DENTSPLY SIRONA Inc.
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 5, 2026
XRAY$9.46-6.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0000818479-26-000255
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0000818479-26-000287
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 99 previous paragraphs and 106 current paragraphs.
55 unchanged; 34 reworded; 17 added; 10 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 9 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
Geopolitical conditions in the Middle East have adversely impacted our business, including by contributing to lower revenue in certain markets in the region. The Company’s operations have not been materially impacted by these geopolitical conditions, but such conditions may result in future disruptions to our operations. We continue to monitor these developments and take actions to mitigate their impact on our operations.
Current report
The increase in gross profit as a percentage of net sales for the three months ended September 30, 2026 was driven by a $39 million reduction to cost of products sold related to the cumulative change in estimate to eliminate profit in inventory associated with intercompany transactions, favorable manufacturing absorption, and favorable manufacturing scrap. The increase was partially offset by lower volumes in the OIS, CTS, and EDS segments and unfavorable distribution costs.
Current report
The increase in SG&A expenses for the three months ended September 30, 2026 was driven by training expense from clinical education investments and bad debt expense, partially offset by lower professional service costs.
Current report
Goodwill and Intangible Asset Impairments
Current report
For the three and nine months ended September 30, 2026, the Company recorded indefinite-lived intangible asset pre-tax impairment charges of $2 million and $1 million for the Orthodontic and Implant Solutions and Essential Dental Solutions segments, respectively.
Current report
Restructuring and Other (Income) Expenses
Current report
The increase in segment adjusted operating income for the three months ended September 30, 2026 is due to favorable pricing, tariff refunds, and lower headcount and professional service costs, partially offset by lower sales volumes and unfavorable product mix.
Current report
The increase in segment adjusted operating income for the nine months ended September 30, 2026 is due to favorable pricing, tariff refunds, lower headcount and professional service costs, and favorable foreign currency impacts, partially offset by lower sales volumes and unfavorable product mix.
Current report
The decrease in segment adjusted operating income for the nine months ended September 30, 2026 is due to lower sales volumes, unfavorable product mix, and the absence of net sales of Byte products in 2026. The decrease was partially offset by favorable headcount costs and lower tariff expenses.
Current report
The decrease in segment adjusted operating income for the three months ended September 30, 2026 is due to higher headcount and advertising costs, partially offset by higher sales volumes.
Current report
The decrease in segment adjusted operating income for the nine months ended September 30, 2026 is due to higher headcount and advertising costs, as well as additional promotional activity, partially offset by higher sales volumes, favorable product mix and the benefit of foreign currency.
Current report
Other income, net
Current report
Indefinite-Lived Intangible Assets
Current report
Indefinite-lived intangible assets consist of trade names, trademarks, and in-process R&D. Indefinite-lived intangible assets are tested for impairment annually at April 1 or more frequently if events or circumstances indicate that the carrying value may be impaired, or if a decision is made to sell, discontinue, or divest a business. Judgment is involved in determining if an indicator of impairment has occurred during the year. Such indicators may include a decline in expected cash flows, unanticipated competition, increased interest rates, or slower growth rates, among others.
Current report
Impairment Test Results
Current report
For the three months ended September 30, 2026, the Company considered qualitative and quantitative factors to determine whether any events or changes in circumstances had resulted in indicators of impairment of goodwill or indefinite-lived intangible assets. Due to the lower-than-expected results for the product lines associated with various intangible assets, review of the indefinite-lived intangible assets using a consistent methodology as that which was used for the annual test, indicated a decline in fair value as of September 30, 2026 due to lower volumes for the Company’s equipment and implant products. As a result, the Company recorded indefinite-lived intangible asset pre-tax impairment charges of $2 million and $1 million for the Orthodontic and Implant Solutions and Essential Dental Solutions segments, respectively, for the three months ended September 30, 2026.
Current report
For further information see Note 13, Goodwill and Intangible Assets, in the Notes to Unaudited Interim Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q.
Removed paragraphs (10)
Previous report
The decrease in gross profit as a percentage of net sales for the six months ended June 30, 2026 was driven by lower volumes as noted in the Net Sales by Segment section and unfavorable product mix. The decrease was partially offset by favorable foreign currency impacts and tariff refunds.
Previous report
Restructuring and Other Costs
Previous report
The decrease in segment adjusted operating income for the six months ended June 30, 2026 is due to unfavorable product mix, lower volumes, and unfavorable pricing. The decrease was partially offset by tariff refunds.
