Dentsply Sirona (NASDAQ:XRAY) Beats Q1 CY2026 Sales Expectations

Dental products company Dentsply Sirona (NASDAQ:XRAY) announced better-than-expected revenue in Q1 CY2026, but sales were flat year on year at $880 million. On the other hand, the company’s full-year revenue guidance of $3.55 billion at the midpoint came in 0.7% below analysts’ estimates. Its non-GAAP profit of $0.27 per share was in line with analysts’ consensus estimates.

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“We are executing our Return-to-Growth Action Plan as expected, and our first quarter results reflect our current stage of transformation,” said Dan Scavilla, President and Chief Executive Officer of Dentsply Sirona.

Company Overview

With roots dating back to 1877 when it introduced the first dental electric drill, Dentsply Sirona (NASDAQ:XRAY) manufactures and sells professional dental equipment, technologies, and consumable products used by dentists and specialists worldwide.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Unfortunately, Dentsply Sirona’s 1.1% annualized revenue growth over the last five years was tepid. This fell short of our benchmarks and is a poor baseline for our analysis.

Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Dentsply Sirona’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 3.3% annually.

Dentsply Sirona also reports sales performance excluding currency movements, which are outside the company’s control and not indicative of demand. Over the last two years, its constant currency sales averaged 5.7% year-on-year declines. Because this number is lower than its normal revenue growth, we can see that foreign exchange rates have boosted Dentsply Sirona’s performance.

This quarter, Dentsply Sirona’s $880 million of revenue was flat year on year but beat Wall Street’s estimates by 4.8%.

Looking ahead, sell-side analysts expect revenue to decline by 2.5% over the next 12 months, similar to its two-year rate. This projection doesn't excite us and suggests its newer products and services will not catalyze better top-line performance yet.

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Adjusted Operating Margin

Adjusted operating margin is a key measure of profitability. Think of it as net income (the bottom line) excluding the impact of non-recurring expenses, taxes, and interest on debt - metrics less connected to business fundamentals.

Dentsply Sirona has done a decent job managing its cost base over the last five years. The company has produced an average adjusted operating margin of 14.6%, higher than the broader healthcare sector.

Looking at the trend in its profitability, Dentsply Sirona’s adjusted operating margin decreased by 9.7 percentage points over the last five years. The company’s two-year trajectory also shows it failed to get its profitability back to the peak as its margin fell by 4.7 percentage points. This performance was poor no matter how you look at it - it shows its expenses were rising and it couldn’t pass those costs onto its customers.

In Q1, Dentsply Sirona generated an adjusted operating margin profit margin of negative 3.1%, down 18.3 percentage points year on year. This contraction shows it was less efficient because its expenses increased relative to its revenue.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Sadly for Dentsply Sirona, its EPS declined by 7.2% annually over the last five years while its revenue grew by 1.1%. This tells us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes.

Diving into the nuances of Dentsply Sirona’s earnings can give us a better understanding of its performance. As we mentioned earlier, Dentsply Sirona’s adjusted operating margin declined by 9.7 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

In Q1, Dentsply Sirona reported adjusted EPS of $0.27, down from $0.43 in the same quarter last year. This print slightly missed analysts’ estimates. Over the next 12 months, Wall Street expects Dentsply Sirona’s full-year EPS of $1.43 to grow 3.3%.

Key Takeaways from Dentsply Sirona’s Q1 Results

We enjoyed seeing Dentsply Sirona beat analysts’ revenue expectations this quarter. We were also happy its full-year EPS guidance outperformed Wall Street’s estimates. On the other hand, its EPS was in line and its full-year revenue guidance fell slightly short of Wall Street’s estimates. Overall, this print was mixed. The stock remained flat at $11.37 immediately after reporting.

Is Dentsply Sirona an attractive investment opportunity at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).