Abstract

Henry Schein will report quarterly results Pre-Market on February 24, 2026, with consensus pointing to modest year-over-year revenue growth and improving earnings per share, while investors focus on margin trajectory, operating leverage, and management’s commentary on the outlook for 2026.

Market Forecast

Consensus for the upcoming quarter implies revenue of 3.35 billion, up 1.51% year over year, EPS of 1.30, up 7.67% year over year, and EBIT of 249.47 million, up 2.44% year over year; no explicit gross margin or net margin forecast is provided in the dataset. The company’s operating mix last quarter was led by Global Distribution and Value-Added Services at 2.84 billion, with additional contributions from Global Specialty Products at 331.00 million and Global Technology at 173.00 million, and management attention remains on execution and cost control within the core platform. The most promising segment into this print is Global Technology, which delivered 173.00 million last quarter and stands to benefit from recurring software and services economics; the year-over-year comparison for this segment was not disclosed in the breakdown and will be detailed alongside results.

Last Quarter Review

Henry Schein delivered revenue of 3.34 billion last quarter, up 5.20% year over year, with a gross profit margin of 30.73%, GAAP net profit attributable to shareholders of 101.00 million, a net profit margin of 3.02%, and adjusted EPS of 1.38, up 13.12% year over year. A notable highlight was the EPS outperformance versus the prior consensus, reflecting operating discipline against a softer EBIT comparison that declined year over year, while GAAP net profit rose quarter over quarter by 17.44%. Within the business mix, Global Distribution and Value-Added Services contributed 2.84 billion (approximately 84.91% of total), Global Specialty Products contributed 331.00 million, and Global Technology contributed 173.00 million, underscoring the scale of the core distribution platform and the expanding role of technology and value-added offerings.

Current Quarter Outlook

Global Distribution and Value-Added Services

The core distribution and value-added services platform remains the principal earnings engine heading into this quarter, with consensus revenue expectations for the overall company implying modest growth and a focus on execution to protect margins. Last quarter’s gross margin of 30.73% provides a relevant benchmark, and investors will parse management’s update for signs that product mix, vendor programs, and pricing discipline can support similar levels despite a more muted top-line cadence. With net margin at 3.02% last quarter, incremental movements in operating expense efficiency carry outsized implications for EPS conversion this quarter; any evidence of tighter SG&A control or improved logistics efficiency can help offset the moderation in revenue growth. Demand rhythms across consumables and equipment can introduce quarter-to-quarter variability, but the distribution platform’s breadth and recurring demand nature typically provide a stabilizing backdrop that aligns with the consensus call for a low single-digit revenue increase and mid-single-digit to high-single-digit EPS growth.

In the context of this quarter’s print, the key watchpoints within this business are the progression of operating leverage and the contribution of value-added services embedded in the distribution offer. If gross-to-operating income drop-through holds up, EBIT can track the forecast uptick to 249.47 million, translating into protective support for the EPS estimate of 1.30. Conversely, any shortfall in vendor incentives or a less favorable mix of higher ticket equipment could pressure quarter margins, reinforcing the importance of disciplined procurement and targeted sales execution to meet the numbers.

Global Technology

Global Technology is positioned as a structurally attractive contributor because software and services tend to exhibit recurring revenue characteristics with favorable gross margin profiles, even as the absolute revenue base remains smaller than the core distribution franchise. The 173.00 million contribution last quarter highlights meaningful scale, and investors will look for updates on adoption, attach rates, and cross-sell into the installed base. As this segment deepens integration with the broader commercial platform, it can amplify customer retention and share-of-wallet outcomes, reinforcing a multi-year margin mix benefit that is not yet fully reflected in near-term consensus.

For the quarter at hand, the strategic relevance of this segment is twofold: it can provide a degree of insulation for gross margin if transactional revenue growth moderates, and it can support EPS resilience through recurring subscription and maintenance revenue. The narrative to monitor is whether new modules, digital workflow enhancements, and support services can sustain a growth cadence that modestly outpaces total company revenue growth, laying groundwork for 2026 margin accretion. While the company’s reported breakdown did not include year-over-year growth data at the segment level, the directional emphasis on technology enablement suggests a constructive path that, if confirmed on the call, would be supportive of both EBIT and EPS trajectories.

Global Specialty Products

Global Specialty Products, at 331.00 million last quarter, provides a complementary product set that can impact both mix and margin. Within this quarter’s framework, investors will listen for color on product availability, pricing discipline, and sell-through cadence, as these factors collectively influence gross profit realization. Specialty lines can also skew quarter mix, which in turn can influence reported margins; robust sell-in aligned with stable pricing would support maintaining the prior quarter’s 30.73% gross margin benchmark.

While the forecast dataset does not offer a segment-level growth outlook, the consensus totals imply limited headroom for broad-based acceleration this quarter, putting a premium on execution precision. If placement rates and reorder activity align with planning assumptions, the specialty portfolio should remain a stable revenue and margin contributor, with potential upside if product innovation cycles or targeted promotions resonate with customer demand profiles. Any upside commentary here would bolster the case for EBIT tracking to the 249.47 million estimate and provide incremental comfort on EPS delivery.

