Earnings release
Page 1
NEWS RELEASE Henry Schein Reports Strong 2026 Third Quarter and Raises FY2026 Guidance 2026-11-03 Q3 2026 GAAP diluted EPS of $1.06, up 26.2% versus prior year; Q3 2026 non-GAAP diluted EPS of $1.56, up 13.0% versus prior year 4.0% total sales growth, driven by 8.6% U.S. dental merchandise sales growth due primarily to volume from market share gains Raises FY2026 guidance for non-GAAP diluted EPS to $5.50 to $5.56 and Adjusted EBITDA growth to high- single-digits re ecting strong operating performance, net tari refund bene ts, and targeted, limited growth- investments MELVILLE, N.Y.--(BUSINESS WIRE)-- Henry Schein, Inc. (Nasdaq: HSIC), the world’s largest provider of healthcare solutions to o ce-based dental and medical practitioners, today reported nancial results for the third quarter ended September 26, 2026. The Company reported $3.5 billion in sales with total growth of 4.0%, and 3.1% internally in local currencies. GAAP earnings per share grew 26.2% versus the prior year. Non-GAAP earnings per share grew 13.0%, or 19.1% when excluding current-quarter net tari refunds and the prior-year remeasurement gains (refer to Exhibit D). “We delivered another strong quarter that increases our con dence in the momentum we are building at Henry Schein. I am very pleased with the U.S. dental merchandise sales growth of 8.6% driven primarily by volume in a stable market and our 19%adjusted earnings per share growth,” said Fred Lowery, Chief Executive O cer of Henry Schein. “Our strategy is translating into stronger nancial results. We are gaining share in key businesses, improving our portfolio mix, maintaining a disciplined approach to capital allocation, and realizing the bene ts of our value creation initiatives,” Mr. Lowery added. Third Quarter 2026 Financial Results Total net sales for the quarter were $3.5 billion, an increase of 4.0% in total compared to the third quarter of 2025, re ecting 3.1% internal sales growth, 0.7% sales growth from acquisitions, and a 0.2% increase resulting from foreign currency exchange. Third quarter sales growth is detailed in Exhibit A . Global Distribution and Value-Added Services sales for the quarter increased 3.7% in total, re ecting 2.9% (A) 4 1 1
Page 2
internal sales growth, 0.5% sales growth from acquisitions, and a 0.3% increase from foreign currency exchange compared with the third quarter of 2025. The main components compared with the third quarter of 2025 are: Global Dental Distribution merchandise sales for the quarter increased 7.0% in total, and by 5.1% internal sales growth, compared with the third quarter of 2025. Global Dental Distribution equipment sales for the quarter increased 2.3% in total, and by 2.4% internal sales growth, compared with the third quarter of 2025. Global Medical Distribution sales for the quarter increased 1.1% in total, and by 1.0% internal sales growth, compared with the third quarter of 2025. Global Value-Added Services sales for the quarter decreased 4.8%, on both a reported and internal sales growth basis, compared with the third quarter of 2025. Global Specialty Products sales for the quarter increased 6.1% in total, re ecting 3.4% internal sales growth, 2.6% sales growth from acquisitions, and a 0.1% increase resulting from foreign currency exchange, compared with the third quarter of 2025. Global Technology sales for the quarter increased 5.2% in total, re ecting 6.5% internal sales growth, 1.3% sales decrease due to a business disposal, and no impact from foreign currency exchange, compared with the third quarter of 2025. GAAP net income for the quarter was $119 million. GAAP diluted earnings per share were $1.06 per diluted share , up 26.2% compared with the third quarter of 2025. Non-GAAP net income for the quarter was $175 million. Non-GAAP diluted earnings per share were $1.56 per diluted share, up 13.0% compared with the third quarter of 2025. The Company recognized a $0.19per diluted share net bene t from tari refundsin the third quarter of 2026, and a $0.23 per diluted share remeasurement gainin the third quarter of 2025, included in our GAAP and non-GAAP results. Excluding these items, non-GAAP diluted EPS was $1.37 compared with $1.15 in the prior-year period, an increase of 19.1%. Adjusted EBITDA for the quarter was $321 million, compared with Adjusted EBITDA for the third quarter 2025 of $295 million, with Adjusted EBITDA