Surgery Partners (NASDAQ:SGRY) Issues Earnings Results, Beats Estimates By $0.12 EPS

Surgery Partners (NASDAQ:SGRY) issued its quarterly earnings data on Tuesday. The company reported ($0.03) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.15) by $0.12, FiscalAI reports. Surgery Partners had a positive return on equity of 1.28% and a negative net margin of 2.35%.The business had revenue of $810.90 million during the quarter, compared to analyst estimates of $797.69 million. During the same period in the prior year, the company posted $0.04 EPS. The business’s revenue for the quarter was up 4.5% compared to the same quarter last year.

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

• First-quarter results were broadly in line or modestly ahead of expectations with ~$811 million of net revenue, 4.4% same?facility revenue growth and ~$102 million of adjusted EBITDA, and the company reiterated full?year revenue and adjusted EBITDA guidance.
• Organic growth drivers showed strength—total joints in ASCs grew 14.6% year?over?year, the platform has 73 surgical robots supporting higher?acuity work, ~140 physicians were recruited in Q1, and de novo development remains an active, MSK?focused growth channel.
• Margins faced identifiable headwinds from reinstated incentive compensation, new provider taxes and tariff pressures (management estimates ~$8 million of combined FY pressure), plus higher interest expense (~$7 million) due to an expired interest rate swap, weighing on near?term EBITDA.
• Capital deployment was modest in Q1 (~$4 million), but the company expects ~$200 million of annual deployment when active, is pursuing portfolio optimization (in advanced talks on a larger surgical hospital market with a possible mid?2026 announcement) and remains focused on gradual deleveraging (net leverage ~4.3x under the credit agreement).

Surgery Partners Price Performance

Shares of NASDAQ:SGRY traded up $0.82 on Wednesday, reaching $15.08. 2,310,857 shares of the company traded hands, compared to its average volume of 1,548,583. Surgery Partners has a fifty-two week low of $11.41 and a fifty-two week high of $24.18. The company’s 50 day moving average is $13.36 and its 200-day moving average is $15.60. The stock has a market capitalization of $1.97 billion, a PE ratio of -24.02 and a beta of 1.99. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.87 and a quick ratio of 1.71.

More Surgery Partners News

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

• Positive Sentiment: Q1 results beat expectations: Revenue of $810.9M (+4.5% y/y) topped estimates and EPS was a loss of $0.03 versus a consensus loss of $0.15, showing better-than-expected operating performance and upside to near?term profit outlook. Read More.
• Positive Sentiment: Company reaffirmed FY?2026 revenue guidance of roughly $3.4B–$3.5B (in line with consensus), which removes near?term guidance risk and supports investor confidence in 2026 top?line visibility. Read More.
• Neutral Sentiment: Management materials available — full earnings call transcript and slide deck were published; these provide detail on case volumes, cost drivers and strategy but contain no material surprises beyond the beats and reaffirmation. Review the call for color on margin trajectory and capital allocation. Read More.
• Negative Sentiment: Company still reported a GAAP loss (EPS -$0.03) and a negative net margin (~-2.35%); Q1 EPS declined from $0.04 a year earlier, indicating profitability remains fragile despite the quarter’s beats. Read More.
• Negative Sentiment: Leverage and technicals: the company carries meaningful leverage (debt/equity ~1.15) and the stock is trading below its 200?day moving average, which can limit upside until consistent profitable quarters are delivered. Read More.

Surgery Partners announced that its Board of Directors has approved a share repurchase plan on Thursday, February 26th that authorizes the company to buyback $200.00 million in shares. This buyback authorization authorizes the company to reacquire up to 9.7% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on SGRY shares. US Capital Advisors set a $21.00 price objective on Surgery Partners in a report on Wednesday, March 11th. UBS Group reissued a “buy” rating on shares of Surgery Partners in a report on Wednesday, March 11th. Zacks Research downgraded Surgery Partners from a “hold” rating to a “strong sell” rating in a research report on Tuesday, April 7th. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Surgery Partners in a research note on Wednesday, March 4th. Finally, Barclays decreased their price target on Surgery Partners from $18.00 to $14.00 and set an “equal weight” rating for the company in a research note on Tuesday, March 3rd. Eight equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $22.00.

Insider Activity at Surgery Partners

In other news, insider Danielle Burkhalter sold 3,469 shares of the stock in a transaction on Friday, March 13th. The stock was sold at an average price of $12.83, for a total transaction of $44,507.27. Following the completion of the sale, the insider owned 76,864 shares in the company, valued at approximately $986,165.12. This represents a 4.32% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Jason Eric Evans sold 20,400 shares of the stock in a transaction on Monday, March 16th. The shares were sold at an average price of $12.47, for a total value of $254,388.00. Following the sale, the chief executive officer owned 920,386 shares of the company’s stock, valued at $11,477,213.42. This trade represents a 2.17% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 96,896 shares of company stock worth $1,284,058. 2.70% of the stock is owned by corporate insiders.

Institutional Trading of Surgery Partners

A number of hedge funds have recently modified their holdings of SGRY. Janus Henderson Group PLC lifted its holdings in shares of Surgery Partners by 3.8% in the fourth quarter. Janus Henderson Group PLC now owns 13,537,984 shares of the company’s stock valued at $209,162,000 after purchasing an additional 501,401 shares in the last quarter. Pentwater Capital Management LP lifted its holdings in shares of Surgery Partners by 66.9% in the third quarter. Pentwater Capital Management LP now owns 11,681,000 shares of the company’s stock valued at $252,777,000 after purchasing an additional 4,681,000 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Surgery Partners by 1.0% in the fourth quarter. Dimensional Fund Advisors LP now owns 4,906,580 shares of the company’s stock valued at $75,808,000 after purchasing an additional 46,365 shares in the last quarter. UBS Group AG lifted its holdings in shares of Surgery Partners by 50.6% in the third quarter. UBS Group AG now owns 3,690,922 shares of the company’s stock valued at $79,872,000 after purchasing an additional 1,239,549 shares in the last quarter. Finally, Goldman Sachs Group Inc. lifted its holdings in shares of Surgery Partners by 528.2% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,959,686 shares of the company’s stock valued at $30,277,000 after purchasing an additional 1,647,714 shares in the last quarter.

Surgery Partners Company Profile

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.