Chemed Beats Q2 Estimates, Raises Full-Year Guidance on VITAS Strength
CHE sits 45% above its 52-week low of $365.205.
Summary
Chemed beat Q2 2026 estimates and raised full-year guidance, fueled by VITAS hospice segment outperformance and aggressive share buybacks.
Key Events · Earnings and Guidance · CHE
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Q2 Earnings Beat
Revenue of $673.3M (+8.8% YoY) beat consensus of $665M; adjusted EPS of $6.06 beat consensus of $5.60 by 8.2%.
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Full-Year Guidance Raised
Adjusted EPS guidance raised to $25.00-$25.75 from $24.00-$24.75, a 17.8% increase at midpoint over 2025 adjusted EPS of $21.55.
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VITAS Segment Outperformance
VITAS ADC growth guidance raised to 5.75%-6.25% from 4.5%-5.5%; revenue growth guidance (excl. Medicare Cap) raised to 8.25%-9.25% from 6.5%-7.5%; EBITDA margin guidance raised to 19.0%-19.5% from 18.0%-18.5%.
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Medicare Cap Improvement
Full-year Medicare Cap billing limitation reduced to $7.0M from $9.5M, with no cap liability expected for Florida program in 2026.
Analysis · CHE · Industrial Applications And Services
Chemed delivered a strong Q2 beat with revenue of $673.3M vs. $665M consensus and adjusted EPS of $6.06 vs. $5.60, driven by VITAS hospice outperformance. Full-year adjusted EPS guidance was raised to $25.00-$25.75 from $24.00-$24.75, reflecting faster-than-expected recovery from 2025 Medicare Cap issues. VITAS ADC growth, revenue growth, and EBITDA margin guidance were all raised. The company also repurchased $89.8M in shares during the quarter, reducing outstanding shares by about 10.5% over the trailing twelve months. This comes just a week after activist investor Barington Capital pushed for a strategic review and cost cuts, adding pressure for continued operational improvement.
At the time of this filing, CHE was trading at $530.37 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $6.9B. The 52-week trading range was $365.21 to $520.01. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.