Chemed Q3 2026: VITAS Medicare Cap drop powers earnings beat
As seen on the 24/7 Wall St. homepage on October 27, 2026.
Medicare Cap billing limitations at VITAS shrank to $828,000 from $6.1 million a year ago, powering a beat on both lines. Management now sees full-year adjusted EPS at or slightly above the high end of prior guidance.
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Chemed posted adjusted EPS of $6.75 for the third quarter of 2026, beating expectations, with revenue also ahead of estimates. The real story sits one level deeper, in the VITAS Healthcare segment.
Medicare Cap billing limitations at VITAS fell to $828,000 from $6.1 million a year ago. That near-total elimination of a recurring drag freed up margin and expanded VITAS adjusted EBITDA margin. Patient volume reinforced the result, with census and admissions both higher.
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Roto-Rooter revenue rose 7.5%, led by commercial water restoration. The segment also completed the re-acquisition of California franchise territories, with new branches planned for Sacramento and San Diego. SG&A expenses there outpaced revenue growth, compressing segment margins.
With results through September 30 in hand, management now expects full-year 2026 adjusted EPS to land at or slightly above the high end of prior guidance. That outlook, after a quarter in which the VITAS Medicare Cap drag all but disappeared, gives investors a cleaner picture of Chemed's earnings trajectory heading into year-end.
Mentioned: CHE