Previous report
The increase in segment adjusted operating income for the three months ended June 30, 2026 is due to tariff refunds, favorable pricing, and favorable headcount costs. The increase was partially offset by lower net sales volumes.
Previous report
The decrease in segment adjusted operating income for the six months ended June 30, 2026 is due to lower net sales volumes. The decrease was partially offset by tariff refunds and favorable pricing.
Previous report
The decrease in segment adjusted operating income for the six months ended June 30, 2026 is due to lower net sales volumes and unfavorable product mix. The decrease was partially offset by lower professional services costs, tariff refunds, and favorable foreign currency impacts.
Previous report
The decrease in segment adjusted operating income for the three months ended June 30, 2026 is due to a one time write-off resulting from a change in manufacturing process. The decrease was partially offset by new products and favorable foreign currency impacts.
Previous report
The decrease in segment adjusted operating income for the six months ended June 30, 2026 is due to unfavorable product mix and a one time write-off resulting from a change in manufacturing process. The decrease was partially offset by new products and favorable foreign currency impacts.
Previous report
Interest expense, net for the six months ended June 30, 2026 increased compared to the six months ended June 30, 2025 primarily due to higher borrowing costs experienced during the first quarter of 2026.
Previous report
Other (income) expense, net
Reworded paragraphs (34)
Previous wording
As disclosed in Part I, Item 1A, “Risk Factors,” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the “2025 Form 10-K”), the Company’s business is subject to risks related to, among other factors, tariffs and other trade protection measures put in place by the United States and other countries. The U.S. government has implemented and could further implement various tariffs on the importation of certain goods from certain countries, a number of which are or may be applicable to the Company’s supply chain, operations, and sales. Tariffs enacted or proposed by the Trump Administration, together with retaliatory tariffs imposed by other countries, could make it significantly more difficult or costly for the Company to import certain products or materials to the United States, or export products or materials from the United States to other countries. Further, these tariffs remain subject to evolving modifications and court challenges. Currently, a small portion of the products, materials, and components used in our products are imported from China, and a significant number of dental technology and equipment products that we sell in the United States are manufactured in Europe. Europe is also a significant market for sales of our products, including certain consumable products made in the United States, while sales in China represent less than 5% of the Company’s global sales on an annual basis. During the second quarter of 2026, the Company received approximately $44 million of refunds for its prior payment of U.S. tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") on goods imported into the U.S. following legal and regulatory developments affecting the administration of those tariffs. While these refunds favorably impacted the Company’s results of operations and cash flows during the quarter, the future effect of tariffs and trade policies on the Company’s business remains uncertain. We continue to monitor and evaluate the ongoing and potential impacts on our supply chain, costs, net sales, and profitability of the tariffs, changes in trade policy, whether implemented or proposed, and court rulings on the legality of certain tariffs. We have executed actions and continue to evaluate additional strategies to mitigate such impacts, including competitive pricing strategies to offset tariffs and evaluating alternative sourcing options to minimize products sourced from high tariff rate countries, both for existing products and to support new product development. It is difficult to predict with reasonable certainty the impact on our results of operations and customers’ demand for our products from incremental tariffs, changes in trade policy, and related court rulings. For additional information, see Part I, Item 1A, “Risk Factors” in our 2025 Form 10-K.
Current wording
As disclosed in Part I, Item 1A, “Risk Factors,” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the “2025 Form 10-K”), the Company’s business is subject to risks related to, among other factors, tariffs and other trade protection measures put in place by the United States and other countries. The U.S. government has implemented and could further implement various tariffs on the importation of certain goods from certain countries, a number of which are or may be applicable to the Company’s supply chain, operations, and sales. Tariffs enacted or proposed by the Trump Administration, together with retaliatory tariffs imposed by other countries, could make it significantly more difficult or costly for the Company to import certain products or materials to the United States, or export products or materials from the United States to other countries. Further, these tariffs remain subject to evolving modifications and court challenges. Currently, a small portion of the products, materials, and components used in our products are imported from China, and a significant number of dental technology and equipment products that we sell in the United States are manufactured in Europe. Europe is also a significant market for sales of our products, including certain consumable products made in the United States, while sales in China represent less than 5% of the Company’s global sales on an annual basis. The Company received approximately $44 million of refunds in the second quarter of 2026 and approximately $3 million of refunds in the third quarter of 2026 for its prior payment of U.S. tariffs imposed under the International Emergency Economic Powers Act on goods imported into the United States following legal and regulatory developments affecting the administration of those tariffs. While these refunds favorably impacted the Company’s results of operations and cash flows during the second and third quarters of 2026 and the nine months ended September 30, 2026, the future effect of tariffs and trade policies on the Company’s business remains uncertain. We continue to monitor and evaluate the ongoing and potential impacts on our supply chain, costs, net sales, and profitability of the tariffs, changes in trade policy, whether implemented or proposed, and court rulings on the legality of certain tariffs. We have executed actions and continue to evaluate additional strategies to mitigate such impacts, including competitive pricing strategies to offset tariffs and evaluating alternative sourcing options to minimize products sourced from high tariff rate countries, both for existing products and to support new product development. It is difficult to predict with reasonable certainty the impact on our results of operations and customers’ demand for our products from incremental tariffs, changes in trade policy, and related court rulings. For additional information, see Part I, Item 1A, “Risk Factors” in our 2025 Form 10-K.
