights uncertainty about the scale of potential operational improvement from the value creation program and the growth of Henry Schein One and specialty products.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Henry Schein’s revenue reached approximately $3.5 billion in Q2 fiscal 2026, representing year-over-year growth of 6.7%, while local internal growth was 4.6%. Adjusted operating income increased 10.5% and adjusted earnings per share increased 15.5%, with adjusted operating margin expanding by 25 basis points to 7.21%. Results were supported by 8.3% growth in U.S. dental merchandise, 8.7% growth in specialty products, and 8.2% growth in technology. Gross profit also benefited from proprietary brands, pricing, and growth in higher-margin businesses.
The Global Technology Group achieved local internal growth of 9.1% in Q2 fiscal 2026. Approximately 13 thousand customers subscribe to the Dentrix Ascend and Dentally platforms, while recurring revenue represents approximately 90% of Henry Schein One’s revenue. Average monthly revenue per Henry Schein One customer is approximately $500 and increases to approximately $800 for Dentrix Ascend customers. The platforms include artificial intelligence capabilities for voice-based clinical note documentation, insurance eligibility analysis, claims and collections management, and diagnosis and treatment analysis.
Automated analysis for informational purposes only — not investment advice.
On August 4, 2026, the company raised its fiscal 2026 sales growth outlook to 4.5%–5.5%, compared with a previous range of 3%–5%. It expects local internal growth of between 3.5% and 4.5% in the second half of fiscal 2026, after recording 3.6% in the first half. It also raised its adjusted diluted earnings per share range to $5.29–$5.39, equivalent to growth of 6%–8% from $4.97 in fiscal 2025. It also expects adjusted earnings before interest, taxes, depreciation, and amortization to grow at a mid- to high-single-digit rate from a base of $1.1 billion in fiscal 2025.
The company targets more than $200 million of operating income improvement over the next few years, with an annual run rate of $125 million by the end of fiscal 2026. The first phase of outsourcing finance and customer service functions in the United States has begun, and management expects this project alone to deliver more than half of the general and administrative expense savings within the overall target. In fiscal 2026, 40% of the improvement is expected to come from gross profit initiatives and 60% from general and administrative expense savings. Other measures include consolidating indirect procurement, using sales data to improve pricing, and supply chain software aimed at reducing inventory and simplifying purchasing.
U.S. dental equipment sales declined 1.1% in Q2 fiscal 2026, while lower average scanner prices also pressured the digital mix. Medical distribution faced lower demand for point-of-care diagnostic tests, despite total sales growth of 3.8%. U.S. premium implant growth was modest compared with high-single-digit growth in European implants. In addition, a significant portion of the expected earnings improvement depends on executing outsourcing and cost savings after recording $29 million of restructuring expenses during the quarter.
Henry Schein repurchased approximately 2.6 million shares during Q2 fiscal 2026 for a total of $200 million. The reported average purchase cost was $76.69 per share. Approximately $455 million remained available under the share repurchase authorization at the end of the quarter. This capacity is supported by operating cash flow of $242 million during the period, while management expects operating cash flow to exceed net income in fiscal 2026.
