Leerink flags improving dental demand, weak equipment spend
XLV•Equipment spending still expected to weaken
Leerink said dentists expect to cut equipment spending by 13.2% in 2026, buying mainly to "replace what is broken" while delaying upgrades due to costs, financing and macro concerns.
The brokerage expects "no meaningful deviation" in the group's upcoming results and maintains "market perform" ratings on Henry Schein HSIC.O and Dentsply Sirona XRAY.O.
Clear braces and implants trends support ratings
Leerink said demand for clear braces grew 2% in Q2, while value and premium implant volumes rose about 2%, supporting its "outperform" ratings on Align Technology ALGN.O and Envista NVST.N.
The brokerage also said AI adoption remains early, with 13% of dental practices using AI in management systems, up from 8%, while interest grows in scan reviews and administrative tasks.
Survey shows modest improvement in dental demand
Leerink Partners says its survey of 74 U.S. dental practices shows "more signs of improvement than deterioration," though Q2 trends were "still lacking fireworks".
The brokerage said patient visits and practice revenue rose modestly in Q2, while expectations for Q3 improved. Specialty dental trends were "incrementally more positive".
