DENTSPLY SIRONA (XRAY) Stock Forecast & Price Target

Dentsply Sirona has demonstrated robust growth in its European market, with reported sales increasing by 9.9% and constant currency growth at 2.6%, indicating resilience and demand for its diverse product portfolio. The company's Wellspect Healthcare segment has performed particularly well, generating an impressive $83 million in revenue and achieving a 15.6% reported revenue increase, complemented by a strong operating margin exceeding 30%. Furthermore, expectations for continued efficiency improvements in operating expenses and modest growth in the essential dental segment suggest a stable financial outlook, supporting the company's long-term viability and profitability.

Dentsply Sirona is forecasting a more significant decline in constant currency sales, now expecting a decrease of 4% to 5%, compared to the earlier projection of 2% to 4%. Additionally, the company anticipates a 160 basis point drop in GAAP gross margin for Q3/25, along with a reduced adjusted EBITDA margin expectation for FY/25, lowering it to over 18% from the previous estimate of over 19%. The orthodontics and implants segment is particularly concerning, with a projected 15% decline driven by substantial revenue challenges from the Byte business shutdown, contributing to an overall bleak outlook on future earnings per share and segment performance.