HSIC · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

HENRY SCHEIN INC · 2026-11-03 · Importance 41 · Surprise 32

Consolidated gross margin increased to 31.8% from 30.7% in the third quarter and to 31.8% from 31.2% for the first nine months of 2026. Global Distribution and Value-Added Services’ nine-month gross margin rose to 25.7% from 25.1%, with favorable business mix, value creation initiatives and increased internally generated sales contributing to the improvement. The company recognized tariff-refund benefits of $20 million in that segment and $8 million in Global Specialty Products during the quarter; nine-month benefits were $21 million and $9 million, respectively. Global Specialty Products and Global Technology also reported higher gross margin rates, attributed to product mix.

Key facts

• In the third quarter of 2026, favorable business mix and value-creation initiatives contributed to higher Global Distribution and Value-Added Services gross-margin rates, in addition to tariff-refund benefits. source
• Product mix contributed to higher Global Specialty Products gross-margin rates in the third quarter of 2026, in addition to tariff-refund benefits. source
• For the first nine months of 2026, favorable business mix and value-creation initiatives contributed to increased Global Distribution and Value-Added Services gross-margin rates, alongside tariff-refund benefits. source
• Product mix contributed to increased Global Specialty Products gross-margin rates for the first nine months of 2026, in addition to tariff-refund benefits. source
• Henry Schein’s Global Distribution and Value-Added Services gross margin was 25.8% in the third quarter of 2026, compared with 24.7% in the prior-year quarter. source
• Henry Schein’s Global Specialty Products gross margin was 56.8% in the third quarter of 2026, compared with 55.3% in the prior-year quarter. source
• Henry Schein’s Global Technology gross margin was 68.9% in the third quarter of 2026, compared with 66.9% in the prior-year quarter. source
• Henry Schein’s Global Distribution and Value-Added Services gross margin was 25.7% for the first nine months of 2026, compared with 25.1% in the prior-year period. source