Select Medical (SEM) Q1 2026 Earnings
How Did SEM Stock React to Q1 2026 Earnings?
Did SEM Beat Earnings? Q1 2026 Results
No. Select Medical reported Q1 2026 earnings of $0.36 a share on Apr 30, 2026, missing the $0.46 consensus estimate by 21.0%. Revenue was $1.4B against a $1.4B estimate.
Select Medical Holdings delivered a mixed first quarter for 2026, with revenue clearing expectations but earnings falling well short as rising costs weighed heavily on the bottom line. The company posted revenue of $1.42 billion, up 5.0% year-over-year and narrowly ahead of the $1.41 billion consensus, yet adjusted EPS of $0.36 missed the $0.46 estimate by 21.00%, reflecting a meaningful squeeze on profitability. The core culprit was expense growth running ahead of revenue gains, with total costs and expenses rising 6.7% while general and administrative costs jumped 19.3% year-over-year, compressing margins across nearly every segment. Bright spots were scarce but notable; the rehabilitation hospital division drove much of the top-line momentum, with admissions climbing 13.0% as the segment expanded to 41 hospitals. Against that backdrop, Select Medical reaffirmed its full-year 2026 outlook, guiding for revenue of $5.60 billion to $5.80 billion and adjusted EBITDA of $520 million to $540 million, even as the company navigates a pending take-private transaction expected to close at $16.50 per share in mid-2026.
- Rehabilitation hospital segment drove strong revenue growth of 14.5% with expansion to 41 hospitals from 35 and 13.0% increase in admissions
- Outpatient rehabilitation visits grew 4.5% to 2,831,858
- Critical illness recovery hospital revenue per patient day increased 2.5% to $2,234
- G&A costs increased 19.3% year-over-year, pressuring margins
- Cost of services rose 6.3%, outpacing revenue growth of 5.0%
What Is Select Medical's Outlook?
Select Medical is maintaining its 2026 full-year business outlook: revenue in the range of $5.6 billion to $5.8 billion, Adjusted EBITDA in the range of $520.0 million to $540.0 million, and fully diluted EPS in the range of $1.22 to $1.32. The company expects the pending merger to close in the middle of 2026, though there is no assurance on timing or completion.
SEM YoY Financials
| Metric | Q1 2026 | Q1 2025 | Year over year |
|---|---|---|---|
| Revenue | $1.4B | $1.4B | +5.1% |
| Operating Income | $98.4M | $112.7M | −12.7% |
| Net Income | $63.8M | $56.7M | +12.5% |
SEM Revenue by Segment
When Does Select Medical Report Next?
Figures from SEC filings and company reports. Not investment advice.