Previous wording
Geopolitical conflicts are expected to continue to shape market dynamics and pose general threats to financial stability in affected regions, including ongoing tensions from the conflicts in the Middle East and the Russia-Ukraine conflict. Overall, the Company’s operations in Israel, Russia, and Ukraine have not been materially impacted by these conflicts.
Current wording
Geopolitical conflicts are expected to continue to shape market dynamics and pose general threats to financial stability in affected regions, including ongoing tensions from the conflicts in the Middle East and the Russia-Ukraine conflict. Overall, the Company’s operations in the Middle East, Russia, and Ukraine have not been materially impacted by these conflicts.
Previous wording
The Company’s operations in Israel consist of two manufacturing facilities for implants products, with one site in northern Israel and one site in southern Israel, both of which remain open and continue to operate normally. For the six months ended June 30, 2026, net sales of products produced at these sites comprised approximately 3% of our consolidated net sales and approximately 15% of the net sales of the Orthodontic and Implant Solutions segment. Net assets within Israel totaled $130 million as of June 30, 2026, consisting primarily of acquired technology, property, plant and equipment, inventory, and cash associated with our operations in the country.
Current wording
The Company’s operations in Israel consist of two manufacturing facilities for implants products, with one site in northern Israel and one site in southern Israel, both of which remain open and continue to operate normally. For the nine months ended September 30, 2026, net sales of products produced at these sites comprised approximately 3% of our consolidated net sales and approximately 15% of the net sales of the Orthodontic and Implant Solutions segment. Net assets within Israel totaled $130 million as of September 30, 2026, consisting primarily of acquired technology, property, plant and equipment, inventory, and cash associated with our operations in the country.
Previous wording
In February 2022, because of the invasion of Ukraine by Russia, the United States, the European Union, and certain other countries imposed economic sanctions on certain Russian financial institutions and businesses and export controls on the export of certain products to Russia. Due to the medical nature of our products, the current sanctions and export controls have not materially restricted our ability to continue selling many of our products to customers located in Russia. For the six months ended June 30, 2026, net sales in Russia and Ukraine were approximately 3% of our consolidated net sales, and net assets in these countries were $99 million as of June 30, 2026. These net assets include $57 million of cash and cash equivalents held within Russia as of June 30, 2026, as well as inventory and trade accounts receivable. Due to currency control measures imposed by the Russian government, which include restrictions on the ability of companies to repatriate or otherwise remit cash from their Russian-based operations to locations outside of Russia, we continue to be limited in our ability to transfer this cash balance out of Russia without incurring substantial costs. Additionally, beginning in September 2024, as a result of further restrictions by European financial institutions on receiving payments from Russia, our capacity to receive intercompany payments for the delivery of our products into Russia has been partially reduced, which further limits our ability to use cash received from sales in Russia for our general purposes.
Current wording
In February 2022, because of the invasion of Ukraine by Russia, the United States, the European Union, and certain other countries imposed economic sanctions on certain Russian financial institutions and businesses and export controls on the export of certain products to Russia. Due to the medical nature of our products, the current sanctions and export controls have not materially restricted our ability to continue selling many of our products to customers located in Russia. For the nine months ended September 30, 2026, net sales in Russia and Ukraine were approximately 3% of our consolidated net sales, and net assets in these countries were $93 million as of September 30, 2026. These net assets include $51 million of cash and cash equivalents held within Russia as of September 30, 2026, as well as inventory and trade accounts receivable. Due to currency control measures imposed by the Russian government, which include restrictions on the ability of companies to repatriate or otherwise remit cash from their Russian-based operations to locations outside of Russia, we continue to be limited in our ability to transfer this cash balance out of Russia without incurring substantial costs. Additionally, beginning in September 2024, as a result of further restrictions by European financial institutions on receiving payments from Russia, our capacity to receive intercompany payments for the delivery of our products into Russia has been partially reduced, which further limits our ability to use cash received from sales in Russia for our general purposes.
