Surgery Partners Inc

Outpatient and specialty care stocks tracked by the publication reported strong second-quarter results, with revenues beating analysts' consensus estimates by 2.6% and next quarter's revenue guidance coming in 3.3% above expectations. U.S. Physical Therapy reported revenues of $214.1 million, up 8.5% year on year, exceeding expectations by 1.9% but missing EPS estimates significantly. LifeStance Health Group delivered the biggest analyst estimate beat, fastest revenue growth, and highest full-year guidance raise in the group, with revenues of $435.4 million, up 26.1% year on year. DaVita reported revenues of $3.55 billion, up 5.2% year on year, but missed full-year EPS guidance estimates and delivered the weakest performance against analyst estimates among its peers. Surgery Partners reported revenues of $848.9 million, up 2.7% year on year, beating expectations by 2.2%, while agilon health reported revenues of $1.49 billion, up 7.2% year on year, surpassing expectations by 2.8% and delivering the highest guidance raise in the group.

Surgery Partners reported second quarter 2026 results ahead of expectations and reaffirmed its full year guidance while announcing a significant portfolio optimization milestone. Net revenue was approximately $849 million, up 2.7% year-over-year, and adjusted EBITDA was approximately $125 million, with an adjusted EBITDA margin of 14.7%. The company has signed definitive agreements to sell its interest in the Idaho Falls market, including Mountain View Hospital and Idaho Falls Community Hospital, to Intermountain Health for approximately $795 million in gross proceeds, which will be used primarily to pay down debt and reduce balance sheet leverage by approximately 0.3 turns. Excluding the Idaho Falls facilities, second quarter revenue would have been approximately $660 million and adjusted EBITDA approximately $98 million, while first half 2026 revenue would have been roughly $1.29 billion and adjusted EBITDA approximately $173 million. Surgery Partners reaffirmed its full year 2026 guidance of revenue between $3.35 billion and $3.45 billion and adjusted EBITDA of at least $530 million, excluding any financial impact from the pending transaction.

Surgery Partners reported second-quarter CY2026 revenue of $848.9 million, beating Wall Street estimates of $830.7 million and growing 2.7% year on year. Adjusted earnings per share of $0.10 surpassed analyst consensus of $0.07 by 49.4%, while adjusted EBITDA of $125.2 million also exceeded expectations. The company reaffirmed its full-year revenue guidance of approximately $3.4 billion and EBITDA guidance of $530 million at the midpoint, both in line with analyst estimates. CEO Eric Evans highlighted disciplined execution and the pending Idaho Falls transaction as part of portfolio optimization.

The six outpatient and specialty care stocks tracked by this analysis reported a strong first quarter, with aggregate revenues beating analyst consensus estimates by 2% and next-quarter revenue guidance coming in 5.9% above expectations. LifeStance Health Group posted the biggest analyst estimate beat and fastest revenue growth among the group, with revenues of $403.5 million up 21.2% year on year, but it also had the weakest guidance update. agilon health achieved the highest guidance raise and highest full-year guidance raise, reporting revenues of $1.42 billion despite a 7.3% year-on-year decline and a loss of 85,000 customers to end at 426,000. U.S. Physical Therapy delivered the weakest performance against analyst estimates, with revenues of $198.3 million up 7.9% year on year and a significant miss on EPS estimates. Encompass Health reported revenues of $1.59 billion up 9% year on year, beating both revenue and EPS estimates, while Surgery Partners posted revenues of $810.9 million up 4.5% year on year but had the weakest full-year guidance update among its peers. Since their latest earnings results, outpatient and specialty care stocks have performed well, with share prices up 62.4% on average.

Shares of Surgery Partners rose 3.3% to $17.15 after Cantor Fitzgerald reiterated its Overweight rating and $18.00 price target on the stock. The analyst noted some negative trends in second-quarter ambulatory surgery center and outpatient nursing data but maintained a positive overall outlook. Other analysts also expect the company to be profitable this year with growing net income.

Surgery Partners shares closed at $14.23 and could rise 26.1% to a mean analyst price target of $17.95, based on 11 short-term estimates. The targets range from $14.00 to $24.00, with a standard deviation of $2.90. Analysts have also raised the current-year consensus earnings estimate by 44.1% over the past 30 days, and the stock carries a Zacks Rank #1 (Strong Buy).