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Dentsply Sirona Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 5 November 2026: press release. Guidance figures: 1 lowered, 1 narrowed. The quarter’s numbers.

Key takeaways

  • Net sales fell 7.6 percent: Net sales were $836 million, down 7.6 percent as reported and 7.0 percent in constant currency, from $904 million a year earlier. Source
  • Adjusted EPS fell to $0.29: Adjusted EPS was $0.29, down 29.4 percent from $0.42. Adjusted EBITDA was $146 million, down 13.3 percent, at a 17.3 percent margin against 18.4 percent. Source
  • Wellspect Healthcare grew to record: Wellspect Healthcare sales were $92 million, up 10.1 percent as reported, the only segment to grow. The company reported a record quarter for the segment. Source
  • Orthodontic and implant sales fell most: Orthodontic and Implant Solutions sales were $171 million, down 16.6 percent as reported, from $205 million. This was the largest decline among the four segments. Source
  • $39 million inventory estimate benefit: Gross profit and adjusted EBITDA include a $39 million benefit from revising the estimate for unrealized inventory profit. Management said it adds about $30 million to adjusted net income and is not expected to recur. Source
  • Operating cash flow fell to $32 million: Operating cash flow was $32 million, against $79 million a year earlier. Management attributed the decline primarily to unfavorable working capital. Source

“We continued to make progress on our Return-to-Growth Action Plan in the third quarter despite challenging industry-wide conditions,”

Dan Scavilla, President and Chief Executive Officer

Guidance

AreaPeriodFigureAgainst last quarter
Net sales SourceFiscal 2026approximately $3.5 billionNarrowed, top end cut from $3.5 billion to $3.6 billion
Adjusted EPS SourceFiscal 2026$1.20 to $1.30Lowered from $1.40 to $1.50
Tariff refund benefit excluded from adjusted EPS SourceFiscal 2026$0.17 one-time

What changed from last quarter

  • Guidance lowered: Net sales guidance changed from $3.5 billion to $3.6 billion to approximately $3.5 billion. Source
  • Guidance lowered: Adjusted EPS guidance changed from $1.40 to $1.50 to $1.20 to $1.30, excluding the $0.17 tariff refund benefit. Source
  • New: The company reported completing its U.S. Surity portfolio with the launch of the Surity Urinary Management System. Source

Results and growth drivers

  • Net sales fell 7.6 percent: Net sales were $836 million, down 7.6 percent as reported and 7.0 percent in constant currency, from $904 million a year earlier. Source
  • Net loss narrowed to $2 million: Net loss attributable to Dentsply Sirona was $2 million, against $427 million a year earlier. Diluted loss per share was $0.01, against $2.14. Source
  • Adjusted EPS fell to $0.29: Adjusted EPS was $0.29, down 29.4 percent from $0.42. Adjusted EBITDA was $146 million, down 13.3 percent, at a 17.3 percent margin against 18.4 percent. Source

Segments and regions

  • Wellspect Healthcare grew to record: Wellspect Healthcare sales were $92 million, up 10.1 percent as reported, the only segment to grow. The company reported a record quarter for the segment. Source
  • Orthodontic and implant sales fell most: Orthodontic and Implant Solutions sales were $171 million, down 16.6 percent as reported, from $205 million. This was the largest decline among the four segments. Source
  • Connected Technology down 11.0 percent: Connected Technology Solutions sales were $230 million, down 11.0 percent. Americas fell 21.6 percent, EMEA fell 5.5 percent and APAC fell 4.7 percent, as reported. Source
  • Essential Dental declined modestly: Essential Dental Solutions sales were $343 million, down 4.0 percent as reported. Americas fell 0.6 percent and EMEA fell 7.7 percent. Source
  • All three regions declined: By region, Americas sales fell 9.4 percent as reported, EMEA fell 6.7 percent and APAC fell 5.2 percent. In constant currency the declines were 9.6, 5.6 and 4.3 percent. Source

“We are seeing encouraging signs of progress, including record quarterly sales for Wellspect Healthcare, progress in priority areas of implants and endodontics, and broader customer access through our expanded U.S. dealer network.”

Dan Scavilla, President and Chief Executive Officer

Margins and inventory benefit

  • Adjusted gross margin was 54.5%: Adjusted gross margin was 54.5 percent, against 52.6 percent a year earlier. Reported gross margin was 52.9 percent, against 48.8 percent. Source
  • $39 million inventory estimate benefit: Gross profit and adjusted EBITDA include a $39 million benefit from revising the estimate for unrealized inventory profit. Management said it adds about $30 million to adjusted net income and is not expected to recur. Source
  • Operating expenses rose on SG&A and R&D: Selling, general and administrative expenses were $363 million, against $355 million. Research and development expenses were $42 million, against $37 million. Source

Costs and tax

  • Impairments fell to $3 million: Goodwill and intangible asset impairments were $3 million in the quarter, against $262 million a year earlier. Source
  • ERP costs partly offset by estimate change: Restructuring-related charges and other costs were $10 million, including new global ERP system costs, partly offset by a $9 million change in estimate for the 2026 restructuring plan. Source
  • Tax adjustments added $17 million: Income tax-related adjustments added $17 million to adjusted net income, after higher U.S., Luxembourg and Swiss valuation allowances, partly offset by a Germany decrease. Source

Cash flow and capital returns

  • Operating cash flow fell to $32 million: Operating cash flow was $32 million, against $79 million a year earlier. Management attributed the decline primarily to unfavorable working capital. Source
  • Free cash flow was zero: Free cash flow was $0 million, against $40 million a year earlier. Capital expenditures were $32 million, against $39 million. Source
  • Share repurchases of about $13 million: The company repurchased 1.2 million shares for about $13 million in the quarter. Repurchases totaled $25 million across the first nine months of 2026. Source
  • Cash balance was $195 million: Cash and cash equivalents were $195 million at September 30, 2026, against $326 million at December 31, 2025. Source

Products, customers and strategy

  • Surity urinary system launched: The launch of the Surity Urinary Management System completed the U.S. Surity portfolio, according to the release. Source
  • Implants and endodontics named priorities: Management cited progress in priority areas of implants and endodontics, and wider customer access through the expanded U.S. dealer network. No figures were given. Source
  • Focus shifts to execution: Management said the company's focus is now on execution, putting the sales force, clinical education and innovation capabilities to work. Source

Risks management discussed

  • Demand: Management cited challenging industry-wide conditions as affecting the quarter. Source
  • Financial: Working capital weighed on operating cash flow, which was $32 million in the quarter. Source
  • Financial: Guidance excludes restructuring, transformation, impairment and certain tax items, which management said could be material. Source

Earlier plans management reported on

  • Not stated: Management described progress on the Return-to-Growth Action Plan as continuing in the quarter. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.