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Reasons to Add Fresenius Medical Stock to Your Portfolio Now
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Key Takeaways
FMS leverages acquisitions and partnerships to strengthen kidney care and support long-term growth.
Strategic deals and global expansion bolster FMS' network and reinforce its renal-care focus.
FMS posted strong Q3 results with pricing momentum and continued savings from its FME25 program.
Fresenius Medical Care AG & Co. (FMS - Free Report) is well-positioned for growth, backed by strategic acquisitions and partnerships, as well as a solid global foothold. However, rising costs remain a concern.
Shares of this Zacks Rank #2 (Buy) company have declined 20.5% over the past six months compared to the industry’s 11.3% growth. The S&P 500 Index has increased 14.7% in the same time frame.
The company, with a market capitalization of $12.6 billion, is one of the largest integrated providers of products and services for individuals undergoing dialysis following chronic kidney failure. Its bottom line is anticipated to improve 12.7% over the next five years. FMS’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 7.97%.
Image Source: Zacks Investment Research
Reasons Favoring FMS’ Growth
Strategic Acquisitions & Partnerships: FMS has been steadily using acquisitions and partnerships to strengthen its core kidney-care business and support long-term growth. In 2024, most of its deal spending went toward buying key assets from a medical technology company, building on its history of acquiring dialysis clinics and care facilities. Earlier moves, like the 2019 purchase of NxStage, which expanded its home-dialysis offerings, and the 2022 merger of Fresenius Health Partners, InterWell Health, and Cricket Health, are helping FMS push deeper into value-based care.
Partnerships with companies like JMS in Japan, DaVita, and Aetna further broaden its reach in home therapies and coordinated care. Altogether, these acquisitions and alliances support the company’s FME25 transformation plan, sharpen its focus on high-margin renal care, strengthen its digital capabilities, and contribute meaningfully to revenue and profit growth.
Strong Global Foothold: Fresenius Medical has built a strong global footprint across North America, EMEA, Asia Pacific, and Latin America through a mix of organic expansion, targeted acquisitions, and public-private partnerships that continue to widen its dialysis services reach. Its recent entry into Israel and the purchase of an 85% stake in India’s Sandor Nephro Services further reinforce this international network, which now includes 3,624 clinics caring for more than 308,000 patients.
While the company faced pandemic-related disruptions and top-line pressure from portfolio divestitures, overall performance remained resilient, supported by solid contributions from markets outside North America and a 2.1% same-market treatment growth rate in the second quarter.
Strong Q3 Results: FMS exited the third quarter on a strong note, with its earnings and revenues surpassing their respective Zacks Consensus Estimate. Overall pricing momentum also supported growth in the Care Enablement segment.
Per management, during the third quarter, the FME25 transformation program continued its positive momentum, delivering EUR 47 million additional sustainable savings while related one-time costs, treated as special items, amounted to EUR 41 million. The company confirmed its full-year target of around EUR 180 million in additional annual savings, totaling EUR 1050 million by 2027-end.
A Factor That May Offset FMS’ Gains
Rising Costs & Business Optimization Hurt Short-Term Prospects: Fresenius Medical continues to face a challenging labor environment, with workforce-related costs rising EUR 150-200 million even as conditions begin to show modest improvement, reflecting the company’s ongoing investment in staffing. Inflation added another EUR 100-150 million in expenses, particularly affecting the supply chain and operational functions.
Treatment volumes were lower year over year as of Dec. 31, 2024, mainly because of clinic divestitures tied to the Legacy Portfolio Optimization effort, which reduced overall treatment activity. In the United States, ending certain lower-margin acute care contracts contributed to a slight 0.2% decline in Same Market Treatment Growth, adding to the impact of divestitures, while unfavorable currency movements created additional financial pressure.
Estimate Trend
The Zacks Consensus Estimate for 2026 revenues is pegged at $22.91 billion, indicating 2% year-over-year growth. The consensus mark for earnings is pinned at $2.46 per share, implying growth of 9.2% from the year-ago level.
AtriCure, currently flaunting a Zacks Rank #1 (Strong Buy), reported a third-quarter 2025 adjusted loss per share of 1 cent, 90.9% narrower than the loss per share estimate. Revenues of $134.3 million beat the Zacks Consensus Estimate by 2.1%. You can see the complete list of today’s Zacks #1 Rankstocks here.
ATRC has an estimated earnings growth rate of 64.2% for 2025 compared with the industry’s 12.2% rise. The company beat on earnings in each of the trailing four quarters, the average surprise being 67.06%.
Phibro Animal Health, carrying a Zacks Rank #2 at present, reported third-quarter 2025 adjusted earnings per share (EPS) of 73 cents, which surpassed the Zacks Consensus Estimate by 23.7%. Revenues of $363.9 million beat the Zacks Consensus Estimate by 2.6%.
PAHC has an estimated long-term earnings growth rate of 12.8% compared with the industry’s 13.9% rise. The company beat on earnings in each of the trailing four quarters, the average surprise being 20.77%.
Omnicell, carrying a Zacks Rank #2 at present, reported third-quarter 2025 adjusted EPS of 51 cents, which surpassed the Zacks Consensus Estimate by 41.7%. Revenues of $311 million beat the Zacks Consensus Estimate by 5.6%.
OMCL has an estimated long-term earnings growth rate of 9.4% compared with the industry’s 27.9% rise. The company beat on earnings in each of the trailing four quarters, the average surprise being 38.65%.
