GET DAILY SIGNALSNational HealthCare Corporation (NHC) Reports Q3 Earnings With Strong Adjusted Growth
Key Takeaways
- Net operating revenues rose 6.6% year over year to $407.97 million for the third quarter ended September 30, 2026.
- Reported GAAP (Generally Accepted Accounting Principles) net income declined to $13.64 million from $39.24 million, driven by unrealized losses in the marketable equity securities portfolio.
- Adjusted net income, which excludes those investment swings and other non-GAAP items, increased 13.8% to $28.15 million.
- GAAP diluted earnings per share (EPS) were $0.85, down from $2.50 a year earlier, while adjusted diluted EPS rose to $1.76 from $1.58.
- Growth was primarily driven by mid-2026 acquisitions of skilled nursing facilities and real estate assets from National Health Investors, Inc. (NHI).
- NHC declared a quarterly dividend of $0.67 per share, up from $0.64 in the prior-year period.
- For additional detail, explore NHC's Major News, Today's Price Move, Price Targets, and Forecast on dedicated pages.
- You can also discover automated trading strategies and market signals by exploring Trending AI Robots.
Why This Quarter Stands Out
National HealthCare Corporation's third-quarter results matter more than usual because they represent the first full period following a significant expansion of the company's portfolio. The June 1, 2026 acquisition of five skilled nursing facilities and the July 1, 2026 purchase of real estate for thirty-two skilled nursing facilities and three independent living facilities from NHI added meaningful scale. I am watching closely to see how these new beds affect revenue, occupancy, and adjusted profitability, while also noting how swings in the equity portfolio influence the headline numbers.
Breaking Down the Reported Figures
NHC posted net operating revenues of $407,971,000 for the quarter ended September 30, 2026, up 6.6% from $382,661,000 in the same period of 2025. The increase came largely from the acquired facilities, which added 639 licensed skilled nursing beds in Tennessee and South Carolina along with 4,825 licensed beds spread across Alabama, Florida, Missouri, South Carolina, Tennessee, and Virginia.
GAAP net income attributable to NHC fell to $13,637,000 from $39,239,000 a year earlier, mainly because of an unrealized loss of $17,599,000 in the marketable equity securities portfolio compared with a $20,827,000 gain in the prior-year quarter. On an adjusted basis that excludes those items and other non-GAAP adjustments, net income reached $28,154,000, an increase of 13.8% from $24,744,000.
GAAP diluted EPS came in at $0.85 versus $2.50 last year, while adjusted diluted EPS rose to $1.76 from $1.58. For the first nine months of 2026, net operating revenues totaled $1,197,817,000, compared with $1,131,268,000 in the same stretch of 2025. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Market Reaction and What Investors Are Focusing On
The results underscore the difference between reported GAAP numbers and underlying operations. The drop in net income and GAAP EPS stems from investment losses rather than any weakness in the core healthcare business, so investors are likely to emphasize the adjusted metrics. The 13.8% rise in adjusted net income and 11.4% increase in adjusted diluted EPS suggest improving fundamentals tied to the recent acquisitions.
From what I see, the key variables will be how quickly the new facilities contribute to revenue and margins, labor and occupancy trends in skilled nursing, and ongoing changes in the value of the marketable securities portfolio. These factors could keep near-term price action somewhat volatile.
Looking Ahead at Key Drivers
Going forward, attention will center on integration of the acquired assets and whether the larger portfolio supports continued revenue growth. With the expanded bed count, occupancy rates, patient days, and per-diem pricing will serve as important signals of durable adjusted earnings growth.
Labor costs remain a primary concern, as salaries, wages, and benefits are the largest expense for these operators. Any persistent wage pressure could limit margin expansion even as revenue rises. Staffing levels and recruitment trends will also merit monitoring as demand for senior care evolves.
Finally, the equity portfolio will continue to create variability in reported results. Because unrealized gains and losses affect GAAP net income, headline EPS may fluctuate even when operations remain stable. Tracking adjusted figures alongside reported results helps separate core performance from investment swings. Management's updates on synergies, occupancy, and capital allocation will be important as the company enters the fourth quarter.
Using AI Tools in My Research Process
When analyzing healthcare operators like NHC, I frequently rely on Tickeron’s AI Screener to quickly filter for comparable companies by fundamentals, technical patterns, and performance metrics. It helps me spot relevant peers and trends without spending hours on manual searches, which keeps my review process more efficient.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
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.
NHC sees MACD Histogram crosses below signal line
NHC saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on October 26, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 43 instances where the indicator turned negative. In 27 of the 43 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 63%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 26, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on NHC as a result. In 51 of 94 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 54%.
NHC moved below its 50-day moving average on October 26, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for NHC crossed bearishly below the 50-day moving average on November 02, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 8 of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 50%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NHC 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 51%.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where NHC's RSI Oscillator exited the oversold zone, 12 of 16 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 75%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 8 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +5.10% 3-day Advance, the price is estimated to grow further. Considering data from situations where NHC advanced for three days, in 207 of 310 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.
NHC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 222 of 286 cases where NHC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 78%.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 5 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock better than average.
The Tickeron Seasonality Score of 19 (best 1 - 100 worst) indicates that the company is slightly undervalued 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 PE Growth Rating for this company is 20 (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 Price Growth Rating for this company is 45 (best 1 - 100 worst), indicating steady price growth. NHC’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 59 (best 1 - 100 worst) indicates that the company is fair valued 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 (2.914) is normal, around the industry mean (204.220). P/E Ratio (23.128) is within average values for comparable stocks, (21.249). Projected Growth (PEG Ratio) (0.020) is also within normal values, averaging (2.498). Dividend Yield (0.013) settles around the average of (0.154) among similar stocks. P/S Ratio (2.278) is also within normal values, averaging (2.688).
The Tickeron SMR rating for this company is 61 (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.
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an operator of long term health care centers
Industry HospitalNursingManagement
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