Q2 beat modestly, then lifted full-year EPS and sales outlook

The quarter cleared expectations, but not by a wide margin. Non-GAAP diluted EPS was $1.27 versus a published consensus of roughly $1.25, while revenue was $3.458 billion versus approximately $3.44 billion expected. That makes the earnings result a narrow beat rather than a major upside surprise.

The more important surprise was the raised outlook. Management lifted the full-year EPS range at both ends, raised the sales-growth range, and upgraded Adjusted EBITDA growth from mid-single digits to mid- to high-single digits. That is a genuine change to the forward expectation, not merely a confirmation of the existing plan (2026 Financial Guidance).

Underlying demand improved, though currency helped the headline. Q2 internal sales growth accelerated to 4.6%, with particularly strong global dental merchandise growth of 5.9% and technology internal growth of 9.1%; total reported sales growth of 6.7% also included a 1.4% foreign-exchange benefit (Financial Highlights; Exhibit A). U.S. equipment remained weak, declining 1.1%, which limits how broadly the strength can be characterized (Exhibit A).

The net read is a modest earnings beat with a clearer upgrade to the year. Q2 non-GAAP earnings growth was 15.5%, and Adjusted EBITDA rose 12.5%, while share repurchases reduced diluted shares by roughly 6.7% year over year, providing some EPS support (Exhibit B; Exhibit C; Income Statement). The combination of a small quarterly beat and higher full-year targets makes this better than merely in line, although the absence of a GAAP reconciliation for the new outlook leaves restructuring and value-creation costs as an ongoing uncertainty (2026 Financial Guidance).