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Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 10:00 a.m. ET Senior Vice President of Investor Relations - Dave Styblo President and Chief Executive Officer - Dave Caspers Chief Financial Officer - Alfred Lumsdaine Operator: Hello, and thank you for standing by. My name is Lacy, and I will be your conference operator today. At this time, I would like to welcome everyone to the Ardent Health Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Thank you. I would now like to turn the call over to Dave Styblo, Senior Vice President of Investor Relations. You may go ahead. David Styblo: Thank you, operator, and welcome to Ardent Health's Second Quarter 2026 Earnings Conference Call. Joining me today is Ardent's President and Chief Executive Officer, Dave Caspers; and Chief Financial Officer, Alfred Lumsdaine. Dave and Alfred will provide prepared remarks, and then we will open the line to questions. Before I turn the call over to Dave, I want to remind everyone that today's discussion contains forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the Securities and Exchange Commission. Except as required by law, we undertake no obligation to update our forward-looking statements. Further, this call will include the discussion of certain non-GAAP financial measures, including adjusted EBITDA. Reconciliation of these measures to the closest GAAP financial measure is included in our quarterly earnings press release and supplemental earnings presentation, which were both issued yesterday evening after the market closed and are available at ardentthealth.com. With that, I'll turn the call over to Dave. David Caspers: Thank you, and good morning. I want to begin by thanking our 25,000 team members for the way they continue to adapt, improve how we operate and deliver high-quality care to our patients and communities we serve. To frame today's discussion, I'll focus my comments on 3 areas: first, where we stand, including the strength of our current platform; second, where we're going, including my priorities and the opportunities ahead; and third, what you can expect from me. Let's start with where we stand. The Ardent platform is built on a strong foundation with clear opportunities to improve our performance. With 30 hospitals and over 280 sites of care, attractive markets growing 2 to 3x faster than the U.S. average and strong joint venture partners, we are well positioned to capture market share. Over the past 2 years, we have broadened our access points and strengthened partnerships by acquiring and/or building over 25 urgent care and ASC facilities. These investments expand our ability to care for patients across the most appropriate care setting while also targeting volume growth. In addition, strategic partnerships, specifically with Ensemble and Epic, are strengthening our revenue cycle and clinical capabilities. In short, we are well positioned, but there is more work ahead. Since transitioning into this role, I've leaned into areas where I see the greatest opportunity to optimize and accelerate performance, and I want to share the progress already underway. I'm encouraged by the momentum of our IMPACT program. On the cost side, I'm pleased with improvements in SWB, which grew just 0.7% year-over-year as we reduced contract labor spend by 42%. We have taken deliberate action to build a more efficient enterprise by intentionally redesigning our structure and standardizing how we operate. IMPACT is more than a savings program. It's also designed to increase our agility and transform care. We accomplished that in part by leveraging technology with our strong clinical engine. That engine is a strategic collection of assets, including our partnership with Epic and Ensemble, our virtual care platform and our growing AI capabilities. It's the backbone that makes standardization and efficiency possible while empowering our people to deliver consistent, high-quality personalized care across the network. Our virtual care rollout with hellocare.ai is an early proof point. In Texas and Idaho, our first markets to go live, virtual nurses completed 58% of discharge in June, and we reduced the hours spent monitoring patients by 18%. Looking ahead, it positions us to capture additional volume and better manage capacity so we can deliver the right care at the right time in the right setting. In supplies, we are beginning to harvest gains by consolidating vendors, renegotiating contracts and streamlining physician preference items. On the IT front, we are rationalizing our application portfolio to eliminate any redundancy and reduce waste. Turning to revenue. We are taking a more disciplined data-driven approach to payer contracting, using price transparency data to identify where our rates lag the market as we work through our contract portfolio. In many instances, our rates rank below the 50th percentile, and we believe we can drive them higher given our strong market positions while improving contract terms and yield. We're already seeing evidence this strategy is creating meaningful improvement. An early proof point is a June renewal with a key payer in one market where outpatient payments were materially below market benchmarks. The new contract improved both rate and terms, and we now expect stronger economics from this agreement. We estimate this will add between $5 million and $10 million to this year's adjusted EBITDA that wasn't in our previous guidance. We've also brought greater structure and dedicated leadership to how we grow, organizing around our highest value service lines, such as cardiology and women's and children's. This work is guided by Capacity IQ, the framework we introduced last quarter to match demand with capacity across our system, directing capital, physician recruitment and assets to where we see the strongest growth and returns. It's an area you'll hear more about going forward. That's where we stand. Now this is where we're going. My focus is on delivering more consistent financial results, growing EBITDA, deploying capital effectively and executing against our targets in a way that supports long-term shareholder value. At a high level, our 3-part growth strategy is unchanged. It remains focused on, number one, strengthening EBITDA margins through operational excellence; two, accelerating strategic growth in core markets and services, including new ways to optimize how we reach and engage customers at scale; and three, pursuing disciplined M&A. Within this strategy, sharper operational execution is my highest priority. We will continue to manage through the health care head and tailwinds. But as an operator, I am laser-focused on the performance that we can directly influence, how we staff, how we contract, how we allocate capital, how we standardize and how we hold ourselves accountable. As part of that, we are building a culture that works as one team aligned around one plan and delivering with one standard. While we have made meaningful progress standardizing operations across the enterprise, I see additional opportunity to reduce variation and strengthen consistency in our execution. As such, I am keenly focused on the executive level KPI-driven decision-making, reducing unwanted variation and strengthening our accountability. Carrying forward our impact savings momentum is a top priority. IMPACT is not a 1-year project. It's a multiyear strategic imperative, and it is building momentum. We have increased our 2026 savings target twice from $40 million originally to the $55 million target established in the fourth quarter of 2025 earnings call to now over $70 million expected to be realized this year. We will continue to evaluate our portfolio and take action where we see opportunities to sharpen our focus and improve our margins. That will entail assessing and evaluating all aspects of our operations. And if an asset or service line is not the right long-term fit, we will act thoughtfully and with discipline. An example of this is our intentional service line rationalization work in the second quarter. We moved lower-margin procedures, including ENT and ophthalmology out of the hospital to free up capacity for higher-margin service lines. As we wrap up, I want to be clear about what you can expect from me. First, we will push Ardent to be more nimble and faster while maintaining our strong commitment to patient care, quality and safety. We will measure what matters, focus on fewer but more important priorities and pivot quickly as necessary when circumstances change. Our response to the second quarter volumes is a testament to this approach. We quickly flexed staffing and implemented additional nonclinical actions that support our confidence to reaffirm our 2026 adjusted EBITDA guidance. That agility reflects the strength of our team and our ability to execute consistently with speed. Secondly, I recognize the importance of delivering on our financial commitments to the investment community. Consistency and credibility matter, and you can expect us to remain focused on disciplined execution and accountability. And third, you can expect me to bring steady leadership and rigorous operational discipline with consistency, which ultimately supports long-term shareholder value creation. We have the right leadership team, operating model and market positions to advance our strategy. And now our focus is delivering consistency over time. I'm enthusiastic about the opportunity ahead and look forward to working with our team members, providers, partners and the investment community. With that, I'll turn the call over to Alfred. Alfred Lumsdaine: Thanks, Dave, and good morning, everyone. Thank you for joining us on the call today. I'm very pleased with how our team responded to a challenging volume environment in the second quarter. Surgeries were down materially in April and May before rebounding with modest growth in June. Our leaders managed through these dynamics with discipline, focusing on the controllables and as a result, delivered strong results and cash flow. As I'll discuss later, we've taken the necessary actions to maintain our full year 2026 adjusted EBITDA guidance despite a softer volume outlook. I'll begin with second quarter results. We reported revenue of $1.62 billion and adjusted EBITDA of $115 million. In early June, we indicated that the business experienced broad-based volume softness during April and May, with surgeries and admissions down 5% and 2%, respectively, compared to the prior year. These trends improved in June with surgeries and admissions returning to modest growth. For the full second quarter, surgeries and admissions declined 2.9% and 1%, respectively. And although July volumes are still below our original expectations entering this year, like June, they are improved from April and May volumes. During the second quarter, we executed 2 initiatives that are already beginning to benefit our financial results. First, as Dave mentioned, we successfully negotiated a key payer contract renewal in one of our markets effective June 1 that is now expected to generate earnings above our original 2026 plan. Importantly, the improved rate and terms are part of our broader strategy to enhance our revenue yield through payer contracting. Second, we streamlined our structure to reduce managerial layers at both corporate and field locations. We expect these actions to generate $15 million to $20 million of additional savings this year with a full annualized impact of $30 million to $35 million. As a result, we're increasing our 2026 impact program savings target to at least $70 million, up from $55 million communicated previously. These actions are almost entirely nonclinical in nature and are intended to improve accountability and speed our execution. Collectively, the payer contracting and structural actions helped mitigate some of the volume-related earnings pressure in the second quarter, and the associated earnings improvement will be at full run rate as we enter the third quarter. In terms of the other key metrics, second quarter adjusted admissions increased 2.5% year-over-year. Net patient service revenue per adjusted admission decreased 3.9%, reflecting the benefit in the second quarter of 2025 from recording 2 quarters' worth of the New Mexico DPP program as well as the surgery decline that produced a lower acuity service mix. From a payer standpoint, our exchange admissions declined 8% year-over-year, and we saw a corresponding increase in self-pay, but these trends were manageable and largely contemplated in our original guidance. As Dave also noted, we managed our labor expense very well during the second quarter with SW&B growing a modest 0.7% year-over-year. In