It has been about a month since the last earnings report for Envista (NVST). Shares have lost about 5.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Envista due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Envista Holdings Corporation before we dive into how investors and analysts have reacted as of late.
Revenues: $705.5 million in first quarter 2026, up 14.4% YoY Adjusted Diluted EPS: $0.36 in first quarter 2026, up 50.0% YoY GAAP Diluted EPS: $0.23 in first quarter 2026, up 130.0% YoY Adjusted Gross Margin: 55.8% in first quarter 2026, up 100 bps YoY GAAP Operating Margin: 8.9% in first quarter 2026, up 260 bps YoY Specialty Products & Technologies Revenue: $457.8 million in first quarter 2026, up 14.4% YoY Equipment & Consumables Revenue: $247.7 million in first quarter 2026, up 14.4% YoY.Envista reported adjusted earnings per share (EPS) of 36 cents in the first quarter of 2026, up 50% year over year.
The adjustments include non-cash charges related to the amortization of acquisition-related and other intangible assets, restructuring costs and asset impairments, among others.
The company’s GAAP earnings were 23 cents compared with the year-ago quarter’s 10 cent per share.
Segment Mix and Margin Expansion
Specialty Products & Technologies revenues totaled $457.8 million in first-quarter 2026, up 14.4% year over year. The segment generated operating profit of $46.5 million and an operating margin of 10.2%, representing an 80-basis-point improvement from 9.4% in the first quarter of 2025. Core sales growth was 8.4% in the quarter.
Equipment & Consumables revenues totaled $247.7 million in first-quarter 2026, up 14.4% year over year. The segment generated operating profit of $46.8 million and an operating margin of 18.9%, an improvement of 420 basis points from 14.7% in the prior-year quarter. Core sales growth was 11.5% in the period, reflecting healthy demand in developed markets.
Expense Discipline and Profitability
Adjusted gross margin expanded 100 basis points to 55.8%, supported by volume, price, productivity, and favorable FX.
Operating expense growth remained controlled relative to revenues. Selling, general and administrative expenses increased 9.5% year over year to $297.6 million, and research and development spending rose 18.6% to $30.0 million in first-quarter 2026. GAAP operating profit increased 60.3% to $62.5 million, lifting the GAAP operating margin to 8.9% in first-quarter 2025.
Cash Flow, Liquidity, and Capital Moves
Free cash flow was negative $15.7 million in the first quarter compared to negative $5.1 million a year ago. Operating cash flow was negative $3.3 million compared to positive $0.3 million in the prior-year period, consistent with the company's seasonally weakest cash flow quarter.
Envista ended the quarter with cash and cash equivalents of $1.08 billion and long-term debt of $1.44 billion. During the quarter, the company deployed $54.4 million on acquisitions and repurchased $42.7 million of stock under its share repurchase program.
2026 Guidance and Operating Assumptions
Management maintained its full-year 2026 outlook. Guidance continues to call for core sales growth of 2% to 4%. The Zacks Consensus Estimate for revenues is pegged at $2.86 billion, suggesting 5.1% growth from the year-ago reported figure.
Adjusted diluted EPS is expected to be between $1.35 to $1.45. The Zacks Consensus Estimate for the metric is pegged at $1.43.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
At this time, Envista has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Envista has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Envista is part of the Zacks Medical - Products industry. Over the past month, QuidelOrtho (QDEL), a stock from the same industry, has gained 42.1%. The company reported its results for the quarter ended March 2026 more than a month ago.
QuidelOrtho reported revenues of $619.8 million in the last reported quarter, representing a year-over-year change of -10.5%. EPS of -$0.04 for the same period compares with $0.74 a year ago.
QuidelOrtho is expected to post earnings of $0.04 per share for the current quarter, representing a year-over-year change of -66.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -20%.
QuidelOrtho has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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This article originally published on Zacks Investment Research (zacks.com).