DENTSPLY SIRONA (XRAY) Stock Forecast & Price Target

Dentsply Sirona's recent financial performance shows promising growth, particularly in Europe where sales increased by 9.9% on a reported basis and 2.6% on a constant currency basis. Additionally, the Wellspect Healthcare segment has demonstrated significant strength, reporting a 15.6% increase in revenue along with impressive operating margins exceeding 30%, which highlights its role as a key growth driver for the company. Further improvements in operating expenses as a percentage of revenue are anticipated, contributing to the overall positive outlook for Dentsply Sirona as it aims for enhanced efficiency in the coming years.

Dentsply Sirona is facing a challenging financial outlook, as the company has revised its sales expectations downward, now forecasting a decline of 4% to 5% in constant currency sales, compared to a prior estimate of 2% to 4%. Additionally, the firm's gross margin is anticipated to drop by 160 basis points among GAAP measures for Q3/25 compared to the same quarter in 2024, indicating ongoing cost pressures. The performance of specific segments, particularly the connected technology solutions business and the orthodontics and implants segment, has weakened significantly, with reported revenue declines and headwinds from the Byte business contributing to a projected decline in adjusted EBITDA margins for FY/25.