Previous wording
We expect changes in the Company’s distribution model, including a reduced emphasis on distributor-held inventory, will likely increase variability in ordering patterns and contribute to fluctuations in net sales and operating income.
Current wording
Following a strategic shift in inventory management in partnership with distributors, changes in the Company’s distribution model, including a reduced emphasis on distributor-held inventory, will likely increase variability in ordering patterns and contribute to fluctuations in net sales and operating income.
Previous wording
RESULTS OF OPERATIONS, THREE AND SIX MONTHS ENDED JUNE 30, 2026 COMPARED TO THREE AND SIX MONTHS ENDED JUNE 30, 2025
Current wording
RESULTS OF OPERATIONS, THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 COMPARED TO THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025
Previous wording
The net sales decrease on a constant currency basis for the three months ended June 30, 2026 was driven by lower volumes of OIS products in all regions primarily due to the absence of the Byte business in the Americas, lower volumes of CTS products in the Americas, lower volumes of EDS products in EMEA, and unfavorable pricing in EMEA and APAC across all segments. The decrease was partially offset by favorable pricing in the Americas, higher volumes of CTS products in APAC, and higher volumes of Wellspect products driven by new product introductions.
Current wording
The net sales decrease on a constant currency basis for the three months ended September 30, 2026 was driven by lower volumes of OIS products in all regions, primarily implant products and the absence of the Byte business, lower volumes of CTS products in the Americas following a strategic shift in inventory management in partnership with distributors, and lower volumes of endodontic products in EMEA. The decrease was partially offset by higher volumes of Wellspect products.
Previous wording
The net sales decrease on a constant currency basis for the six months ended June 30, 2026 was driven by lower volumes in the Americas across all products, including the absence of the Bye business, lower volumes of EDS and OIS products in EMEA, and unfavorable pricing of CTS products in EMEA. The decrease was partially offset by favorable pricing in the Americas and higher volumes of Wellspect products primarily driven by new product introductions.
Current wording
The net sales decrease on a constant currency basis for the nine months ended September 30, 2026 was driven by lower volumes of EDS and OIS products, the absence of the Byte business, and lower volumes of CTS products in the Americas and EMEA. The lower volumes of CTS products in the Americas were driven by a strategic shift in inventory management in partnership with distributors. The decrease was partially offset by higher volumes of Wellspect products.
Previous wording
The net sales decrease on a constant currency basis for the three months ended June 30, 2026 was driven by lower volumes of CAD/CAM products in the Americas and unfavorable pricing in EMEA. The decrease was partially offset by higher volumes of CAD/CAM products in APAC. CAD/CAM products held by distributors in the three months ended June 30, 2026 decreased approximately $20 million from March 31, 2026, compared to a decrease of approximately $19 million in the three months ended June 30, 2025 from March 31, 2025. Imaging products held by distributors in the three months ended June 30, 2026 decreased approximately $8 million from March 31, 2026, compared to a decrease of approximately $5 million in the three months ended June 30, 2025 from March 31, 2025.
Current wording
The net sales decrease on a constant currency basis for the three months ended September 30, 2026 was driven by lower volumes of CAD/CAM products in the Americas. The decrease was partially offset by higher volumes of CAD/CAM products in APAC. CAD/CAM products held by distributors in the three months ended September 30, 2026 decreased approximately $9 million from June 30, 2026, compared to an increase of approximately $20 million in the three months ended September 30, 2025 from June 30, 2025. Imaging products held by distributors in the three months ended September 30, 2026 decreased approximately $3 million from June 30, 2026, compared to a decrease of approximately $1 million in the three months ended September 30, 2025 from June 30, 2025.
Previous wording
The net sales decrease on a constant currency basis for the six months ended June 30, 2026 was driven by lower volumes in the Americas and unfavorable pricing in EMEA. The decrease was partially offset by higher volumes in EMEA and CAD/CAM products in APAC. CAD/CAM products held by distributors in the six months ended June 30, 2026 decreased approximately $11 million from December 31, 2025, compared to a decrease of approximately $16 million in the six months ended June 30, 2025 from December 31, 2024. Imaging products held by distributors in the six months ended June 30, 2026 decreased approximately $7 million from December 31, 2025, compared to an increase of approximately $1 million in the six months ended June 30, 2025 compared to December 31, 2024.