margin growing 40 basis points to 9.24%. Year-to-Date Financial Results Total net sales for the rst nine months of 2026 were $10.3 billion, an increase of 5.6% in total compared to the rst nine months of 2025, re ecting 3.4% internal sales growth, 0.7% sales growth from acquisitions, and a 1.5% increase resulting from foreign currency exchange. Year-to-date sales growth is detailed in Exhibit A . GAAP net income for the rst nine months of 2026 was $320 million. GAAP diluted earnings per share were $2.80 per diluted share , up 15.7% compared with the rst nine months of 2025. Non-GAAP net incomefor the rst nine months of 2026 was $473 million. Non-GAAP diluted earnings per share were $4.14 per diluted share , up 14.0% compared with the rst nine months of 2025. 2 3 2 3,4 3,4 4 4 5 1 2 3 2 3 2
Page 3
Adjusted EBITDA for the rst nine months of 2026 was $898 million, compared with Adjusted EBITDA for the rst nine months of 2025 of $810 million, with Adjusted EBITDA margin growing 41 basis points to 8.72%. Share Repurchases During the third quarter of 2026, the Company repurchased approximately 1.4 million shares of common stock at an average price of $86.67 per share for a total of $125 million. For the year-to-date, the Company repurchased approximately 5.7 million shares of common stock at an average price of $79.50 per share for a total of $450 million. At the end of the quarter, Henry Schein had approximately $330 million authorized and available for future stock repurchases. 2026 Financial Guidance Henry Schein today raised its nancial guidance for 2026. Guidance is for current continuing operations and does not include the impact of restructuring expenses and related costs, amortization expense of acquired intangible assets, the impairment of intangible assets, changes in contingent consideration, select implementation-related costs supporting value creation initiatives, and litigation settlements. This guidance also assumes that foreign currency exchange rates remain generally consistent with current levels. The Company’s FY2026 non-GAAP diluted EPS guidance includes the net bene t from tari refunds recognized in the third quarter, targeted and limited growth-investments in the fourth quarter which will contribute to growth in 2027, and improved underlying business performance. The updated guidance assumes no signi cant tari refunds or remeasurement gains for the remainder of 2026. The changes to the Company’s nancial guidance are summarized below: Updated PriorGuidance Guidance 2026 non-GAAP diluted EPS $5.50 to $5.56 $5.29 to $5.392026 total sales growth 4.5% to 5.5% 4.5% to 5.5%2026 Adjusted EBITDA growth High-single-digitsMid to high-single-digits (A) Adjustments to 2026 GAAP Net Income and Diluted EPS The Company is providing guidance for 2026 diluted EPS and for 2026 Adjusted EBITDA on a non-GAAP basis, as noted above. The Company is not providing a reconciliation of its 2026 non-GAAP diluted EPS guidance to its projected 2026 diluted EPS prepared on a GAAP basis, or its 2026 Adjusted EBITDA guidance to net income prepared on a GAAP basis. This is because the Company is unable to provide without unreasonable e ort an estimate of restructuring expenses and related or similar costs, including its ongoing value creation initiatives, and the corresponding tax e ect, which will be included in the Company’s 2026 diluted EPS and net income, prepared 5 3 3
Page 4
on a GAAP basis. The inability to provide this reconciliation is due to the uncertainty and inherent di culty of predicting the occurrence, magnitude, nancial impact and timing of related costs. Management does not believe these items are representative of the Company’s underlying business performance. For the same reasons, the Company is unable to address the probable signi cance of the unavailable information, which could be material to future results. Third-Quarter 2026 Conference Call Webcast The Company will hold a conference call to discuss third-quarter 2026 nancial results today, beginning at 8:00 a.m. Eastern time. Individual investors are invited to listen to the conference call through Henry Schein’s website by visiting https://investor.henryschein.com/webcasts. In addition, a replay will be available beginning shortly after the call has ended for a period of one week. The Company will be posting slides that provide a summary of its third-quarter 2026 nancial results on