addition, we reduced our contract labor spend by 42% year-over-year and contract labor as a percentage of SW&B improved to 2.2% in the second quarter from 3.8% a year ago. As expected, year-over-year professional fee growth slowed to 10.4% compared to 12.9% in the first quarter and supplies increased 3.3% year-over-year. Payer denial trends were consistent with the previous 2 quarters. We continue to work closely with our revenue cycle partner, Ensemble, to drive targeted denial management and recovery efforts, and we see additional opportunities to improve yield going forward. Moving on to cash flow and liquidity. We're pleased with the robust operating cash flow of $197 million generated in the second quarter compared to $117 million a year ago. Our first half 2026 operating cash flow was $137 million, up 47% from $93 million in the first half of 2025. Capital expenditures during the second quarter were $39 million, and we expect that to ramp through the year. Additionally, we repurchased $13 million of stock in the second quarter, leaving the company with a remaining authorization of $34 million at June 30, 2026. We ended June with total cash of $724 million and total debt outstanding of $1.1 billion. Our total available liquidity at the end of the second quarter was $992 million, and we finished the quarter with total net leverage of 0.8x and lease adjusted net leverage of 2.6x. Our strong balance sheet gives us flexibility, and our capital deployment approach remains return-driven and disciplined with a clear preference for high-margin service line, ambulatory growth and operational investments. Turning to our guidance. We're maintaining our outlook for full year 2026 revenue and adjusted EBITDA, and I'll provide some additional context around each of those. For revenue, we're now biased towards the lower end of our $6.4 billion to $6.7 billion range. This view reflects the weaker second quarter volumes and assumes these trends remain below our original expectations in the second half of the year despite the volume improvements in June and July. We remain confident in our adjusted EBITDA guidance range of $485 million to $535 million. Our outlook now incorporates a headwind of approximately $25 million from lower volumes in the second quarter and lower volume expectations for the rest of this year. We expect to fully offset this headwind with $20 million to $30 million from the 2 actions I discussed earlier. Just to reiterate those actions, we expect $15 million to $20 million of higher impact program savings this year from workforce reductions and $5 million to $10 million of higher-than-expected earnings from payer recontracting. We have full visibility into both of these items since they were both executed during the second quarter. From a timing standpoint, we recognized only a small amount of the $20 million to $30 million of expected impact in the second quarter. Since the associated earnings benefit will be at full run rate entering the third quarter, we expect to be able to fully offset the projected earnings impact of lower volumes in the second half of the year. As a result, we would expect third quarter adjusted EBITDA to improve from the $115 million in the second quarter and approach the first quarter adjusted EBITDA of $124 million. Finally, we're reaffirming our original $35 million exchange headwind for this year. So far, actual development compared to key assumptions has been encouraging. Volume declines have been less pronounced than expected, and our data indicates that those losing exchange coverage are not all moving to self-pay. Instead, we're seeing some trends that indicate a material portion of impacted individuals are finding other insurance coverage. We're continuing to monitor these dynamics, of course. But overall, we remain confident in the $35 million net impact for the year. So as I wrap my prepared remarks, it's clear this industry has been through some overall very fluid dynamics this year. Navigating industry crosswinds requires discipline, planning and decisive execution. This leadership team will continue to take swift and deliberate actions to position Ardent to deliver in the near term while also building a stronger company for the long term. With that, I'll turn the call back to Dave for concluding remarks. David Caspers: Thank you, Alfred. I want to leave you with 3 key takeaways. First, operational execution and consistency are our top priorities. We moved quickly to respond to a softer volume environment and have taken actions that position the company to deliver on our commitments. Second, we have a strong platform with attractive markets, leading positions and meaningful opportunities to improve performance as we continue to standardize operations and drive growth. Third, we have the right team, strategy and financial strength to execute on our plan and create long-term value for shareholders. With that, I'll turn the call over to the operator for questions-and-answer session. Operator: [Operator Instructions] Your first question comes from the line of Ann Hynes with Mizuho Securities. Ann Hynes: Just on the payer contract changes on the outpatient side, how many more markets do you think you have opportunities to get to market rates? Alfred Lumsdaine: This is Alfred, Ann. Good question. And it's a difficult one to give you kind of a uniform answer. I mean I would say we have opportunity across all of our markets that our -- I think we have talked in the past that our revenue integrity function was somewhat siloed and the -- I call the revenue cycle management component was not fully integrated with the contracting component. And now we have integrated those. We brought in new leadership. We've taken a much more data and market-driven approach and candidly, just being more thoughtful and, I'd say, strong in our position that we need to be paid fairly in our markets. And so I would say that there is opportunity across most of our markets for improvement. Ann Hynes: And just as a follow-up on the surgery, your inpatient surgeries declined much more than outpatient, which is kind of the opposite of what we're seeing with other hospitals. What was driving that decline? Alfred Lumsdaine: A couple of things. This is Alfred again. I would say, yes, clearly, our inpatient was a much steeper decline. I think clearly, the inpatient-only list did have an impact. When we look across our markets, we saw a majority of the inpatient decline was a shift from inpatient to outpatient. So with that -- and a majority of that shift was procedures that were on the -- coming off of the inpatient-only list. There's good news embedded in there, I would say that when we quantify the economics underlying that shift, it's actually a very modest impact from the move. We would put it in the quarter, maybe between $1 million and $2 million of net impact. So overall, very modest. Operator: Our next question comes from the line of Jason Cassorla with Guggenheim. Jason Cassorla: Great. Maybe just a follow-up on the volume side. Obviously, it's great to hear that you had some recovery in June and July. Was that broad-based? Or was that recovery within selected service lines? And then the second half expectation, are you assuming that for the second half, you're running at like the second quarter run rate or where you ended up in June and July? And then I guess it's difficult to predict the macro, but based on how you're seeing pressures on visit conversions into procedures and surgeries, would you consider 2026 as effectively an easy comp or more of a baseline for you to grow off of? Alfred Lumsdaine: Got you. Jason, this is Alfred. In terms of -- and I think I've got the components of your question. The first was the recovery that we saw broad-based. And I would say, absolutely, essentially across all of our volume metrics, we saw improvement in the June and July time frame compared to the April and May time frame. So very, very broad-based, really, again, across all of our volume metrics. In terms of how we think about the rest of the year, June and July, we really are assuming the quarter volumes and projecting that out rather than the June and July, taking that in isolation. And again, we're going to be cautiously optimistic. We'd love to see the type of volume improvement that we've seen in June and July extend through the year. But again, we want to take a prudent approach as we work on our cost structure in the organization. And again, going back to the actions that we took inside of the quarter, we were very quick to -- off of the weakness in volumes in April and May to take what I would call decisive action to ensure that we've got the appropriate cost structure regardless of what the volume environment that we were faced. And then I apologize, I forgot the third part of your question. Jason Cassorla: Yes. Just if you think given what you've seen volume trends this year, is this representing more of an easy comp for you? Or do you think this is like the new baseline for which you kind of normally grow off of? So any thoughts there for next year? Alfred Lumsdaine: Yes, I think really tough to say. We're in, as I mentioned in my prepared remarks, a really fluid environment with -- from a volume standpoint. And I think underlying that is economic uncertainty as well as some of the changes with, of course, the exchange subsidies as one example. So difficult to predict the volume going forward. Again, I come back to what I just mentioned is that we want to be sure we have the position for success regardless of the volume overlay. And again, we're going to be hopeful for the future, but prepared for the current. David Caspers: Jason, this is Dave. I want to build upon what Alfred mentioned. I couldn't agree more about how pleased we are with our team's agility and their action around IMPACT. We will and do continue to plan to have the right projects and opportunities lined up to ensure our success either way. On that note, we are somewhat encouraged by what the top of the funnel holds. And I think inside of your question, the conversion language that you mentioned is very accurate. And it will be very -- it is very important for us to meet the consumer where they are with the solutions that will help them at this particular time for us to keep their trust. So when they are ready to do what will be necessary, we're ready to take care of them. Alfred Lumsdaine: If there's good news -- this is Alfred again. There's -- again, just tailgating off what Dave said, if there is good news embedded in here, it's that we are firm believers you can't defer care forever and that there would be pent-up demand built for the future. Jason Cassorla: Got it. Very helpful. And maybe just as a follow-up. It sounds like professional fees and denial trends were in line with your expectations in the quarter. I know you'll comp the big step-up in those headwinds, so to speak, next quarter. But I guess looking back over the past couple of years, you've seen some pretty big step-ups in both denials and professional fees developing around the second quarter or third quarter time frame or at least when you've called it out. So I guess in that context, it is a dynamic environment, but are there any like benchmarking or contracting or anything else that gives you visibility or confidence that you won't see like a further stepped-up pressure for professional fees or denials at this point? Alfred Lumsdaine: Sure. Thanks for the question. Yes. As you said, very, very difficult to predict the future. But what we do know with -- starting with professional fees is that we are seeing those very much in line with our expectations this year. We are expecting the year-over-year trend of increase to be decreasing in the back half over the front half. So -- and as we've said in the past, we've seen a full reset of essentially all of those contracts. And so again, we would expect that rate of increase to slow. In terms of denial trends, I think that's a little bit harder to predict. It goes a lot off of payer behavior. As we've mentioned, we're working on our payer contracting to strengthen contract terms to improve our ability to enforce and improve those denial trends and working very closely with Ensemble on a number of initiatives, strengthening our joint operating commissions and our payer governance. We're leveraging AI to help identify denial patterns and prioritize high-value opportunities, et cetera. So there's a whole litany of work we're doing together to position us to improve off of our current [indiscernible]. And again, we have not seen so far this year any evidence of escalation of those denial trends. It's been very stable. David Caspers: Adding on and building on just a bit. In