Current wording
The net sales decrease on a constant currency basis for the nine months ended September 30, 2026 was driven by lower volumes in the Americas and EMEA. The decrease was partially offset by higher volumes of CAD/CAM products in APAC. CAD/CAM products held by distributors in the nine months ended September 30, 2026 decreased approximately $20 million from December 31, 2025, compared to an increase of approximately $4 million in the nine months ended September 30, 2025 from December 31, 2024. Imaging products held by distributors in the nine months ended September 30, 2026 decreased approximately $10 million from December 31, 2025 compared to no change in the nine months ended September 30, 2025 compared to December 31, 2024.
Previous wording
Distributor inventory levels for both CAD/CAM and imaging products at June 30, 2026 remain below historical averages.
Current wording
Distributor inventory levels for both CAD/CAM and imaging products at September 30, 2026 remain below historical averages following a strategic shift in inventory management in partnership with distributors.
Previous wording
The net sales decrease on a constant currency basis for the three months ended June 30, 2026 was driven by increased promotional activity in the Americas and lower volumes in restorative products. The decrease was partially offset by higher volumes of preventative products in the Americas and higher volumes of endodontic products in APAC. The decrease in volumes in EMEA was, in part, a result of volumes of products sold by distributors to retail customers exceeding volumes of products sold to distributors. We are unable to quantify the impact to net sales for the three months ended June 30, 2026. Changes in inventory levels held by EMEA distributors are expected to impact the amount and timing of net sales in future periods.
Current wording
The net sales decrease on a constant currency basis for the three months ended September 30, 2026 was driven by lower volumes of endodontics products in EMEA and unfavorable pricing, partially offset by higher volumes of endodontics products in the Americas. The decrease in volumes in EMEA was, in part, a result of volumes of products sold by distributors to retail customers exceeding volumes of products sold to distributors. We are unable to quantify the impact to net sales of the decrease in volumes in EMEA for the three months ended September 30, 2026. Changes in inventory levels held by EMEA distributors are expected to impact the amount and timing of net sales in future periods.
Previous wording
The net sales decrease on a constant currency basis for the six months ended June 30, 2026 was driven by lower volumes in EMEA and the Americas. The decrease was partially offset by favorable pricing in the Americas and higher volumes in APAC. The decrease in volumes in EMEA was, in part, a result of volumes of products sold to retail customers exceeding inventory volumes of products sold to distributors. We are unable to quantify the impact to net sales for the six months ended June 30, 2026. Changes in inventory levels held by EMEA distributors are expected to impact the amount and timing of net sales in future periods.
Current wording
The net sales decrease on a constant currency basis for the nine months ended September 30, 2026 was driven by lower volumes in EMEA and the Americas. The decrease was partially offset by favorable pricing in EMEA and higher volumes in APAC. The decrease in volumes in EMEA was, in part, a result of volumes of products sold to retail customers exceeding inventory volumes of products sold to distributors. We are unable to quantify the impact to net sales of the decrease in volumes in EMEA for the nine months ended September 30, 2026. Changes in inventory levels held by EMEA distributors are expected to impact the amount and timing of net sales in future periods.
Previous wording
The net sales decrease on a constant currency basis for the three and six months ended June 30, 2026 was driven by the absence of net sales of Byte products in 2026 and lower volumes of implant products.
Current wording
The net sales decrease on a constant currency basis for the three and nine months ended September 30, 2026 was driven by lower volumes of implant products and the absence of the Byte business.
Previous wording
The net sales increase on a constant currency basis for the three and six months ended June 30, 2026 was driven by higher product volumes in EMEA and the benefit from new product introductions.
Current wording
The net sales increase on a constant currency basis for the three and nine months ended September 30, 2026 was driven by higher product volumes, partially due to new product introductions.
Previous wording
The increase in gross profit as a percentage of net sales for the three months ended June 30, 2026 was driven by tariff refunds and favorable foreign currency impacts. The increase was partially offset by lower volumes in the OIS and EDS segments, unfavorable product mix, higher expenses related to tariffs, and the unfavorable pricing as noted in the Net Sales by Segment section.
