Surgery Partners (NASDAQ:SGRY) Announces Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Surgery Partners (NASDAQ:SGRY) released its quarterly earnings data on Monday. The company reported $0.10 earnings per share for the quarter, beating the consensus estimate of $0.06 by $0.04, FiscalAI reports. The firm had revenue of $848.90 million during the quarter, compared to the consensus estimate of $830.03 million. Surgery Partners had a positive return on equity of 0.87% and a negative net margin of 2.63%.Surgery Partners’s quarterly revenue was up 2.7% on a year-over-year basis. During the same period last year, the business posted $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 Performance

NASDAQ:SGRY opened at $15.00 on Wednesday. The company has a quick ratio of 1.69, a current ratio of 1.86 and a debt-to-equity ratio of 1.17. The company has a market cap of $1.96 billion, a P/E ratio of -21.43, a P/E/G ratio of 4.77 and a beta of 1.91. The firm’s 50 day moving average is $15.51 and its two-hundred day moving average is $14.43. Surgery Partners has a fifty-two week low of $11.41 and a fifty-two week high of $24.10.

Analyst Ratings Changes

SGRY has been the topic of several research reports. Royal Bank Of Canada lowered their target price on Surgery Partners from $20.00 to $19.00 and set an “outperform” rating on the stock in a report on Tuesday. Raymond James Financial set a $18.00 price objective on shares of Surgery Partners in a research report on Tuesday. Cantor Fitzgerald reissued an “overweight” rating and issued a $18.00 price objective on shares of Surgery Partners in a research note on Tuesday. Jefferies Financial Group reissued a “buy” rating and issued a $17.00 price objective on shares of Surgery Partners in a research note on Wednesday, May 6th. Finally, Benchmark restated a “buy” rating on shares of Surgery Partners in a report on Tuesday. Seven analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $19.45.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Pentwater Capital Management LP raised its position 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 during the period. Goldman Sachs Group Inc. raised its stake 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. Glenview Capital Management LLC bought a new stake in Surgery Partners in the second quarter valued at about $33,995,000. UBS Group AG grew its stake in Surgery Partners by 50.6% during the third quarter. UBS Group AG now owns 3,690,922 shares of the company’s stock worth $79,872,000 after buying an additional 1,239,549 shares during the last quarter. Finally, Dimensional Fund Advisors LP grew its holdings in Surgery Partners by 25.5% during the 3rd quarter. Dimensional Fund Advisors LP now owns 4,860,215 shares of the company’s stock worth $105,177,000 after acquiring an additional 988,956 shares during the last quarter.

Key Surgery Partners News

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

• Positive Sentiment: Q2 results beat expectations: Adjusted earnings were $0.10 per share versus the $0.06 consensus estimate, while revenue of $848.9 million exceeded the $830.0 million forecast. Revenue increased 2.7% year over year, and same-facility revenue rose 5.0%. Surgery Partners Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Full-year guidance was reaffirmed: Surgery Partners continues to expect 2026 revenue of $3.35 billion to $3.45 billion and adjusted EBITDA of at least $530 million, excluding the pending Idaho Falls divestiture. Management said the transaction should improve cash conversion and support deleveraging. Surgery Partners Announces Second Quarter Results
• Positive Sentiment: Analyst support remains favorable: Cantor Fitzgerald reaffirmed its “overweight” rating and set an $18 price target. A separate brokerage consensus target was reported at $21.60, implying substantial potential upside from recent trading levels. Cantor Fitzgerald Reiterates Overweight Rating
• Neutral Sentiment: Broader healthcare stocks could benefit if weak employment data increases expectations for Federal Reserve interest-rate cuts, although this is a sector-wide factor rather than a Surgery Partners-specific catalyst. Likely ETF and Stock Winners From July Jobs Report
• Negative Sentiment: Profitability and cash generation weakened: Q2 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, while operating cash flow fell to $59.3 million from $81.3 million. Net debt remained elevated at approximately 4.4 times EBITDA. Surgery Partners Reports Second Quarter Results

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.