CYH

A month has gone by since the last earnings report for Acadia Healthcare (ACHC). Shares have added about 11.8% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Acadia Healthcare due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Acadia Healthcare Company, Inc. before we dive into how investors and analysts have reacted as of late. Acadia Healthcare Q2 Earnings Beat Estimates on Higher Admissions Acadia Healthcare reported adjusted second-quarter earnings of 38 cents per share, which beat the Zacks Consensus Estimate by 15.2%. However, the bottom line declined 54% year over year. Total revenues declined 0.4% year over year to $865.8 million. The top line surpassed the Zacks Consensus Estimate by 2.5%. The better-than-expected quarterly results reflected strong patient demand, as admissions increased and same-facility patient days improved. Residential Treatment Facilities also delivered double-digit revenue growth. However, lower revenue per patient day, a shorter average length of stay and higher operating expenses weighed on profitability. Acute Inpatient Psychiatric Facilities revenues totaled $494.6 million, which remained flat year over year but beat the Zacks Consensus Estimate by 4.3%. Specialty Treatment Facilities' revenues declined 8.4% year over year to $133.5 million. Comprehensive Treatment Facilities revenues amounted to $141.2 million, flat year over year. Residential Treatment Facilities revenues increased 11.6% to $96.5 million. Same-facility revenues of $856.4 million edged down 0.1% year over year but beat the Zacks Consensus Estimate by 3.6%. Patient days increased 0.8%, while revenue per patient day declined 0.8%. Admissions grew 6.4% year over year. The average length of stay decreased 5.3% year over year and missed the consensus estimate by 3.2%. Overall facility patient days remained flat year over year, while admissions increased 6.3%. Revenue per patient day declined 0.4% year over year, and the average length of stay decreased 5.9%. Total operating expenses increased 7.3% year over year to $727.6 million, primarily due to higher salaries, wages and benefits, professional fees, supplies and other operating expenses. Total adjusted EBITDA declined 26% year over year to $149.2 million. During the quarter, the company added 240 licensed beds from newly constructed facilities. Acadia Healthcare exited the second quarter with cash and cash equivalents of $171.3 million, which increased from the 2025-end level of $133.2 million. It had remaining borrowing capacity of $669.8 million under its $1 billion revolving credit facility at the end of the second quarter. Total assets of $5.5 billion increased 0.3% from the 2025-end figure. Long-term debt amounted to $2.4 billion, which declined from $2.5 billion as of Dec. 31, 2025. The current portion of long-term debt was $32.5 million. Total equity of $2 billion increased from the 2025-end level of $1.9 billion. Net cash provided by operating activities totaled $223.6 million in the first six months of 2026 compared with $145.0 million in the prior-year period. The company did not buy back shares in the second quarter of 2026. Acadia Healthcare updated its 2026 guidance. The company now expects revenues to be in the range of $3.40-$3.45 billion compared with the previous guidance of $3.37-$3.45 billion. Adjusted EBITDA is now projected to be in the band of $590-$615 million compared with the previous outlook of $580-$615 million. Adjusted EPS is now expected to be $1.45-$1.60 compared with the earlier guidance of $1.35-$1.60. Management also raised its operating cash flow forecast to $350-$400 million from $285-$325 million. Capital expenditures are now expected to be $235-$255 million, down from the prior guidance of $255-$280 million. Management previously guided for the addition of 400-600 licensed beds in 2026. It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -7.71% due to these changes. Currently, Acadia Healthcare has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of C on the value side, putting it in the middle 20% for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Acadia Healthcare has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Acadia Healthcare belongs to the Zacks Medical - Hospital industry. Another stock from the same industry, Community Health Systems (CYH), has gained 7.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Community Health Systems reported revenues of $2.83 billion in the last reported quarter, representing a year-over-year change of -9.8%. EPS of -$0.19 for the same period compares with -$0.05 a year ago. Community Health Systems is expected to post a loss of $0.22 per share for the current quarter, representing a year-over-year change of -117.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -116.7%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Community Health Systems. Also, the stock has a VGM Score of D. 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 Acadia Healthcare Company, Inc. (ACHC) : Free Stock Analysis Report Community Health Systems, Inc. (CYH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for Universal Health Services (UHS). Shares have added about 5.7% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Universal Health Services due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. UHS Beats Q2 Earnings and Revenue Estimates Despite Cost Pressures Universal Health Services reported second-quarter 2026 adjusted earnings per share (EPS) of $5.98, which beat the Zacks Consensus Estimate by 5.7%. The bottom line rose 10.1% year over year. Net revenues of $4.6 billion improved 8.3% year over year. The top line beat the consensus mark by 2.6%. The strong quarterly results were driven by healthy revenue growth across both the Acute Care and Behavioral Health segments. Higher adjusted admissions, increased patient days and improved unit revenues on a same-facility basis supported performance in both businesses. However, the upside was partly offset by elevated operating costs. Adjusted EBITDA, net of NCI, rose 5.4% year over year to $677.9 million, and beat our estimate of $647.5 million. Total operating costs were $4.1 billion, which escalated 8.9% year over year due to higher salaries, wages and benefits, supplies expense, and other operating expenses. The metric came slightly higher than our estimate of $4 billion. Acute Care Hospital Services On a same-facility basis, UHS' acute care business delivered solid volume and higher unit revenues in the second quarter of 2026. Adjusted admissions (adjusted for outpatient activity) increased 2.9% year over year, while adjusted patient days grew 3.1%. Net revenue per adjusted admission increased 3.0%, and net revenue per adjusted patient day rose 2.8%. Net revenues from Universal Health's acute care services increased 8.2% on a same-facility basis. Behavioral Health Care Services Behavioral health care also posted solid same-facility revenue growth, supported by modest volume gains and higher unit revenues. Adjusted admissions inched up 0.5% on a same-facility basis, while adjusted patient days increased 1.4%. Net revenue per adjusted admission improved 7.1%, and net revenue per adjusted patient day increased 6.1%. Net revenues from UHS' behavioral health care services grew 7.4% on a same-facility basis. Universal Health exited the second quarter with cash and cash equivalents of $138.8 million, which improved from the 2025-end level of $137.8 million. As part of its $1.5 billion revolving credit facility, net of outstanding borrowings and letters of credit, UHS had approximately $1.3 billion of available borrowing capacity at the end of the second quarter. Total assets of $15.9 billion increased from the 2025-end figure of $15.5 billion. Long-term debt amounted to $4.1 billion, which increased from $4 billion as of 2025-end. Current maturities of long-term debt totaled $771.9 million. Total