Dental products company Dentsply Sirona (NASDAQ: XRAY) fell short of the market’s revenue expectations in Q3 2026, with revenue falling 7.5% year on year to $836 million. The company’s full-year revenue guidance of $3.5 billion at the midpoint came in 1.9% below analysts’ consensus estimates. Its non-GAAP profit of $0.29 per share was 6.2% below analysts’ consensus estimates.
For more on Dentsply Sirona, read our full research report, available free.
Dentsply Sirona (XRAY) Q3 2026 highlights:
- Revenue $836 million vs S&P analysts’ consensus estimates of $859.3 million (7.5% year-on-year decline, 2.7% miss)
- Adjusted EPS $0.29 vs S&P analysts’ consensus estimates of $0.31 (6.2% miss)
- Adjusted EBITDA $146 million vs analysts’ consensus estimates of $139.4 million (17.5% margin, 4.7% beat)
- Revenue guidance The company lowered its revenue guidance for the full year to $3.5 billion at the midpoint from $3.55 billion, a 1.4% decrease
- Adjusted EPS guidance Management lowered its full-year adjusted EPS guidance to $1.25 at the midpoint, a 13.8% decrease
- Operating margin 4.4%, up from -24.1% in the same quarter last year
- Free cash flow margin 0%, down from 4.4% in the same quarter last year
- Market capitalization $2.12 billion
"We continued to make progress on our Return-to-Growth Action Plan in the third quarter despite challenging industry-wide conditions," said Dan Scavilla, President and Chief Executive Officer of Dentsply Sirona. "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. Building on the investments we began in the first half, our focus is now on execution, putting our sales force, clinical education and innovation capabilities to work to drive consistent performance and sustainable growth."
Revenue growth
Reviewing a company’s long-term revenue performance reveals insights into its quality. Any business can deliver a good quarter or two, but the best consistently grow over the long term. Over the last five years, Dentsply Sirona’s demand was weak and its revenue declined by 3.2% per year. That outcome suggests poor business quality.
Long-term growth matters the most, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Dentsply Sirona’s recent performance shows its demand remained suppressed as its revenue has declined by 4.3% annually over the last two years. 
This quarter, Dentsply Sirona missed Wall Street’s consensus estimates and reported an uninspiring 7.5% year-on-year revenue decline, generating $836 million in revenue.
Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months, according to S&P. Although this projection implies its newer products and services will drive better revenue performance, it is still below average for the sector.
Adjusted operating margin
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 14.3%, higher than the broader healthcare sector.
Looking at the trend in its profitability, Dentsply Sirona’s adjusted operating margin decreased by 8.4 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 3.9 percentage points. This performance was poor, indicating that its expenses were rising and it couldn’t pass those costs on to its customers.
In Q3, Dentsply Sirona reported an adjusted operating margin of 5.4%, down 7.8 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 revenue through excessive spending on advertising and promotions.
Dentsply Sirona’s EPS declined by 14.6% annually over the last five years, more than its revenue. This indicates the company struggled because its fixed cost base made it difficult to adjust to shrinking demand.
A closer look at Dentsply Sirona’s earnings helps explain its performance. As mentioned earlier, Dentsply Sirona’s adjusted operating margin declined by 8.4 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 Q3, Dentsply Sirona reported adjusted EPS of $0.29, down from $0.37 in the same quarter last year. This result missed analysts’ consensus estimates. Over the next 12 months, Wall Street expects Dentsply Sirona’s full-year EPS to grow 11.1% from $1.35 to $1.50, according to S&P.
Key takeaways from Dentsply Sirona’s Q3 results
Dentsply Sirona’s Q3 results offered few positives: revenue fell short of Wall Street’s consensus estimates, and full-year EPS guidance also missed. It was a softer quarter overall. Shares plunged 14.4% to $8.61 immediately after the release.
Dentsply Sirona may have had a tough quarter, but what does that mean for investors? The latest quarter is only one part of assessing longer-term business quality. Quality, when combined with valuation, can help determine if the stock is a buy. Read the full research report here (it’s free).
