DENTSPLY SIRONA (XRAY) Stock Forecast & Price Target

Dentsply Sirona has demonstrated strong sales growth, particularly in Europe, with reported sales increasing by 9.9% and a constant currency growth of 2.6%. The company's Wellspect Healthcare segment stands out with a substantial reported revenue increase of 15.6%, highlighting its role as a key growth driver with attractive operating margins exceeding 30%. Looking forward, the firm anticipates modest growth in its essential dental segment alongside improvements in operating expenses as a percentage of revenue, which collectively supports a positive outlook on overall financial performance.

Dentsply Sirona has revised its sales expectations downward, now anticipating a constant currency sales decline of 4% to 5%, compared to a prior estimate of 2% to 4%. The company is also facing a projected decrease in GAAP gross margin by 160 basis points for Q3/25, alongside an expected reduction in adjusted EBITDA margins from greater than 19% to greater than 18% for FY/25. Additionally, the orthodontics and implants segment is forecasted to decline by 15%, significantly impacted by a revenue headwind of $30 million from the Byte business shutdown, ultimately resulting in a decrease in adjusted EPS projections from $1.85 to $1.60.