Pediatric healthcare provider Pediatrix Medical Group (NYSE:MD) reported Q3 2026 results topping the market's revenue expectations , with revenue up 1.7% year on year to $501.4 million. Its non-GAAP profit of $0.72 per share was 10.8% above analysts' consensus estimates.
For more on Pediatrix Medical Group, read our full research report .
Pediatrix Medical Group (MD) Q3 2026 highlights:
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Revenue$501.4 million vs S&P analysts' consensus estimates of $497 million (1.7% year-on-year growth, 0.9% beat)
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Adjusted EPS$0.72 vs S&P analysts' consensus estimates of $0.65 (10.8% beat)
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Adjusted EBITDA$85.48 million vs analysts' consensus estimates of $77.95 million (17% margin, 9.7% beat)
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EBITDA guidance$295 million at the midpoint for the full year, above analysts' consensus estimates of $289.1 million
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Operating margin13%, in line with the same quarter last year
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Same-store saleswere flat year on year (8% in the same quarter last year)
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Market capitalization$2.29 billion
"We are pleased with our results this quarter, driven by both volume and pricing performing ahead of our expectations," said Mark S. Ordan, Chief Executive Officer of Pediatrix Medical Group. "We continue to push operating efficiency paired with sector leading care quality, while considering high-value opportunities in adjacent businesses, as they arise."
Revenue growth
Reviewing a company's long-term revenue performance reveals insights into its quality. Any business can deliver a good quarter or two, but the best consistently grow over the long haul. Pediatrix Medical Group's revenue grew at a tepid 1.4% annualized rate over the last five years, falling short of our benchmarks.
Long-term growth matters most, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Pediatrix Medical Group's performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 1.2% annually.
Pediatrix Medical Group also reports same-store sales, which show how much revenue its established locations generate. Over the last two years, Pediatrix Medical Group's same-store sales averaged 4.8% year-on-year growth. Same-store sales growth outpaced total revenue growth, indicating that revenue from existing locations performed better than revenue from new locations.
This quarter, Pediatrix Medical Group reported modest year-on-year revenue growth of 1.7% but beat Wall Street's consensus estimates by 0.9%.
Looking ahead, sell-side analysts expect revenue to grow 1.7% over the next 12 months, according to S&P. Although this projection implies its newer products and services will fuel better top-line performance, it is still below the sector average.
Adjusted operating margin
Pediatrix Medical Group's adjusted operating margin has largely stayed the same over the last 12 months, averaging 10.6% over the last five years. This profitability was higher than the broader healthcare sector, showing it managed its expenses reasonably well.
Looking at the trend in its profitability, Pediatrix Medical Group's adjusted operating margin of 12.1% for the trailing 12 months may be around the same as five years ago, but it has increased by 3.6 percentage points over the last two years.
In Q3, Pediatrix Medical Group generated an adjusted operating margin of 13%, down 2.3 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.
Earnings per share
Long-term earnings per share (EPS) growth matters for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable.
Pediatrix Medical Group's EPS grew at an 11% compounded annual growth rate over the last five years, higher than its 1.4% annualized revenue growth. However, this alone doesn't tell us much about its business quality because its adjusted operating margin didn't improve.
A closer look at Pediatrix Medical Group's earnings quality can help explain its performance. A five-year view shows that Pediatrix Medical Group has repurchased its stock, shrinking its share count by 7.4%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings.
In Q3, Pediatrix Medical Group reported adjusted EPS of $0.72, up from $0.67 in the same quarter last year. This result easily cleared analysts' consensus estimates, a positive for shareholders. Over the next 12 months, Wall Street expects Pediatrix Medical Group's full-year EPS to grow 4.7% from $2.29 to $2.40, according to S&P.
Key takeaways from Pediatrix Medical Group's Q3 results
Pediatrix Medical Group delivered a quarter with some key positives: EPS beat analysts' consensus estimates, and its full-year EBITDA guidance topped Wall Street's consensus. Shares remained flat at $28.92 immediately after the release.
Evaluating Pediatrix Medical Group as an investment means considering its valuation, business quality and latest quarterly results. For more on Pediatrix Medical Group, read the free full research report here .
