Q1 26 EPS
$0.36
MISS 21.00%
Est. $0.46
Q1 26 Revenue
$1.42B
BEAT +0.49%
Est. $1.41B
vs S&P Since Q1 26
-4.6%
TRAILING MARKET
SEM +0.1% vs S&P +4.8%
Market Reaction
Did SEM Beat Earnings? Q1 2026 Results
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-ye… Read more 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.
Key Takeaways
- • 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%
SEM Forward Guidance & 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
Q1 2026 vs Q1 2025, source: SEC Filings
SEM Revenue by Segment
With YoY comparisons, source: SEC Filings
SEM Earnings Trends
SEM vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
SEM EPS Trend
Earnings per share: estimate vs actual
SEM Revenue Trend
Quarterly revenue: estimate vs actual
SEM Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 MISS | $0.46 | $0.36 | -21.00% | $1.42B | +0.49% |
| Q4 25 MISS FY | $0.23 | $0.16 | -31.06% | $1.40B | +2.39% |
| FY Full Year | $1.23 | $1.16 | -5.55% | $5.45B | +0.60% |
| Q3 25 BEAT | $0.15 | $0.23 | +48.67% | $1.36B | +2.53% |
| Q2 25 BEAT | $0.24 | $0.32 | +35.19% | $1.34B | -0.66% |
| Q1 25 MISS | $0.45 | $0.44 | -1.54% | $1.35B | -3.02% |