its website at https://investor.henryschein.com/ nancials/quarterly-results/ About Henry Schein, Inc. Henry Schein, Inc. (Nasdaq: HSIC) is a products, services, and technology platforms company for healthcare customers. With approximately 25,000 Team Schein Members worldwide, the Company's network of trusted advisors provides more than 1 million customers globally with more than 300 valued solutions that help improve operational success and clinical outcomes. Our Business, Clinical, Technology and Supply Chain solutions help o ce-based dental and medical practitioners work more e ciently so they can provide quality care more e ectively. These solutions also support dental laboratories, government and institutional health care clinics, as well as other alternate care sites. Henry Schein operates through a centralized and automated distribution network, with a selection of more than 300,000 branded products and Henry Schein corporate brand products in our main distribution centers. A FORTUNE 500 Company and a member of the S&P 500® index, Henry Schein is headquartered in Melville, N.Y., and has operations or a liates in 34 countries and territories. The Company's sales reached $13.2 billion in 2025, and have grown at a compound annual rate of approximately 11.0 percent since Henry Schein became a public company in 1995. For more information, visit Henry Schein at www.henryschein.com. Cautionary Note Regarding Forward-Looking Statements and Use of Non-GAAP Financial Information In accordance with the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995, we provide 4
Page 5
the following cautionary remarks regarding important factors that, among others, could cause future results to di er materially from the forward-looking statements, expectations and assumptions expressed or implied herein. All forward-looking statements made by us are subject to risks and uncertainties and are not guarantees of future performance. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements or industry results to be materially di erent from any future results, performance or achievements expressed or implied by such forward-looking statements. These statements include total sales growth, EPS and Adjusted EBITDA guidance and statements about our business expectations, and are generally identi ed by the use of such terms as “may,” “could,” “expect,” “intend,” “believe,” “plan,” “estimate,” “forecast,” “project,” “anticipate,” “to be,” “to make”, or other comparable terms. A fuller discussion of our operations, nancial condition and status of litigation matters, including factors that may a ect our business and future prospects, is contained in documents we le with the United States Securities and Exchange Commission, or SEC, including our Annual Report on Form 10-K, and will be contained in subsequent periodic lings we make with the SEC. These documents identify in detail important risk factors that could cause our actual performance to di er materially from current expectations. Risk factors and uncertainties that could cause actual results to di er materially from current and historical results include, but are not limited to: our dependence on third parties for the manufacture and supply of our products and where we manufacture products, our dependence on third parties for raw materials or purchased components; risks relating to the achievement of our strategic growth objectives, including anticipated results of restructuring and value creation initiatives; risks related to the Strategic Partnership Agreement with KKR Hawaii Aggregator L.P. entered into in January 2025; transitions in senior company leadership (including, without limitation, our Chief Executive O cer, Chief Financial O cer, and other executive o cers); our ability to develop or acquire and maintain and protect new products (particularly technology and specialty products) and services and utilize new technologies that achieve market acceptance with acceptable margins; transitional challenges associated with acquisitions and joint ventures, including the failure to achieve anticipated synergies/bene ts, as well as signi cant demands on our operations, information systems, legal, regulatory, compliance, nancial and human resources functions in connection with acquisitions, dispositions and joint ventures; certain provisions in our governing documents that may discourage third-party