Margin Trajectory and Earnings Conversion

The core debate this quarter is less about top-line outperformance and more about the quality of earnings conversion from a largely flat-to-slightly-growing revenue base. With consensus revenue up 1.51% year over year and EBIT expected up 2.44%, even small improvements in operating efficiency can have outsized impacts on EPS relative to revenue. Last quarter’s net margin of 3.02% sets a conservative baseline; investors will focus on how operating expense rhythm, working capital management, and the mix of value-added services and technology contributions can sustain or expand margin.

An additional lens is the interplay between gross margin and SG&A productivity. If the company maintains gross margin near the last quarter’s 30.73% while demonstrating cost discipline, the pathway to the 1.30 EPS estimate appears executable. Conversely, should input cost pressures or unfavorable mix reduce gross profit rate without an offset in overhead, EPS could track closer to the low end of internal ranges implied by consensus.

Revenue Cadence and Order Patterns

The prior quarter’s 5.20% year-over-year revenue growth provides a tougher comparison base that can make this quarter’s 1.51% growth look optically slower. Given the distribution-heavy revenue mix, quarter-to-quarter variability in equipment and procedure-related consumables can shape the cadence. Investors will seek clarity on order patterns through the quarter, including demand steadiness in staples and any lumpiness in larger-ticket items.

Clarity here matters because small directional shifts in order intake can swing consolidated revenue around the forecast midpoint of 3.35 billion. Stable order patterns that align with the company’s run rate would validate the modest top-line growth assumption and keep the focus on margin and EPS delivery. Any commentary that points to improved visibility or pipeline linearity would be taken constructively as it would de-risk the near-term outlook.

Cash Generation, Capital Deployment, and 2026 Setup

While the consensus framework for the quarter centers on revenue and EPS, the quality of cash generation and management’s messaging around capital deployment will likely shape investor reactions. The company’s ability to convert earnings to cash, manage inventories in the distribution engine, and maintain disciplined investment in technology and services will be key to sustaining margin resilience into 2026. The market will also listen for indications of organic investment priorities and the cadence of tuck-in activity that could enhance the solution set and support long-run growth.

From a modeling perspective, confirmation that operating efficiency improvements are scalable would help explain the gap between revenue growth and EPS growth in consensus and support the premise of incremental operating leverage next year. Clear commentary on cost initiatives, systems, and process automation would reinforce the thesis that EPS can expand on modest revenue growth, preserving valuation support.

Guideposts to Watch in the Release

Several guideposts will serve as validation points for the quarter. First, whether revenue lands near the 3.35 billion consensus with stable gross margin dynamics. Second, whether EBIT aligns with the 249.47 million expectation, signaling that operating efficiency measures are holding up. Third, whether EPS meets or exceeds the 1.30 estimate, confirming earnings conversion in line with last quarter’s outperformance versus expectations.

Beyond the headline numbers, commentary around mix in the core distribution platform, the traction of software and services in Global Technology, and the sell-through pace within Global Specialty Products will fill in the margin narrative. Any constructive signals on these fronts would be supportive of maintaining the positive skew implied by the consensus EPS growth rate of 7.67% year over year.

Analyst Opinions

Across the latest window reviewed into February 2026, published views lean bullish, with the balance of recent recommendations and commentaries signaling a constructive stance on the upcoming print and the 2026 setup. A notable example is J.P. Morgan’s John Stansel, who has maintained a Buy rating with a 78.00 price target, reflecting confidence in earnings durability and the company’s ability to convert slight revenue growth into EPS expansion via operating discipline. Barrington’s Michael Petusky has also reiterated a Buy rating with a 78.00 target, citing a favorable setup for EPS execution against modest revenue growth expectations and the incremental mix benefits from technology and value-added services.

The common threads across these bullish perspectives are consistent with the consensus estimates captured in the forecast dataset. First, the street expects a modest top-line increase coupled with a higher EPS growth rate, a setup that puts operating leverage and cost control in focus. Second, the inclusion of a technology-enabled offering continues to be seen as a margin-supportive feature over time, offering recurring revenue characteristics that can cushion quarter-to-quarter volatility in transactional sales. Third, the expectation is that the company’s expense and procurement discipline can maintain a gross margin regime close to last quarter’s 30.73% while keeping net margin architecture intact around the recent 3.02% result, with potential room for gradual improvement.

In this context, the bullish majority emphasizes that the path to hitting the 1.30 EPS estimate is credible even if revenue tracks at or slightly below the 3.35 billion line, provided that operating efficiency measures remain on course and mix does not deteriorate. This view also highlights the importance of communication on cash conversion and deployment priorities to sustain confidence in the 2026 trajectory. On balance, the prevailing sell-side stance suggests that an in-line to modest beat on EPS, with steady margin commentary and a measured 2026 outlook, would be well received and consistent with the Buy-rated framework articulated by covering analysts.