Community Health Systems (CYH) Q2 2026 earnings summary

Executive summary

• Net operating revenues for Q2 2026 were $2.825 billion, down 9.8% year-over-year, with same-store revenues up 2.4% due to increased volumes and reimbursement rates, offset by unfavorable payor mix and divestitures.

• Net income attributable to stockholders was $70 million ($0.51 per diluted share), down from $282 million ($2.09 per diluted share) in Q2 2025, reflecting lower income from operations and higher effective tax rates.

• Adjusted EBITDA for Q2 2026 was $330 million, a 13.2% decrease year-over-year, with a margin of 11.7%.

• Employee engagement and patient experience metrics improved, with record response rates in employee surveys, supporting long-term value creation.

• Several hospitals recognized for zero hospital-acquired infections and national distinctions, with improved Leapfrog safety grades and CMS star ratings.

Financial highlights

• Six-month net operating revenues were $5.790 billion, down 8.0% year-over-year; same-store revenues increased 2.5%.

• Net income for Q2 2026: $104 million (Q2 2025: $320 million); six months: $79 million (2025: $345 million).

• EPS for Q2 2026: $0.51 basic and diluted (Q2 2025: $2.11 basic, $2.09 diluted).

• Operating expenses as a percentage of revenues increased to 88.5% in Q2 2026 from 87.9% in Q2 2025.

• Interest expense for Q2 2026 was $206 million.

Outlook and guidance

• 2026 full-year net operating revenues projected at $11.4–$11.6 billion and Adjusted EBITDA at $1.3–$1.375 billion.

• Net loss per share (diluted) expected to be $(1.25) to $(1.10) for 2026.

• Capital expenditures projected at $350–$400 million; net cash from operations expected at $300–$500 million.

• Guidance reflects macroeconomic headwinds, ACA disenrollment, and continued softness in elective surgeries, with some offset from new Medicaid programs.

• Medium-term goals include mid-single digit net revenue growth, mid-teens EBITDA margin, positive free cash flow, and leverage below 5.5x.