Dev

Dev asked for a deeper understanding of the diagnostics and equipment growth in Q4 2025, distinguishing between underlying growth and one-time benefits like pent-up demand or tax code advantages. He also sought Envista's outlook on underlying equipment and diagnostic market volume growth for 2026.

Answer

Paul Keel, President and Chief Executive Officer, clarified Envista's focus within diagnostics on 2D/3D imaging, intraoral scanning, and software. He noted that Q4's double-digit diagnostics growth was aided by an easy comparable from Q4 2024. He currently projects the diagnostics market as a low single-digit growing category, with Envista expected to slightly outpace it in the first half of 2026, deferring a forecast for the second half.

Dev asked for clarification on the underlying growth for Envista's diagnostics and equipment business, distinguishing it from one-time benefits, and sought a forecast for underlying market volume growth in 2026 for diagnostics and equipment, and for Envista specifically.

Answer

CEO Paul Keel clarified that Envista participates in 2D/3D imaging, intraoral scanning (IOS), and software within diagnostics, which are faster-growing parts of the broader equipment market. He described the current diagnostics market as a low single-digit growing category, with Envista outpacing it for the last couple of quarters. He expects similar trends in H1 2026 but held off on forecasting H2 market growth.