the prepared comments, you heard very specific language around operational rigor. And that rigor and the results in pro fees represent the work that we've been underway. And an example of keeping pro fees well under control has to do with tightly managing operating rooms and the costs associated to those operating rooms. And as you saw in our results, that balancing act between managing the right volume in and managing pro fees is critical. And just kind of putting a bow on it that to me is what represents operational excellence and rigor. Operator: Your next question comes from the line of Matthew Gillmor with KeyBanc. Matthew Gillmor: Maybe starting off on the service line rationalization. I guess I was hoping you could help us think through kind of the broader strategy there and just the service lines that you are targeting and what the opportunity is as you're moving some of the lower-value service lines away from your health systems? And then, Alfred, could you just give us a sense for how we should expect that to impact the surgical metrics, especially on the outpatient side as you execute that rationalization? David Caspers: You bet. This is Dave, and thank you for your question. We've stood up a team that we call products and services who are leveraging the tools that we referred to in the previous quarter called Capacity IQ. That team is a collection of individuals who have led service lines in the past, real estate, construction, M&A, to name a few. And those teams are using the tools at a system level and market level to ensure that we are looking at every asset and service line and doing the right work to optimize margin and meeting the customer and market where its needs are and where the margin opportunity is. I think it's a little early to be able to tell you what that is going to bring for specific value and specific changes. What we're encouraged by is the clarity we're getting on our key service lines, as you heard mentioned in the earlier remarks around cardiology, women's and children. And you'll see us focus in, in those areas, strengthen our service lines, strengthen the consumers' journey in that and be able to really manage and improve standardization across the financials as we do that. So for now, that's where I'd like to leave it, and we will continue quarter-by-quarter to shape exactly what those actions are. But no, we're very excited to have that team in place. We're seeing some of the fruit of their work now and more to come. Alfred Lumsdaine: And the second part -- this is Alfred. Matt, the second part of your question in terms of how do we think that will impact our surgical volumes across the back half of the year. As we mentioned, we're really not baking into our assumptions that significant improvement we're taking second quarter and really expecting to be at that volume level across the back half of the year. So you can think of that would mean surgical decline in the low single-digit range, similar to what we saw in Q2. And as Dave indicated, a lot of work happening across getting the service lines optimized, focusing on the higher profitability lines we're adding. We've got a number of physician starts slated in one individual market. We have over 20 specialists scheduled to start over the back half of the year. So again, it does take time to get this fully optimized because of the time to wind things down, wind things up, and you can end up with a little bit of, I'll say, disassociation like we saw in Q2, but we're very confident in the strategy. Matthew Gillmor: Great. And then on the exchange topic, it sounded like you're trending better than the $35 million you baked in, at least for the first half of the year. I was curious, in your mind what you thought would cause the exchange headwind to grow in the back half. Maybe there's just a healthy dose of conservatism in there as well. But just wanted to get your sense for how that may trend in the back half of the year. Alfred Lumsdaine: Sure. Thanks, Matt. This is Alfred. Yes, we -- I think we always expected the trends to grow throughout the year. Maybe we didn't foresee some of the macroeconomic pressures that might cause somebody to come off and not pay their premium and lose coverage. But we certainly saw that growth from Q1 to Q2 and, again, remain very comfortable with our original assumption set and the $35 million impact. And hopefully, potentially, there could be some conservatism in there, but that's how we'd like to -- we're just trying to be thoughtful and planful because this is an area that is developing as we speak. Operator: Your next question comes from the line of Ben Hendrix with RBC Capital Markets. Benjamin Hendrix: I was hoping you could provide a little more detail on some of the mix -- payer mix dynamics that you saw in the quarter. You mentioned migration from exchanges to uninsured, and that's consistent with your peers. But wondering if you were able to pick up a notable number of members in other group employer plans or other types of coverage. Alfred Lumsdaine: Ben, this is Alfred. Yes, obviously, we're not immune from the dynamics that our peers have all reported on in terms of the exchange pressure and the growth in self-pay volumes, which we clearly have seen. I'd say potentially, again, as we just look across the peer set, it seems like in the markets we're in, there's been a little bit less pressure on the loss of exchange lives. And maybe a little different than what we've heard others say. We have certainly seen some amount as we look at our data, a material amount of individuals who've lost HICS coverage go into other forms of coverage, both commercial and governmental programs of coverage. So that gives us a little bit of -- I wouldn't call it optimism, but the movement seems to be a little bit better than what our underlying assumptions were. Now when we look at our payer mix, I mean, most of the pressure this year has been in the coverage areas that carry the higher co-pays and deductibles. I mean that, to me, speaks to economic pressure. And again, I come back to potentially some pent-up demand because when we look at the top of the funnel, we look at our stats related to urgent care visits and physician clinic visits. We're actually seeing very nice growth in those areas. It's not translating its way through to the higher acuity procedures, specifically or most pronounced in those coverage in those payer categories that carry the higher deductibles. So that does, to us, speak to some amount of macroeconomic pressure and potential pent-up demand. Benjamin Hendrix: Great. Appreciate that. And just a real quick follow-up on your outpatient contracting commentary. You noted opportunities for continued contracting benefits in other markets. Just wanted to get a sense of how much of a gating item that is for continued ASC development and build-out of those capabilities in the other markets. Alfred Lumsdaine: Sure. I think it goes hand-in-hand. As you change the mix of sites of care, you've got to have it tightly coordinated with your payer contracting strategies for sure. So yes, I'd say it very much goes hand-in-hand. Operator: Your next question comes from the line of Kevin Fischbeck with Bank of America. Kevin Fischbeck: I just want to follow up on the volume commentary first. I guess, is there a good theory for why April and May would have been so weak and then June and July having come back? I mean I appreciate some of the things you said about deductibles and things like that. But that seems like a pretty significant move from deductibles that have been causing that pressure and then the rebound. Is there anything else that you could point to as to why it was so weak and maybe why this might be proved conservative to use the quarter number instead of June, July numbers? Alfred Lumsdaine: Yes. No, thanks for the question, Kevin. This is Alfred. Yes, I mean, I guess we would have a number of theories. But at the end of the day, it does strike us as that there is some overall, I'll call it, macroeconomic pressure, again, as we look at the payer mix sources of the service lines or the coverage areas like Medicare, Medicaid that don't carry the same levels of deductible and co-pays where we saw more consistent demand across those months. And so that gives us some optimism for the back half. But again, we are loath to bake optimism into our consideration for our go-forward guide. So again, we'll be cautiously optimistic, but it is a very volatile backdrop. And certainly, we could see an acceleration of exchange lives lost. So again, don't have a lot of speculation, but it is -- it was a very pronounced trend. David Caspers: Building on what Alfred is saying, this is Dave, which I think speaks to why we -- headwinds, tailwinds, why we believe operational rigor really matters and the IMPACT program really matters. There is some portion that's very hard to predict. But what is not hard to predict are those things we have control over. We have control over how we staff. We have control over how we utilize our resources, how we utilize our facilities. We are very focused -- laser-focused on the IMPACT program and ensuring that we will deliver that value either through top line or through expense improvement. And that's the power of IMPACT and the power of us having the teams that are identifying the projects, the intentional redesign of the work, the speed to implementation, which we execute every single Friday, the follow-through and measurement of that work to ensure that we can deliver our financials and be consistent. Kevin Fischbeck: Okay. Great. And then I guess on the repricing dynamic, I guess the $5 million to $10 million pickup seems like a pretty relatively large number for one market. And then in an earlier answer, you indicated that there were multiple markets or almost all of your markets where you thought there was an opportunity. Should we be thinking about that type of size across multiple markets? Or is that -- was that somewhat unusually large? And then if there is that kind of opportunity, over what kind of period can we expect you guys to capture that? Alfred Lumsdaine: Sure. This is Alfred again, Kevin. Yes, that was one contract, one market. Now it was a large contract in one market. Not all contracts carry the same level of opportunity. And of course, renewal cycles are generally 2- to 3-year period. So I would suggest we're looking at a similar 2- to 3-year period. And negotiations are hard. As I think we've clearly messaged, we're taking a more data-driven approach. And we believe we have -- because now we do have good -- with the transparency data really now telling a story and being able to decipher it meaningfully, we do think we have a great opportunity to have data-driven conversations to partner potentially with certain payers to get a better outcome. If we're wildly underpriced in a market, it certainly doesn't do the payer any good to continue to take us out of network. But the negotiations are never easy. And we've already seen examples this year where we, in multiple markets, have had to send letters to -- had letters go out to members about potential disruption. That's not where we want to go. But if it takes that to yield being paid fairly, we're willing to have those conversations. Operator: Your next question comes from the line of Scott Fidel with Goldman Sachs. Scott Fidel: For the first question, Dave, I wanted to ask you a strategy question. Maybe just sort of lining up some of the previous core elements of the strategy in terms of what you're thinking now for the future. And particularly, when the company went public, there was a lot of focus on the JV opportunity, the joint venture opportunity with major health systems. And over the course of the last couple of years, I would say that narrative has definitely sort of quieted down pretty substantially. Alternatively, the company has definitely talked a lot more about increasing and advancing the outpatient strategy and then also the -- and then just the service line enhancements and recruitment that you've been doing with physicians. So maybe if you could sort of just walk us through all of those things and how those line up and then especially just because clearly, this is going to drive some of your capital considerations. If you still have the JV strategy as the key element, you probably want to retain more capital on the balance sheet. If not, maybe you'd be more aggressive around sort of deploying capital on those other opportunities. So I would love your view on that, Dave, and maybe operate as well in terms of the balance sheet dynamics around that. David Caspers: Sure. Thanks, Scott, for the question. A lot of parts to that question. And so I'm