Guidance Raised After Record Quarter: Henry Schein’s Q3 Results Point to Accelerating Momentum
Henry Schein (NASDAQ: HSIC) posted record third quarter 2025 results, prompting the company to boost its full-year non-GAAP EPS and sales guidance. Strength was evident across all segments, with leadership pointing to a clear return to growth and a robust pipeline for value creation.
Financial Highlights: Sales Up 5.2%, Earnings Exceed Estimates, Guidance Raised
The company delivered notable growth in both its top and bottom lines, with key financial figures as follows:
| Metric | Q3 2025 | Q3 2024 | Year-Over-Year Growth (%) |
|---|---|---|---|
| Net Sales ($M) | 3,339 | 3,174 | 5.2 |
| GAAP Diluted EPS | 0.84 | 0.78 | 7.7 |
| Non-GAAP Diluted EPS | 1.38 | 1.22 | 13.1 |
| Adjusted EBITDA ($M) | 295 | 268 | 10.1 |
The raised guidance is now for full-year 2025 non-GAAP diluted EPS of $4.88 to $4.96 (previously $4.80 to $4.94), with sales growth expected at 3-4% versus a prior range of 2-4%.
Business Segments: Broad-Based Growth Led by Technology and Specialty Products
Sales gains were consistent across business units, particularly in high-growth, high-margin categories. Cloud-based software and revenue cycle solutions drove Global Technology sales up 9.7%. Specialty Products, including dental implants and endodontics, rose 5.9%. Even the company’s traditional distribution arms posted mid-single-digit growth—evidence that both core and newer initiatives are delivering results.
| Segment | Q3 2025 Sales ($M) | YoY Growth (%) |
|---|---|---|
| Global Distribution & Value-Added Services | 2,840 | 4.8 |
| Global Specialty Products | 369 | 5.9 |
| Global Technology | 173 | 9.7 |
$200M+ Operating Income Plan and KKR’s Ownership Rights Expansion Mark Strategic Shifts
In tandem with earnings, HSIC announced new value creation initiatives targeted to deliver over $200 million in operating income improvement over several years. The company attributes part of this renewed execution to input from strategic partner KKR, which will now have the right to raise its HSIC ownership to 19.9%. This signals increased private equity engagement in HSIC’s direction, and could portend further operational shifts or even larger strategic changes down the road.
Share Repurchase Activity Remains Strong
HSIC continued its robust capital return program, repurchasing approximately 3.3 million shares in the quarter for $229 million, with an average price of $68.62 per share. The company has $980 million in remaining authorization, positioning it well for further opportunistic buybacks.
Takeaway: Accelerating Growth and Operational Improvements Create an Upbeat Outlook
Henry Schein’s record Q3, boosted outlook, and new value creation efforts provide strong signals for ongoing growth. With its cyber incident now resolved and KKR deepening its involvement, HSIC’s management is positioning the company for future upside. Investors may want to track the company’s continued margin expansion, adoption of technology solutions, and the strategic impact of a larger KKR stake in the months ahead.
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