GET DAILY SIGNALSSurgery Partners (SGRY) Delivers Mixed Q3 2026 Earnings With Revenue Dip but Adjusted EPS Beat
Key Takeaways
- Surgery Partners reported third quarter 2026 revenue of $815.3 million, down about 0.8% from $821.5 million a year earlier and below consensus estimates near $846 million.
- GAAP net loss attributable to common stockholders was $21.1 million, or $0.16 per share, compared with a loss of $22.7 million in the prior-year quarter.
- Adjusted earnings per share (EPS, a non-GAAP profitability measure) came in at $0.16, topping the consensus estimate of $0.12, even as revenue missed expectations.
- Operating income fell to $85.6 million from $105.7 million a year earlier, weighed down by higher cost of revenues and general and administrative (G&A) expenses.
- Nine-month revenue rose to $2.475 billion from $2.424 billion, while cash from operating activities improved to $103.5 million.
- The company pointed to a stronger balance sheet, with cash and cash equivalents of $354.5 million and lower total liabilities.
- For additional context on SGRY, readers can review its Major News and Today's Price Move, as well as Price Targets and a Forecast on dedicated pages.
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Earnings Context and Why It Matters
Surgery Partners is a leading owner and operator of short-stay surgical facilities, a segment of healthcare that has attracted investor attention for its lower-cost, high-efficiency care model. This quarterly report matters because it offers a direct read on surgical volumes, reimbursement trends, and the company's ability to manage rising labor and supply costs. The quarter followed a period of portfolio reshaping, including the sale of ownership interests in its Idaho Falls facilities to Intermountain Health. With margins under pressure and the top line slipping year over year, the results give investors a clearer view of whether cost controls and strategic divestitures are translating into a healthier earnings trajectory heading into the year-end.
Reported Results
For the third quarter ended September 30, 2026, Surgery Partners reported revenue of $815.3 million, slightly below the $821.5 million recorded a year earlier and short of Wall Street's consensus estimate of roughly $846 million. The company's net loss attributable to common stockholders was $21.1 million, or $0.16 per share, narrowing modestly from a $22.7 million loss in the prior-year period.
On an adjusted (non-GAAP) basis, which excludes items such as transaction and integration costs and debt extinguishment losses, EPS came in at $0.16, exceeding the consensus estimate of $0.12 by $0.04. The divergence between the revenue miss and the adjusted-EPS beat highlights the impact of one-time and non-operating items on reported results. Operating income declined to $85.6 million from $105.7 million, reflecting higher cost of revenues and a rise in G&A expenses. For the first nine months of the year, revenue increased to $2.475 billion from $2.424 billion, while cash from operating activities climbed to $103.5 million. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Market Reaction and Investor Sentiment
The market's response to Surgery Partners' third quarter results reflects a mixed report. The adjusted-EPS beat provided a measure of reassurance on profitability, but the revenue shortfall and the year-over-year decline in operating income underscored ongoing cost and volume pressures. Investors have been closely watching the company's effort to rebalance its portfolio and protect margins, and the softer top line is likely to keep sentiment cautious in the near term. The combination of a stronger balance sheet and improved operating cash flow may temper downside concerns, but the persistent gap between revenue growth and rising expenses remains the central focus for shareholders assessing the stock's trajectory after the announcement.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors will be watching several factors tied to Surgery Partners' ability to stabilize margins and return to revenue growth. Cost trends in salaries, benefits, and medical supplies remain critical, as these line items have consistently weighed on profitability. Any easing of labor cost inflation or improvement in surgical case volumes would be a meaningful positive signal.
Portfolio optimization is another area of focus. The company's divestitures, including the Idaho Falls transaction, are expected to reshape its footprint and could influence both reported revenue and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization). Investors will want clarity on how these moves affect the company's full-year 2026 guidance and its longer-term growth algorithm.
Finally, broader industry dynamics matter. Demand for outpatient and short-stay surgical care, physician recruitment, and payer reimbursement trends will all play a role in shaping future quarters. Monitoring same-facility case growth, margin progression, and any updates to management's financial guidance will be essential for evaluating whether the company can translate its stronger balance sheet into sustainable earnings improvement.
Using AI Tools in My Research Process
In my analysis of names like SGRY, I often rely on Tickeron’s AI Screener to filter healthcare stocks by technical patterns, fundamentals, and AI-driven signals. It helps surface comparable ideas and momentum shifts more efficiently than manual checks, which I find useful when evaluating quarterly updates like this one.
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.
SGRY's Stochastic Oscillator is staying in overbought zone for 17 days
The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Technical Analysis (Indicators)
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SGRY 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 80%.
SGRY broke above its upper Bollinger Band on October 26, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 13, 2026. You may want to consider a long position or call options on SGRY as a result. In 65 of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 75%.
The Moving Average Convergence Divergence (MACD) for SGRY just turned positive on October 12, 2026. Looking at past instances where SGRY's MACD turned positive, the stock continued to rise in 32 of 43 cases over the following month. The odds of a continued upward trend are 74%.
SGRY moved above its 50-day moving average on October 13, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for SGRY crossed bullishly above the 50-day moving average on October 19, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 56%.
The 50-day moving average for SGRY moved above the 200-day moving average on October 27, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a +0.17% 3-day Advance, the price is estimated to grow further. Considering data from situations where SGRY advanced for three days, in 192 of 274 cases, the price rose further within the following month. The odds of a continued upward trend are 70%.
The Aroon Indicator entered an Uptrend today. In 120 of 170 cases where SGRY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 71%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 34 (best 1 - 100 worst), indicating steady price growth. SGRY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 88 (best 1 - 100 worst), pointing to worse than average 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 92 (best 1 - 100 worst), indicating weak sales and an unprofitable 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 Valuation Rating of 95 (best 1 - 100 worst) indicates that the company is significantly 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 (1.818) is normal, around the industry mean (204.532). P/E Ratio (-33.623) is within average values for comparable stocks, (21.572). SGRY's Projected Growth (PEG Ratio) (21.970) is very high in comparison to the industry average of (2.498). Dividend Yield (0.000) settles around the average of (0.154) among similar stocks. P/S Ratio (0.530) is also within normal values, averaging (2.688).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SGRY’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 83, placing this stock worse than average.
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General Information
a company which engages in health care services
Industry HospitalNursingManagement
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