Current wording
The increase in gross profit as a percentage of net sales for the nine months ended September 30, 2026 was driven by tariff refunds, favorable foreign currency impacts, and a $39 million reduction to cost of products sold related to the cumulative change in estimate to eliminate profit in inventory associated with intercompany transactions. The increase was partially offset by lower net sales volumes in the OIS, CTS, and EDS segments.
Previous wording
The increase in SG&A expenses for both the three and six months ended June 30, 2026 was primarily driven by unfavorable foreign currency impacts. The increase was partially offset by the benefits of restructuring actions, as well as lower professional services and advertising costs.
Current wording
The increase in SG&A expenses for the nine months ended September 30, 2026 was due to unfavorable foreign currency impacts and bad debt expense, partially offset by lower headcount and professional service costs.
Previous wording
For the three and six months ended June 30, 2026, R&D expenses increased as the Company is increasing allocation of capital to R&D, primarily focused on expanding DS Core to support digital workflows across the Company’s product portfolio and accelerating key projects in all segments. The Company expects a level of investment in R&D of approximately 5% of annual net sales in 2026.
Current wording
For the three and nine months ended September 30, 2026, R&D expenses increased consistent with the Company’s stated plan to increase allocation of capital to R&D, primarily focused on expanding DS Core to support digital workflows across the Company’s product portfolio and accelerating key projects in all segments. The Company expects a level of investment in R&D of approximately 5% of annual net sales in 2026.
Previous wording
The Company recorded restructuring and other costs of $2 million and $69 million for the three and six months ended June 30, 2026, and $4 million and $13 million for the three and six months ended June 30, 2025. The expenses in 2026 consisted primarily of severance costs in conjunction with the restructuring plan announced on February 26, 2026. The expenses in 2025 primarily consisted of costs in connection with furthering the execution of various restructuring initiatives announced in prior years.
Current wording
The Company recorded restructuring and other (income) expenses of $(2) million and $67 million for the three and nine months ended September 30, 2026, and $5 million and $18 million for the three and nine months ended September 30, 2025. The expenses in 2026 consisted primarily of severance costs in conjunction with the restructuring plan announced on February 26, 2026. The expenses in 2025 primarily consisted of costs in connection with furthering the execution of various restructuring initiatives announced in prior years.
Previous wording
(a) See Note 6, Segment Information, in the Notes to Unaudited Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q for a reconciliation from segment adjusted operating income to consolidated US GAAP income.
Current wording
(a) See Note 6, Segment Information, in the Notes to Unaudited Interim Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q for a reconciliation from segment adjusted operating income to consolidated US GAAP income.
Previous wording
The decrease in segment adjusted operating income for the three months ended June 30, 2026 is due to lower net sales volumes, unfavorable product mix and unfavorable pricing, partially offset by tariff refunds and lower warranty costs.
Current wording
The decrease in segment adjusted operating income for the three and nine months ended September 30, 2026 is due to lower sales volumes and mix, as well as unfavorable pricing, partially offset by lower customer incentives.
Previous wording
The decrease in segment adjusted operating income for the three months ended June 30, 2026 is due to lower net sales volumes, unfavorable pricing, and unfavorable product mix. The decrease was partially offset by tariff refunds and lower professional service costs.
Current wording
The decrease in segment adjusted operating income for the three months ended September 30, 2026 is due to lower sales volumes, unfavorable product mix, and the absence of net sales of Byte products in 2026. The decrease was partially offset by lower professional service costs.
Previous wording
Interest expense, net for the three months ended June 30, 2026 decreased compared to the three months ended June 30, 2025 primarily due to lower average debt balances and higher interest income, primarily attributable to the interest income related to tariff refunds.
Current wording
Interest expense, net for the three and nine months ended September 30, 2026 increased compared to the three and nine months ended September 30, 2025, primarily due to higher commercial paper balances.
Previous wording
Other (income) expense, net for the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025 is as follows:
Current wording
Other income, net for the three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025 is as follows:
Previous wording
The effective tax rates for the three months ended June 30, 2026 and 2025 were 50.0% and 71.2%, respectively. The effective tax rates for the six months ended June 30, 2026 and 2025 were 13.8% and 76.9%, respectively. The decrease in the effective tax rate is primarily driven by impairments recorded in the three and six months ended June 30, 2025, along with associated changes in valuation allowances.
