Earnings beat and guidance reaffirmation put Henry Schein (HSIC) in focus
Henry Schein (HSIC) is back on investors’ radar after first quarter 2026 adjusted earnings per share of $1.32 and net sales of $3.37b topped estimates, alongside reaffirmed full year sales and earnings guidance.
See our latest analysis for Henry Schein.
The reaffirmed guidance and stronger first quarter have been met with a 6.92% 1 month share price return and a 10.06% 1 year total shareholder return, suggesting momentum has picked up recently after a flatter 3 year total shareholder return.
If this earnings driven move has you looking for other ideas in healthcare, it could be a good moment to screen for 39 healthcare AI stocks
With Henry Schein posting adjusted EPS of $1.32, annual revenue growth of 3.6% and net income growth of 13.8%, plus an indicated intrinsic discount of about 52%, is this an undervalued compounder or a stock that has already priced in its future growth?
Most Popular Narrative: 11.2% Undervalued
Henry Schein's most followed narrative pegs fair value at $87.21 versus a last close of $77.45, framing the latest earnings beat inside a wider multi year thesis.
The company is experiencing strong growth in high-margin businesses such as Specialty Products, Technology, and private-label offerings, and expects over 50% of non-GAAP operating income to come from these segments, supporting structurally higher gross margins and likely driving earnings expansion.
Investments in digital workflow, AI solutions, and integrated cloud-based practice management platforms are accelerating recurring SaaS revenues and client retention. This positions Henry Schein to benefit from the ongoing digital transformation of healthcare, which should support both revenue growth and improved margins.
Want to see what sits behind that premium mix and software heavy story? The fair value hinges on a specific blend of revenue growth, margin uplift and future earnings multiples that are all laid out, but not obvious from headlines.
Result: Fair Value of $87.21 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this hinges on pricing power and execution. Persistent competitive pressure or delays in cost savings and technology rollouts could quickly weaken that fair value story.
Find out about the key risks to this Henry Schein narrative.
Next Steps
With both risks and rewards on the table, how does Henry Schein really stack up for you right now? Act while the details are fresh and weigh the upside against the potential downsides by reviewing the 2 key rewards and 1 important warning sign
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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