Chemed (CHE) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 10.6% to $690.9M; GAAP diluted EPS was $5.45, up 22.2%, and adjusted diluted EPS was $6.75, up 28.1%.

• VITAS growth and margin expansion offset lower adjusted EBITDA and margin at Roto-Rooter.

Financial highlights

• Q3 net income was $71.6M versus $64.2M; operating income rose to $96.4M from $74.8M.

• Nine-month revenue increased 6.9% to $2.02B; net income was $205.7M and diluted EPS was $15.43.

• Adjusted Q3 net income was $88.7M and adjusted diluted EPS was $6.75, versus $75.9M and $5.27 a year earlier.

• Nine-month operating cash flow was $229.6M versus $254.7M; investing cash outflow was $147.4M, including $96.1M for business combinations and $51.4M in capital expenditures.

• Q3 dividends were $0.70 per share versus $0.60; nine-month dividends were $1.90 per share versus $1.60.

Outlook and guidance

• FY2026 adjusted EPS is expected at or slightly above the high end of guidance issued after Q2.

• Q4 is expected to meet prior guidance; VITAS anticipates no Florida combined-program Medicare Cap billing limitation for FY2026.

• Preliminary assessment indicates tariffs and other current factors are not expected to materially harm FY2026 net sales or profitability; FY2027 planning considers pricing and cost savings to offset cost increases.

• VITAS expects balanced hospital and non-hospital admission growth through the rest of 2026 and 2027; recruiting costs are not expected to rise materially in 2027.

• Roto-Rooter expects historic margin discipline to return as revenue grows in 2027 and beyond; no specific 2027 budget or growth target was given.