acquisitions of us; adverse changes in supplier rebates or other purchasing incentives; risks related to the sale of corporate brand products; risks related to activist investors; security risks associated with our information systems and technology products and services, such as cyberattacks or other privacy or data security breaches (including the October 2023 incident); e ects of a highly competitive (including, without limitation, competition from third-party online commerce sites) and consolidating market; political, economic, and regulatory in uences on the health care industry; risks from expansion of customer purchasing power and multi-tiered costing structures; increases in shipping costs for our products or other service issues with our third-party shippers, and increases in fuel and energy costs; changes in laws and policies governing manufacturing, development and investment in territories and countries where we do business; general global and domestic macro-economic and political conditions, including in ation, de ation, recession, unemployment (and corresponding increase in under-insured populations), consumer con dence, sovereign debt levels, uctuations in 5
Page 6
energy pricing and the value of the U.S. dollar as compared to foreign currencies and changes to other economic indicators; failure to comply with existing and future regulatory requirements, including relating to health care; risks associated with the EU Medical Device Regulation; failure to comply with laws and regulations relating to health care fraud or other laws and regulations; failure to comply with laws and regulations relating to the collection, storage and processing of sensitive personal information or standards in electronic health records or transmissions; changes in tax legislation, changes in tax rates and availability of certain tax deductions; risks related to product liability, intellectual property and other claims; risks associated with customs policies or legislative import restrictions; risks associated with disease outbreaks, epidemics, pandemics (such as the COVID-19 pandemic), or similar wide-spread public health concerns and other natural or man-made disasters; risks associated with our global operations; the threat or outbreak of war (including, without limitation, geopolitical wars), terrorism or public unrest (including, without limitation, the wars in Ukraine and Iran, the Israel-Gaza con ict and other unrest and threats in the Middle East and the possibility of a wider European or global con ict); changes to laws and policies governing foreign trade, tari s and sanctions or greater restrictions on imports and exports, including changes to international trade agreements and the current imposition of (and the potential for additional) tari s by the U.S. on numerous countries and retaliatory tari s; supply chain disruption; litigation risks; new or unanticipated litigation developments and the status of litigation matters; our dependence on our senior management, employee hiring and retention, increases in labor costs or health care costs, and our relationships with customers, suppliers and manufacturers; and disruptions in nancial markets. The order in which these factors appear should not be construed to indicate their relative importance or priority. We caution that these factors may not be exhaustive and that many of these factors are beyond our ability to control or predict. Accordingly, any forward-looking statements contained herein should not be relied upon as a prediction of actual results. We undertake no duty and have no obligation to update forward-looking statements except as required by law. Included within the press release are non-GAAP nancial measures that supplement the Company’s Consolidated Statements of Income prepared under generally accepted accounting principles (GAAP). These non-GAAP nancial measures adjust the Company’s actual results prepared under GAAP to exclude certain items. In the schedule attached to the press release, the non-GAAP measures have been reconciled to and should be considered together with the Consolidated Statements of Income. Management believes that non-GAAP nancial measures provide investors with useful supplemental information about the nancial performance of our business, enable comparison of nancial results between periods where certain items may vary independent of business performance