Guardian Pharmacy lifts 2026 revenue outlook to $1.46 billion and raises operating profit forecast
Key Facts
Guardian Pharmacy Services raised its 2026 revenue forecast to a range of $1.44 billion to $1.46 billion, from $1.43 billion to $1.45 billion, and increased its estimate for adjusted earnings before interest, taxes, depreciation and amortization to $136–138 million from $129–131 million. The company announced the new guidance on November 5, alongside results for the third quarter ended September 30, 2026. The revenue and adjusted earnings estimates exclude any future acquisitions, according to its filing with the U.S. Securities and Exchange Commission. The two ranges were raised despite a decline in reported quarterly revenue, while net income nearly doubled from the same period last year. The figures put improved profitability alongside the impact of price reductions that weighed on quarterly revenue.
Revenue was $371.1 million in the third quarter, down 2% year over year, and the company said the figure includes price reductions resulting from the U.S. Inflation Reduction Act. Net income was $19.1 million, compared with $9.6 million in the third quarter of 2025, while net income attributable to Guardian Pharmacy Services reached $18.68 million. Adjusted earnings before interest, taxes, depreciation and amortization were $33.9 million, up 24% year over year. Diluted earnings per share were $0.29, while adjusted earnings per share were $0.33. The company said adjusted earnings and adjusted earnings per share are non-GAAP measures and their definitions may differ from similar measures used by other companies.
The chief executive said revenue would have increased at a high single-digit rate compared with the third quarter of 2025, absent price reductions tied to the IRA, and that organic growth was the main driver of that hypothetical performance. He pointed to an increase in the number of residents served and prescriptions, without breaking down the contribution of each to revenue. Guardian ended the quarter serving about 218,000 residents, up 7% year over year. The company operates more than 63 licensed pharmacies, including 57 full-service pharmacies. Explaining the improvement in margins, the chief executive said it reflected the scalability of the operating model and progress in strengthening profitability and benefiting from a growing resident base.
Adjusted EBITDA margin rose to 9.1% of revenue in the third quarter, versus 7.2% a year earlier. In the nine months ended September 30, 2026, revenue was $1.059 billion, compared with $1.051 billion in the corresponding period of 2025. Net income attributable to Guardian during the nine months also rose to $53.85 million from $28.30 million. The company said a positive outlook for the rest of the year supported its decision to raise guidance. Cash and cash equivalents totaled $119.7 million at quarter-end, and no long-term debt was outstanding under the credit facility.
Guardian expanded during the year through deals and the transfer of a customer base into its existing network. In July, it acquired Wellness Concepts, a long-term care pharmacy serving Virginia's Shenandoah Valley. It also acquired the assets of Nautilus, which provided pharmacy services to assisted living communities in 14 states through a centralized mail-order model. Guardian moved the acquired resident base to 18 existing pharmacies in its network. It said the deal would allow it to generate additional earnings using available infrastructure and operating capacity, with limited additional investment.
After the quarter ended, the company added a small pharmacy in Sioux City, Iowa, and completed its acquisition of Van's Institutional Pharmacy in the week before announcing results. The acquisition expanded Guardian's presence in Tennessee to five pharmacy locations. Its previously announced pharmacy in Lexington, Kentucky, also became operational. The company continues plans to add locations in Houston, Texas, and Huntsville, Alabama. These expansions and acquisitions form the backdrop to its network growth plan, while the annual guidance excludes any future acquisitions.
On its share structure, the conversion of Class B shares into Class A shares was completed on September 27, following the conversion of about 13.5 million shares. The process began with the company's reorganization in September 2024. The founders, executives and certain pre-IPO employees also entered into lock-up agreements covering about 29.9 million shares, representing about 80% of the Class A shares they own. The restrictions run through September 14, 2027, subject to limited exceptions, according to the company. GRDN shares closed at $42.39 on November 6, according to EL7 data.