going to give you, I guess, what may seem like a more general answer to that deep question given the venue. First of all, if we start with, we do believe in our existing growth strategy, right? We still believe that the right markets matter significantly that, that growth has to outpace the rest of the growth in the U.S. Inside of that, the products and services team that we built is very focused. And looking at all M&A activity, that could exist and doing so in a very disciplined approach. As you heard earlier with Capacity IQ, which is an intelligent engine that helps us to ensure we're making all of the right decisions with all of the right resources, that plays a critical role in our existing markets, ensuring that we improve our yield at the very same time that we look for those M&A opportunities. And that discipline and structure, it's taking us some time to really get exactly organized around the plan we want, the execution we want and the time line we want as well as the appropriate kind of opportunities that may or may not exist. Secondarily, inside of that, JV opportunity and JV partnerships. Without going incredibly deep on it, I'll tell you that we're pleased with a good portion of our JV relationships. In particular, UT Tyler, Texas is an important relationship that is improving our results. It's improving our business, and we have great opportunities and great plans ahead there. So we will stay very focused on our existing strategy. No major pivots to that. We are, as I mentioned, with products and services, taking a deeper look at every single asset, every single service line to ensure that it fits our long-term strategy to grow value. And you can anticipate over the next quarter, we'll have [ quarter, ] quarters, we'll have more specific plans to walk through step by step. But as for today, staying very focused on our existing plan. I hear you on the capital and the opportunities that exist. You can see we're organizing our team to advance further, and we will stay steadfast to make disciplined decisions that are best for us long term. Alfred Lumsdaine: And the second part of your question, Scott, really is -- it's no different than really what Dave just articulated. We're taking a very balanced and opportunistic approach overall to capital deployment. Obviously, we love having a strong balance sheet and the opportunities that, that can create to be opportunistic. And you also saw in the second quarter, we repurchased $13 million of stock. We have, as of the start of the third quarter, another $34 million remaining under that repurchase authorization. The Board and the management team certainly believe that there's value in the stock and that it can be an effective use of balanced capital deployment. So I would say as long as there is what we think could be a disassociation in the underlying value that there would be a bias to continue to repurchase shares. Scott Fidel: And then just on the follow-up, this will be a much more surface level question, just a quick numbers question. I appreciate -- definitely intrigued around the commentary around seeing more of the HICS attrition members finding additional coverage. I'm curious if some of the peers have talked about like the ratio of their HICS attrition members going that are uninsured, and they've talked about like a 1:1 or close to that type of relationship. Have you been tracking it that way? Is there like a comparable ratio that you can -- obviously, it's lower, it sounds like, but that you could share with us in terms of what percentage are going uninsured versus finding initial coverage? Alfred Lumsdaine: Yes. We certainly do track it in a multiple number of ways working with our revenue cycle partner, Ensemble, who, of course, has both our data as well as much broader industry data. I'd be -- because there are multiple ways to look at -- are you talking about all members? Or are you talking about a member who you saw last year and who has shown up for a new procedure this year? Are you talking the whole population? So we have certainly greatest visibility to those individuals who we saw last year and we saw this year and knowing what their coverage migrated to. And I would just say of that cohort, it's -- there is a very material amount that are finding incremental coverage. Operator: Your next question comes from the line of A.J. Rice with UBS. Albert Rice: I just wanted to ask you about, first, some of the other expense areas where you seem to have done pretty well, salaries and benefits and supplies up modestly both year-to-year. I would think supplies got some help from the weak surgery cases. But anything to call out in either of those metrics in terms of what you're seeing and any initiatives around those that might be worth highlighting? Alfred Lumsdaine: Thanks for the question, A.J. This is Alfred. Certainly, yes, we appreciate the call out. We are very satisfied with the overall expense management. As I said, the -- being able to control the controllables and having the operational rigor to be successful in a lower volume environment positions us well if and when volumes accelerate. We're particularly pleased in the SW&B. That's where we had the strongest response to what we saw as the weaker volumes early in the quarter. You heard us talk about the efforts to reduce our spans and layers across our managerial functions and create a more nimble, quicker and more accountable organization, and that's going to endure, again, regardless of the environment. So that's the area where we've got the ability to respond most quickly. Supplies, I would say we believe we have more opportunity in the supply chain area to continue to drive -- that is -- to your point, yes, it tracks to improvement with just the volume and the acuity level being lighter. But we do think we have more opportunity across a number of areas in the supply chain. It just takes a little bit longer to create that impact. Albert Rice: Okay. And then maybe for the follow-up, I know you've talked about what you saw in surgeries being perhaps partly dealing with more co-pay deductible issues in the first half of this year, given dynamics in the commercial market and the public exchange market. I wonder, are you allowing at all for a seasonal pickup later in the year when people maybe hit their deductibles and then start to come back in some of the utilization? And maybe just remind us, if you don't mind, along those lines, how does the comparison look versus last year? Did you see a lot of that activity last year in the third and fourth quarter? So is it an easier or tougher comp in that regard? Alfred Lumsdaine: Thanks for the follow-up, A.J. Certainly, we would expect what we would call a normal seasonal pickup. Now that's off of a lower base. So it would still be lower, but we certainly still would expect one, just seasonal activity off of respiratory illness at the end of the year. But yes, with -- every year, as we look at the data, half 2 is stronger than half 1, and I don't fully expect that to happen again. We certainly didn't predict this, but again, as I've talked about potential pent-up demand, is there even a scenario where that seasonal dynamic is stronger than historically, given the economic uncertainty. If you're now worried, we've all seen the headline rates with exchange coverage or exchange premiums next year going up double digits again and commercial premiums going up double digits again and deductibles increasing. Is there even a scenario where it's a stronger-than-normal seasonal bump? Possibly, but that's certainly not what we've incorporated into our outlook. David Caspers: And A.J., to your -- this is Dave, to your question about how are we positioned for the back half should surgical volume come forward. Good news here. A lot of our rigor and work is around standardization and efficiency. And that work shows up in a couple of areas and in combination with salary with benefits. An example is this fall, we opened our singular patient logistics command center that we call CORE. That command center, it was an influence in reducing salary with benefits cost, and it is an improver for standardization and efficiency. That's just one example of how we'll be able to handle inbound transfers and inbound patient logistics better than ever. So we're excited about the ability for impact, which you heard me mention before, this is not just an expense program. It is care transformation. And as we standardize and improve these efficiencies with CORE, we're going to be able to see more patients at scale with an improved expense structure. Operator: Your next question comes from the line of Craig Hettenbach with Morgan Stanley. Craig Hettenbach: Dave, going back to your comments about the top of funnel and 25 urgent care and ASCs. Can you just talk about kind of the pipeline? And any updated stats you can share with us in terms of just driving activity from that top of the funnel? David Caspers: Yes, Craig. Specifically, top of the funnel that I'm focused on right now has a lot to do with referrals and patient transfers. Yes, of course, our provider efficiency and our urgent care availability for the patients, those certainly matter and those are certainly strong. But we've seen double -- low double-digit growth in referrals and transfers. And our ability to maximize that inbound patient flow is critical. And that's what gives us good positive signals about the potential business that's there. So for now, I'd like to just leave it on those 2 specifically. And those 2 matter a lot because inside of the Capacity IQ, the patients that we are able to acquire via those 2 methods are critical patients to our financial formula. And they're also critical patients who desperately need care. Craig Hettenbach: Got it. And then maybe building on the hello.ai kind of AI commentary. I saw the press release recently of Ambient Healthcare in terms of the uptake for Ambient [ scribes. ] I think it's well above kind of the industry averages. So how are you approaching that just from kind of an ROI perspective? Obviously, the use case is there and physicians like it. But anything else you would share on just kind of the rollout of that and what you see as the implications for the business? David Caspers: You bet. I'm going to start with -- hello -- I'm going to primarily focus on hellocare.ai for now because the economics are very simple actually. Our ability to leverage hellocare.ai, which will be deployed in over 2,000 of our hospital rooms, the financials for that proof positive through our ability to handle virtual sitting appropriately, which is just a small portion. We are able to be ROI positive and take better care of our patients and reduce unnecessary patient falls, all off of improving virtual sitting and the technology that allows more patients to get better oversight by fewer team members using the technology. It's really critical and a really important part of making the financial dynamics work. All of the rest is bonus above that, let alone how the customer feels or the patient feels about the experience, knowing at any moment they can get care on their -- in their room immediately is critical. When it comes to Ambient Listening, yes, we reached the 1 million mark last month. And we are seeing substantial time savings for our providers. The translation of that time savings into additional visits is something we're still working through because inside of there is a balancing act between respecting our providers' work balance, the quality of the product that's being produced. And so today, we're positive about it. You're right, the providers feel good. It is greater than a mid-single-digit improvement in productivity. Now it is about realizing how we want to best use that productivity gain. David Styblo: Operator, I think we've got time for one more question since we're at the top of the hour. Operator: Our final question comes from the line of Benjamin Rossi with JPMorgan. Benjamin Rossi: Regarding the IMPACT program, as you're adding the savings here under this scheme of operational rigor, do you think the incremental benefit realization is largely coming from pull forward on other initiatives that have been further in the pipeline? Or do you see opportunity to open up as surgical volumes were coming in softer? Just curious how you frame the additional savings opportunities being presented here. Alfred Lumsdaine: Sure. I'll start. This is Alfred. Ben, yes, I would say for the most part, what we saw in June was a pull forward. Certainly, we have a -- as Dave said in his opening comments, this is not a project. This is not a single year focus. This is a multiyear strategic imperative to ensure that the cost structure overall is aligned. And so we intentionally went further and faster, faster implies a pull forward than in the past. And as Dave mentioned, I mean, this is something every Friday, we have the leadership team assembled to ensure that we're tracking, that we're improving, we're enhancing and growing the potential for the impact initiatives. So it is -- I would say, the inventory of opportunity is expanding, but what we have executed on so far this year is largely a pull forward going faster. David Caspers: [indiscernible] inpatient surgery. This is Dave. Just adding on to it. There's a really unique and powerful thing happening right now between both of those elements. Between products and services and service lines getting more clear and between optimization and the IMPACT program, those 2 were able to be clear on what we stand for and optimize what we don't. And that is really helping shape us. And that helps in the SWB intentional redesign, where do we need to be at our best and how do we want to design for it. And you may hear me mention one team, one plan and one standard. As we reduce the number of spans and layers or layers in our team, it allows us to put design and execution more closely together. And when that is close together, you become more nimble. And so as we continue to go forward, you're going to see us be able to implement with speed, execute with speed and ensure that what we've manufactured and design comes true in execution. Operator: This concludes today's question-and-answer session. Ladies and gentlemen, thank you for joining today's conference call. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Ardent Health (ARDT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Ardent Health (ARDT) reported second quarter 2026 results on 4 August, with net income and earnings per share lower than a year earlier and full year earnings guidance reduced. The company paired this softer outlook with an update on its ongoing share buyback program, which has now retired more than 1.2% of outstanding shares. See our latest analysis for Ardent Health. Ardent Health shares have had a strong run in 2026, with a 33.68% year to date share price return and a 14.24% 3 month share price return, even though the 1 year total shareholder return is slightly negative at 2.86% lower. If you are reassessing healthcare exposure after Ardent Health's earnings reset, it may be a good moment to look across the broader sector using Simply Wall St's screener for 43 healthcare AI stocks Ardent Health shares have moved sharply this year, yet the stock still trades at a discount to the average analyst price target and below some intrinsic value estimates. Where does a reasonable fair value range actually sit now? At a last close of $11.55 versus a narrative fair value of $12.50, Ardent Health screens as modestly undervalued using the most widely followed valuation storyline, which is built on a 9% discount rate. Read the complete narrative. Curious what sits behind that fair value gap? The narrative leans on a specific path for revenue, earnings and margins, plus a future earnings multiple. The exact mix of those assumptions is what really matters. Result: Fair Value of $12.50 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this Ardent Health narrative still faces pressure from potential Medicaid funding changes and ongoing reimbursement disputes that could unsettle revenue and margin assumptions. Find out about the key risks to this Ardent Health narrative. There is a different message from the Simply Wall St DCF model. On this view, Ardent Health at $11.55 sits well above an estimated future cash flow value of $2.16. That points to an overvalued result on cash flows, which raises a simple question: How much weight should you give to earnings based narratives when the cash flow model is this cautious? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Ardent Health for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. The mixed signals around Ardent Health make this a good moment to check the underlying numbers yourself and decide how the risk and reward balance looks for your portfolio. To see both sides of that story in one place, start with our breakdown of 2 key rewards and 1 important warning sign If Ardent Health has prompted you to sharpen your watchlist, this is the moment to scan for other opportunities before the next round of earnings headlines resets expectations again. Spot potential mispricings early by checking companies that appear cheap on quality metrics using the 51 high quality undervalued stocks. Strengthen your downside protection by focusing on businesses with healthy finances through the solid balance sheet and fundamentals stocks screener (49 results). Get ahead of the crowd by searching for overlooked opportunities using the screener containing 19 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ARDT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is prioritizing 'operational rigor' to drive consistent performance, focusing on controllable factors like staffing, contracting, and capital allocation to mitigate macroeconomic volatility. The IMPACT program has evolved from a savings initiative into a multi-year strategic imperative for care transformation, leveraging technology to standardize operations across the enterprise. A disciplined, data-driven approach to payer contracting is being utilized to address historical lags in market rates, with management identifying significant opportunities to improve yield across most markets. The company is intentionally rationalizing service lines, shifting lower-margin procedures like ENT and ophthalmology to outpatient settings to free up hospital capacity for high-acuity cardiology and women's services. Strategic partnerships with Ensemble and Epic are being leveraged to strengthen the revenue cycle and clinical capabilities, providing the backbone for enterprise-wide efficiency. Management is utilizing 'Capacity IQ' to match demand with capacity, ensuring capital and physician recruitment are directed toward the highest-return service lines and markets. Full-year 2026 revenue is biased toward the lower end of the $6.4 billion to $6.7 billion range, reflecting weaker Q2 volumes and a prudent assumption that these trends persist through year-end. Adjusted EBITDA guidance of $485 million to $535 million is reaffirmed, as a $25 million volume headwind is expected to be fully offset by $20 million to $30 million in incremental savings and contracting gains. The IMPACT program savings target for 2026 has been increased to at least $70 million, up from the previous $55 million, driven by accelerated workforce reductions and structural streamlining. Management expects a normal seasonal volume pickup in the second half of the year, though they remain cautious regarding potential further pressure from exchange subsidies and macroeconomic factors. Capital deployment will remain return-driven, with a clear preference for high-margin service lines, ambulatory growth, and opportunistic share repurchases when market value disconnects occur. A key payer contract renewal effective June 1 is expected to add $5 million to $10 million to 2026 adjusted EBITDA, serving as a proof point for the broader revenue yield strategy. Management reduced managerial layers at both corporate and field locations, an action expected to generate $15 million to $20 million in savings this year and $30 million to $35 million annually. The company reaffirmed a $35 million headwind related to exchange coverage attrition, though early data suggests a material portion of impacted individuals are finding alternative insurance rather than moving to self-pay. Inpatient surgery declines were partly driven by a shift to outpatient settings following changes to the 'inpatient-only' list, resulting in a modest $1 million to $2 million net economic impact. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management believes there is opportunity for rate improvement across most markets because historical revenue cycle functions were siloed from contracting. The company is now using price transparency data to support negotiations, though they noted that renewal cycles typically span two to three years. April and May weakness was attributed to macroeconomic pressure on patients with high-deductible plans, while June and July saw a broad-based recovery across all volume metrics. Management is not baking the recent recovery into the full-year guide, choosing instead to project the lower Q2 run rate as a conservative baseline. The virtual care rollout via hellocare.ai is already ROI-positive by reducing the need for physical patient sitters and improving discharge efficiency. Ambient listening technology has reached 1 million uses, resulting in mid-single-digit productivity gains for providers, though management is still determining how to best capture that time savings.

This article first appeared on GuruFocus. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ardent Health Inc (NYSE:ARDT) successfully increased its 2026 Impact Program savings target to at least $70 million, up from the previously communicated $55 million, driven by workforce reductions and operational efficiencies. The company reported strong cash flow generation, with second-quarter operating cash flow of $197 million, up from $117 million in the prior year, and first-half operating cash flow up 47% year-over-year. Ardent Health Inc (NYSE:ARDT) secured a key payer contract renewal in one market, expected to add $5 to $10 million to 2026 adjusted EBITDA, reflecting a broader strategy to improve revenue yield through data-driven payer negotiations. The company demonstrated disciplined expense management, with salaries and benefits growing only 0.7% year-over-year and contract labor spend reduced by 42%, improving overall operational efficiency. Ardent Health Inc (NYSE:ARDT) is making early progress with its virtual care platform and AI capabilities, with virtual nurses completing 58% of discharges in Texas and Idaho and reducing patient monitoring hours by 18%. The company maintains a strong balance sheet with total net leverage of 0.8 times and available liquidity of $992 million, providing flexibility for disciplined capital deployment and share repurchases. Ardent Health Inc (NYSE:ARDT) experienced broad-based volume softness in April and May, with surgeries and admissions declining 2.9% and 1% respectively in the second quarter, leading to a softer volume outlook for the rest of the year. The company is now biased towards the lower end of its full-year 2026 revenue guidance range of $6.4 to $6.7 billion, reflecting weaker-than-expected volumes in the second quarter and conservative assumptions for the second half. Net patient service revenue per adjusted admission decreased 3.9% year-over-year, impacted by a lower acuity service mix and the benefit of recording two quarters of the New Mexico DPP program in the prior year. Exchange admissions declined 8% year-over-year, with a corresponding increase in self-pay volumes, contributing to a $35 million expected headwind for 2026, though actual trends have been slightly better than assumed. The company faces ongoing pressure from professional fees and payer denials, with professional fee growth slowing but still elevated at 10.4% year-over-year, and denial trends remaining consistent with prior quarters. Ardent Health Inc (NYSE:ARDT) noted that July volumes remain below original expectations, and the company is taking a cautious approach by assuming second-quarter volume levels persist through the second half of the year. Warning! GuruFocus has detected 5 Warning Sign with HGTY. Is ARDT fairly valued? Test your thesis with our free DCF calculator. Q: How many more markets do you think have opportunities to get to market rates on payer contracts, and what is driving the inpatient surgery decline?A: CFO Alfred Lundstein stated that there is opportunity across most markets for payer contract improvement, as the company has integrated its revenue integrity and contracting functions with a more data-driven approach. Regarding inpatient surgery, the decline was primarily driven by a shift from inpatient to outpatient procedures, largely due to procedures being removed from the inpatient-only list. The net economic impact of this shift was modest, estimated at $1 to $2 million in the quarter. Q: Was the volume recovery in June and July broad-based, and how should we think about second-half expectations and 2026 as a baseline?A: CFO Alfred Lundstein confirmed the recovery was broad-based across all volume metrics. For the second half, the company is assuming second-quarter volume levels rather than the improved June/July trends, taking a prudent