A month has gone by since the last earnings report for Welltower (WELL Quick QuoteWELL - Free Report) . Shares have added about 1% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Welltower due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

Welltower's Q1 FFO Beat Estimates on Strong SHO NOI Growth

Welltower reported first-quarter 2026 normalized FFO of $1.47 per share, topping the Zacks Consensus Estimate of $1.45 by 1.38%. Total revenues of $3.35 billion beat the consensus mark of $3.23 billion by 3.68% and rose 38.3% year over year.

Results reflected continued strength in the SHO portfolio, where SSNOI growth remained robust and occupancy gains supported margin recovery. Total portfolio year-over-year SSNOI increased 16.4% in the quarter, led by SHO performance.

Revenue Mix Tilted Toward Resident Fees

Welltower’s top line was driven primarily by resident fees and services, reflecting the scale of its operating exposure. Resident fees and services rose 49.1% year over year to $2.78 billion in the first quarter, forming the bulk of total revenues.

Other revenue lines were comparatively smaller and moved in a mixed fashion. Rental income slipped 1.7% year over year to $453.8 million, while interest income increased 13.5% to $70.9 million and other income rose 34% to $46.2 million.

Portfolio Drove Operating Leverage

Welltower’s SHO portfolio delivered another quarter of outsized SSNOI growth. Same-store revenues rose 9.5% year over year to $1.72 billion, supported by a 370-basis-point occupancy gain to 89.0% in the first quarter of 2026.

Operating leverage showed up in profitability and margins. Same-store operating expenses increased 4.7% to $1.19 billion, well below the pace of revenue growth, lifting SSNOI 22.1% to $531.8 million. SSNOI margin expanded to 30.9% from 27.7% a year ago, a 320-basis-point improvement.

Expanded Capital Deployment While Recycling Assets

Capital allocation remained active. During the first quarter, Welltower completed $3.3 billion of pro rata gross investments and, year to date through April 28, 2026, closed or was under contract to close $10.5 billion of investment activity.

The company also continued to recycle capital through dispositions and loan repayments. In the quarter, it completed $2.8 billion of pro rata dispositions and loan repayments, including $1.4 billion of outpatient medical dispositions, $524 million of sales of long-term/post-acute care properties and $873 million of loan repayments.

Ended Q1 With Low Leverage and Deep Liquidity

The company’s balance sheet position remained a notable support for its external growth strategy. As of March 31, 2026, the company reported Net Debt to Adjusted EBITDA of 2.73x and approximately $11.1 billion of available liquidity, including $4.8 billion of cash and restricted cash plus full capacity under its $6.25 billion line of credit.

The company also highlighted recent financing actions that improved flexibility and reduced refinancing pressure, including the expansion of its senior unsecured revolving credit line and the repayment of $700 million of senior unsecured notes at maturity in April using free cash flow. With leverage low and liquidity substantial, Welltower appears positioned to pursue announced investment pipelines while maintaining balance sheet capacity for additional opportunities.

Raised 2026 Outlook on NOI Momentum

Management lifted 2026 guidance following the first-quarter performance. The company raised its full-year normalized FFO outlook to a range of $6.21-$6.35 per share from its prior range of $6.09-$6.25.

Its guidance assumes the average blended SSNOI growth of 12.25-16.00%, comprising 16.5-21.5% growth in Seniors Housing Operating, 3.0-4.0% in Seniors Housing Triple-net, 2.0-3.0% in Outpatient Medical and 2.0-3.0% in Long-Term/Post-Acute Care.

How Have Estimates Been Moving Since Then?

Investors have witnessed a upward trend in estimates review over the past two months.

VGM Scores

At this time, Welltower has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Welltower has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Welltower belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, Crown Castle (CCI Quick QuoteCCI - Free Report) , has gained 5.8% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Crown Castle reported revenues of $1.01 billion in the last reported quarter, representing a year-over-year change of -4.8%. EPS of $0.50 for the same period compares with $1.10 a year ago.

For the current quarter, Crown Castle is expected to post earnings of $1.00 per share, indicating a change of -2% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Crown Castle. Also, the stock has a VGM Score of D.