Envista (NVST) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong results with 14.4% sales growth to $706 million and 9.5% core sales growth, driven by higher volume and pricing, especially in North America and Europe, despite lower demand in China.

• Adjusted EBITDA grew 25% to $99 million (14.0% margin), and adjusted EPS rose 50% to $0.36 year-over-year; GAAP net income more than doubled to $39 million, with diluted EPS at $0.23.

• All major business segments and most geographies posted positive growth, with developed markets leading and China facing headwinds from VBP and inventory reductions.

• Continued investment in sales, marketing, and R&D supported future growth, alongside a new $300 million share repurchase authorization through 2029.

• The company reaffirmed its 2026 guidance, citing resilience in the dental market despite macroeconomic and geopolitical uncertainties.

Financial highlights

• Q1 2026 revenue was $706 million, up 14.4% from $617 million in Q1 2025; core sales up 9.5% year-over-year.

• Adjusted gross margin improved by 100 basis points to 55.8%; adjusted EBITDA margin expanded by 120 basis points to 14.0%.

• Adjusted EPS was $0.36, up from $0.24; GAAP diluted EPS was $0.23.

• Free cash flow was negative $16 million, reflecting seasonal trends and increased CapEx; operating cash flow was negative $3 million.

• Effective tax rate decreased to 25.9% from 37.9% year-over-year.

Outlook and guidance

• 2026 guidance reaffirmed: 2%-4% core growth, 7%-13% adjusted EBITDA growth, adjusted EPS of $1.35-$1.45, and ~100% free cash flow conversion.

• Q2 and Q3 expected to be within guidance range; Q4 will face a headwind from fewer billing days.

• Guidance incorporates anticipated VBP processes in China for ortho and implants starting Q2/Q3.

• Management expects continued growth in North America and Europe, with ongoing challenges in China.