GET DAILY SIGNALSChemed (CHE) Delivers Solid Q3 2026 Results with +10.6% Revenue Growth
Key Takeaways
- Chemed reported third-quarter 2026 revenue of $690.9 million, up 10.6% from $624.9 million a year earlier.
- Adjusted (non-GAAP) earnings per share (EPS) came in at $6.75, beating the consensus estimate of $6.44 by about 4.9%.
- GAAP (Generally Accepted Accounting Principles) diluted EPS rose 22.2% to $5.45, from $4.46 in the prior-year quarter.
- The VITAS hospice segment drove results with 12.2% revenue growth, while the Roto-Rooter segment grew revenue 7.5%.
- Management said full-year 2026 adjusted EPS is expected to be at or slightly above the high end of prior guidance.
Earnings Context and Why It Matters
Chemed Corporation runs two very different businesses: VITAS, one of the largest hospice care providers in the United States, and Roto-Rooter, a leading plumbing and drain-cleaning franchise. This combination gives quarterly results a window into both healthcare demand and consumer spending on home repairs. Ahead of the report, the focus was on whether VITAS could maintain its patient census momentum and whether Roto-Rooter could continue expanding in a softer consumer environment. The quarter also included a strategic move, as Chemed re-acquired California franchise territories for Roto-Rooter, which changes the segment’s operating footprint going forward.
Reported Results
For the quarter ended September 30, 2026, Chemed posted service revenues and sales of $690.9 million, a 10.6% increase from $624.9 million in the same period last year. The figure came in modestly above analyst consensus estimates of roughly $684.5 million. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
On a GAAP basis, net income reached $71.6 million, with diluted EPS of $5.45, up 22.2% from $4.46 a year ago. Adjusted (non-GAAP) EPS was $6.75, beating the consensus estimate of $6.44 by approximately 4.9%. Adjusted EBITDA came in at $133.8 million, slightly above the $130.9 million projected by analysts, producing an adjusted EBITDA margin of 19.4%.
Both segments contributed. VITAS revenue increased 12.2% to $457.4 million, helped by a 9.4% rise in average daily census to 24,428 patients and a 7.2% increase in admissions to 18,995. Roto-Rooter revenue grew 7.5% to $233.5 million, with operating margin improving to 14% from 12% in the prior-year quarter.
Market Reaction and Investor Sentiment
Following the release, shares of CHE traded in a relatively narrow range near $505 to $509 in after-hours and pre-market activity. The measured response suggests investors had already anticipated continued strength at VITAS, although the earnings and revenue beats plus the positive full-year commentary reinforced the growth outlook. Over the past three months the stock had eased modestly, while the 12-month return remained positive. The main driver of sentiment appeared to be the sustainability of VITAS patient census growth and the raised full-year adjusted EPS guidance.
Forward Outlook and Key Factors to Monitor
Management indicated that full-year 2026 adjusted EPS should come in at or slightly above the high end of the July guidance range. This points to continued operating momentum through the fourth quarter, supported by demand in hospice care and steady activity at the plumbing segment.
Investors will want to track VITAS average daily census and admission trends, as these remain the core drivers of hospice revenue and can be influenced by labor availability, regulatory shifts, and Medicare reimbursement policy. Capacity expansion and clinician hiring will be important for maintaining double-digit segment growth.
On the Roto-Rooter side, the re-acquisition of California franchise territories for roughly $62.5 million represents a notable change that brings direct operating responsibility and may affect near-term margins during integration. Consumer spending on discretionary home repairs is another variable worth watching.
Capital allocation will also stay in focus. Chemed repurchased 125,000 shares for $66.0 million during the quarter, and further buybacks alongside franchise acquisitions and any debt moves will likely draw attention.
Exploring AI Tools for Stock Analysis
In my own research process, I frequently rely on Tickeron’s AI Screener to quickly filter for comparable names and monitor technical and fundamental signals across the market. The tool allows me to set custom criteria around industry, performance, and volatility, which helps surface ideas that might otherwise take longer to identify manually. For anyone following CHE, it provides a practical way to keep tabs on peers and evolving conditions without replacing traditional fundamental work.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
CHE's Stochastic Oscillator stays in overbought zone for 2 days
Expect a price pull-back in the near future.
Technical Analysis (Indicators)
Bearish Trend Analysis
CHE moved below its 50-day moving average on October 23, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CHE declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 49%.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where CHE's RSI Oscillator exited the oversold zone, 14 of 22 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 64%.
The Momentum Indicator moved above the 0 level on October 20, 2026. You may want to consider a long position or call options on CHE as a result. In 56 of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 62%.
The Moving Average Convergence Divergence (MACD) for CHE just turned positive on October 14, 2026. Looking at past instances where CHE's MACD turned positive, the stock continued to rise in 28 of 51 cases over the following month. The odds of a continued upward trend are 55%.
Following a +2.93% 3-day Advance, the price is estimated to grow further. Considering data from situations where CHE advanced for three days, in 162 of 326 cases, the price rose further within the following month. The odds of a continued upward trend are 50%.
The Aroon Indicator entered an Uptrend today. In 83 of 200 cases where CHE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 41%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 23 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 36 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 44 (best 1 - 100 worst), indicating steady price growth. CHE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 81 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.072) is normal, around the industry mean (204.173). P/E Ratio (25.787) is within average values for comparable stocks, (19.535). Projected Growth (PEG Ratio) (1.876) is also within normal values, averaging (2.498). Dividend Yield (0.005) settles around the average of (0.099) among similar stocks. P/S Ratio (2.714) is also within normal values, averaging (2.688).
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is 86 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CHE’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock worse than average.
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General Information
a holding medical company
Industry HospitalNursingManagement
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