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Reasons to Add Fresenius Medical Stock to Your Portfolio Now
Key Takeaways
Fresenius Medical Care AG & Co. (FMS - Free Report) is well-positioned for growth, backed by strategic acquisitions and partnerships, as well as a solid global foothold. However, rising costs remain a concern.
Shares of this Zacks Rank #2 (Buy) company have declined 20.5% over the past six months compared to the industry’s 11.3% growth. The S&P 500 Index has increased 14.7% in the same time frame.
The company, with a market capitalization of $12.6 billion, is one of the largest integrated providers of products and services for individuals undergoing dialysis following chronic kidney failure. Its bottom line is anticipated to improve 12.7% over the next five years. FMS’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 7.97%.
Image Source: Zacks Investment Research
Reasons Favoring FMS’ Growth
Strategic Acquisitions & Partnerships: FMS has been steadily using acquisitions and partnerships to strengthen its core kidney-care business and support long-term growth. In 2024, most of its deal spending went toward buying key assets from a medical technology company, building on its history of acquiring dialysis clinics and care facilities. Earlier moves, like the 2019 purchase of NxStage, which expanded its home-dialysis offerings, and the 2022 merger of Fresenius Health Partners, InterWell Health, and Cricket Health, are helping FMS push deeper into value-based care.
Partnerships with companies like JMS in Japan, DaVita, and Aetna further broaden its reach in home therapies and coordinated care. Altogether, these acquisitions and alliances support the company’s FME25 transformation plan, sharpen its focus on high-margin renal care, strengthen its digital capabilities, and contribute meaningfully to revenue and profit growth.
Strong Global Foothold: Fresenius Medical has built a strong global footprint across North America, EMEA, Asia Pacific, and Latin America through a mix of organic expansion, targeted acquisitions, and public-private partnerships that continue to widen its dialysis services reach. Its recent entry into Israel and the purchase of an 85% stake in India’s Sandor Nephro Services further reinforce this international network, which now includes 3,624 clinics caring for more than 308,000 patients.
While the company faced pandemic-related disruptions and top-line pressure from portfolio divestitures, overall performance remained resilient, supported by solid contributions from markets outside North America and a 2.1% same-market treatment growth rate in the second quarter.
Strong Q3 Results: FMS exited the third quarter on a strong note, with its earnings and revenues surpassing their respective Zacks Consensus Estimate. Overall pricing momentum also supported growth in the Care Enablement segment.
Per management, during the third quarter, the FME25 transformation program continued its positive momentum, delivering EUR 47 million additional sustainable savings while related one-time costs, treated as special items, amounted to EUR 41 million. The company confirmed its full-year target of around EUR 180 million in additional annual savings, totaling EUR 1050 million by 2027-end.
A Factor That May Offset FMS’ Gains
Rising Costs & Business Optimization Hurt Short-Term Prospects: Fresenius Medical continues to face a challenging labor environment, with workforce-related costs rising EUR 150-200 million even as conditions begin to show modest improvement, reflecting the company’s ongoing investment in staffing. Inflation added another EUR 100-150 million in expenses, particularly affecting the supply chain and operational functions.
Treatment volumes were lower year over year as of Dec. 31, 2024, mainly because of clinic divestitures tied to the Legacy Portfolio Optimization effort, which reduced overall treatment activity. In the United States, ending certain lower-margin acute care contracts contributed to a slight 0.2% decline in Same Market Treatment Growth, adding to the impact of divestitures, while unfavorable currency movements created additional financial pressure.
Estimate Trend
The Zacks Consensus Estimate for 2026 revenues is pegged at $22.91 billion, indicating 2% year-over-year growth. The consensus mark for earnings is pinned at $2.46 per share, implying growth of 9.2% from the year-ago level.
Fresenius Medical Care AG & Co. KGaA Price
Fresenius Medical Care AG & Co. KGaA price | Fresenius Medical Care AG & Co. KGaA Quote
Other Key Picks
Some other top-ranked stocks from the broader medical space are AtriCure (ATRC - Free Report) , Phibro Animal Health (PAHC - Free Report) and Omnicell (OMCL - Free Report) .
AtriCure, currently flaunting a Zacks Rank #1 (Strong Buy), reported a third-quarter 2025 adjusted loss per share of 1 cent, 90.9% narrower than the loss per share estimate. Revenues of $134.3 million beat the Zacks Consensus Estimate by 2.1%. You can see the complete list of today’s Zacks #1 Rankstocks here.
ATRC has an estimated earnings growth rate of 64.2% for 2025 compared with the industry’s 12.2% rise. The company beat on earnings in each of the trailing four quarters, the average surprise being 67.06%.
Phibro Animal Health, carrying a Zacks Rank #2 at present, reported third-quarter 2025 adjusted earnings per share (EPS) of 73 cents, which surpassed the Zacks Consensus Estimate by 23.7%. Revenues of $363.9 million beat the Zacks Consensus Estimate by 2.6%.
PAHC has an estimated long-term earnings growth rate of 12.8% compared with the industry’s 13.9% rise. The company beat on earnings in each of the trailing four quarters, the average surprise being 20.77%.
Omnicell, carrying a Zacks Rank #2 at present, reported third-quarter 2025 adjusted EPS of 51 cents, which surpassed the Zacks Consensus Estimate by 41.7%. Revenues of $311 million beat the Zacks Consensus Estimate by 5.6%.
OMCL has an estimated long-term earnings growth rate of 9.4% compared with the industry’s 27.9% rise. The company beat on earnings in each of the trailing four quarters, the average surprise being 38.65%.