Management expected 2024 revenue to fall to $3.5 to $3.6 billion, down from $3.68 billion the year before. The forecast came as the company's revenue, profits and cash flow weakened.
In the second quarter of 2026, Dentsply Sirona's GAAP gross margin expanded to 54.9% from 52.4% a year earlier. About $44 million of tariff refunds also supported cash flow during the period.
The problem goes beyond the share price. Revenue is falling, profitability is weaker and cash generation has lost strength. Net leverage stands at 3.40x forward EBITDA.
The balance sheet is uncomfortable.
XRAY trades at lower valuation multiples than its peers. That discount may attract contrarian investors. A cheaper multiple, by itself, cannot fix weak segments or reverse the operating setbacks weighing on results.
Dentsply Sirona returned to profit in the second quarter of 2026, reporting net income of $37 million, or $0.18 per share, compared with a $45 million loss a year earlier. Operating cash flow rose to $99 million from $48 million, although the improvement was partly supported by tariff refunds and tighter working-capital management.
A little over five years ago, Dentsply Sirona was presented as an industry leader with promising prospects. The stock's performance and the company's current guidance have changed that investment case.
Revenue is still expected to fall. The direction of profit and cash flow offers little evidence of a clean recovery.
Sales remained under pressure in the second quarter of 2026. Revenue was $898 million, down 4.1% year over year and 6.3% in constant currency, according to a Dental Tribune earnings review.
The quarter still showed some short-term improvement. Dentsply Sirona posted $37 million in GAAP net income, compared with a $45 million loss a year earlier. Operating cash flow rose to $99 million from $48 million.
MarketBeat's post-results summary said adjusted EPS reached $0.52 and beat analyst expectations. It also described the improvement as mainly cost-driven, with support from non-recurring factors rather than revenue growth.
That distinction matters.
GAAP gross margin rose to 54.9% from 52.4%. About $44 million in tariff refunds helped cash flow, as did tighter control of inventory and accounts payable.
Those factors can improve one quarter. They do not solve the wider sales problem.
Daniel Jones wrote the analysis as an active professional investor who runs Crude Value Insights. His approach combines Benjamin Graham's investment philosophy with a contrarian search for businesses trading at significant discounts to intrinsic value.
Even under that value-focused approach, Dentsply Sirona's discount must be weighed against weaker operations and 3.40x forward EBITDA leverage.
The market has stayed cautious. XRAY fell toward 52-week lows in September 2026, despite the return to quarterly profit.
Investors remained skeptical about the quality and durability of the improvement. A quarterly adjusted-EPS beat does not erase falling sales, the prior-year net loss or the company's reliance on cost controls and other temporary support.
The numbers point to a soft sell rather than a clear bargain call. Lower peer valuation multiples give investors a reason to watch XRAY.
The risks remain substantial. Revenue is falling, profits have worsened, cash flow is weaker, segments are underperforming and leverage sits at 3.40x forward EBITDA. The current price does not offer enough compensation for those risks.
