Select Medical Holdings Corporation

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.