and allow for greater transparency with respect to key metrics used by management in operating our business. The impact of certain items that are excluded include integration and restructuring costs, amortization of acquisition-related assets, the insurance claim recovery associated with the cybersecurity incident, changes in contingent consideration, costs associated with shareholder advisory matters and select value creation consulting costs, and litigation settlements because the amount and timing of such charges are signi cantly impacted by the timing, size, number and nature of the acquisitions we consummate and occur on an unpredictable basis. These non-GAAP nancial measures are presented solely for informational and comparative purposes and should not be 6
Page 7
regarded as a replacement for corresponding, similarly captioned, GAAP measures. See Exhibit A for details of sales growth. Internal sales growth is calculated from total net sales using constant foreign currency exchange rates and excludes sales from acquisitions. See Exhibit B for a reconciliation of GAAP net income and diluted EPS to non-GAAP net income and diluted EPS. References to diluted EPS refer to diluted EPS attributable to Henry Schein, Inc. See Exhibit D for a summary of Net Acquisition Related Fair Value Adjustments and Net Tari Refunds See Exhibit C for a reconciliation of GAAP net income to Adjusted EBITDA. (TABLES TO FOLLOW) HENRY SCHEIN, INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME(in millions, except share and per share data)(unaudited)Three Months EndedNine Months Ended September 26,September 27,September 26,September 27,2026 2025 2026 2025 Net sales $ 3,471$ 3,339$ 10,297$ 9,747Cost of sales 2,366 2,313 7,021 6,705 Gross pro t 1,105 1,026 3,276 3,042Operating expenses:Selling, general and administrative819 760 2,459 2,276Depreciation and amortization71 68 208 194Restructuring and related costs22 34 63 82 Operating income 193 164 546 490Other income (expense):Interest income 9 9 24 24Interest expense (42) (38) (124) (111)Other, net - (1) 1 (3) Income before taxes, equity in earnings of a liates andnoncontrolling interests 160 134 447 400Income taxes (37) (28) (109) (94)Equity in earnings of a liates, net of tax3 3 2 10 Net income 126 109 340 316Less: Net income attributable to noncontrolling interests(7) (8) (20) (19) Net income attributable to Henry Schein, Inc.$ 119$ 101$ 320$ 297 Earnings per share attributable to Henry Schein,Inc.: Basic $ 1.07$ 0.84$ 2.83$ 2.44 Diluted $ 1.06$ 0.84$ 2.80$ 2.42 Weighted-average common shares outstanding:Basic 111,272,868120,199,552113,220,442121,965,991 Diluted 112,538,936121,036,247114,338,114122,840,062 HENRY SCHEIN, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(in millions, except share data)September 26,December 27,2026 2025 1 2 3 4 5 7
Page 8
2026 2025 (unaudited)ASSETS Current assets: Cash and cash equivalents $ 184$ 156 Accounts receivable, net of allowance for credit losses of $103 and $901,875 1,651 Inventories, net 2,050 2,002 Prepaid expenses and other 667 655 Total current assets 4,776 4,464 Property and equipment, net 619 621 Operating lease right-of-use assets 336 301 Goodwill 4,270 4,213 Other intangibles, net 921 1,018 Investments and other 588 598 Total assets $ 11,510$ 11,215 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS'EQUITY Current liabilities: Accounts payable $ 1,203$ 1,154 Bank credit lines 1,000 764 Current maturities of long-term debt 142 33 Operating lease liabilities 79 78Accrued expenses: Payroll and related 325 340 Taxes 191 179 Other 658 680 Total current liabilities 3,598 3,228 Long-term debt 2,382 2,310 Deferred income taxes 152 146 Operating lease liabilities 288 251 Other liabilities 359 486 Total liabilities 6,779 6,421 Redeemable noncontrolling interests 914 895Commitments and contingenciesStockholders' equity:Preferred stock, $0.01 par value, 1,000,000 shares authorized, none outstanding - -Common stock, $0.01 par value, 480,000,000 shares authorized,110,538,632 issued and outstanding on September 26, 2026 and 115,771,149 issued and outstanding on December 27, 20251 1 Additional paid-in capital 140 177 Retained earnings 3,205 3,293 Accumulated other comprehensive loss (187) (226) Total Henry Schein, Inc. stockholders' equity3,159 3,245 Noncontrolling interests 658 654 Total stockholders' equity 3,817 3,899 Total liabilities, redeemable noncontrolling