DENTSPLY SIRONA Inc. (XRAY) · Nov 5, 2026 · Earnings
Miss — Adj. EPS $0.29 vs ~$0.30 consensus; sales $836M vs ~$856M consensus
Dentsply Sirona’s Q3 earnings missed on revenue and adjusted EPS, while a one-time inventory benefit masked weaker underlying profitability and cash flow.
Dentsply Sirona is in the middle of a Return-to-Growth turnaround, investing in sales coverage, clinical education, innovation and distribution while trying to repair weak demand in connected dentistry, orthodontics and implants. The Q3 print shows that the recovery is not yet translating into broad-based growth; published expectations were roughly $856 million of revenue and $0.30 of adjusted EPS, making the actual result a clear miss.
| Q3 2026 | Q3 2025 | Consensus | |
|---|---|---|---|
| Net sales (Financial Highlights) | $836M (-7.6%) | $904M | ~$856M |
| Adjusted EPS (Non-GAAP results) | $0.29 (-29.4%) | $0.42 | ~$0.30 |
| Adjusted EBITDA (Non-GAAP results) | $146M (-13.3%) | $167M | |
| Adjusted EBITDA margin (Non-GAAP results) | 17.3% (-1.1 pts) | 18.4% | |
| Gross margin (Financial Highlights) | 52.9% (+4.1 pts) | 48.8% | |
| Free cash flow (Cash Flow discussion) | $0M | $40M |
The core miss is broad, not just currency. Revenue declined 7.0% in constant currency, worse than the roughly 3%–4% decline implied by the published revenue consensus. Connected Technology Solutions fell 10.1% organically, while Orthodontic and Implant Solutions dropped 16.2%; even Essential Dental Solutions declined 3.6%. Wellspect grew 11.0% and is the clear bright spot, but it is not large enough to offset weakness across the main dental businesses. (Segment results — Wellspect Healthcare) 〔0〕
Profitability weakened beneath the headline gross-margin improvement. Adjusted EBITDA fell 13.3% and its margin compressed to 17.3% from 18.4%, despite gross margin rising to 52.9%. The filing says gross profit and adjusted EBITDA included a $39 million benefit from refining the estimate for unrealized inventory profit, with roughly $30 million of that lifting adjusted net income; the company says equivalent benefits are not expected in future. That makes the reported $0.29 adjusted EPS a poor measure of the quarter’s repeatable earnings power. (Q3 Summary Results)
Cash generation is now a direct problem for the turnaround. Operating cash flow fell to $32 million from $79 million, primarily because of unfavorable working capital, and free cash flow was zero versus $40 million a year earlier. That is especially important because the plan depends on continued investment in sales, education and innovation while also reducing debt and improving working capital. (Cash Flow discussion)
The filing offers no offsetting new outlook signal. Management reiterated execution language around the Return-to-Growth plan, but this release does not provide a new quantitative full-year guide. The only clearly positive operating evidence is Wellspect’s growth and some stated progress in implants and endodontics; against the broader sales contraction, lower adjusted profitability and zero free cash flow, those positives do not change the central story. The prior quarter had reiterated the 2026 outlook, so the absence of an explicit cut prevents this from being a guidance shock, but the Q3 execution itself is materially weaker than expected.
Bottom line: The turnaround is still consuming investment without producing broad revenue recovery. A strong Wellspect result and cleaner GAAP comparison are outweighed by a revenue miss, weaker underlying margins and no free cash flow, making this a meaningful setback to the current business story.
A buy-side analyst on every ticker — it reads every public company's filing the instant it drops and decodes it into plain English.
A buy-side analyst on every ticker — the whole market decoded the second it moves, before it's a headline. Free gives you a taste. Pro takes the cap off and opens the full read on every company.
by Signing in NOW, claim your FREE 14-day Pro trial!