Henry Schein, Inc. (HSIC) Business Profile

What it does

Henry Schein supplies health care products and services to dental and medical professionals, particularly those working outside hospitals. Founded in 1932 and headquartered in Melville, New York, the company is led by CEO Frederick M. Lowery.

Its distribution business sells supplies and equipment that practices use to treat patients and run their offices. These range from infection-control products, vaccines and diagnostic tests to dental chairs and imaging equipment. Henry Schein sells products made by other companies alongside products under its own brands. It also installs and repairs equipment and offers services such as continuing education, consulting and access to financing.

The company makes and sells specialty products, including dental implants, materials used to regenerate dental tissue, orthodontic products and orthopedic implants. Its technology business sells software for tasks such as keeping patient records, scheduling appointments, submitting claims and managing payments. The company also sells tools for clinical workflows and patient communications.

Customers include dental practices and laboratories, physician practices, ambulatory surgery centers, clinics and home health providers. Some products are delivered directly to patients at home. Henry Schein serves independent offices as well as larger groups and organizations that manage multiple practices.

The company brings its supplies, equipment, specialty products and services together through its One Schein approach, which gives customers access to these offerings through a single program.

How it makes money

Henry Schein earns revenue by selling and distributing products, equipment and services, manufacturing and selling specialty products, and providing software and other technology. It reports these activities in three segments: Global Distribution and Value-Added Services, Global Specialty Products and Global Technology.

The distribution segment sells dental and medical merchandise, including national brands and Henry Schein’s own brands. It also sells equipment and provides installation, repair and technical services. Customers can access consulting, continuing education and financial services, including financing and payment processing supplied by third parties. The company’s home health business delivers supplies and devices directly to patients.

The specialty segment manufactures, markets and sells products such as dental implants, biomaterials, orthodontic and endodontic products, and orthopedic products. Some are sold directly through specialized sales teams; others reach customers through distributors and partners. The technology segment develops and distributes practice-management software and related services, including billing, claims processing, analytics and patient engagement.

Revenue from products and equipment depends on customer orders. Software also provides recurring revenue: in the second quarter of 2026, Henry Schein said approximately 90% of Henry Schein One revenue was recurring. In the third quarter of 2026, company-owned products continued to grow faster than branded products.

Pricing is one of the ways Henry Schein competes. The company says it evaluates suppliers’ offerings and prices when purchasing products. It also says it has addressed cost-of-goods inflation through productivity initiatives, pricing and lower-priced equivalent products, including its own brands.

Global sales were $3.5 billion in the third quarter of 2026. Sales and profitability generally have been higher in the third and fourth quarters, reflecting factors including seasonal products, equipment and software purchasing patterns, and year-end promotions.

Customers and how it sells

Henry Schein serves more than one million customers worldwide, from independent practices to groups with multiple locations. Its dental customers include practices and laboratories; medical customers include physician practices, ambulatory surgery centers, government and institutional clinics, and home health providers. The company also serves urgent care, retail and occupational health settings.

Office-based practices often place frequent, small orders because they have limited space to store supplies. They generally buy supplies and small equipment from more than one distributor, although one typically acts as their primary supplier. Henry Schein seeks to increase sales to existing customers and become or remain their primary supplier.

Customers can order through e-commerce, telephone, email and mail. Field sales consultants, equipment specialists and telesales representatives also work with customers. Henry Schein’s practice-management software is another point of contact: as of December 27, 2025, its technology offerings had an active user base of approximately 95,000 practices and 324,000 consumers.

The company has operations or affiliates in 34 countries and territories. Its headquarters are in Melville, New York, and approximately 48% of its workforce is based in the United States and 52% outside the United States. Its implant products are marketed in approximately 90 countries through direct sales and distribution partners.

Suppliers and costs

Henry Schein buys a significant volume of the products it distributes from third parties, generally without long-term contracts. In 2025, its top 10 Global Distribution and Value-Added Services suppliers accounted for approximately 25% of aggregate purchases, while its single largest supplier accounted for 4%.

The company manufactures certain specialty products at its own facilities and outsources some manufacturing. It buys raw materials from distributors or mills. Although no single supplier is material, some raw materials may come from one or a limited number of suppliers because of quality assurance, regulatory requirements, cost or availability.