interests and stockholders' equity$ 11,510$ 11,215 HENRY SCHEIN, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in millions)/(unaudited)Three Months EndedNine Months Ended September 26,September 27,September 26,September 27,2026 2025 2026 2025 Cash ows from operating activities: Net income $ 126$ 109$ 340$ 316Adjustments to reconcile net income to net cashprovided by operating activities: Depreciation and amortization86 80 251 229 Impairment charge on intangible assets- - - 1 Non-cash restructuring charges- 4 4 7 Stock-based compensation expense10 13 26 29Provision for losses on trade and other accountsreceivable 8 4 16 9 Provision for (bene t from) deferred income taxes6 7 (2) - (3) (2) 8
Page 9
Equity in earnings of a liates(3) (3) (2) (10) Distributions from equity a liates2 1 6 9 Changes in unrecognized tax bene ts(13) 7 (17) 6 Other (5) (13) (26) (44)Changes in operating assets and liabilities, net ofacquisitions: Accounts receivable (122) (98) (238) (198) Inventories 8 4 (41) (25) Other current assets (31) (40) (21) (3) Accounts payable and accrued expenses89 99 10 5 Net cash provided by operating activities161 174 306 331 Cash ows from investing activities: Purchases of property and equipment(30) (33) (85) (96)Payments related to equity investments and businessacquisitions, net of cash acquired - (11) (30) (112) Proceeds from loan to a liate1 - 3 2 Capitalized software costs (15) (12) (45) (38) Other (1) - (16) (9) Net cash used in investing activities(45) (56) (173) (253) Cash ows from nancing activities: Net change in bank credit lines(24) 9 237 257 Proceeds from issuance of long-term debt95 70 239 314 Principal payments for long-term debt(10) (7) (60) (28) Debt issuance costs (3) - (3) (2)Proceeds from issuance of stock upon exercise of stockoptions 2 - 4 1 Payments for repurchases and retirement of common stock(125) (203) (450) (650) Issuance of common stock - - - 250Payments for taxes related to shares withheld for employeetaxes (3) - (15) (14) Proceeds from (distributions to) noncontrolling shareholders(22) 6 (44) (12) Payments for contingent consideration- - (4) (19) Acquisitions of noncontrolling interests in subsidiaries- (2) (42) (79) Net cash provided by (used in) nancing activities(90) (127) (138) 18 E ect of exchange rate changes on cash and cash equivalents1 - 33 (82) Net change in cash and cash equivalents27 (9) 28 14 Cash and cash equivalents, beginning of period157 145 156 122 Cash and cash equivalents, end of period$ 184$ 136$ 184$ 136 Exhibit A - Third Quarter SalesHenry Schein, Inc.2026 Third QuarterSales Summary(in millions)(unaudited)Q3 2026 over Q3 2025Constant CurrencyGrowth Q3 2026Q3 2025 Local Internal Growth Acquisition/ (Disposition) Growth Total Constant Currency Growth Foreign Exchange Impact TotalSales GrowthU.S. Distribution andValue-Added Services Merchandise$ 660$ 607 7.0% 1.6% 8.6% 0.0% 8.6%Equipment 220 217 1.6% 0.0% 1.6% 0.0% 1.6% Value-Added Services53 57 -7.6% 0.0% -7.6% 0.0%-7.6% Total Dental933881 4.7% 1.2% 5.9%0.0%5.9% Medical 1,1101,0991.0% 0.0% 1.0%0.0%1.0%Total U.S. Distribution andValue-Added Services2,0431,9802.6% 0.6% 3.2%0.0%3.2%International Distributionand Value-Added Services Merchandise 635 603 3.3% 0.9% 4.2% 1.2% 5.4%Ei t 229 223 32% 00% 32% 03% 29% 9
Page 10
Equipment 229 223 3.2% 0.0% 3.2% -0.3%2.9% Value-Added Services9 7 15.7% 0.0% 15.7% 0.7%16.4% Total Dental873833 3.4% 0.7% 4.1%0.8%4.9% Medical 28 27 2.0% 0.0% 2.0%2.2%4.2%Total InternationalDistribution and Value-Added Services901860 3.3% 0.7% 4.0%0.8%4.8%Global Distribution andValue-Added Services Global Merchandise1,2951,210 5.1% 1.3% 6.4% 0.6% 7.0%Global Equipment449 440 2.4% 0.0% 2.4% -0.1%2.3% Global Value-Added Services62 64 -4.8% 0.0% -4.8% 0.0%-4.8% Global Dental1,8061,7144.1% 0.9% 5.0%0.4%5.4% Global Medical1,1381,1261.0% 0.0% 1.0%0.1%1.1%Total Global Distributionand Value-Added Services2,9442,8402.9% 0.5% 3.4%0.3%3.7%Global Specialty Products391369 3.4% 2.6% 6.0%0.1%6.1%Global Technology181173 6.5% -1.3% 5.2%0.0%5.2% Eliminations (45) (43) n/a n/a n/a n/a n/a Total Global$3,471$3,3393.1% 0.7% 3.8%0.2%4.0% Exhibit A - Year-to-Date SalesHenry Schein, Inc.2026 Third Quarter Year-to-DateSales Summary(in millions)(unaudited)Q3 2026 Year-to-Date over Q3 2025 Year-to-DateConstant CurrencyGrowth Q3 2026Q3 2025 Local Internal Growth Acquisition/ (Disposition) Growth Total Constant Currency Growth Foreign Exchange