Pediatrix net income falls to $47 million in third quarter despite 1.7% revenue growth
Key Facts
Pediatrix Medical Group posted net income of $47.0 million in the third quarter of 2026, compared with $71.7 million in the same period a year earlier, while diluted earnings per share fell to $0.59 from $0.84. Results filed with the U.S. Securities and Exchange Commission showed revenue rose to $501.4 million from $492.9 million, an increase of $8.5 million, or 1.7%. The figures reflected divergent trends during the quarter: modest revenue growth alongside lower income and net earnings per share. By contrast, Chief Executive Mark Ordan said volume and pricing performed "better than we expected." The company's stock, which trades under the ticker MD, closed at $29.82 on October 30, 2026.
Revenue growth came from two sources, according to the company's filing: a 1.1% increase in activity outside same-unit operations and 0.6% growth in same-unit revenue. The company attributed the first component partly to acquisitions, net of the effect of divestitures, while the second reflected the performance of units included in the like-for-like comparison. Same-unit growth indicates that the existing business base added a limited increase to revenue during the quarter. The increase outside same-unit operations expanded revenue through a change in the scope of activity, including the effect of acquisitions and divestitures. Overall growth was 1.7%, with contributions from existing activity and changes in the unit portfolio.
On the expense side, salaries and benefits in medical units rose 2.8% to $341.5 million in the third quarter, from $332.3 million a year earlier. The company said in its quarterly report that the increase was primarily related to clinical staff salaries, partly offset by lower benefit expenses. The nominal increase in these expenses was $9.2 million, exceeding the $8.5 million year-over-year increase in revenue. These items put some of the cost pressure in the context of modest revenue growth, while Ordan said volume and pricing were better than the company expected. Meanwhile, net income fell year over year from $71.7 million to $47.0 million, and diluted earnings per share declined from $0.84 to $0.59.
Pediatrix set a range of $290 million to $300 million for its full-year 2026 adjusted earnings before interest, taxes, depreciation and amortization. The range places the adjusted profitability measure within the company's fiscal-year guidance, alongside quarterly indicators showing higher revenue and lower net income year over year. Ordan said the company remains focused on operational efficiency and quality of care, while also pointing to volume and pricing performance. The company links those operating priorities to the results of its medical units and the revenue growth recorded during the quarter. EL7 data showed the stock closed at $29.82 on October 30, with no details on the session's trading range available in those data.