equity of $7.6 billion advanced from the 2025-end figure of $7.3 billion. UHS generated operating cash flow of $844.9 million in the first six months of 2026, down 7.1% from the year-ago period’s level. Universal Health repurchased shares worth approximately $320.3 million during the second quarter of 2026. The remaining authorization under its share repurchase program was approximately $977.6 million as of June 30, 2026. Management now expects net revenues of $18.501-$18.762 billion compared with its earlier guidance of $18.417-$18.789 billion. The midpoint of the revised guidance implies 7.3% growth from the 2025 figure of $17.365 billion. Adjusted EBITDA, net of NCI, is now projected to be in the range of $2.610-$2.717 billion, down from the previous forecast of $2.641-$2.789 billion. The midpoint of the revised range indicates 2.8% growth from the 2025 level of $2.59 billion. Adjusted EPS is now expected to be in the band of $22.28-$23.65 compared with the prior outlook of $22.64-$24.52. The midpoint suggests 5.6% growth from the 2025 figure of $21.74. Capital expenditures are still expected to be between $950 million and $1.1 billion, on par with the previous guidance. In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -5.42% due to these changes. Currently, Universal Health Services has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Universal Health Services has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Universal Health Services belongs to the Zacks Medical - Hospital industry. Another stock from the same industry, Community Health Systems (CYH), has gained 6.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Community Health Systems reported revenues of $2.83 billion in the last reported quarter, representing a year-over-year change of -9.8%. EPS of -$0.19 for the same period compares with -$0.05 a year ago. For the current quarter, Community Health Systems is expected to post a loss of $0.22 per share, indicating a change of -117.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -3.2% over the last 30 days. Community Health Systems has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C. 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 Universal Health Services, Inc. (UHS) : Free Stock Analysis Report Community Health Systems, Inc. (CYH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for Community Health Systems (CYH). Shares have added about 7.2% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Community Health Systems due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Community Health Systems, Inc. before we dive into how investors and analysts have reacted as of late. Community Health Q2 Loss Wider Than Expected, 2026 View Lowered Community Health reported a second-quarter 2026 net loss of 19 cents per share, missing the Zacks Consensus Estimate of a loss of 18 cents. The bottom line deteriorated significantly from a loss of 5 cents per share in the prior-year quarter. Net operating revenues declined 9.8% year over year to $2.8 billion in the quarter under review and missed the consensus estimate by 2.5%. The quarterly results were affected by hospital divestitures and lower patient days, partially offset by growth in same-store admissions. At the end of the second quarter, Community Health operated 60 hospitals, down from 70 in the year-ago period. Patient days declined 11.9% year over year, while the average length of stay remained flat. The occupancy rate improved to 52.5% from 50.8% in the prior-year quarter. Adjusted admissions fell 11.7% year over year in the quarter under review. On a same-store basis, admissions rose 1.9% from the corresponding prior-year period. As of June 30, 2026, CYH had 8,863 licensed beds, reflecting a 15.4% decline from the year-ago quarter. The reported figure missed the Zacks Consensus Estimate by 0.2%. Total operating expenses declined 7.1% year over year to $2.4 billion in the second quarter, primarily backed by lower supply costs, other operating expenses, salaries and benefits costs. The metric came below our model estimate of $2.6 billion. Net interest expense decreased 3.7% year over year to $206 million, but was higher than our estimate of $203.3 million. The company reported a net income of $104 million in the second quarter compared with $320 million in the year-ago period, reflecting a significant deterioration in profitability. Adjusted EBITDA fell 13.2% year over year to $330 million in the quarter under review due to divestments, elevated medical specialist fees and an unfavorable change in payor mix. Community Health exited the second quarter with cash and cash equivalents of $149 million, which decreased from $260 million at the 2025-end level. Total assets of $12.2 billion decreased from $13.2 billion at the 2025-end level. Long-term debt amounted to $9.6 billion, which fell from $10.4 billion at the 2025-end level. Current maturities of long-term debt amounted to $26 million. The company reported net cash used in operating activities of $209 million in the first half of 2026 against net cash provided by operating activities of $208 million in the prior-year period. The company now anticipates net operating revenues between $11.4 billion and $11.6 billion for 2026, down from the previously expected range of $11.6 billion and $12 billion. Adjusted EBITDA is now estimated to be in the range of $1.30-$1.38 billion, compared with the earlier projected range of $1.34-$1.49 billion. Community Health now expects a 2026 loss of $1.10-$1.25 per share, wider than its previous guidance of a loss of 60 cents to break-even. Depreciation and amortization expenses are now predicted to be in the range of $430-$450 million for 2026. Net cash from operating activities is now estimated to be between $300 million and $500 million in 2026. Capital expenditures are still anticipated in the range of $350-$400 million. The weighted average common shares outstanding are currently estimated at around 136 million. In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -160% due to these changes. Currently, Community Health Systems has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Community Health Systems has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. 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 Community Health Systems, Inc. (CYH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

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 attributes the Adjusted EBITDA decline to a smaller prior-period benefit from state-directed payment programs and the impact of recent divestitures. A significant increase in uninsured patient volumes, which accounted for approximately half of the 2.9% growth in adjusted admissions, created a margin headwind due to minimal related revenue. Management observed continued softness in high-acuity elective procedures, specifically in orthopedics and cardiology, which they link to consumer insecurity and inflationary pressures. Lower net revenue per adjusted admission was driven by an unfavorable shift toward medical versus surgical mix, offsetting gains from new Medicaid state-directed payment programs. Operating expenses were tightly managed, with same-store contract labor spend decreasing 5.6% and supply expenses declining 70 basis points through improved procurement via the ERP system. The company identified escalating medical specialist fees, particularly in anesthesiology and radiology, as a primary cost pressure outpacing internal forecasts. The revised full-year Adjusted EBITDA guidance of $1.3 billion-$1.375 billion assumes that first-half headwinds from payer mix and elective surgery softness will persist through the second half. Guidance methodology now incorporates a higher estimated impact from ACA plan disenrollment, projecting a $50 million-$75 million annual EBITDA headwind as former members transition to self-pay. The high end of the guidance range assumes the successful recognition of the Florida 2026 state-directed payment program, while the low end assumes no recognition by year-end. Management anticipates that the proposed Medicare OPPS rule will result in a net 5% increase in outpatient rates for 2027 after accounting for 340B repayment obligations. The company remains cautious regarding consumer confidence, citing gas prices and interest rate uncertainty as factors that may continue to delay elective healthcare spending. Management flagged a 'one-time slowdown' in cash flow due to payers increasing claim audits and record requests prior to payment, leading to higher days in accounts receivable. The company completed the divestiture of four hospitals in Arkansas for $110 million to streamline the portfolio and used proceeds to repurchase approximately $599 million in senior secured notes. Medical specialist fees increased 19% on a same-store basis, driven by higher salary subsidies for anesthesiologists necessitated by lower surgical volumes. Leverage stood at 6.7x at quarter end, with management emphasizing that the next significant debt maturity does not occur until 2029. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that while revenue impact is tracking as expected, the EBITDA impact is higher because disenrolled patients are still utilizing the ER as self-pay rather than staying out of the system. They expect the second-half impact to mirror the second quarter, with approximately $20 million in quarterly EBITDA pressure from this transition. Softness is most pronounced in orthopedics (hips and knees) and cardiology, which management views as deferrable based on economic conditions. Despite the quarterly decline, management noted that June surgery trends were positive year-over-year, providing some optimism for a potential recovery. Management highlighted that their markets have a median household income of $64,000, well below the national average, making patients more sensitive to gas prices and grocery inflation. They believe high deductibles are causing patients to delay follow-on procedures even when initial screenings and clinic visits remain steady. Kevin Hammons noted that payers are shifting from post-payment audits to pre-payment audits, which is artificially inflating accounts receivable days. The company views this as a timing issue rather than a collection risk, expecting a return to normal run rates once the new payer behavior is anniversaried.

Interested in Community Health Systems, Inc.? Here are five stocks we like better. Community Health Systems cut its full-year 2026 outlook after second-quarter results came in below expectations, citing higher uninsured volumes, weaker elective surgery demand and unfavorable payer/service mix. The company now expects net revenue of $11.4 billion to $11.6 billion and Adjusted EBITDA of $1.3 billion to $1.375 billion. Same-store revenue and admissions rose, but much of the volume growth came from uninsured visits with limited revenue, while elective procedures — especially orthopedics and some cardiac surgeries — remained soft. Management said the back half of the year may look similar to the second quarter, with ACA exchange disenrollment and self-pay pressure weighing on results. The company said costs were generally controlled, with labor managed well and contract labor down, but medical specialist fees rose sharply, led by anesthesia and radiology. Cash flow improved meaningfully from the first quarter, and the company used divestiture proceeds to repurchase debt while keeping leverage roughly flat at 6.7x. Tenet Healthcare Stock Sees Strong Gains from Acute Care Boom Community Health Systems (NYSE:CYH) reported second-quarter 2026 results below its internal expectations and reduced its full-year outlook, citing higher uninsured volumes, weaker elective surgical demand among commercially insured patients and unfavorable payer and service mix trends. Chief Executive Officer Kevin Hammons said the company continued to make progress on quality, physician experience, patient experience and employee satisfaction, but acknowledged that the operating environment remained challenging. Hammons said second-quarter Adjusted EBITDA was $330 million, down from $380 million in the prior-year period, while net revenue declined 9.8%, primarily reflecting a smaller prior-period benefit from newly approved state-directed payment programs and the impact of divestitures completed over the past 12 months. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Healthcare Stock Rides the Acute Services Phenomenon to New Highs Same-store net revenue increased 2.4% from a year earlier, and same-store adjusted admissions rose 2.9%. However, Hammons said approximately half of the volume growth came from uninsured visits with minimal related net revenue. That mix shift, along with a lower surgical versus medical mix, offset rate gains from new state-directed payment programs and resulted in a 0.5% decline in net revenue per adjusted admission. “We continue to believe that the non-ACA related payer mix and service mix challenges that we experienced in the first half reflect a temporary disruption in demand for healthcare services in our markets,” Hammons said. He added that the company was encouraged by improving volume and surgical trends exiting the quarter. → 3 Photonics Companies Making Quantum Tech Possible Is Humana’s pain HCA Healthcare’s gain? Executive Vice President and Chief Financial Officer Jason Johnson said second-quarter results fell below expectations despite “strong cost controls” and sequential improvement in overall volume trends. The company updated its 2026 guidance and now expects net revenue of $11.4 billion to $11.6 billion and Adjusted EBITDA of $1.3 billion to $1.375 billion. Johnson said the revised outlook includes benefits from new Medicaid state-directed payment programs in Georgia, Indiana and Florida, but those are more than offset by macroeconomic headwinds and disenrollment from Affordable Care Act plans following the loss of enhanced premium tax credits. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off When the company set its initial 2026 guidance in February, Johnson said it assumed a net revenue impact from health insurance exchange disenrollment of $90 million to $110 million and an Adjusted EBITDA impact of $20 million to $30 million. Through the first quarter, results tracked in line with those assumptions, but the second quarter saw a more significant decline in exchange volumes and a corresponding increase in self-pay. Johnson estimated a negative EBITDA impact of about $20 million in the second quarter and about $25 million for the first half. He said the company now expects an annual impact of $50 million to $75 million. “We do think the back half of the year looks like the second quarter,” Johnson said. Hammons said the company’s uncompensated or self-pay visits increased to just over 6% of visits, up from just under 5% in the prior year, representing roughly a 20% increase in self-pay visits. He said the increase was greater in the second quarter than in the first quarter. The company also reported continued softness in elective surgical procedures. Same-store surgeries declined 0.1%, including a 3.8% decline in inpatient surgeries. Hammons said the weakness was most notable in more elective procedures, including orthopedics such as hip, knee and shoulder replacements. He also noted softness in cardiac surgeries, which he said can be deferred when patients delay cardiology visits or screenings. Hammons said outpatient surgery increased, and surgery centers were improving, but the growth was in lower-acuity procedures rather than the orthopedic and cardiac procedures the company had expected. He said clinic visits and orthopedic MRIs continued to increase at a significant rate, suggesting patients still need procedures but are delaying follow-on care. In response