Distribution requires inventory, facilities and shipping. The company operates 38 distribution centers and manages inventory daily to meet demand for prompt, complete orders. Its business requires substantial working capital, which can fluctuate with sales, inventory purchases and seasonal demand.

Henry Schein has experienced increased costs from labor, sources of supply and tariffs. It says negotiations, supplier consolidation and insourcing have reduced the impact in most cases. The company also says it has offset cost-of-goods inflation through productivity initiatives, pricing and lower-priced equivalent products.

Competitive position

Health care supply and equipment distribution is highly competitive, and many products Henry Schein sells are available from multiple suppliers. In North America, it competes on price, product range, e-commerce, customer service and value-added services.

In U.S. dental distribution, its primary competitors include Patterson Dental and Benco Dental Supply Company. In U.S. medical distribution, primary competitors include McKesson and Medline. Outside the United States, dental distribution competitors include local and regional companies as well as larger groups such as Cadence Group and Proclinic Group.

In dental implants, the company names Straumann, Envista, Zimvie and Dentsply Sirona among its primary global competitors. Its technology business competes with dental software providers including Eaglesoft, Open Dental, PlanetDDS and Curve Dental. Manufacturers can also sell directly to practitioners, reducing the role of distributors.

Our reading: Henry Schein’s distribution network and product breadth provide a meaningful advantage for serving practices that place frequent, small orders, but customers can and do buy from multiple distributors.

Our reading: Practice-management software and related services can support customer relationships because they are used for everyday office tasks, although the company faces numerous software competitors. Its own brands and specialty products also give it offerings beyond distributing other manufacturers’ products, but those products compete with established suppliers.

Growth opportunities

Henry Schein’s strategy includes selling more to existing customers, adding customers, cross-selling services and pursuing acquisitions or joint ventures. It seeks investments that add customers and sales teams, expand its geographic reach or provide access to products and technologies. The company also expects demand opportunities as procedures and diagnostic testing move from hospitals to physicians’ offices and other alternate-care settings.

In the third quarter of 2026, U.S. dental merchandise sales grew 8.6%, including 7% internal local currency growth. The company attributed the growth primarily to volume, particularly among private practices and emerging dental service organizations. It also said its U.S. implant sales grew, driven by SIN 360 value implants, while Brazil faced a challenging economic and political environment.

Henry Schein is investing in cloud practice-management platforms and adding AI-enabled clinical and administrative capabilities. It reported that it was adding approximately 200 net-new cloud-platform customers per month, primarily from private practices and emerging dental service organizations. Its AscendPro and Ascend Accelerate packages include capabilities for clinical documentation, insurance eligibility, claims, collections and imaging.

The company is also working to simplify operations through shared services, selected outsourcing, centralized indirect procurement and supply-chain tools. It continues to expect more than $200 million of operating income improvement from its value creation initiatives, including a $125 million run rate by the end of 2026. Henry Schein is making targeted investments aimed at winning customers and expanding business with them.

Structural risks

• Supply interruptions: Henry Schein depends on third parties for products, raw materials and components. Supplier production interruptions or regulatory problems could disrupt sales and operations, and replacement sources may not be available promptly.

• Competition and customer purchasing power: Products are available from multiple suppliers, manufacturers can sell directly to end users, and competitors may obtain exclusive rights to products. The company also identifies expanding customer purchasing power and a consolidating market as risks.

• Cybersecurity and privacy: Cyberattacks or other security and privacy breaches can affect operations and technology services. An October 2023 cyber incident primarily affected the North American and European dental and medical distribution businesses.

• Regulation and trade: The company’s distribution and manufacturing activities are subject to health care, medical-device and pharmaceutical rules. Changes in regulations, tariffs or trade policies can impose costs or affect operations.

• Execution and acquisitions: Henry Schein may not achieve the desired returns from its strategic plan. Acquisitions and joint ventures can create integration challenges and may not deliver anticipated benefits.

• Patient demand: The company has observed pressure on discretionary dental procedures, where patients may defer treatment because of out-of-pocket costs. It has also experienced lower demand for certain diagnostic products and vaccines.

Bottom line

Our reading

Henry Schein combines a broad distribution business with specialty products and practice-management software. Our reading: its customer reach and ability to supply products and services together support those relationships, while its growth plans depend on expanding sales to existing customers and adding software users. The business remains exposed to supply interruptions, competition, cyber incidents and the execution of its operating improvements.