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Community Health Q1 Loss Wider Than Expected, Sales Miss
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Key Takeaways
Community Health posted a Q1 loss of 48 cents per share, wider than estimates and the prior year.
Revenues fell 6.1% YoY to $2.9B, hit by hospital divestitures and lower patient volumes.
Adjusted EBITDA dropped 17.8% as volumes declined and the payor mix turned unfavorable.
Community Health Systems, Inc. (CYH - Free Report) reported a first-quarter 2026 net loss of 48 cents per share, missing the Zacks Consensus Estimate of a loss of 18 cents. The bottom line deteriorated significantly from a loss of $0.03 per share in the prior-year quarter.
Net operating revenues declined 6.1% year over year to $2.97 billion in the quarter under review and missed the consensus estimate by 1.1%.
The quarterly earnings were impacted by hospital divestitures and lower patient volumes, partially offset by growth in same-store revenues.
CYH’s Q1 Operational Update
At the end of the first quarter, Community Health operated 65 hospitals, down from 73 in the year-ago period. Patient days declined 12.5% year over year, while the average length of stay decreased 2.3%. The occupancy rate slipped to 55.4% from 56% in the prior-year quarter.
Community Health Systems, Inc. Price, Consensus and EPS Surprise
Adjusted admissions fell 10.5% year over year in the quarter under review. On a same-store basis, admissions edged down 1.3% from the corresponding prior-year period.
As of March 31, 2026, CYH had 9,530 licensed beds, reflecting an 11.7% decline from the year-ago quarter. The reported figure beat the Zacks Consensus Estimate by 0.2%.
Total operating expenses declined 6.6% year over year to $2.68 billion in the first quarter, primarily backed by lower supply costs, other operating expenses, salaries and benefits. The metric came in 0.9% above our model estimate.
Net interest expense decreased 2.7% year over year to $213 million, but was higher than our estimate of $208.4 million.
The company reported a net loss of $25 million in the first quarter compared with a net income of $25 million in the year-ago period, reflecting a significant deterioration in profitability. Adjusted EBITDA fell 17.8% year over year to $309 million in the quarter under review due to divestments, reduced same-store volumes and an unfavorable change in payor mix.
CYH’s Financial Update (As of March 31, 2026)
Community Health exited the first quarter with cash and cash equivalents of $712 million, which increased significantly from $260 million at the 2025-end level. Total assets of $13.18 billion decreased from $13.20 billion at the 2025-end level.
Long-term debt amounted to $10.13 billion, which fell from $10.38 billion at the 2025-end level, reflecting a reduction driven by debt repayments and the redemption of $223 million of senior secured notes during the quarter.
The company reported net cash used in operating activities of $297 million in the first quarter of 2026 compared with $120 million in the prior-year quarter.
CYH’s 2026 Guidance Reiterated
The company continues to anticipate net operating revenues between $11.6 billion and $12 billion for 2026 compared with the 2025 figure of $12.5 billion.
Adjusted EBITDA is still estimated to be in the range of $1.34-$1.49 billion compared with the 2025 level of $1.53 billion.
The company expects the 2026 bottom line to be between a loss of 60 cents and break-even.
Depreciation and amortization expenses are still predicted to be in the range of $365-$385 million for 2026.
Net cash from operating activities is estimated to be between $600 million and $700 million in 2026. Capital expenditures are anticipated in the range of $350-$400 million.
The weighted average common shares outstanding are currently estimated at around 136 million.
Acadia Healthcare (ACHC - Free Report) is scheduled to report results for the first quarter ended March 2026 on April 29.
This provider of inpatient behavioral health care services is expected to post quarterly earnings of 28 cents per share in its upcoming report, which represents a year-over-year decline of 30%. The consensus EPS estimate for the quarter has remained stable over the last 30 days. Acadia Healthcare's revenues are expected to be $824.24 million, up 7% from the year-ago quarter.
Universal Health Services (UHS - Free Report) , another stock in the same industry, is set to report results for the quarter ended March 2026 on April 27.
This hospital and health facility operator is expected to post quarterly earnings of $5.36 per share in its upcoming report, which represents year-over-year growth of 10.7%. The consensus EPS estimate for the quarter has remained stable over the last 30 days. Universal Health Services' revenues are expected to be $4.37 billion, up 6.6% from the year-ago quarter.
HCA Healthcare, Inc. (HCA - Free Report) is scheduled to report its first-quarter results on April 24.
The company is expected to post quarterly earnings of $7.19 per share in its upcoming report, which represents year-over-year growth of 11.5%. The consensus EPS estimate for the quarter has remained stable over the last 30 days. HCA Healthcare’s revenues are expected to be $19.1 billion, up 4.3% from the year-ago period.