to an analyst question, Hammons said June was the company’s best month of the second quarter for surgeries, with positive year-over-year improvement in that month despite slightly negative surgery volumes for the full quarter. Johnson said same-store operating expense per adjusted admission increased 0.3%. Labor costs were “well managed,” with same-store average hourly rates up approximately 1.1% year over year and same-store contract labor spending down 5.6%. Salaries and benefits expense as a percentage of net revenue increased 100 basis points on a same-store basis, primarily due to increased physician employment. Supplies expense declined 70 basis points to 14.2% of net revenue on a same-store basis, reflecting lower elective surgical volumes and procurement improvements under the company’s ERP system. Medical specialist fees increased approximately 19% year over year on a same-store basis and represented 5.6% of net revenue, up from 4.8% in the prior-year period. Johnson said the increase exceeded the company’s forecast for 5% to 8% growth, with anesthesiology and radiology the largest pressure points. Johnson said anesthesia costs were affected by lower surgical volumes because anesthesiologists generate less revenue when volumes fall but are guaranteed minimum payments under contracts, requiring subsidies from the company. Radiology fees increased primarily because of higher imaging volumes. Cash flow from operations was $87 million in the second quarter, or $143 million excluding cash taxes paid out of divestiture proceeds. Johnson said that was a significant improvement from the $297 million use of cash in the first quarter, as several first-quarter items improved or reversed, including Medicaid state-directed payment cash flows, lower interest paid and the absence of an annual performance bonus payment. During the quarter, Community Health Systems completed a tender offer using proceeds from recent divestitures to repurchase approximately $368 million of its 4.75% senior secured notes due 2031 and $231 million of its 10.875% senior secured notes due 2032. The company’s leverage at quarter-end was 6.7 times, compared with 6.6 times at year-end 2025. Johnson said the company had no amounts drawn on its ABL facility, and its next significant maturity is in 2029. The company also completed the previously announced divestiture of four hospitals in Arkansas for $110 million in cash. It acquired majority ownership stakes in Surgical Institute of Alabama in Birmingham and South Anchorage Surgery Center in Anchorage, Alaska. Johnson said those acquisitions are strengthening positions in core markets and are meeting operating and financial expectations so far. Hammons attributed some elective procedure weakness to consumer insecurity tied to inflationary pressure, gas prices and geopolitical instability. He said Community Health Systems’ markets have a median household income of about $64,000, below the national average of $81,000, making higher costs for gas, groceries and other necessities more impactful on healthcare decisions. Hammons also said payers have slowed payments by auditing more claims and requesting additional records before payment, rather than after payment as in the past. He said that is increasing accounts receivable days but characterized it as a timing issue rather than a collection problem. “We don’t believe it’s necessarily a collection issue. It’s just a timing issue,” Hammons said. Despite the revised outlook, Hammons said the company’s quality initiatives remain a priority. He cited improved Leapfrog safety grades and CMS star ratings discussed on the prior quarter’s call, including 12 hospitals achieving a Leapfrog A grade and approximately 70% receiving A or B grades. He also highlighted Lutheran Hospital in Fort Wayne, Indiana, receiving the American College of Cardiology’s HeartCARE Center National Distinction of Excellence. Community Health Systems, Inc (NYSE: CYH) is one of the largest publicly traded hospital operators in the United States. Headquartered in Franklin, Tennessee, the company owns, leases and manages general acute care hospitals and outpatient facilities, primarily in non-urban and mid-market communities. CHS is focused on delivering locally accessible healthcare services through its network of affiliated hospitals, clinics and post-acute providers. The company's core offerings include inpatient medical and surgical care, emergency services, critical care, diagnostic imaging and laboratory testing. 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 "Community Health Systems Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Adjusted EBITDA: $330 million, down from $380 million in the prior year period. Net Revenue Decline: 9.8% decline in net revenue. Same-Store Net Revenue Increase: 2.4% year-over-year. Same-Store Adjusted Admissions Increase: 2.9% year-over-year. Net Revenue per Adjusted Admission: Declined 0.5% for the quarter. Adjusted EBITDA Margin: 11.7%, compared to 12.1% in the prior year period. Cash Flows from Operations: $87 million for the second quarter, or $143 million when adjusted. Leverage Ratio: 6.7 times at quarter end. Net Revenue Guidance for 2026: $11.4 to $11.6 billion. Adjusted EBITDA Guidance for 2026: $1.3 to $1.375 billion. Warning! GuruFocus has detected 6 Warning Signs with CYH. Is CYH fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Community Health Systems Inc (NYSE:CYH) reported progress in improving quality, physician experience, patient experience, and employee satisfaction, with several hospitals receiving high safety grades and national recognitions. Same-store net revenue increased by 2.4% year-over-year, and same-store adjusted admissions rose by 2.9%, indicating some growth in patient volume. The company successfully managed labor costs, with a modest increase in average hourly rates and a reduction in contract labor spend. Cash flows from operations improved significantly in the second quarter, with $143 million when adjusted for cash taxes paid out of divestiture proceeds. Community Health Systems Inc (NYSE:CYH) completed strategic acquisitions in core markets, strengthening its market position and meeting expectations for operating and financial performance. Adjusted EBITDA for the second quarter was $330 million, down from $380 million in the prior year, reflecting a 9.8% decline in net revenue. The company faced an unexpected increase in uninsured volumes and continued softness in demand for elective surgical procedures, impacting revenue negatively. Service and payer mix challenges persisted, with a decline in net revenue per adjusted admission due to a higher proportion of uninsured visits. Uncompensated care as a percentage of revenue increased significantly, with a notable rise in uninsured patient visits. The company revised its full-year financial guidance downward, citing macroeconomic factors, disenrollment from Affordable Care Act plans, and continued softness in elective surgery volumes. Q: What gives you confidence that the EPTC headwind doesn't worsen through the balance of the year, given that 4Q is typically your highest margin quarter? A: Jason Johnson, CFO, explained that the company initially estimated a net revenue impact from HICS disenrollment between $90 million and $110 million. The experience in the first quarter was in line with these assumptions, but the second quarter saw a more significant decline. The company expects the back half of the year to mirror the second quarter, with a similar impact on EBITDA. Q: Can you help bridge the guidance for the back half of the year and any moving pieces we need to factor into our models for Q3 and Q4? A: Jason Johnson, CFO, noted that the company reduced annual guidance by $60 million to $70 million due to higher estimated HICS impact. They also factored in benefits from new Medicaid state-directed payment programs in Georgia, Indiana, and