Current wording
The effective tax rates for the three months ended September 30, 2026 and 2025 were 112.4% and (86.5%), respectively. The effective tax rates for the nine months ended September 30, 2026 and 2025 were 58.3% and (33.6%), respectively. The increase in the effective tax rate for both the three and nine month periods is primarily driven by increases in valuation allowances on certain deferred tax assets in the United States, Germany, Switzerland, and Luxembourg, the loss of certain U.S. tax benefits, and limitations on the utilization of foreign tax credits, as well as the impact of prior-year impairments and associated valuation allowance changes.
Previous wording
There have been no material changes to the critical accounting policies and estimates disclosed in the 2025 Form 10-K.
Current wording
There were no material changes to the critical accounting policies and estimates as disclosed in the 2025 Form 10-K, except as follows:
Previous wording
Cash provided by operating activities increased compared to the six months ended June 30, 2025, driven by higher net income, which included $44 million related to tariff refunds received from the U.S. government, lower accounts receivable, and higher accounts payable. At June 30, 2026, the number of days for sales outstanding in accounts receivable decreased by 1 day to 61 days as compared to 62 days at December 31, 2025, and the number of days of sales in inventory increased by 5 days to 136 days at June 30, 2026 as compared to 131 days at December 31, 2025. Cash provided by operating activities was favorably impacted by the receipt of tariff refunds during the six months ended June 30, 2026.
Current wording
Cash provided by operating activities increased compared to the nine months ended September 30, 2025, driven by higher net income, which included $47 million related to tariff refunds received from the U.S. government and lower accounts receivable. At September 30, 2026, the number of days for sales outstanding in accounts receivable increased by 2 days to 64 days as compared to 62 days at December 31, 2025, and the number of days of sales in inventory increased by 21 days to 152 days at September 30, 2026 as compared to 131 days at December 31, 2025.
Previous wording
Cash used in investing activities increased compared to the six months ended June 30, 2025, primarily driven by higher capital expenditures. The Company estimates capital expenditures to be in the range of approximately $140 million to $160 million for the full year 2026 and expects these investments to include expenses for supply chain equipment upgrades and capacity expansion to support product innovation, expenses associated with DS Core enhancements, and expenses for the new global ERP system.
Current wording
Cash used in investing activities increased compared to the nine months ended September 30, 2025, primarily driven by higher capital expenditures. The Company estimates capital expenditures to be in the range of approximately $165 million to $185 million for the full year 2026 and expects these investments to include expenditures for supply chain equipment upgrades and capacity expansion to support product innovation, DS Core enhancements, and the global Enterprise Resource Planning system implementation.
Previous wording
Cash used in financing activities increased compared to the six months ended June 30, 2025 as the prior‑year period included cash inflows provided by the issuance of $550 million of long-term borrowings, a portion of which was used to repay the 364-day bridge loan and other short-term borrowings. The increase is also driven by repayments on long-term borrowings and share repurchases, partially offset by lower dividends paid.
Current wording
Cash used in financing activities increased compared to the nine months ended September 30, 2025 as the prior‑year period included cash inflows provided by the issuance of $550 million of long-term borrowings, a portion of which was used to repay the 364-day bridge loan and other short-term borrowings. The increase is also driven by repayments on long-term borrowings and share repurchases, partially offset by lower dividends paid.
Previous wording
On November 7, 2023, the Board of Directors approved an increase to the authorized share repurchase program of $1.0 billion. At June 30, 2026, $1.2 billion of authorization remains available for future share repurchases. For the three and six months ended June 30, 2026, the Company repurchased approximately 1.3 million outstanding shares of common stock through open market purchases at a cost of approximately $12 million. Additional share repurchases, if any, may be made through open market purchases, Rule 10b5-1 plans, accelerated share repurchases, privately negotiated transactions, or other transactions in such amounts and at such times as the Company considers appropriate based upon prevailing market and business conditions and other factors.
Current wording
On November 7, 2023, the Board of Directors approved an increase to the authorized share repurchase program of $1.0 billion. At September 30, 2026, $1.2 billion of authorization remains available for future share repurchases. For the three and nine months ended September 30, 2026, the Company repurchased approximately 1.2 million and 2.5 million outstanding shares of common stock through open market purchases at a cost of approximately $13 million and $25 million. Additional share repurchases, if any, may be made through open market purchases, Rule 10b5-1 plans, accelerated share repurchases, privately negotiated transactions, or other transactions in such amounts and at such times as the Company considers appropriate based upon prevailing market and business conditions and other factors.
