Dentsply Sirona is pushing hard on digital dentistry, but the numbers aren't going its way. Shares are down 11.3% this year, while the broader dental industry is up and the S&P 500 has gained 10%. The company, valued at $1.96 billion and a major player in dental products, is under pressure to show that its investments in digital workflows and R&D can turn things around.
In the second quarter of 2026, Dentsply Sirona reported a net income of $37 million and a diluted EPS of $0.18, marking a return to profitability after a loss in the prior year.
Recent results show the challenges. In the second quarter of 2026, sales of Connected Technology Solutions fell 3.8% in constant currency, and sales in the Americas dropped 11.6%. Dental practices in the US are holding off on equipment purchases because of higher financing costs. Distributor destocking in EMEA has also hurt sales, and management doesn't expect new dealer partnerships to boost revenue until late 2026.
Orthodontic and Implant Solutions are also struggling. Sales in this segment fell 14.9% in constant currency, including an $18 million loss from shutting down the Byte business. SureSmile revenues dropped by double digits to $40 million, mainly due to weak implant demand and slow sales in the Americas. The company is investing in Ortho on DS Core, sales training, and dealer expansion, but a real recovery depends on better commercial execution.
Dentsply Sirona's official SEC 8-K filing for Q2 2026 confirmed revenue of $898 million, down 4.1% year over year, and reaffirmed full-year guidance for sales between $3.5 and $3.6 billion with adjusted EPS of $1.40-$1.50.
Despite these setbacks, Dentsply Sirona is still investing in growth. R&D spending rose 20.3% year over year to $45 million in the second quarter, and the company has added six new dealer and distribution partners so far this year. Management forecasts a 5.6% earnings improvement over the next five years, counting on innovation and expanded reach to steady growth and profits.
Still, the outlook is cautious. The Zacks Consensus Estimate puts 2026 revenue at $3.57 billion, down 3.1% from 2025, with adjusted earnings per share expected to fall 2.5% to $1.56. Other medical stocks like Veracyte, Inspire Medical Systems, and Globus Medical are currently outperforming, with higher Zacks ranks and more consistent earnings surprises.
Dentsply Sirona's digital transformation is a big bet in a tough market. The company is investing in connected workflows, AI diagnostics, and dealer expansion, but for now, margins are under pressure and equipment demand is weak. Until the company can deliver stronger results, Dentsply Sirona is likely to remain a hold for investors who aren't prepared to wait out the current turbulence.
The U.S. Food and Drug Administration's public device database shows that Dentsply Sirona maintains active regulatory listings for a range of dental products. These records confirm ongoing oversight and compliance as the company develops new technologies and product lines. More details are available in the FDA device registration database.
