• William Blair downgraded Dentsply Sirona Inc. (NASDAQ:XRAY) to "Market Perform" due to third-quarter earnings missing expectations.
• The company reported a 26.5% decrease in adjusted earnings per share and a 4.9% year-over-year decline in revenues.
• A return-to-growth plan was announced by the CEO to address performance issues, with revised 2025 EPS guidance to approximately $1.60.

Dentsply Sirona Inc. (NASDAQ: XRAY), a leading name in the dental equipment industry, is renowned for its cutting-edge dental technology solutions. The company's portfolio spans across dental implants, orthodontic solutions, and digital imaging systems. Despite its innovative offerings, Dentsply Sirona faces stiff competition from other manufacturers like Align Technology and Straumann Group.

On November 6, 2025, William Blair adjusted its stance on Dentsply Sirona Inc. (NASDAQ:XRAY), moving from an "Outperform" rating to a "Market Perform" rating. This decision was influenced by the company's stock price, which was at $11.02 at the time of the downgrade. The downgrade was a direct response to the company's third-quarter earnings, which did not meet analyst expectations, leading to a decrease in the stock price.

The company disclosed adjusted earnings of 37 cents per share for the third quarter, marking a significant 26.5% decrease from the year prior. This figure fell short of the Zacks Consensus Estimate of 45 cents. The earnings decline was attributed to various factors, including an unfavorable sales mix, tariffs, and an increased tax rate, as per Zacks.

For the quarter, Dentsply Sirona's revenues were reported at $904 million, a 4.9% year-over-year decline. However, this figure slightly surpassed the Zacks Consensus Estimate by 0.3%. The decline in revenue was mainly due to poor performance in specific segments, notably Orthodontic and Implant Solutions, which experienced a 15% decline.

In light of these challenges, the company's CEO announced a return-to-growth plan aimed at rectifying the company's performance issues. This plan is set to steer Dentsply Sirona back on a growth path, with the company revising its 2025 EPS guidance downwards to approximately $1.60, while still expecting sales to be in the range of $3.6 to $3.7 billion.