Envista (NVST) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong results with 9.5% core sales growth, double-digit gains in Ortho, Consumables, and Diagnostics, and broad-based strength across all major businesses and geographies, despite macroeconomic uncertainty and lower demand in China.

• Adjusted EBITDA grew 25% and adjusted EPS rose 50% year-over-year; GAAP net income more than doubled to $38.7 million, with diluted EPS at $0.23 and adjusted EPS at $0.36.

• Board authorized a new $300 million share repurchase program through 2029, with 1.6 million shares repurchased in Q1 and $41 million remaining under the prior authorization.

• Dental markets remained resilient, with developed markets (North America, Europe) posting double-digit growth, offsetting softness in China.

Financial highlights

• Q1 2026 sales reached $706 million, up 14.4% from $617 million in Q1 2025; core sales up 9.5%, with FX adding over 400 basis points.

• Adjusted gross margin was 55.8% (up 100 bps year-over-year); GAAP gross margin improved to 55.3%.

• Adjusted EBITDA was $99 million (14.0% margin, up 120 bps); operating profit rose 60.3% to $62.5 million.

• 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.

Outlook and guidance

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

• Guidance incorporates expected VBP processes in China for ortho and implants in Q2/Q3, macro volatility, and a negative impact in Q4 from four fewer billing days.

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