DENTSPLY SIRONA Inc. XRAY reported first-quarter 2026 adjusted earnings per share (EPS) of 27 cents, down 39% year over year. The bottom line missed the Zacks Consensus Estimate by 3.6%.
GAAP loss per share in the quarter under review was 5 cents against EPS of 10 cents in the prior-year quarter.
DENTSPLY SIRONA’s Revenues
Revenues totaled $880 million in the reported quarter, up 0.1% year over year reportedly but down 6.7% at constant currency (cc). The metric beat the Zacks Consensus Estimate by 5.1%.
The top line was driven by strength in Connected Technology Solutions and Wellspect Healthcare segments, partially offset by weakness in Essential Dental Solutions and Orthodontic and Implant Solutions segments.
Shares of XRAY declined 0.6% in yesterday’s after-market trading. The stock has lost 0.6% year to date compared with the industry’s 7.3% decline. The S&P 500 Index has increased 6% in the same period.
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XRAY’s Segmental Analysis
DENTSPLY SIRONA generates revenues under four segments — Connected Technology Solutions, Essential Dental Solutions, Orthodontic and Implant Solutions, and Wellspect Healthcare.
Connected Technology Solutions segment’s revenues in the first quarter of 2026 totaled $246 million, up 4.4% but down 2.9% year over year on a reported and constant-currency basis, respectively. Our projection was $227.8 million for the metric.
Essential Dental Solutions segment’s revenues totaled $350 million, down 0.9% year over year on a reported basis and 7.2% at cc. Our projection was $341.2 million for the metric.
Orthodontic and Implant Solutions segment’s revenues amounted to $199 million, down 8.1% and 13.5% year over year on a reported basis and at cc, respectively. Our projection for the metric was $197.9 million.
Wellspect Healthcare segment’s revenues totaled $85 million, up 15% and 3.4% year over year on a reported basis and at cc, respectively. Our projection was $79.2 million for the metric.
DENTSPLY SIRONA’s Geographic Revenues
Beginning first-quarter 2026, DENTSPLY SIRONA started reporting under new regional segments as follows — North and South America as Americas, Europe, the Middle East, and Africa (“EMEA”) and Asia Pacific (“APAC”). The company used to report under US, Europe and Rest of World geographic segments.
Revenues from Americas were down 9.1% year over year on a reported basis and 10.7% at cc.
Revenues from EMEA were up 6.9% year over year on a reported basis but down 5.6% at cc.
Revenues from APAC improved 6.3% year over year on a reported basis and 2.7% at cc.
XRAY’s Margin Analysis
In the quarter under review, DENTSPLY SIRONA’s adjusted gross profit declined 9.7% year over year to $447 million. The adjusted gross margin contracted 560 basis points (bps) to 50.7%. We had projected an adjusted gross margin of 52.5% for the first quarter.
Selling, general, and administrative expenses decreased 2% year over year to $351 million. Research and development expenses increased 22.2% to $44 million. Adjusted operating expenses increased 1.4% year over year to $366 million.
Adjusted operating profit totaled $81 million, reflecting a 39.6% decrease from the prior-year quarter’s level. The adjusted operating margin contracted 590 bps to 9.2%. We had projected an adjusted operating margin of 12.7% for the first quarter.
DENTSPLY SIRONA’s Financial Update
The company exited first-quarter 2026 with cash and cash equivalents worth $190 million compared with $326 million at the end of the fourth quarter of 2025. Total debt was $2.24 billion compared with $2.33 billion in the previous quarter.
Cumulative net cash provided by operating activities at the end of first-quarter 2026 was $40 million compared with $7 million in the prior-year period.
DENTSPLY SIRONA has a consistent dividend-paying history, with its five-year annualized dividend growth being 9.5%.
XRAY’s Guidance
DENTSPLY SIRONA has maintained its 2026 sales and earnings outlook.
The company continues to expect full-year sales in the range of $3.5 billion to $3.6 billion. The Zacks Consensus Estimate is currently pegged at $3.57 billion.
XRAY continues to expect 2026 adjusted EPS in the range of $1.40-$1.50. The Zacks Consensus Estimate is currently pegged at $1.43.
DENTSPLY SIRONA Inc. Price, Consensus and EPS Surprise
DENTSPLY SIRONA Inc. price-consensus-eps-surprise-chart | DENTSPLY SIRONA Inc. Quote
Our Take on DENTSPLY SIRONA
DENTSPLY SIRONA ended the first quarter of 2026 on a mixed note, with earnings missing estimates but sales beating the same as the company began executing its “Return-to-Growth” strategy. First-quarter revenues were broadly flat, while constant-currency sales declined, pressured by weakness in consumables, implants and orthodontics, along with ongoing dealer destocking in Europe and lower Byte-related sales. Adjusted EBITDA margin contracted sharply due to lower volumes, unfavorable mix and tariff impacts. Still, management highlighted encouraging early traction from commercial restructuring, expanded distributor partnerships and disciplined cost controls, which reduced operating expenses by roughly $20 million in the quarter.
XRAY expects improvement to build gradually through the second half of 2026 and into 2027, supported by new product launches, AI-enabled diagnostics, expanded clinical education and a broader U.S. distribution network. Strategic focus on implants, endodontics and digital workflows could strengthen long-term growth, while restructuring initiatives are expected to generate approximately $120 million in annual savings.
However, notable challenges persist, including macroeconomic uncertainty, competitive pricing pressure in digital dentistry, tariff-driven cost inflation and uneven demand trends across Europe. Nevertheless, management reaffirmed its full-year guidance, signaling confidence in its turnaround strategy and execution.
XRAY’s Zacks Rank and Stocks to Consider
DENTSPLY SIRONA currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are West Pharmaceutical Services, Inc. WST, Intuitive Surgical ISRG and Cardinal Health, Inc. CAH.
West Pharmaceutical reported first-quarter 2026 earnings per share (EPS) of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
West Pharmaceutical has a long-term estimated growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.37%.
Intuitive Surgical reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.19%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%. It currently carries a Zacks Rank of 2 (Buy).
Intuitive Surgical has a long-term estimated growth rate of 14.9%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.82%.
Cardinal Health, carrying a Zacks Rank of 2 at present, reported third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.
Cardinal Health has a long-term estimated growth rate of 15.6%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.27%.
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This article originally published on Zacks Investment Research (zacks.com).