Florida. The guidance assumes a similar impact in the second half as experienced in the first half. Q: What are the challenges you're facing on the cash flow side, and how are you addressing them? A: Kevin Hammons, CEO, mentioned that the slowdown in payments by payers, who are auditing more claims before payment, is causing AR to grow. This is a timing issue rather than a collection issue, and once they anniversary this, they expect to return to a normal run rate. Q: Can you elaborate on the surgical volumes and the softness in elective procedures? A: Kevin Hammons, CEO, explained that the procedural softness is trending towards more elective procedures, such as orthopedics and cardiac surgeries. The decline is more significant in inpatient surgeries, while outpatient surgery centers are picking up lower acuity surgeries. Economic decisions are causing patients to delay follow-on procedures. Q: How are you addressing the increase in medical specialist fees, and what impact does it have on your financials? A: Jason Johnson, CFO, stated that anesthesia is the most significant component, with income guarantees leading to subsidies when surgical volumes are down. The company is in-sourcing certain specialties to offset costs, but the impact is still outpacing expectations. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

FRANKLIN, Tenn., July 22, 2026--(BUSINESS WIRE)--Community Health Systems, Inc. (NYSE: CYH) (the "Company") today announced financial and operating results for the three and six months ended June 30, 2026. The following highlights the financial and operating results for the three months ended June 30, 2026. Net operating revenues totaled $2.825 billion. Net income attributable to Community Health Systems, Inc. stockholders was $70 million, or $0.51 per share (diluted), compared to $282 million, or $2.09 per share (diluted), for the same period in 2025. Excluding the adjusting items as presented in the table in footnote (e) on page 15, net loss attributable to Community Health Systems, Inc. stockholders was $(0.19) per share (diluted), compared to $(0.05) per share (diluted) for the same period in 2025. Adjusted EBITDA was $330 million. Net cash provided by operating activities was $87 million for both the three months ended June 30, 2026 and 2025. On a same-store basis, admissions increased 1.9 percent and adjusted admissions increased 2.9 percent, compared to the same period in 2025. Used the proceeds from recent divestitures to repurchase via a tender offer approximately $368 million principal amount of the Company’s outstanding 4.750% Senior Secured Notes due 2031 and approximately $231 million principal amount of the Company’s outstanding 10.875% Senior Secured Notes due 2032 and to pay related fees and expenses. Commenting on the results, Kevin J. Hammons, chief executive officer of Community Health Systems, Inc., said, "Our dedicated team is making measurable progress across top priorities that include clinical quality, patient and physician experience and employee satisfaction, while also investing in initiatives designed to fuel future growth. We are confident in our ability to deliver long-term value by managing the factors within our control and successfully navigating the dynamic macroeconomic environment." Three Months Ended June 30, 2026 Net operating revenues for the three months ended June 30, 2026, totaled $2.825 billion, a 9.8 percent decrease compared to $3.133 billion for the same period in 2025. On a same-store basis, net operating revenues increased 2.4 percent for the three months ended June 30, 2026, compared to the same period in 2025. Net operating revenues for the three months ended June 30, 2026, reflect an 11.4 percent decrease in admissions and an 11.7 percent decrease in adjusted admissions, compared to the same period in 2025. On a same-store basis, admissions increased 1.9 percent and adjusted admissions increased 2.9 percent for the three months ended June 30, 2026, compared to the same period in 2025. Net income attributable to Community Health Systems, Inc. stockholders was $70 million, or $0.51 per share (diluted), for the three months ended June 30, 2026, compared to $282 million, or $2.09 per share (diluted), for the same period in 2025. Excluding the adjusting items as presented in the table in footnote (e) on page 15, net loss attributable to Community Health Systems, Inc. stockholders was $(0.19) per share (diluted) for the three months ended June 30, 2026, compared to $(0.05) per share (diluted) for the same period in 2025. Adjusted EBITDA for the three months ended June 30, 2026, was $330 million compared to $380 million for the same period in 2025. Net income attributable to Community Health Systems, Inc. stockholders for the three months ended June 30, 2026, decreased when compared to the same period in 2025, primarily due to a period-over-period change in loss (gain) from early extinguishment of debt, a period-over-period change in impairment and (gain) loss on sale of businesses and the factors that contributed to a decrease in Adjusted EBITDA as noted below, partially offset by a decrease in the provision for income taxes and interest expense. The decrease in Adjusted EBITDA for the three months ended June 30, 2026, compared to the same period in 2025, is primarily attributable to divestitures, an unfavorable change in payor mix and higher medical specialist fees, partially offset by increased volumes and reimbursement rates, a higher net benefit from supplemental reimbursement programs, and lower contract labor and professional liability expenses. Six Months Ended June 30, 2026 Net operating revenues for the six months ended June 30, 2026, totaled $5.790 billion, an 8.0 percent decrease compared to $6.292 billion for the same period in 2025. On a same-store basis, net operating revenues increased 2.5 percent for the six months ended June 30, 2026, compared to the same period in 2025. Net operating revenues for the six months ended June 30, 2026, reflect an 11.1 percent decrease in both admissions and adjusted admissions, compared to the same period in 2025. On a same-store basis, admissions were flat and adjusted admissions increased 1.0 percent for the six months ended June 30, 2026, compared to the same period in 2025. Net income attributable to Community Health Systems, Inc. stockholders was $12 million, or $0.09 per share (diluted), for the six months ended June 30, 2026, compared to $269 million, or $2.01 per share (diluted), for the same period in 2025. Excluding the adjusting items as presented in the table in footnote (e) on page 15, net loss attributable to Community Health Systems, Inc. stockholders was $(0.67) per share (diluted) for the six months ended June 30, 2026, compared to $(0.08) per share (diluted) for the same period in 2025. Adjusted EBITDA for the six months ended June 30, 2026, was $638 million compared to $756 million for the same period in 2025. Net income attributable to Community Health Systems, Inc. stockholders for the six months ended June 30, 2026, decreased when compared to the same period in 2025, primarily due to a period-over-period change in loss (gain) from early extinguishment of debt, an increase in the provision for income taxes and the factors that contributed to a decrease in Adjusted EBITDA as noted below, partially offset by lower interest expense. The decrease in Adjusted EBITDA for the six months ended June 30, 2026, compared to the same period in 2025, is primarily attributable to divestitures, an unfavorable change in payor mix and higher medical specialist fees, partially offset by increased reimbursement rates, a higher net benefit from supplemental reimbursement programs, and lower contract labor and professional liability expenses. Other The Company used approximately $600 million of cash on hand from recent divestiture proceeds to repurchase approximately $368 million