Dentsply Sirona — Q3 2026 Earnings Summary

Financial Performance:

• Q3 2026 net sales were $836 million, a 7.6% decrease from $904 million in Q3 2025; constant currency sales decreased 7.0%.
• GAAP gross profit was $443 million (52.9% margin) compared to $441 million (48.8% margin) in Q3 2025.
• GAAP net loss attributable to Dentsply Sirona was $2 million ($0.01 diluted loss per share) compared to a $427 million loss ($2.14 diluted loss per share) in Q3 2025.
• Adjusted gross margin was 54.5% and adjusted EBITDA margin was 17.3% in Q3 2026, compared to 52.6% and 18.4% respectively in Q3 2025.
• Adjusted EBITDA was $146 million, down 13.3% from $167 million in Q3 2025.
• Adjusted EPS was $0.29, a 29.4% decrease from $0.42 in Q3 2025.
• Operating cash flow for Q3 2026 was $32 million, down from $79 million in Q3 2025.
• Free cash flow for Q3 2026 was $0 million, compared to $40 million in Q3 2025.
• A $39 million benefit from the refinement of an inventory estimate reduced the reported net loss and increased adjusted net income by approximately $30 million; this is a one-time cumulative impact not expected in future periods.
• Cash and cash equivalents were $195 million as of September 30, 2026, down from $326 million at December 31, 2025.
• Total debt (notes payable and current portion of long-term debt plus long-term debt) was $2.2 billion as of September 30, 2026, compared to $2.33 billion at December 31, 2025.

Guidance and Future Outlook:

• Updated FY2026 outlook to approximately $3.5 billion in net sales and adjusted EPS of $1.20 to $1.30.
• The FY2026 adjusted EPS guidance excludes a $0.17 one-time benefit from tariff refunds.
• Management indicated the company is seeing encouraging signs of progress despite challenging industry-wide conditions.

Business Segments and Product Lines:

• Connected Technology Solutions sales were $230 million, down 11.0% as reported.
• Essential Dental Solutions sales were $343 million, down 4.0% as reported.
• Orthodontic and Implant Solutions sales were $171 million, down 16.6% as reported.
• Wellspect Healthcare sales were $92 million, up 10.1% as reported, achieving record quarterly sales.
• The company completed the U.S. SurityTM portfolio with the launch of the SurityTM Urinary Management System.
• Progress was noted in priority areas of implants and endodontics.
• The company expanded its U.S. dealer network to improve broader customer access.

Market and Competitive Landscape:

• The company faces challenging industry-wide conditions.
• Management highlighted progress in specific clinical areas (implants and endodontics) and distribution channels (U.S. dealer network) as key competitive drivers.

Risks and Challenges:

• The press release notes challenging industry-wide conditions affecting performance.
• Forward-looking statements are subject to risks including restructuring charges, transformation-related costs, impairment charges, tax adjustments, and other significant items that could be material to operations.
• Foreign currency exchange rate changes impact reported net sales.
• Working capital fluctuations drove the unfavorable variance in operating cash flow compared to the prior year.

Management Commentary and Tone:

• Dan Scavilla, President and CEO, stated the company continued to make progress on its Return-to-Growth Action Plan.
• Management emphasized a focus on execution, utilizing the sales force, clinical education, and innovation capabilities to drive consistent performance and sustainable growth.
• The tone reflects confidence in the progress made in specific segments and the execution of the action plan despite revenue declines.

Other Key Points:

• The company repurchased 1.2 million shares of common stock in Q3 2026 for approximately $13 million.
• Total stockholder returns via share repurchases reached $25 million in the first nine months of 2026.
• Goodwill and intangible asset impairments were $3 million in Q3 2026, compared to $262 million in Q3 2025.
• Restructuring and other expenses were $2 million (income) in Q3 2026, compared to $5 million in expenses in Q3 2025.
• The company hosts an investor conference call and live webcast on November 5, 2026, at 4:30 p.m. ET.