Previous wording
At June 30, 2026, the Company had $683 million of borrowings available under lines of credit, including lines available under its short-term arrangements and revolving credit facility. The Company’s borrowing capacity includes a $700 million multi-currency credit facility which expires in May 2028. The Company also has access to an aggregate $700 million under a U.S. dollar commercial paper facility. The $700 million revolver serves as a back-up to the commercial paper facility, thus the total available credit under the commercial paper facility and the multi-currency revolving credit facility in the aggregate is $700 million. The Company had $35 million in outstanding borrowings under the commercial paper facility at June 30, 2026, resulting in $665 million remaining available under the revolving credit and commercial paper facilities. The Company also has access to $18 million in uncommitted short-term financing under lines of credit from various financial institutions, the availability of which is reduced by other short-term borrowings. The lines of credit have no major restrictions and are provided under demand notes between the Company and the lending institutions. At June 30, 2026, the Company had less than $1 million outstanding under short-term borrowing arrangements.
Current wording
At September 30, 2026, the Company had $503 million of borrowings available under lines of credit, including lines available under its short-term arrangements and revolving credit facility. The Company’s borrowing capacity includes a $700 million multi-currency credit facility which expires in May 2028. The Company also has access to an aggregate $700 million under a U.S. dollar commercial paper facility. The $700 million revolver serves as a back-up to the commercial paper facility. Thus the total available credit under the commercial paper facility and the multi-currency revolving credit facility in the aggregate is $700 million. The Company had $215 million in outstanding borrowings under the commercial paper facility at September 30, 2026, resulting in $485 million remaining available under the revolving credit and commercial paper facilities. The Company also has access to $18 million in uncommitted short-term financing under lines of credit from various financial institutions, the availability of which is reduced by other short-term borrowings. The lines of credit have no major restrictions and are provided under demand notes between the Company and the lending institutions. At September 30, 2026, the Company had less than $1 million outstanding under short-term borrowing arrangements.
Previous wording
The Company’s revolving credit facility and senior notes contain certain covenants relating to the Company’s operations and financial condition. At June 30, 2026, the Company was in compliance with these covenants.
Current wording
The Company’s revolving credit facility and senior notes contain certain covenants relating to the Company’s operations and financial condition. As of September 30, 2026, the Company entered into an amendment to its credit agreement, which is intended to provide the Company with additional flexibility to maintain compliance with its debt covenants. At September 30, 2026, the Company was in compliance with these covenants, as amended. See Note 12, Financing Arrangements, in the Notes to the Unaudited Interim Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q for additional information.
Previous wording
On February 24, 2026, the Company’s Board of Directors approved a new restructuring plan (the “2026 Plan”) to improve operational performance and drive stockholder value creation. As of June 30, 2026, the Company has incurred $57 million in non-recurring restructuring charges and paid out approximately $16 million under the 2026 Plan since its inception, primarily related to employee severance payments, benefits, and other transition costs. In total, the Company expects to incur non-recurring charges in the approximate range of $60 million to $65 million related to the 2026 Plan, the majority of which will be expensed and paid in cash in 2026 and 2027. The 2026 Plan is anticipated to result in approximately $120 million in annualized cost savings. The Company intends to reinvest a portion of the anticipated savings in targeted return-to-growth initiatives, including investments in accelerated innovation, clinical education, and sales team education focused on connected dentistry.
Current wording
On February 24, 2026, the Company’s Board of Directors approved a new restructuring plan (the “2026 Plan”) to improve operational performance and drive stockholder value creation. As of September 30, 2026, the Company has incurred $54 million in non-recurring restructuring charges and paid out approximately $26 million under the 2026 Plan since its inception, primarily related to employee severance payments, benefits, and other transition costs. In total, the Company expects to incur non-recurring charges in the approximate range of $60 million to $65 million related to the 2026 Plan, the majority of which will be expensed and paid in cash in 2026 and 2027. The 2026 Plan is anticipated to result in approximately $100 million in annualized cost savings. The Company intends to reinvest a portion of the anticipated savings in targeted return-to-growth initiatives, including investments in accelerated innovation, clinical education, and sales team education focused on connected dentistry.
Previous wording
Refer to Part I, Item 1, Note 1, Business and Basis of Presentation, in the Notes to Unaudited Consolidated Financial Statements of this Form 10-Q for a discussion of recent accounting pronouncements.
Current wording
Refer to Part I, Item 1, Note 1, Business and Basis of Presentation, in the Notes to Unaudited Interim Consolidated Financial Statements of this Form 10-Q for a discussion of recent accounting pronouncements.