HSIC · 10-Q · 2026Q2 · Full report
Gross Margin Drivers
HENRY SCHEIN INC · 2026-08-04 · Importance 55 · Surprise 32 · Contradicted
Second-quarter gross profit increased 8.3% year over year to $1.101 billion, and consolidated gross margin expanded from 31.4% to 31.8%. Global Distribution and Value-Added Services margin increased from 25.2% to 25.6% because of favorable business mix and early benefits from value-creation initiatives. Global Specialty Products margin increased from 54.9% to 55.7%, while Global Technology margin increased from 67.9% to 69.7%, with both improvements attributed to product mix. For the six months, consolidated gross margin increased from 31.5% to 31.8%, primarily because of favorable business mix.
Key facts
- Cost of sales for the three months ended June 27, 2026 were $2,357 million compared to $2,224 million for the three months ended June 28, 2025. source
- Gross profit for the three months ended June 27, 2026 was $1,101 million compared to $1,016 million for the three months ended June 28, 2025, with total gross margin 31.8% vs 31.4%. source
- Gross profit for the six months ended June 27, 2026 was $2,171 million and gross margin was 31.8%, compared to $2,016 million and 31.5% for the six months ended June 28, 2025. source
- Global Distribution and Value-Added Services gross profit for the six months ended June 27, 2026 was $1,476 million with gross margin 25.7% compared to $1,369 million and 25.3% in the prior-year period. source
- During the six months ended June 27, 2026, Henry Schein's operating costs were favorably impacted by a remeasurement to fair value of a previously held equity investment of $11 million within the Global Specialty Products segment. source
- Global Specialty Products gross margin for the three months ended June 27, 2026 was 55.7% compared to 54.9% in the prior-year period, an increase of 10.4%. source
- Global Technology gross margin for the three months ended June 27, 2026 was 69.7% compared to 67.9% in the prior-year period, an increase of 11.0%. source
- Global Distribution and Value-Added Services gross margin for the three months ended June 27, 2026 was 25.6% compared to 25.2% in the prior-year period, an increase of 8.0% source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +4.5% | Gross profit for the six months ended June 27, 2026 was $2,171 million and gross margin was 31.8%, compared to $2,016 million and 31.5%… |
| margin | positive | realized | +0.3% | Gross profit for the six months ended June 27, 2026 was $2,171 million and gross margin was 31.8%, compared to $2,016 million and 31.5%… |