principal amount of its 4.750% Senior Secured Notes due 2031, or approximately 35 percent of the total outstanding principal amount, and to repurchase approximately $231 million principal amount of its 10.875% Senior Secured Notes due 2032, or approximately 13 percent of the total outstanding principal amount, that were validly tendered and accepted for purchase pursuant to a tender offer that launched on April 22, 2026, and was completed on May 6, 2026, and to pay related fees and expenses. Upon completion of the tender offer, approximately $689 million principal amount of the 4.750% Senior Secured Notes due 2031 remained outstanding, and approximately $1.549 billion principal amount of the 10.875% Senior Secured Notes due 2032 remained outstanding. A pre-tax loss from early extinguishment of debt of approximately $5 million was recognized during the three months ended June 30, 2026. During 2026, through the date of this press release, the Company has divested (i) its 80 percent ownership interest in one hospital, which was completed on February 1, 2026, and (ii) eight other hospitals (three of which were completed effective February 1, 2026, one of which was completed effective April 1, 2026, and four of which were completed effective June 1, 2026). Financial and statistical data presented in this press release includes the operating results of divested or closed businesses for the periods prior to the consummation of the respective divestiture or closure. Same-store operating results and statistical information include operating results of businesses operated in the comparable current year and prior year periods, and exclude businesses divested prior to June 30, 2026. Information About Non-GAAP Financial Measures This press release presents Adjusted EBITDA, a non-GAAP financial measure, which is EBITDA adjusted to add back net income attributable to noncontrolling interests and to exclude loss (gain) from early extinguishment of debt, impairment and (gain) loss on sale of businesses, expense related to the Business Transformation Costs (as defined in footnote (c) to the Financial Highlights, Financial Statements and Selected Operating Data below), expense related to government and other legal matters and related costs, expense related to employee termination benefits and other restructuring charges, and the impact of a change in estimate to increase the professional liability claims accrual recorded during the third quarter of 2024. For information regarding why the Company believes Adjusted EBITDA provides useful information to investors, and for a reconciliation of Adjusted EBITDA to net income attributable to Community Health Systems, Inc. stockholders, see footnote (c) to the Financial Highlights, Financial Statements and Selected Operating Data below. Additionally, this press release presents adjusted net loss attributable to Community Health Systems, Inc. stockholders per share (diluted), a non-GAAP financial measure, to reflect the impact on net income attributable to Community Health Systems, Inc. stockholders per share (diluted) from the selected items used in the calculation of Adjusted EBITDA. For information regarding why the Company believes this non-GAAP financial measure provides useful information to investors, and for a reconciliation of this non-GAAP financial measure to net income attributable to Community Health Systems, Inc. stockholders per share (diluted), see footnote (e) to the Financial Highlights, Financial Statements and Selected Operating Data below. The non-GAAP financial measures set forth above are not measurements of financial performance under U.S. GAAP, and should not be considered in isolation or as a substitute for any financial measure calculated in accordance with U.S. GAAP. Additionally, the calculation of these non-GAAP financial measures may not be comparable to similarly titled measures disclosed by other companies. Included on pages 16 and 17 of this press release are tables setting forth the Company’s 2026 updated annual earnings guidance. The 2026 guidance is based on the Company’s historical operating performance, current trends and other assumptions the Company believes are reasonable at this time as more specifically discussed below. About Community Health Systems, Inc. Community Health Systems, Inc. is one of the nation’s largest healthcare companies. The Company’s affiliates are leading providers of healthcare services, developing and operating healthcare delivery systems in 32 distinct markets across 12 states. As of July 22, 2026, the Company’s subsidiaries own or lease 60 affiliated hospitals with more than 8,000 beds and operate more than 800 sites of care, including physician practices, urgent care centers, freestanding emergency departments, occupational medicine clinics, imaging centers, cancer centers and ambulatory surgery centers. The Company’s headquarters is located in Franklin, Tennessee, a suburb south of Nashville. Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange under the symbol "CYH." More information about the Company can be found on its website at www.chs.net. Community Health Systems, Inc. will hold a conference call on Thursday, July 23, 2026 at 10:00 a.m. Central, 11:00 a.m. Eastern, to review financial and operating results for the second quarter ended June 30, 2026. Investors will have the opportunity to listen to a live internet broadcast of the conference call by clicking on the Investor Presentations and Webcasts link of the Company’s Investor Relations website at www.chs.net/investor-relations. For those who cannot listen to the live broadcast, a replay will be available shortly after the call and will continue to be available for approximately 30 days. Copies of this press release and conference call slide show, as well as the Company’s Current Report on Form 8-K (including this press release), will be available on the Company’s website at www.chs.net. The following assumptions were used in developing the 2026 guidance provided above: The Company’s projections include the effect on net operating revenues, Adjusted EBITDA and net loss per share (diluted) of completing divestitures for which definitive agreements have been executed, as applicable, and exclude the following: Other assumptions used in the above guidance: Expressed as a percentage of net operating revenues, depreciation and amortization of approximately 3.8% to 3.9% for 2026. Additionally, this is a fixed cost and the percentages may vary based on changes in net operating revenues. Such amounts exclude the possible impact of any future hospital fixed asset impairments. Interest expense is estimated to be between $820 million and $830 million while cash paid for interest, which excludes the amortization of deferred financing costs, is expected to be between $800 million and $810 million. Total fixed rate debt is expected to average approximately 98% of total debt during 2026. Expressed as a percentage of net operating revenues, net income attributable to noncontrolling interests of approximately 1.2% to 1.3% for 2026. Expressed as a percentage of net operating revenues, provision for income taxes of approximately 0.8% to 0.9% for 2026. A reconciliation of the Company’s projected 2026 Adjusted EBITDA, a forward-looking non-GAAP financial measure, to the Company’s projected net loss attributable to Community Health Systems, Inc. stockholders, the most directly comparable GAAP financial measure, is shown below (in millions): Capital expenditures are projected as follows (in millions): Net cash provided by operating activities, including $30 million to $50 million of estimated cash payments for income taxes, net of refunds and excluding cash taxes on the sales of businesses, are projected as follows (in millions): Diluted weighted-average shares outstanding are projected to be approximately 136 million for 2026. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. All statements in this press release other than statements of historical fact, including statements regarding projections, expected operating results, and other events that depend upon or refer to future events or conditions or that include words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," "thinks," and similar expressions, are forward-looking statements. Although the Company believes that these forward-looking statements are based on reasonable assumptions, these assumptions are inherently subject to significant regulatory, economic and competitive uncertainties and contingencies, which are difficult or impossible to predict accurately and may be beyond the control of the Company. Accordingly, the Company cannot give any assurance that its expectations will in fact occur and cautions that actual results may differ materially from those in the forward-looking statements. A number of factors could affect the future results of the Company or the healthcare industry generally and could cause the Company’s expected results to differ materially from those expressed in this press release. These factors include, among other things: 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, the current interest rate environment, current geopolitical instability (including as a result of ongoing geopolitical conflicts), impacts from the imposition of, or changes in tariffs, as well as the impact on us of financial, credit, capital, political, and legislative conditions, including any federal government shutdowns; the impact of current and future healthcare public policy developments and the implementation of new, and possible changes to existing, federal, state or local laws, regulations and policies affecting the healthcare industry, including changes affecting the structure of or funding for the Medicare and Medicaid programs and changes in the structure and administration of federal and state agencies and programs; changes by the federal and state governments to state Medicaid programs, including the extent and nature of structural and funding changes and manner in which any such changes are implemented, and other developments that affect the administration of health insurance exchanges or alter or reduce the provision of, or payment for, healthcare to state residents through legislation, regulation or otherwise; changes related to health insurance enrollment, including those affecting the beneficiary enrollment process and the stability of health insurance exchanges, and the expiration of the temporarily enhanced subsidies available for individuals to purchase coverage through Affordable Care Act marketplaces; risks associated with our substantial indebtedness, leverage and debt service obligations, including our ability to refinance such indebtedness on acceptable terms or to incur additional indebtedness, and our ability to remain in compliance with debt covenants; demographic changes; changes in, or the failure to comply with, federal, state or local laws or governmental regulations affecting our business; judicial developments impacting the Company or the healthcare industry, including the potential impact of the recent decisions of the U.S. Supreme Court regarding the actions of federal agencies; the potential adverse impact of known and unknown legal, regulatory and governmental proceedings and other loss contingencies, including governmental investigations and audits, and federal and state false claims act litigation; our ability to enter into and maintain provider arrangements with payors and the terms of these arrangements, which may be further affected by the increasing consolidation of health insurers and managed care companies and vertical integration efforts involving payors and healthcare providers; changes in, or the failure to comply with, contract terms with payors and changes in reimbursement policies, methodologies or rates paid by federal or state healthcare programs or commercial payors; security breaches, cyber-attacks, loss of data, other cybersecurity threats or incidents, including those experienced with respect to our information systems or the information systems of third parties with whom we conduct business, and any actual or perceived failures to comply with legal requirements governing the privacy and security of health information or other regulated, sensitive or confidential information, or legal requirements regarding data privacy or data protection; the development, adoption and use of emerging technologies, including artificial intelligence and machine learning; any potential impairments in the carrying value of goodwill, other intangible assets, or other long-lived assets, or changes in the useful lives of other intangible assets; the effects related to the sequestration spending reductions pursuant to the Budget Control Act of 2011 and the potential for spending reductions under future legislation, including as may be required under the Pay-As-You-Go Act of 2010; increases in the amount and risk of collectability of patient accounts receivable, including decreases in collectability which may result from, among other things, self-pay growth and difficulties in recovering payments for which patients are responsible, including co-pays and deductibles; the efforts of insurers, healthcare providers, large employer groups and others to contain healthcare costs, including the trend toward value-based purchasing and increased reimbursement denials by insurers; the impact of competitive labor market conditions, including in connection with our ability to hire and retain qualified nurses, physicians, other medical personnel and key management, and increased labor expenses arising from inflation and/or competition for such positions; the inability of third parties with whom we contract to provide hospital-based physicians and the effectiveness of our efforts to mitigate such non-performance including through acquisitions of outsourced medical specialist businesses, engagement with new or replacement providers, employment of physicians and re-negotiation or assumption of existing contracts; any failure to obtain medical supplies or pharmaceuticals at favorable prices; liabilities and other claims asserted against us, including self-insured professional liability claims; competition; trends toward treatment of patients in less acute or specialty healthcare settings, including ambulatory surgery centers or specialty hospitals or via telehealth; changes in medical or other technology; changes in U.S. GAAP; the availability and terms of capital to fund any additional acquisitions or replacement facilities or other capital expenditures; our ability to successfully make acquisitions or complete divestitures, our ability to complete any such acquisitions or divestitures on desired terms or at all, the timing of the completion of any such acquisitions or divestitures, and our ability to realize the intended benefits from any such acquisitions or divestitures; the impact that changes in our relationships with joint venture or syndication partners could have on effectively operating our hospitals or ancillary services or in advancing strategic opportunities; our ability to successfully integrate any acquired hospitals and/or outpatient facilities, or to realize expected benefits from acquisitions such as increased growth in patient service revenues; the impact of severe weather conditions and climate change, as well as the timing and amount of insurance recoveries in relation to severe weather events; our ability to obtain adequate levels of insurance, including general liability, professional liability, cyber liability and directors’ and officers’ liability insurance; any lapse in appropriations, and any hold on or cancellation of congressionally authorized spending or interruptions in the distribution of government funds, and the timeliness of reimbursement payments