approach. CEO Dave Caspers added that the company is encouraged by the top of the funnel, with low double-digit growth in referrals and transfers, and believes care cannot be deferred forever, suggesting potential pent-up demand. Q: Can you provide more detail on the service line rationalization strategy and its impact on surgical metrics?A: CEO Dave Caspers explained that a new "products and services" team is using the Capacity IQ framework to evaluate every asset and service line, focusing on high-value areas like cardiology and women's and children's services. CFO Alfred Lundstein added that the company expects surgical volumes to remain at second-quarter levels in the back half, with low single-digit declines, but noted over 20 specialist physician starts are slated in one market alone to drive growth. Q: What caused the April and May volume weakness, and why did June and July recover?A: CFO Alfred Lundstein attributed the weakness to macroeconomic pressure, noting that coverage areas with high copays and deductibles saw the most significant declines, while Medicare and Medicaid remained consistent. CEO Dave Caspers emphasized that the company's focus on operational rigor and the Impact program allows it to control what it can, regardless of the unpredictable volume environment. Q: Is the $5 to $10 million pickup from payer recontracting unusually large, and over what period can you capture similar opportunities?A: CFO Alfred Lundstein clarified that the pickup came from one large contract in one market, and not all contracts carry the same opportunity. Renewal cycles are generally 2 to 3 years, so the company expects to capture similar benefits over that timeframe. He noted the company is willing to have tough negotiations, including sending letters about potential network disruption, to achieve fair reimbursement. Q: How does the JV strategy fit with the increased focus on outpatient and service line growth, and how does that affect capital deployment?A: CEO Dave Caspers affirmed the company remains committed to its existing growth strategy, including JV partnerships, citing the UT Tyler relationship as a positive example. He noted the products and services team is taking a disciplined approach to M&A and evaluating all assets. CFO Alfred Lundstein added that the company is taking a balanced approach to capital deployment, with a bias toward share repurchases given the perceived disassociation in stock value, having repurchased $13 million in Q2 with $34 million remaining. Q: Can you share the ratio of exchange members losing coverage who are becoming uninsured versus finding alternative coverage?A: CFO Alfred Lundstein said the company tracks this data with revenue cycle partner Ensemble, and while there are multiple ways to measure it, a "very material amount" of the cohort that was seen last year and this year has found incremental coverage, which is better than the company's underlying assumptions. Q: What drove the strong expense management in salaries and benefits and supplies, and are there more initiatives to highlight?A: CFO Alfred Lundstein credited the company's operational rigor and ability to control controllables, particularly in SW&B, where the company reduced managerial layers and contract labor spend by 42%. He noted supplies benefited from lower volume and acuity but believes there is more opportunity in the supply chain, which takes longer to realize. CEO Dave Caspers highlighted the upcoming launch of the "CORE" patient logistics command center this fall as an example of standardization and efficiency improvements. Q: Are you allowing for a seasonal pickup in utilization later in the year as patients hit deductibles, and how do comps look versus last year?A: CFO Alfred Lundstein confirmed the company expects a normal seasonal pickup in the second half, which is typically stronger than the first half, but off a lower base. He noted that while there is potential for pent-up demand to create a stronger-than-normal seasonal dynamic, that is not incorporated into the guidance. CEO Dave Caspers added that the company's standardization efforts, like the CORE command center, position it to handle increased surgical volume efficiently. Q: Is the incremental Impact program savings a pull-forward of existing initiatives or new opportunities from the softer volume environment?A: CFO Alfred Lundstein stated the additional savings are largely a pull-forward of existing initiatives, as the company intentionally went "further and faster" given the volume environment. He noted the inventory of opportunities is expanding, with the leadership team reviewing progress every Friday. CEO Dave Caspers added that the combination of service line clarity and the Impact program is driving the company's "one team, one plan, one standard" approach, enabling faster execution. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Ardent Health, Inc.? Here are five stocks we like better. Q2 performance was mixed: Ardent Health reported $1.62 billion in revenue and $115 million in adjusted EBITDA, while surgeries declined 2.9% and admissions fell 1% year over year due to weakness in April and May. Full-year guidance was maintained, but revenue is expected near the low end of the $6.4 billion-$6.7 billion outlook. Management plans to offset an estimated $25 million EBITDA volume headwind through workforce restructuring and a favorable payer-contract renewal. Ardent raised its 2026 IMPACT savings target to at least $70 million, supported by labor, supply-chain and operational efficiencies. Stronger cash flow, low net leverage and expanding virtual-nursing technology investments also support the company’s financial position. Falling Fast, Rising Soon? 3 Stocks With Upside Ahead Ardent Health (NYSE:ARDT) reported second-quarter revenue of $1.62 billion and adjusted EBITDA of $115 million, as management said cost controls, a favorable payer contract renewal and strong cash flow helped offset weaker-than-expected volumes. Surgeries and admissions were pressured during April and May, before returning to modest growth in June. For the full second quarter, surgeries declined 2.9% year over year and admissions fell 1%. Adjusted admissions, however, increased 2.5% from a year earlier. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Chief Financial Officer Alfred Lumsdaine said July volumes remained below the company’s original expectations for the year but improved from the levels seen in April and May. Ardent is assuming second-half volumes remain near the second-quarter run rate rather than extrapolating the improved June and July trends. Ardent maintained its full-year 2026 adjusted EBITDA guidance of $485 million to $535 million. Management now expects revenue to trend toward the lower end of its $6.4 billion to $6.7 billion outlook. → 3 Drone Stocks That Should Soar After the Summer Slump The company said lower volumes in the second quarter and revised expectations for the rest of the year represent an estimated $25 million EBITDA headwind. Ardent expects to offset that pressure with $20 million to $30 million of benefits from workforce restructuring and payer recontracting. Workforce and structural actions are expected to provide $15 million to $20 million of additional savings during 2026, with an annualized benefit of $30 million to $35 million. A renewed payer agreement effective June 1 is expected to add $5 million to $10 million to 2026 adjusted EBITDA beyond the company’s prior guidance. The company expects the earnings benefits from both initiatives to reach a full run rate entering the third quarter. Lumsdaine said Ardent expects third-quarter adjusted EBITDA to improve from the $115 million reported in the second quarter and approach the $124 million generated in the first quarter. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure President and Chief Executive Officer Dave Caspers said operational execution, standardization and accountability are central priorities under the company’s IMPACT program. Ardent raised its 2026 IMPACT savings target to at least $70 million, from a prior target of $55 million and an original target of $40 million. Caspers said the program is intended to be a multiyear care-transformation and efficiency effort rather than a one-year cost-cutting initiative. The company has redesigned parts of its structure, reduced managerial layers and standardized operations. Lumsdaine said the actions taken in June were largely a pull-forward of initiatives already in the pipeline, though the inventory of potential opportunities continues to expand. Salary, wages and benefits expense increased 0.7% year over year during the quarter, while contract labor spending declined 42%. Contract labor represented 2.2% of salary, wages and benefits expense, compared with 3.8% a year earlier. Professional fee growth slowed to 10.4% from 12.9% in the first quarter, while supplies expense rose 3.3%. Ardent is also pursuing supply-chain savings through vendor consolidation, contract renegotiations and efforts to streamline physician preference items. The company is rationalizing its IT application portfolio to remove redundancies, Caspers said. Management said it is taking a more data-driven approach to payer negotiations, using price-transparency data to identify contracts where payment rates lag local market benchmarks. Caspers said that in many instances, Ardent’s rates rank below the 50th percentile in its markets. Lumsdaine said the company sees opportunities for better reimbursement across most of its markets, although contract sizes and renewal cycles vary. He said payer contracts generally renew on two- to three-year cycles and that Ardent has integrated its revenue-cycle and contracting functions under new leadership. Net patient service revenue per adjusted admission declined 3.9% year over year, reflecting the prior-year benefit of recognizing two quarters of New Mexico’s DPP program and a lower-acuity service mix caused by reduced surgery volumes. Exchange admissions fell 8%, with a corresponding increase in self-pay patients. Management reaffirmed its forecast for a $35 million exchange-related headwind in 2026. Lumsdaine said Ardent has found that a material share of patients losing exchange coverage have transitioned to other commercial or government coverage, though the company continues to monitor the trend. Management also said urgent-care visits, physician-clinic visits, referrals and patient transfers point to continued activity at the top of the funnel, even as higher-acuity procedures have been softer among patients facing higher deductibles and copays. The company is prioritizing higher-value service lines, including cardiology and women’s and children’s care, using its Capacity IQ framework to guide physician recruitment, capital allocation and site-of-care decisions. In the second quarter, Ardent moved lower-margin ear, nose and throat and ophthalmology procedures out of hospitals to free capacity for higher-margin services. Operating cash flow rose to $197 million in the second quarter from $117 million a year earlier. First-half operating cash flow was $137 million, up 47% from the prior-year period. Ardent spent $39 million on capital expenditures during the quarter and expects spending to increase through the year. At June 30, the company had $724 million in cash, $1.1 billion in total debt and $992 million in available liquidity. Total net leverage was 0.8 times, while lease-adjusted net leverage was 2.6 times. Ardent repurchased $13 million of stock during the quarter, leaving $34 million under its authorization. Caspers also highlighted the rollout of hellocare.ai virtual nursing technology. In Texas and Idaho, virtual nurses completed 58% of discharges in June and helped reduce patient-monitoring hours by 18%, according to the company. Ardent plans to deploy the platform in more than 2,000 hospital rooms and said its virtual-sitting use case is already expected to generate a positive return on investment. Ardent Health, listed on the New York Stock Exchange under the ticker ARDT, is a healthcare delivery company focused on acquiring, developing and managing acute care hospitals and complementary outpatient facilities across the United States. The company's integrated platform encompasses both inpatient and outpatient services, designed to provide end-to-end care solutions and address the full continuum of patient needs. Through its network, Ardent Health operates general hospitals, emergency departments, ambulatory surgery centers, urgent care clinics, rehabilitation and post-acute care facilities. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ardent Health Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

