Surgery Partners (NASDAQ:SGRY) Announces Earnings Results

Surgery Partners (NASDAQ:SGRY) announced its quarterly earnings results on Monday. The company reported $0.10 earnings per share for the quarter, beating analysts’ consensus estimates of $0.06 by $0.04, FiscalAI reports. The company had revenue of $848.90 million for the quarter, compared to analyst estimates of $830.03 million. Surgery Partners had a negative net margin of 2.28% and a positive return on equity of 1.04%. Surgery Partners’s revenue for the quarter was up 2.7% on a year-over-year basis. During the same quarter last year, the business earned $0.17 EPS.

Here are the key takeaways from Surgery Partners’ conference call:

• Idaho Falls divestiture is expected to deliver approximately $795 million in gross proceeds, primarily for debt repayment, reduce leverage by about 0.3 turns, and improve cash conversion while simplifying the company’s portfolio toward short-stay surgical care.
• Second-quarter results exceeded management’s expectations, with revenue of approximately $849 million, same-facility revenue growth of 5%, and Adjusted EBITDA of roughly $125 million; full-year 2026 guidance of $3.35 billion–$3.45 billion in revenue and at least $530 million of Adjusted EBITDA was reaffirmed.
• Growth continues to be driven by higher-acuity procedures, particularly total joints, spine, and vascular services. The company performed about 168,000 cases in the quarter, while 191 new physicians joined its facilities and the 2026 recruiting cohort’s initial revenue contribution was nearly 16% above last year’s cohort.
• Adjusted EBITDA declined 2.3% year over year in the first half, with margin falling to 13.7% from 14.5%, while commercial payer mix decreased approximately 350 basis points to 49% of second-quarter revenue and leverage rose to about 4.4 times under the credit agreement.
• M&A activity has been immaterial year to date, and management acknowledged it will not reach its $200 million average annual acquisition investment target in 2026, although it expects to complete some acquisitions before year-end.

Surgery Partners Stock Up 2.7%

Shares of NASDAQ SGRY opened at $15.95 on Tuesday. Surgery Partners has a 12-month low of $11.41 and a 12-month high of $24.10. The company has a market cap of $2.09 billion, a P/E ratio of -26.58, a P/E/G ratio of 4.64 and a beta of 1.92. The company has a current ratio of 1.86, a quick ratio of 1.69 and a debt-to-equity ratio of 1.17. The stock has a fifty day moving average price of $15.49 and a 200 day moving average price of $14.43.

Surgery Partners News Summary

Here are the key news stories impacting Surgery Partners this week:

• Positive Sentiment: Second-quarter revenue rose 2.7% year over year to $848.9 million, exceeding the $830.0 million consensus estimate. Adjusted earnings were $0.10 per share, ahead of the $0.06 analyst estimate and the primary reason for the favorable market reaction. Surgery Partners Beats Q2 Sales Expectations
• Positive Sentiment: Same-facility revenue increased 5.0%, driven mainly by a 4.8% increase in revenue per case, while same-facility cases rose 0.3%. Year-to-date revenue was up 3.6% to $1.66 billion. Surgery Partners Reports Q2 Results
• Positive Sentiment: Management reaffirmed full-year 2026 revenue guidance of $3.35 billion to $3.45 billion and adjusted EBITDA of at least $530 million, excluding the pending Idaho Falls divestiture. The transaction is expected to improve cash conversion and reduce leverage if completed. Surgery Partners Announces Q2 Results and Reaffirms Guidance
• Positive Sentiment: Brokerages’ consensus price target is $21.60, above the stock’s recent trading level, suggesting analysts see meaningful potential upside. Surgery Partners Receives Consensus Target Price
• Neutral Sentiment: The company ended the quarter with $216.7 million in cash, $617.8 million of revolver capacity and approximately 4.4x net debt to EBITDA, leaving balance-sheet management important for investors.
• Negative Sentiment: GAAP net loss attributable to Surgery Partners widened to $15.0 million from $2.5 million a year earlier. Adjusted EBITDA declined to $125.2 million from $129.0 million, reducing the margin to 14.7% from 15.6%. Operating cash flow also fell to $59.3 million from $81.3 million. Surgery Partners Q2 Earnings Snapshot
• Negative Sentiment: Reported insider activity shows executives made no open-market purchases and completed multiple sales during the past six months, a potentially cautious signal.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on SGRY shares. Zacks Research upgraded Surgery Partners from a “hold” rating to a “strong-buy” rating in a report on Thursday, June 4th. Jefferies Financial Group reiterated a “buy” rating and issued a $17.00 target price on shares of Surgery Partners in a report on Wednesday, May 6th. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of Surgery Partners in a research report on Tuesday, May 26th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $21.60.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of SGRY. Caitong International Asset Management Co. Ltd grew its stake in shares of Surgery Partners by 45,640.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 2,287 shares of the company’s stock valued at $49,000 after buying an additional 2,282 shares in the last quarter. PNC Financial Services Group Inc. lifted its position in Surgery Partners by 128.4% during the 3rd quarter. PNC Financial Services Group Inc. now owns 2,702 shares of the company’s stock worth $58,000 after acquiring an additional 1,519 shares in the last quarter. Aquatic Capital Management LLC acquired a new position in Surgery Partners during the 3rd quarter worth approximately $121,000. Tower Research Capital LLC TRC boosted its holdings in Surgery Partners by 68.7% in the 2nd quarter. Tower Research Capital LLC TRC now owns 9,313 shares of the company’s stock worth $207,000 after acquiring an additional 3,794 shares during the period. Finally, Prudential Financial Inc. purchased a new position in Surgery Partners in the 2nd quarter worth approximately $219,000.

About Surgery Partners

Surgery Partners, Inc operates as a healthcare services provider specializing in the management and ownership of ambulatory surgery centers, surgical hospitals and multispecialty rehabilitation hospitals across the United States. Through its network of facilities, the company coordinates and delivers a broad range of outpatient surgical procedures in specialties such as orthopedics, ophthalmology, otolaryngology, gastroenterology, pain management and general surgery. Its integrated platform offers ancillary services including on-site imaging, laboratory testing, infusion therapy and physical, occupational and speech rehabilitation.

Since its establishment in 2010 and subsequent public listing in 2015, Surgery Partners has focused on strategic partnerships with physicians and health systems to expand access to cost-effective outpatient care.