Dentsply Sirona (NASDAQ:XRAY) Beats Q2 CY2026 Sales Expectations
Dental products company Dentsply Sirona (NASDAQ:XRAY) reported Q2 CY2026 results topping the market’s revenue expectations, but sales fell by 4.1% year on year to $898 million. On the other hand, the company’s full-year revenue guidance of $3.55 billion at the midpoint came in 1% below analysts’ estimates. Its non-GAAP profit of $0.52 per share was 50.1% above analysts’ consensus estimates.
Is now the time to buy Dentsply Sirona? Find out by accessing our full research report, it’s free.
Dentsply Sirona (XRAY) Q2 CY2026 Highlights:
- Revenue: $898 million vs analyst estimates of $892.6 million (4.1% year-on-year decline, 0.6% beat)
- Adjusted EPS: $0.52 vs analyst estimates of $0.35 (50.1% beat)
- Adjusted EBITDA: $190 million vs analyst estimates of $146.8 million (21.2% margin, 29.4% beat)
- The company reconfirmed its revenue guidance for the full year of $3.55 billion at the midpoint
- Management reiterated its full-year Adjusted EPS guidance of $1.45 at the midpoint
- Operating Margin: 9.1%, up from -13.7% in the same quarter last year
- Free Cash Flow Margin: 6.1%, up from 1.7% in the same quarter last year
- Market Capitalization: $2.76 billion
"2026 continues to be a year of decisive action as we execute our Return-to-Growth Action Plan," 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
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Dentsply Sirona’s demand was weak over the last five years as its sales fell at a 2.1% annual rate. This was below our standards and is a sign of poor business quality.
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 recent performance shows its demand remained suppressed as its revenue has declined by 3.3% annually over the last two years. 
This quarter, Dentsply Sirona’s revenue fell by 4.1% year on year to $898 million but beat Wall Street’s estimates by 0.6%.
Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. Although this projection implies its newer products and services will catalyze better top-line performance, it is still below the sector average.
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
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 14.7%, higher than the broader healthcare sector.
Looking at the trend in its profitability, Dentsply Sirona’s adjusted operating margin decreased by 8.7 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 3.4 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 Q2, Dentsply Sirona generated an adjusted operating margin profit margin of 10.1%, down 8 percentage points year on year. This contraction shows it was less efficient because its expenses increased relative to its revenue.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Sadly for Dentsply Sirona, its EPS declined by 13.6% annually over the last five years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand.
We can take a deeper look into Dentsply Sirona’s earnings to better understand the drivers of its performance. As we mentioned earlier, Dentsply Sirona’s adjusted operating margin declined by 8.7 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 Q2, Dentsply Sirona reported adjusted EPS of $0.52, in line with the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Dentsply Sirona’s full-year EPS to grow 5.6% from $1.43 to $1.51.
Key Takeaways from Dentsply Sirona’s Q2 Results
It was good to see Dentsply Sirona beat analysts’ EPS expectations this quarter. We were also happy its full-year EPS guidance outperformed Wall Street’s estimates. On the other hand, its full-year revenue guidance slightly missed. Overall, this print had some key positives. The stock traded up 1.8% to $13.42 immediately after reporting.
Indeed, Dentsply Sirona had a rock-solid quarterly earnings result, but is this stock a good investment here? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).