| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 8 | 126.7x | 17.3x | Bottom tier | |
Growth | 84 | 37.6% | 7.1% | Top tier | |
Quality | 55 | 1.0% | 4.5% | Around median | |
Safety | 50 | 5.9x | 2.6x | Around median | |
Capital Return | 39 | 1.16% | 0.06% | Bottom tier | |
Momentum | 90 | 32.8% | -1.6% | Top tier | |
Sentiment | 92 | 6 | 3 | Top tier |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, 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.
Welltower Inc. owns healthcare real estate, and its business transformation centers on operating senior housing communities in the United States, the United Kingdom, and Canada, alongside triple-net-leased properties, long-term post-acute care properties, and outpatient facilities. Its operating portfolio generates revenue from residents' stays and services provided to them, while leased properties provide rental income. In quarter 2 of fiscal year 2026, ended 2026-06-30, the senior housing operating portfolio contributed approximately 70% of net operating income, making occupancy, pricing, and operating efficiency key factors in the company's results.
Welltower's revenue in quarter 2 of fiscal year 2026, ended 2026-06-30, was 3.5 billion dollars, with net income of 240.3 million dollars and diluted earnings per share of 0.34 dollars. It recorded a gross margin of 39.3% and an operating margin of 16.6%. A reliable year-over-year revenue growth comparison is unavailable because the revenue line item is defined differently between the periods, so these figures alone are insufficient to establish accelerating consolidated revenue.
On a same-property basis, portfolio net operating income rose 15.5% in quarter 2 of fiscal year 2026, ended 2026-06-30, compared with the same quarter of the previous year, led by 20.5% growth in the senior housing operating portfolio. According to EL7 data, operating cash flow was 1.2 billion dollars for that quarter, while total debt was 19.7 billion dollars and cash and short-term investments were 2.0 billion dollars at period-end. This picture combines operating strength with the need to monitor how expansion is financed and how much it contributes per share.
Q2 FY2026
Last 12 months to 2026-06-30
When: 2026-10-26
Fiscal year 2026 normalized funds from operations guidance midpoint at 6.40 dollars per share
Same-property net operating income growth in the senior housing operating portfolio at 20.5% year over year
The median analyst target is 260 dollars within a range of 226–275 dollars, a low-confidence indicative estimate that incorporates growth expectations, while the discounted cash flow model estimates value at 194 dollars within a range of 146–274 dollars, measuring expected cash generation at a discount rate of 8.7%. The low-confidence indicative value using the industry multiple is 84 dollars within a range of 70–264 dollars, based on next year's earnings and a median multiple of 26.6 across 15 companies, valuing Welltower as its peers are valued. The ranges of the three methods overlap, but their central values differ clearly: analyst targets are highest, followed by the cash flow model and then the industry multiple, reflecting different weights assigned to growth, cash, and peer comparisons; analyst targets tend toward optimism, while the cash flow model tends toward conservatism. The breadth of this divergence is consistent with Welltower's ranking of 23 out of 24 within the industry on the valuation dimension, which compares the attractiveness of its multiples with those of its peers according to data for the period ended 2026-06-30.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
Welltower generates revenue from operating senior housing communities and leasing healthcare properties, and operates in the United States, the United Kingdom, and Canada. The senior housing operating portfolio accounted for approximately 70% of net operating income in quarter 2 of fiscal year 2026, ended 2026-06-30. In that quarter, consolidated revenue was 3.5 billion dollars and net income was 240.3 million dollars, making it necessary to distinguish between revenue, net operating income, and net profit to understand the results.
Welltower provides guidance for normalized funds from operations per share alongside accounting earnings, and management emphasizes that growth in earnings and cash flows per share is its primary objective. In the 2026-07-28 update, it raised fiscal year 2026 guidance for this metric to 6.36–6.44 dollars per share, with a midpoint of 6.40 dollars. Diluted earnings per share in quarter 2 of fiscal year 2026, ended 2026-06-30, were 0.34 dollars, covering a single quarter and a different metric from the annual guidance.
Automated analysis for informational purposes only — not investment advice.
Revenue growth per occupied room at 5.2% year over year
Welltower Business System aims to automate workflows and improve workforce organization and the resident experience, allowing operators to devote more time to service. In quarter 2 of fiscal year 2026, ended 2026-06-30, same-property occupancy approached 89.5%, while occupancy at non-same-property assets was approximately 550 basis points lower. This gap provides room for improvement, but management explained on the 2026-07-28 call that expanding the system's implementation across the existing portfolio requires approximately three additional years, making execution gradual.
The diluted share count was 732.1 million shares in quarter 2 of fiscal year 2026, ended 2026-06-30, versus 668.1 million shares in quarter 2 of fiscal year 2025, an increase of 9.6% compared with the same quarter of the previous year. Stock-based compensation totaled 1.6 billion dollars, or 12.2% of revenue over the last 12 months through 2026-06-30. Assessing the impact of expansion therefore requires monitoring growth in per-share metrics alongside asset size, and fiscal year 2026 normalized funds from operations guidance of 6.36–6.44 dollars per share provides a clear benchmark for this monitoring.
A news report published on 2026-10-13 stated that Brookdale Senior Living completed the acquisition of 17 communities it had leased from Welltower. Brookdale also announced an additional agreement to purchase 30 other communities leased from Welltower, an agreement that is distinct from completing the purchase. These transactions change the scope of Welltower's leased assets, while their financial impact depends on income from the disposed assets and how the capital is redeployed.