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Chemed Beats Revenue, EPS Estimates in Q3
28 Oct
Summary
- Chemed reported Q3 revenue of $690.9 million, surpassing estimates.
- Adjusted EPS reached $6.75, exceeding analyst consensus forecasts.
- Operating margin improved to 14% from 12% year-over-year.
Chemed Corporation reported its Q3 2026 financial results, revealing revenue of $690.9 million, a 10.6% increase year-on-year and slightly above analysts' consensus estimates. The company's non-GAAP earnings per share (EPS) also exceeded expectations, coming in at $6.75, a 4.9% beat. Adjusted EBITDA reached $133.8 million.
Operating margins showed improvement, increasing to 14% in Q3 2026 from 12% in the same quarter of the previous year. This positive trend in profitability was accompanied by a notable year-on-year revenue growth of 10.6%. However, free cash flow margin saw a decrease, falling to 0.8% compared to 10.6% in Q3 2025.
Looking at longer-term performance, Chemed has demonstrated a compounded annual revenue growth rate of 4.5% over the last five years. Its annualized revenue growth over the past two years stands at 5.8%. The company's adjusted operating margin has averaged 14.7% over five years, though it has seen a decrease in the recent two-year trend.
In terms of earnings, Chemed posted a 5.3% annual EPS growth over the last five years. The reported Q3 adjusted EPS of $6.75 represents an increase from $5.27 in the prior year's quarter. Analysts anticipate a 5.2% growth in Chemed's full-year EPS for the upcoming 12 months.