BRENTWOOD, Tenn., August 04, 2026--(BUSINESS WIRE)--Ardent Health, Inc. (NYSE: ARDT) ("Ardent Health" or the "Company"), a leading provider of healthcare in growing mid-sized urban communities across the U.S., today announced results for the quarter ended June 30, 2026. Second Quarter 2026 Operating and Financial Summary All comparisons are versus the same prior year period. See the footnotes to the Operating Statistics table of this press release for definitions of the metrics below and a full list of key operating metrics. Financial Performance Summary Second quarter 2026 year-over-year growth rates were negatively impacted by the Company recording two quarters of financial benefit from the New Mexico state directed payment program in the prior year quarter as a result of delayed renewal of the program in 2025. For the second quarter of 2026: Total revenue declined 1.4% year-over-year to $1,622 million driven primarily by a 3.9% decrease in net patient service revenue per adjusted admission. This decrease was largely attributable to recording two quarters of the New Mexico state directed payment program benefit in the prior year quarter. Net income attributable to Ardent Health was $17 million, or $0.12 per diluted share, compared to net income attributable to Ardent Health of $73 million, or $0.52 per diluted share, for the second quarter of 2025. Adjusted EBITDA decreased 32.3% year-over-year to $115 million. Operating Performance Summary The following table provides a summary of certain key operating metrics for the second quarter of 2026 compared to the same prior year period. See the footnotes to the Operating Statistics table of this press release for definitions of the metrics below and a full list of key operating metrics. Admissions for the second quarter of 2026 decreased 1.0% year-over-year. Surgeries for the second quarter of 2026 decreased 2.9% year-over-year. The decrease in total surgeries reflected declines in outpatient and inpatient surgery volume of 0.9% and 7.5%, respectively. Balance Sheet, Cash Flow & Liquidity Update As of June 30, 2026, the Company had total cash and cash equivalents of $724 million and total debt of $1.1 billion. The Company’s net leverage ratio was 0.8x and its lease-adjusted net leverage ratio1 was 2.6x as of June 30, 2026. At the end of the second quarter, the Company’s available liquidity was $992 million. During the second quarter of 2026, net cash provided by operating activities was $197 million, or an increase of 67% compared to $117 million provided by operating activities in the same prior year period. During the second quarter of 2026, the Company repurchased 1.4 million shares of its common stock for $13 million. The Company had $34 million remaining under its repurchase authorization as of June 30, 2026. 2026 Financial Guidance The Company is reaffirming its full-year 2026 revenue and adjusted EBITDA financial guidance. All guidance is current as of the time provided and is subject to change. The Company’s guidance is based on current plans and expectations and is subject to a number of known and unknown uncertainties and risks, including those set forth below under the heading "Forward-Looking Statements." The Company does not forecast the impact of items such as, but not limited to, losses (gains) on sales of facilities, losses on retirement of debt, legal claim costs (benefits) and impairments of long-lived assets. The Company does not believe that it can forecast these items with sufficient accuracy because of the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of the Company’s control or cannot be reasonably predicted. Second Quarter 2026 Results Conference Call The Company will host a conference call to discuss its second quarter financial results on August 5, 2026, at 10:00 a.m. Eastern Time. A webcast of the conference call will be available in the Investor Relations section of the Company’s corporate website at https://ir.ardenthealth.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download, and install any necessary audio software. About Ardent Health Ardent Health (NYSE: ARDT) is a leading provider of healthcare in growing mid-sized urban communities across the U.S. The Company delivers care through its subsidiaries, which include 30 acute care hospitals and more than 280 sites of care with over 1,800 employed and affiliated providers across six states. Anchored by a shared operating model and a commitment to investing in innovative services and technologies that improve quality, access and experience, Ardent is focused on delivering strong clinical outcomes and improving the health of the patients and communities it serves. Supplemental Non-GAAP Financial Information We have included certain non-GAAP financial measures in this press release, including Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted EBITDAR. We define these terms as follows: Adjusted EBITDA and Adjusted EBITDA Margin. Adjusted EBITDA is defined as net income plus (i) provision for income taxes, (ii) interest expense and (iii) depreciation and amortization expense (or EBITDA), as adjusted to deduct noncontrolling interest earnings, and excludes the effects of other non-operating losses; recoveries from the cybersecurity incident in November 2023 (the "Cybersecurity Incident"), net of incremental information technology and litigation costs; certain legal matters and related costs; other expenses, including development, restructuring and enterprise system conversion costs; equity-based compensation expense; and loss (income) from disposed operations. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenue.Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP performance measures used by our management and external users of our financial statements, such as investors, analysts, lenders, rating agencies and other interested parties, to evaluate companies in our industry. Adjusted EBITDA and Adjusted EBITDA margin are performance measures that are not prepared in accordance with GAAP and are presented in this press release because our management considers them important analytical indicators commonly used within the healthcare industry to evaluate financial performance and allocate resources. Further, our management believes that Adjusted EBITDA and Adjusted EBITDA margin are useful financial metrics to assess our operating performance from period to period by excluding certain material non-cash items and unusual or non-recurring items that we do not expect to continue in the future and certain other adjustments we believe are not reflective of our ongoing operations and our performance.Because not all companies use identical calculations, our presentation of Adjusted EBITDA and Adjusted EBITDA margin may not be comparable to other similarly titled measures of other companies. While we believe these are useful supplemental performance measures for investors and other users of our financial information, you should not consider Adjusted EBITDA and Adjusted EBITDA margin in isolation or as a substitute for net income or any other items calculated in accordance with GAAP. Adjusted EBITDA and Adjusted EBITDA margin have inherent material limitations as performance measures, because they add back certain expenses to net income, resulting in those expenses not being taken into account in the performance measures. We have borrowed money, so interest expense is a necessary element of our costs. Because we have material capital and intangible assets, depreciation and amortization expense are necessary elements of our costs. Likewise, the payment of taxes is a necessary element of our operations. Because Adjusted EBITDA and Adjusted EBITDA margin exclude these and other items, they have material limitations as measures of our performance. Adjusted EBITDAR. Adjusted EBITDAR is defined as Adjusted EBITDA further adjusted to add back rent expense payable to real estate investment trusts ("REITs"), which consists of rent expense pursuant to the master lease agreement (the "Ventas Master Lease") with Ventas, Inc. ("Ventas"), lease agreements with Ventas for 18 medical office buildings and a lease arrangement with Medical Properties Trust, Inc. ("MPT") for the Hackensack Meridian Mountainside Medical Center.Adjusted EBITDAR is a commonly used non-GAAP valuation measure used by our management, research analysts, investors and other interested parties to evaluate and compare the enterprise value of different companies in our industry. Adjusted EBITDAR excludes: (1) certain material noncash items and unusual or non-recurring items that we do not expect to continue in the future; (2) certain other adjustments that do not impact our enterprise value; and (3) rent expense payable to REITs. We operate 30 acute care hospitals, 12 of which we lease from two REITs, Ventas and MPT, pursuant to long-term lease agreements. Additionally, we lease 18 medical office buildings from Ventas pursuant to lease agreements with initial terms of 12 years and eight options to renew for additional five-year terms. Our management views the long-term lease agreements with Ventas and MPT, as more like financing arrangements than true operating leases, with the rent payable to such REITs being similar to interest expense. As a result, our capital structure is different than many of our competitors, especially those whose real estate portfolio is predominately owned and not leased. Excluding the rent payable to such REITs allows investors to compare our enterprise value to those of other healthcare companies without regard to differences in capital structures, leasing arrangements and geographic markets, which can vary significantly among companies. Our management also uses Adjusted EBITDAR as one measure in determining the value of prospective acquisitions or divestitures. Finally, financial covenants in certain of our lease agreements, including the Ventas Master Lease, use Adjusted EBITDAR as a measure of compliance. Adjusted EBITDAR does not reflect our cash requirements for leasing commitments. As such, our presentation of Adjusted EBITDAR should not be construed as a performance or liquidity measure.Because not all companies use identical calculations, our presentation of Adjusted EBITDAR may not be comparable to other similarly titled measures of other companies. While we believe this is a useful supplemental valuation measure for investors and other users of our financial information, you should not consider Adjusted EBITDAR in isolation or as a substitute for net income or any other items calculated in accordance with GAAP. Adjusted EBITDAR has inherent material limitations as a valuation measure, because it adds back certain expenses to net income, resulting in those expenses not being taken into account in the valuation measure. The payment of rent is a necessary element of our valuation. Because Adjusted EBITDAR excludes this and other items, it has material limitations as a measure of our valuation. Forward-Looking Statements This press release may contain "forward-looking statements," as that term is defined in the U.S. federal securities laws. These forward-looking statements include, but are not limited to, statements other than statements of historical facts, including, among others, statements relating to our future financial performance, our business prospects and strategy, anticipated financial position, liquidity and capital needs, the industry in which we operate and other similar matters. Words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "could," "would," "will," "may," "can," "continue," "potential," "should" and the negative of these terms or other comparable terminology often identify forward-looking statements. When reviewing this press release, you should keep in mind the substantive risk and uncertainties that could impact our business. