DENTSPLY SIRONA (XRAY) Stock Forecast & Price Target

Dentsply Sirona has demonstrated robust sales growth, particularly in Europe, where reported sales increased by 9.9% and 2.6% on a constant currency basis, highlighting the company's strong performance in a key market. Additionally, the Wellspect Healthcare segment has been a significant contributor to revenue, generating $83 million with a reported growth of 15.6% and maintaining appealing operating margins above 30%, reflecting operational efficiency and demand resilience. The expectation of continued improvements in operating expenses as a percentage of revenue suggests potential for enhanced profitability and financial stability in the coming years.

Dentsply Sirona has revised its sales outlook downward, now anticipating a decline of 4% to 5% in constant currency sales, which is a more pessimistic forecast from the prior expectation of a 2% to 4% decline. The company is also facing a projected decrease in its GAAP gross margin, expecting a decline of 160 basis points in Q3/25 compared to the previous year, coupled with a reduction in adjusted EBITDA margins from over 19% to over 18% for FY/25. Additionally, the orthodontics and implants segments are under significant pressure, particularly due to headwinds associated with the Byte business, leading to a forecasted adjusted EPS decrease from $1.85 to $1.60.