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Community Health Q1 Loss Wider Than Expected, Sales Miss
Key Takeaways
Community Health Systems, Inc. (CYH - Free Report) reported a first-quarter 2026 net loss of 48 cents per share, missing the Zacks Consensus Estimate of a loss of 18 cents. The bottom line deteriorated significantly from a loss of $0.03 per share in the prior-year quarter.
Net operating revenues declined 6.1% year over year to $2.97 billion in the quarter under review and missed the consensus estimate by 1.1%.
The quarterly earnings were impacted by hospital divestitures and lower patient volumes, partially offset by growth in same-store revenues.
CYH’s Q1 Operational Update
At the end of the first quarter, Community Health operated 65 hospitals, down from 73 in the year-ago period. Patient days declined 12.5% year over year, while the average length of stay decreased 2.3%. The occupancy rate slipped to 55.4% from 56% in the prior-year quarter.
Community Health Systems, Inc. Price, Consensus and EPS Surprise
Community Health Systems, Inc. price-consensus-eps-surprise-chart | Community Health Systems, Inc. Quote
Adjusted admissions fell 10.5% year over year in the quarter under review. On a same-store basis, admissions edged down 1.3% from the corresponding prior-year period.
As of March 31, 2026, CYH had 9,530 licensed beds, reflecting an 11.7% decline from the year-ago quarter. The reported figure beat the Zacks Consensus Estimate by 0.2%.
Total operating expenses declined 6.6% year over year to $2.68 billion in the first quarter, primarily backed by lower supply costs, other operating expenses, salaries and benefits. The metric came in 0.9% above our model estimate.
Net interest expense decreased 2.7% year over year to $213 million, but was higher than our estimate of $208.4 million.
The company reported a net loss of $25 million in the first quarter compared with a net income of $25 million in the year-ago period, reflecting a significant deterioration in profitability. Adjusted EBITDA fell 17.8% year over year to $309 million in the quarter under review due to divestments, reduced same-store volumes and an unfavorable change in payor mix.
CYH’s Financial Update (As of March 31, 2026)
Community Health exited the first quarter with cash and cash equivalents of $712 million, which increased significantly from $260 million at the 2025-end level. Total assets of $13.18 billion decreased from $13.20 billion at the 2025-end level.
Long-term debt amounted to $10.13 billion, which fell from $10.38 billion at the 2025-end level, reflecting a reduction driven by debt repayments and the redemption of $223 million of senior secured notes during the quarter.
The company reported net cash used in operating activities of $297 million in the first quarter of 2026 compared with $120 million in the prior-year quarter.
CYH’s 2026 Guidance Reiterated
The company continues to anticipate net operating revenues between $11.6 billion and $12 billion for 2026 compared with the 2025 figure of $12.5 billion.
Adjusted EBITDA is still estimated to be in the range of $1.34-$1.49 billion compared with the 2025 level of $1.53 billion.
The company expects the 2026 bottom line to be between a loss of 60 cents and break-even.
Depreciation and amortization expenses are still predicted to be in the range of $365-$385 million for 2026.
Net cash from operating activities is estimated to be between $600 million and $700 million in 2026. Capital expenditures are anticipated in the range of $350-$400 million.
The weighted average common shares outstanding are currently estimated at around 136 million.
CYH's Zacks Rank
Community Health currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Estimates for CYH’s Peers
Acadia Healthcare (ACHC - Free Report) is scheduled to report results for the first quarter ended March 2026 on April 29.
This provider of inpatient behavioral health care services is expected to post quarterly earnings of 28 cents per share in its upcoming report, which represents a year-over-year decline of 30%. The consensus EPS estimate for the quarter has remained stable over the last 30 days. Acadia Healthcare's revenues are expected to be $824.24 million, up 7% from the year-ago quarter.
Universal Health Services (UHS - Free Report) , another stock in the same industry, is set to report results for the quarter ended March 2026 on April 27.
This hospital and health facility operator is expected to post quarterly earnings of $5.36 per share in its upcoming report, which represents year-over-year growth of 10.7%. The consensus EPS estimate for the quarter has remained stable over the last 30 days. Universal Health Services' revenues are expected to be $4.37 billion, up 6.6% from the year-ago quarter.
HCA Healthcare, Inc. (HCA - Free Report) is scheduled to report its first-quarter results on April 24.
The company is expected to post quarterly earnings of $7.19 per share in its upcoming report, which represents year-over-year growth of 11.5%. The consensus EPS estimate for the quarter has remained stable over the last 30 days. HCA Healthcare’s revenues are expected to be $19.1 billion, up 4.3% from the year-ago period.