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties could cause actual results to differ materially from those projected in forward-looking statements contained in this press release or implied by past results and trends. Our historical results are not necessarily indicative of the results that may be expected for any period in the future. Factors, risks, and uncertainties that could cause actual outcomes and results to be materially different from those contemplated include, among others: (1) general economic and business conditions, both nationally and in the regions in which we operate, including the impact of challenging macroeconomic conditions and inflationary pressures, current geopolitical instability, and impacts from the imposition of, or changes in, tariffs, as well as the potential impact on us of uncertain political, financial, credit and capital conditions; (2) possible reductions or other changes in Medicare, Medicaid and other state programs, including Medicaid supplemental payment programs, Medicaid waiver programs or state directed payments, that could have an adverse effect on our revenues and business; (3) reduction in the reimbursement rates paid by commercial payors, increased reimbursement denials or payment delays by commercial payors, our inability to retain and negotiate favorable contracts with private third party payors, or an increasing volume of uninsured or underinsured patients; (4) effects of changes in healthcare policy or legislation, including the One Big Beautiful Bill Act (the "OBBBA") and any other reforms that have or may be undertaken by the current presidential administration, and legal and regulatory restrictions on our hospitals that have physician owners; (5) the ability to achieve operating and financial targets, develop and execute mitigation plans to offset to the extent possible impacts from the OBBBA, the expiration of temporary enhanced subsidies for individuals eligible to purchase insurance coverage through health insurance marketplaces and imposition of tariffs, attain expected levels of patient volumes and revenues, and control the costs of providing services; (6) security threats, catastrophic events and other disruptions affecting our, our service providers’ or our joint venture ("JV") partners’ information technology and related systems, which have adversely affected, and could in the future adversely affect, our relationships with patients and business partners and subject us to legal claims and liabilities, reputational harm and business disruption and adversely affect our financial condition; (7) the highly competitive nature of the healthcare industry and continued industry trends towards clinical transparency and value-based purchasing may impact our competitive position; (8) inability to recruit and retain quality physicians and increased labor costs resulting from increased competition for staffing or a continued or increased shortage of experienced nurses, as well as the loss of key personnel, including key members of our management team; (9) changes to physician utilization practices and treatment methodologies and other factors outside our control that impact demand for medical services and may reduce our revenues and ability to grow profitability; (10) continued industry trends toward value-based purchasing, third party payor consolidation and care coordination among healthcare providers; (11) inability to successfully complete acquisitions or strategic JVs or inability to realize all of the anticipated benefits; (12) liabilities because of professional liability and other claims brought against our hospitals, physician practices, outpatient facilities or other business operations; (13) exposure to certain risks and uncertainties by the JVs through which we conduct a significant portion of our operations, including anticipated synergies of past acquisitions and the risk that transactions may not receive necessary government clearances; (14) failure to obtain drugs and medical supplies at favorable prices or sufficient volumes; (15) operational, legal and financial risks associated with outsourcing functions to third parties; (16) our facilities are heavily concentrated in Texas and Oklahoma, which makes us sensitive to regulatory, economic and competitive conditions and changes in those states; (17) negative impact of severe weather, climate change, and other factors beyond our control, which could restrict patient access to care or cause one or more facilities to close temporarily or permanently; (18) risks related to the Master Lease with Ventas ("Ventas Master Lease") and its restrictions and limitations on our business; (19) the impact of our significant indebtedness and the ability to refinance such indebtedness on acceptable terms; (20) our failure to comply with complex laws and regulations applicable to the healthcare industry or to adjust our operations in response to changing laws and regulations; (21) the impact of governmental claims or governmental investigations, payor audits and litigation brought against our hospitals, physician practices, outpatient facilities or other business operations; (22) actual or perceived failures to comply with applicable data protection, privacy and security laws, regulations, standards and other requirements; (23) the impact of a deterioration of public health conditions associated with a future pandemic, epidemic or outbreak of infectious disease; (24) actual or perceived failures to comply with applicable data protection, privacy and security laws, regulations, standards and other requirements could adversely affect our business, results of operations and financial condition; (25) inability to or delay in building, acquiring, selling, renovating or expanding our healthcare facilities; (26) failure to comply with federal and state laws relating to Medicare and Medicaid enrollment, permit, licensing and accreditation requirements; (27) the results of our efforts to use technology, including artificial intelligence ("AI") and machine learning, to drive efficiencies, better outcomes and an enhanced patient experience; (28) our status as a controlled company; (29) conflicts of interest between our controlling stockholder and other holders of our common stock; and (30) other risk factors described in our filings with the Securities and Exchange Commission. Many of the important factors that will determine these results are beyond our ability to control or predict. You are cautioned not to put undue reliance on any forward-looking statements, which speak only as of the date of this press release. Except as otherwise required by law, we do not assume any obligation to publicly update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events. All references to "Company," "Ardent Health," "Ardent," "we," "our" and "us" as used throughout this release refer to Ardent Health, Inc. and its affiliates, unless stated otherwise or indicated by context. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804307760/en/ Contacts Investor Contact: Dave Styblo, [email protected] (615) 296-3016 Media Contact: Rebecca [email protected] (615) 296-3000

Ardent Health, Inc. (ARDT) came out with quarterly earnings of $0.12 per share, missing the Zacks Consensus Estimate of $0.17 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -29.41%. A quarter ago, it was expected that this company would post earnings of $0.18 per share when it actually produced earnings of $0.28, delivering a surprise of +55.56%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Ardent Health, Inc., which belongs to the Zacks Medical Services industry, posted revenues of $1.62 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.96%. This compares to year-ago revenues of $1.65 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Ardent Health, Inc. shares have added about 21.7% since the beginning of the year versus the S&P 500's gain of 11%. While Ardent Health, Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Ardent Health, Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.24 on $1.63 billion in revenues for the coming quarter and $1.06 on $6.46 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Services is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. GoodRx Holdings, Inc. (GDRX), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This company is expected to post quarterly earnings of $0.08 per share in its upcoming report, which represents a year-over-year change of -11.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. GoodRx Holdings, Inc.'s revenues are expected to be $192.86 million, down 5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ardent Health, Inc. (ARDT) : Free Stock Analysis Report GoodRx Holdings, Inc. (GDRX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Labcorp Holdings (LH) came out with quarterly earnings of $4.99 per share, beating the Zacks Consensus Estimate of $4.79 per share. This compares to earnings of $4.35 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.18%. A quarter ago, it was expected that this medical laboratory operator would post earnings of $4.09 per share when it actually produced earnings of $4.25, delivering a surprise of +3.91%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Labcorp, which belongs to the Zacks Medical Services industry, posted revenues of $3.73 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.36%. This compares to year-ago revenues of $3.53 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Labcorp shares have added about 22.4% since the beginning of the year versus the S&P 500's gain of 6.9%. While Labcorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Labcorp was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.59 on $3.76 billion in revenues for the coming quarter and $18.00 on $14.71 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Services is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Ardent Health, Inc. (ARDT), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of -67.3%. The consensus EPS estimate for the quarter has been revised 2.1% higher over the last 30 days to the current level. Ardent Health, Inc.'s revenues are expected to be $1.59 billion, down 3.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Labcorp Holdings Inc. (LH) : Free Stock Analysis Report Ardent Health, Inc. (ARDT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Icon PLC (ICLR) came out with quarterly earnings of $2.56 per share, missing the Zacks Consensus Estimate of $2.57 per share. This compares to earnings of $3.26 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -0.39%. A quarter ago, it was expected that this contract research organization would post earnings of $2.46 per share when it actually produced earnings of $2.5, delivering a surprise of +1.63%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Icon PLC, which belongs to the Zacks Medical Services industry, posted revenues of $2.06 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.48%. This compares to year-ago revenues of $2.02 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Icon PLC shares have lost about 1.1% since the beginning of the year versus the S&P 500's gain of 8.5%. While Icon PLC has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Icon PLC was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.70 on $1.99 billion in revenues for the coming quarter and $10.63 on $8.01 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Services is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Ardent Health, Inc. (ARDT), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of -67.3%. The consensus EPS estimate for the quarter has been revised 2.1% higher over the last 30 days to the current level. Ardent Health, Inc.'s revenues are expected to be $1.59 billion, down 3.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ICON PLC (ICLR) : Free Stock Analysis Report Ardent Health, Inc. (ARDT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Charles River Laboratories (CRL) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 5. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This medical research equipment and services provider is expected to post quarterly earnings of $2.72 per share in its upcoming report, which represents a year-over-year change of -12.8%. Revenues are expected to be $970.77 million, down 6% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.72% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Charles River, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.43%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination indicates that Charles River will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Charles River would post earnings of $1.96 per share when it actually produced earnings of $2.06, delivering a surprise of +5.10%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Charles River appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Ardent Health, Inc. (ARDT), another stock in the Zacks Medical Services industry, is expected to report earnings per share of $0.17 for the quarter ended June 2026. This estimate points to a year-over-year change of -67.3%. Revenues for the quarter are expected to be $1.59 billion, down 3.3% from the year-ago quarter. The consensus EPS estimate for Ardent Health, Inc. has been revised 2.1% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +5.00%. This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Ardent Health, Inc. will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Charles River Laboratories International, Inc. (CRL) : Free Stock Analysis Report Ardent Health, Inc. (ARDT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research