Impact TotalSales GrowthU.S. Distribution andValue-Added Services Merchandise$ 1,936$ 1,800 5.9% 1.6% 7.5% 0.0% 7.5%Equipment 630 623 1.2% 0.0% 1.2% 0.0% 1.2% Value-Added Services152 153 -0.6% 0.0% -0.6% 0.0%-0.6% Total Dental2,7182,5764.4% 1.1% 5.5%0.0%5.5% Medical 3,1803,1172.0% 0.0% 2.0%0.0%2.0%Total U.S. Distributionand Value-Added Services5,8985,6933.1% 0.5% 3.6%0.0%3.6%International Distributionand Value-Added Services Merchandise 1,9881,813 3.5% 1.0% 4.5% 5.2% 9.7%Equipment 692 640 4.1% 0.0% 4.1% 4.0% 8.1% Value-Added Services28 21 18.1% 4.9% 23.0% 5.9%28.9% Total Dental2,7082,4743.8% 0.7% 4.5%4.9%9.4% Medical 88 80 4.1% 0.0% 4.1%6.4%10.5%Total InternationalDistribution and Value-Added Services2,7962,5543.8% 0.7% 4.5%5.0%9.5%Global Distribution andValue-Added Services Global Merchandise3,9243,613 4.7% 1.3% 6.0% 2.6% 8.6%Global Equipment1,3221,263 2.7% 0.0% 2.7% 2.0% 4.7% Global Value-Added Services180 174 1.8% 0.6% 2.4% 0.7% 3.1% Global Dental5,4265,0504.1% 0.9% 5.0%2.4%7.4% Global Medical3,2683,1972.0% 0.1% 2.1%0.1%2.2%Total Global Distributionand Value-Added Services8,6948,2473.3% 0.6% 3.9%1.5%5.4%Global Specialty Products1,2071,1222.6% 2.7% 5.3%2.3%7.6%Global Technology5355027.5% -1.3% 6.2%0.6%6.8% Eliminations (139)(124) n/a n/a n/a n/a n/a 102979747 10
Page 11
Total Global$10,297$9,7473.4% 0.7% 4.1%1.5%5.6% Exhibit B Henry Schein, Inc.2026 Third Quarter and Year-to-DateReconciliation of reported GAAP net income and diluted EPS attributable to Henry Schein, Inc.to non-GAAP net income and diluted EPS attributable to Henry Schein, Inc.(in millions, except per share data)(unaudited)Third QuarterYear-to-Date % %20262025Growth20262025Growth Net income attributable to Henry Schein, Inc.$119$10117.1%$320$2977.6% Diluted EPS attributable to Henry Schein, Inc.$1.06$0.8426.2%$2.80$2.4215.7% Non-GAAP Adjustments, net of tax and attribution tononcontrolling interests Restructuring and related costs (1)$ 16$ 25 $ 44$ 58Acquisition intangible amortization (2)26 27 81 81Cyber incident-insurance proceeds, net of third-party advisory expenses (3)- - - (15)Change in contingent consideration (4)- 5 - 3Costs associated with shareholder advisory matters and select implementationrelated value creation consulting costs (5)14 7 28 18Litigation settlements (6) - 1 - 2 Impairment of intangible assets (7)- - - 1 Non-GAAP adjustments to net income$56$65 $153$148 Non-GAAP net income attributable to Henry Schein, Inc.$175$1674.7%$473$4456.2% Non-GAAP diluted EPS attributable to Henry Schein, Inc.$1.56$1.3813.0%$4.14$3.6314.0% Management believes that non-GAAP nancial measures provide investors with useful supplemental information about the nancial performance of our business, enable comparison of nancial results between periods where certain items may vary independent of business performance and allow for greater transparency with respect to key metrics used by management in operating our business. These non-GAAP nancial measures are presented solely for informational and comparative purposes and should not be regarded as a replacement for corresponding, similarly captioned, GAAP measures. Net income growth rates are based on actual values and may not recalculate due to rounding. Amounts may not sum due to rounding. (1)Restructuring and Related CostsThe following table presents details of our restructuring and related costs: Third QuarterYear-to-Date 2026202520262025 Restructuring and related costs - pre-tax, as reported$ 22$ 34$ 63$ 82Income tax bene t (5) (9) (15) (21) Amount attributable to noncontrolling interests(1) - (4) (3) Restructuring and related costs, net$ 16$ 25$ 44$ 58 (2)Acquisition Intangible AmortizationThe following table presents details of amortization of acquired intangible assets: Third QuarterYear-to-Date 2026202520262025 Acquisition intangible amortization - pre-tax, as reported$ 44$ 46$ 135$ 133I t b t (11) (12) (34) (33) 11
Page 12