received under government programs; effects related to pandemics, epidemics, outbreaks of infectious diseases or other public health crises; any failure to comply with our obligations under license or technology agreements; challenging economic conditions in non-urban communities in which we operate; the concentration of our revenue in a small number of states; our ability to realize anticipated cost savings and other benefits from our current strategic and operational cost savings initiatives; any changes in or interpretations of income tax laws and regulations; and the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the "SEC") on February 19, 2026 and other public filings with the SEC. The consolidated operating results for the three and six months ended June 30, 2026, are not necessarily indicative of the results that may be experienced for any future periods. The Company cautions that the projections for calendar year 2026 set forth in this press release are given as of the date hereof based on currently available information. The Company undertakes no obligation to revise or update any forward-looking statements (including such guidance), or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. View source version on businesswire.com: https://www.businesswire.com/news/home/20260722654355/en/ Contacts Investor Contact: Kevin HammonsDirector and Chief Executive Officer(615) 465-7000

Community Health Systems, Inc. CYH is set to report second-quarter 2026 results on July 22, 2026, after the closing bell. The bottom-line estimate is currently pegged at a loss of 18 cents per share on revenues of $2.9 billion. The second-quarter earnings estimate has remained unchanged over the past 60 days. The bottom-line projection indicates a year-over-year decline of 260%. The Zacks Consensus Estimate for quarterly revenues implies a year-over-year decrease of 7.5%. Image Source: Zacks Investment Research For 2026, the Zacks Consensus Estimate for Community Health's revenues is pegged at $11.56 billion, implying a 7.4% year-over-year decline. The bottom-line estimate projects a loss of 58 cents per share for 2026, calling for a 148.7% year-over-year deterioration. Community Health beat on earnings in two of the trailing four quarters and missed in the other two, delivering an average surprise of 57.6%. This performance is illustrated in the figure below. Community Health Systems, Inc. price-eps-surprise | Community Health Systems, Inc. Quote Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That’s not the case here. CYH has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. The Zacks Consensus Estimate for the Number of hospitals is pegged at 59 compared with 70 in the year-ago period, indicating a 15.7% decline. Similarly, the Zacks Consensus Estimate for Licensed beds indicates a 15.3% decrease from the year-ago period’s level. The Zacks Consensus Estimate for Patient days indicates 0.2% growth from the year-ago period’s reported numbers. However, the consensus estimate for Adjusted admissions implies a 10.7% decrease from the year-ago period’s figure. The Zacks Consensus Estimate for the same-store occupancy rate is pinned at 64.7% compared with 50.8% in the year-ago period, representing a 27.4% increase. The Zacks Consensus Estimate for Average length of stay (days) is pinned at4.5 compared with 4.2 in the year-ago period, suggesting a 7.1% increase. Higher occupancy likely provided some support, but lower admissions and a reduced hospital portfolio may have weighed on margins, making earnings beat less certain. While an earnings beat looks uncertain for CYH, here are some companies from the broader Medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around. ProMIS Neurosciences, Inc. PMN has an Earnings ESP of +13.30% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for ProMIS' loss in the to-be-reported quarter is pegged at $1.45 per share, suggesting an 80% year-over-year improvement. PMN has witnessed one upward revision against no downward movement over the past 60 days. CVS Health Corporation CVS has an Earnings ESP of +1.42% and a Zacks Rank of 2. The Zacks Consensus Estimate for CVS Health’s bottom line suggests 3.3% year-over-year growth. Its earnings beat estimates in each of the past four quarters, with an average surprise of 16.8%. The Zacks Consensus Estimate for CVS' revenues for the to-be-reported quarter is pegged at $100.18 billion, indicating a 1.3% increase from the year-ago reported figure. Cardinal Health, Inc. CAH has an Earnings ESP of +1.24% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for Cardinal Health's bottom line for the to-be-reported quarter indicates 16.4% year-over-year growth. Its earnings beat estimates in each of the past four quarters, with an average surprise of 10.3%. The consensus mark for CAH’s revenues in the to-be-reported quarter is pinned at $65.61 billion, calling for a 9.1% increase from the year-ago period’s level. 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 Community Health Systems, Inc. (CYH) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report Promis Neurosciences (PMN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. HCA Healthcare slashed its 2026 earnings guidance after the growing amount of uninsured Americans — mostly as a result of turbulence on the Affordable Care Act exchanges — ate into the for-profit hospital giant’s income in the second quarter. HCA now expects net income between $6.3 billion and $6.7 billion this year, compared with previous guidance of between $6.5 billion and $7 billion, the company disclosed on Tuesday. The earnings cut, which comes 10 days before HCA is scheduled to officially announce second-quarter results, spooked investors worried that hospitals had underestimated the impact of the ACA turmoil on their finances this year. HCA’s stock fell almost 10% in premarket trading following the release, which also dragged down shares in other hospital operators including Community Health Systems, Tenet Healthcare and Universal Health Services. Millions of Americans left the ACA exchanges this year after more generous financial aid from the federal government expired, causing premiums to skyrocket. Many of those people have become uninsured, according to experts, a worrying trend for hospitals that have to contend with lower demand for elective services and higher uncompensated care costs. HCA had braced for the impact, telling investors it expected to lose between $600 million and $900 million this year as a result of the ACA turmoil. HCA lost $150 million in the first quarter. But the financial toll ballooned in the second, according to HCA’s Tuesday release. HCA said it lost $400 million in the second quarter as a result of payer mix shift “primarily due to patients who lost coverage on the health insurance exchanges.” “We expected some acceleration [to the ACA impact] exiting Q1, although the magnitude is a surprise,” J.P. Morgan analyst Benjamin Rossi wrote in a note on Tuesday. HCA now expects to lose up to $1.1 billion from the ACA coverage decline this year, according to Rossi. HCA called out declining surgical volumes in the second quarter, which also likely contributed to the company’s decision to lower its 2026 earnings guidance. But overall, HCA expects its second-quarter results to be stronger than in the prior year, due to higher admissions and emergency room visits, along with increased benefit from Medicaid supplemental payments from states, especially Florida. HCA anticipates second-quarter revenues of about $20.2 billion, up from $18.6 billion the same time last year, and net income just below $1.7 billion, about $50 million higher than the same time last year. Both results would come in above Wall Street’s consensus expectations. HCA is scheduled to officially announce second-quarter results on July 24. Recommended Reading ACA subsidy lapse cost HCA Healthcare $150M in Q1