| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 71 | — | 17.8x | Top tier | |
Growth | 65 | 4.0% | 7.1% | Around median | |
Quality | 33 | 6.4% | 4.5% | Bottom tier | |
Safety | 32 | 6.9x | 2.6x | Bottom tier | |
Capital Return | 16 | — | 2.12% | Bottom tier | |
Momentum | 27 | -36.9% | 2.9% | Bottom tier | |
Sentiment | 92 | 7 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Surgery Partners operates a network focused on short-stay surgical facilities and ambulatory surgery centers ASC, generating revenue from surgical cases performed by physicians at its facilities and from reimbursement rates associated with the type of procedure and payer. The company targets higher-complexity procedures in areas such as joint replacement, spine, and vascular surgery, because revenue growth per case can support revenue even when case-volume growth is limited. Its expansion strategy also relies on physician recruitment, the development of new facilities, disciplined acquisitions, and partnerships with health systems.
In Q2 FY2026, net revenue was approximately $849 million, up 2.7% year over year, while adjusted EBITDA was approximately $125 million versus approximately $129 million a year earlier, with a margin of 14.7%. Same-facility revenue increased 5%, driven by 4.8% growth in revenue per case and 0.3% growth in case volume, and the company performed approximately 168 thousand surgical cases. Commercial payers accounted for approximately 49% of net revenue, down approximately 350 basis points year over year, with a corresponding increase in the share of government payers.
In H1 FY2026, the company recorded net revenue of approximately $1.66 billion, up 3.6%, and adjusted EBITDA of approximately $228 million, down 2.3%, with its margin declining to 13.7% from 14.5%. The company reports ambulatory centers and surgical hospitals within a single segment because of the similarity of their operating economics. On a pro forma basis excluding the Idaho Falls facilities, Q2 FY2026 net revenue would have been approximately $660 million and adjusted EBITDA approximately $98 million, illustrating the significant financial weight of the assets included in the sale agreement.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $18.75, within a range of $17 to $21, with a consensus Buy rating; the average target is approximately 20% below the 52-week range high of $23.44, while the low end of that range is $11.41. The data do not provide a valid price-to-earnings multiple as an additional valuation anchor, so the Buy consensus should be weighed against lower H1 FY2026 margins, elevated leverage, and the absence of updated post-Idaho Falls sale guidance.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Net revenue was approximately $849 million, up 2.7% year over year, and same-facility revenue increased 5%. Most of the growth came from a 4.8% increase in revenue per case, while same-facility case volume increased only 0.3%. The company focused on higher-complexity procedures in joint replacement, spine, and vascular surgery, while performing approximately 168 thousand surgical cases during the quarter.
The company expects total consideration of approximately $795 million from the sale of its interests in Mountain View Hospital, Idaho Falls Community Hospital, and market-related businesses to Intermountain Health. The transaction includes surgery centers, physician practices, and ancillary businesses that were owned by Mountain View Hospital, and the company intends to use the proceeds primarily to repay debt. Management expects to reduce leverage by approximately 0.3x and decrease exposure to obstetrics, neonatal care, pediatrics, intensive care, and emergency services, but as of August 10, 2026, the transaction remained subject to closing conditions and required approvals.
The adjusted EBITDA margin was 14.7% in Q2 FY2026, but adjusted EBITDA declined to approximately $125 million from $129 million a year earlier. For H1, the margin fell to 13.7% from 14.5%, and adjusted EBITDA declined 2.3% to $228 million. Several expense items improved compared with Q1, including wages and salaries at 29.8% of revenue and supplies at 26.7%, but they remained above the prior-year levels of 28.5% and 26.0%, respectively.
191 new physicians began using Surgery Partners' facilities in Q2 FY2026, bringing the H1 total to 330 physicians. The revenue contribution from the 2026 physician cohort increased approximately 16% compared with the prior-year cohort, and the specialties included orthopedics, ophthalmology, gastroenterology, and pain management. The company also had six new facilities under construction and seven others in the development pipeline, and management said recruited physician business typically doubles in the second year and continues to grow at a double-digit rate in the third year.
Net leverage under the credit agreement was approximately 4.4x at the end of Q2 FY2026, compared with 4.1x a year earlier, and balance-sheet net debt to EBITDA was approximately 5.1x. Quarterly interest payments increased to approximately $90 million from $81 million, while operating cash flow was $59 million and the company distributed $46 million to physician partners. Alongside the debt burden, the commercial mix declined by approximately 350 basis points to around 49% of net revenue, contributing to pressure on margins.
Management reaffirmed FY2026 guidance for revenue ranging from $3.35 billion to $3.45 billion and adjusted EBITDA of at least $530 million. This guidance excludes any financial impact from the Idaho Falls transaction because it had not closed as of the August 10, 2026 call. The company said it would issue updated guidance and additional details about its financial profile after the transaction is completed, and it also acknowledged that it would not reach its customary acquisition investment target of $200 million during FY2026.