Income tax bene t (11) (12) (34) (33) Amount attributable to noncontrolling interests(7) (7) (20) (19) Acquisition intangible amortization, net$ 26$ 27$ 81$ 81 (3)Represents cyber insurance proceeds, net of one time professional and other fees related to remediation of our Q4 2023 cyber incident. DuringQ1 2025, we received insurance proceeds of $20 million ($15 million, net of taxes) under this policy representing the remaining insurancerecovery of losses related to the cyber incident.(4)Represents a change in the fair value of contingent consideration of $1 million ($0 million, net of taxes) and $0 million ($0 million, net of taxes)recorded during Q3 2026 and YTD 2026, respectively, and $7 million ($5 million, net of taxes) and $5 million ($3 million, net of taxes) recordedduring Q3 2025 and YTD 2025, respectively, related to certain 2023, 2024 and 2025 acquisitions.(5)Represents costs associated with shareholder advisory matters and select value creation consulting costs of $18 million ($14 million, net oftaxes) and $37 million ($28 million, net of taxes) recorded during Q3 2026 and YTD 2026, respectively, and $10 million ($7 million, net of taxes)and $24 million ($18 million, net of taxes) recorded during Q3 2025 and YTD 2025, respectively.(6)Represents settlement amounts for litigation related to certain opioid related lawsuits during Q3 2025 and YTD 2025 and a settlement at one ofour businesses.(7)Represents impairment charges recorded in Q1 2025 on certain intangible assets. Exhibit C Henry Schein, Inc.2026 Third Quarter and Year-to-DateReconciliation of reported GAAP net income to Adjusted EBITDA(in millions)(unaudited) ThirdQuarterYear-to-Date 2026202520262025 Net income attributable to Henry Schein, Inc. (GAAP)$119$101$320$297 Net income attributable to noncontrolling interests7 8 20 19 Net income (GAAP) 126109340316 De nitional adjustments:Interest income (9) (9)(24)(24)Interest expense 42 38124111Income taxes 37 2810994Depreciation and amortization 86 80250229Non-GAAP adjustments:Restructuring and related costs 22 34 63 82Cyber incident-insurance proceeds, net of third-party advisory expenses- - - (20)Impairment of intangible assets - - - 1Change in contingent consideration 1 6 - 4Costs associated with shareholder advisory matters and select implementation related value creationconsulting costs 18 10 37 24Litigation settlements 1 2 1 3Other adjustments: Equity in earnings of a liates, net of tax (3) (3) (2)(10) Adjusted EBITDA (non-GAAP) $321$295$898$810 Adjusted EBITDA is a non-GAAP measure that we calculate in the manner re ected on Exhibit C. We de ne Adjusted EBITDA as net income, excluding (i) net income attributable to noncontrolling interests, (ii) interest income and expense, (iii) income taxes, (iv) depreciation and amortization, (v) restructuring and related costs, (vi) cyber incident- insurance proceeds, net of third-party advisory expenses, (vii) impairment of intangible assets, (viii) change in contingent consideration, (ix) costs associated with shareholder advisory matters and select implementation related value creation consulting costs, (x) litigation settlements, and (xi) equity in earnings of a liates, net of tax. Amounts may not sum due to rounding. Exhibit D H Shi I 12
Page 13
Henry Schein, Inc.2026 Third Quarter and Year-to-DateImpact of Net Tari Refunds and Remeasurement Gains on Earnings Per Share(unaudited)Third QuarterYear-to-Date 20262025Growth20262025Growth GAAP diluted EPS attributable to Henry Schein, Inc.$1.06$0.8426.2%$2.80$2.4215.7% Non-GAAP adjustments (1) 0.500.54 1.341.21 Non-GAAP diluted EPS attributable to Henry Schein, Inc.1.561.3813.0%4.143.6314.0% Net tari refunds bene t, net of tax (2)(0.19)- (0.20)- Remeasurement gains, net of tax (3)- (0.23) (0.07)(0.26) Adjusted non-GAAP diluted EPS attributable to Henry Schein, Inc.$1.37$1.1519.1%$3.87$3.3714.8% Management presents adjusted non-GAAP diluted EPS excluding net tari refund bene ts and remeasurement gains as we believe this presentationfacilitates comparison of the Company's underlying operating performance between periods.(1) See Exhibit B for adjustments reconciling GAAP diluted EPS attributable to Henry Schein, Inc. to non-GAAP diluted EPS attributable to Henry Schein,Inc.(2) Represents the net bene t, net of tax, from the International Emergency Economic Powers Act (IEEPA) tari refunds recognized during the period.(3) Represents the bene ts, net of tax, related to remeasurement to the fair value of previously held equity investments. Investors Ronald N. South Senior Vice President and Chief Financial O cer ronald.south@henryschein.com (631) 843-5500 Graham Stanley Vice President, Investor Relations and Strategic Financial Project O cer graham.stanley@henryschein.com (631) 843-5500 Media Tim Vassilakos Vice President, Global Corporate Communications timothy.vassilakos@henryschein.com (516) 510-0926 Source: Henry Schein, Inc. 13