Surgery Partners Reports Disappointing Q4 Results and Cautious 2026 Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy SGRY?
Source: Benzinga
- Earnings Miss: Surgery Partners reported adjusted earnings of 12 cents per share for Q4, significantly below the consensus estimate of 30 cents, indicating challenges in the current economic landscape.
- Sales Growth: While sales increased by 2.4% year-over-year to $885 million, surpassing the consensus of $866.47 million, same-facility revenue growth of 3.5% and a 2.1% increase in revenue per case highlight ongoing competitive pressures.
- Declining Cash Flow: Operating cash flow fell to $103.4 million in Q4, down from $111.4 million a year ago, reflecting operational strain on the company.
- Cautious 2026 Outlook: The company expects fiscal 2026 sales between $3.35 billion and $3.45 billion, below the consensus of $3.56 billion, indicating a cautious stance on future market conditions.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy SGRY?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on SGRY
Wall Street analysts forecast SGRY stock price to rise
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 13.920
Low
18.00
Averages
26.30
High
36.00
Current: 13.920
Low
18.00
Averages
26.30
High
36.00
About SGRY
Surgery Partners, Inc. is a healthcare services company. The Company, through its subsidiaries, owns and operates a national network of surgical facilities and ancillary services. The Company operates through the Surgical Facility Services segment, which includes the operation of ambulatory surgery centers (ASCs), surgical hospitals, anesthesia services, urgent care facilities and multi-specialty physician practices. Its surgical facilities primarily provide non-emergency surgical procedures across many specialties, including, among others, orthopedics and pain management, ophthalmology, gastroenterology (GI) and general surgery. The Company operates a portfolio of 162 surgical facilities comprised of 143 ASCs and 19 surgical hospitals. The Company is focused on surgical services businesses in the United States, with over 250 locations in 30 states, including short-stay surgical hospitals.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Surgery Partners Under Investigation for Potential Investor Claims
- Disappointing Financial Results: Surgery Partners reported approximately $3.3 billion in revenue and $526.2 million in Adjusted EBITDA for 2025, failing to meet expectations, which led to a sharp decline in stock price and investor confidence.
- Legal Investigation Initiated: Johnson Fistel, PLLP is investigating whether Surgery Partners' executives violated federal securities laws, potentially leading to claims for investor losses, highlighting concerns over corporate governance and transparency.
- Investor Loss Alert: Investors who suffered losses from Surgery Partners stock are encouraged by Johnson Fistel to join the investigation, indicating the law firm's commitment to protecting investor rights and pursuing compensation.
- Law Firm Background: Johnson Fistel, PLLP is a nationally recognized shareholder rights law firm, ranked among the Top 10 Plaintiff Law Firms in 2024, having recovered approximately $90.725 million for clients, showcasing its strength in securities litigation.
See More
Global Stock Markets Retreat as Oil Prices Surge
- Market Decline: The S&P 500 index fell by 0.94%, reaching a 3.25-month low, reflecting investor concerns over escalating tensions in Iran, which may impact future investment decisions and market stability.
- Surge in Oil Prices: WTI crude oil prices rose over 4% to an 8.5-month high due to threats from Iran to close the Strait of Hormuz, intensifying fears of energy supply disruptions and potential inflationary pressures in the economy.
- Natural Gas Price Spike: European natural gas prices surged more than 22% to a three-year high after Qatar's Ras Laffan plant was targeted by an Iranian drone attack, posing significant risks to global liquefied natural gas supply and market stability.
- Economic Data Expectations: This week, the ADP employment change is expected to increase by 50,000, while the ISM services index is projected to slip slightly, with markets closely monitoring these indicators to assess economic health and potential implications for Federal Reserve monetary policy decisions.
See More
Global Stock Markets Plunge as Oil Prices Surge Amid Iran Conflict
- Stock Market Decline: The S&P 500 index fell by 2.18%, reaching a 3.25-month low, indicating market concerns over the Iran conflict that may lead to decreased investor confidence and increased volatility.
- Surge in Oil Prices: WTI crude oil prices rose over 8% to an 8.5-month high due to Iran's threats to close the Strait of Hormuz, potentially causing long-term disruptions in global energy markets and raising inflation expectations.
- Rising Bond Yields: The 10-year German bund yield climbed to a 2.5-week high of 2.814%, reflecting market worries about future inflation, which may prompt investors to shift towards bonds for safety.
- Economic Data Focus: This week, the market will focus on U.S. employment data and economic indicators, with the ADP employment change expected to rise by 40,000 and the ISM services index anticipated to slip slightly, indicating potential economic slowdown.
See More
Surgery Partners Q4 2025 Earnings Call Insights
- Weak Revenue Growth: Surgery Partners reported full-year net revenue of $3.3 billion, a 6.2% year-over-year increase, but at the low end of expectations, with same-facility revenue growth of only 4.9% in Q4, indicating potential market demand weakness that could affect investor confidence.
- Declining Adjusted EBITDA: The adjusted EBITDA for 2025 was $526 million, up 3.5% year-over-year, but Q4 EBITDA was only $156.9 million, with a margin compressed to 15.9%, reflecting challenges in cost control and profitability.
- Slowdown in Surgical Cases: The company performed nearly 670,000 surgical cases in 2025, with same-facility case growth of just 1.3% in Q4; despite strong growth in orthopedic surgeries, the overall slowdown may impact market share and competitiveness.
- Cautious Future Outlook: Management projects 2026 net revenue between $3.35 billion and $3.45 billion, with adjusted EBITDA of at least $530 million, reflecting a cautious stance towards market challenges while emphasizing ongoing portfolio optimization to enhance long-term shareholder value.
See More
Analysis of Stock Movements for Multiple Companies
- AeroVironment Contract Talks: AeroVironment's stock surged 9% as it continues negotiations with the U.S. Space Force for the SCAR program contract, which had previously been paused for term revisions, indicating the company's growth potential in space and directed energy platforms.
- Pinterest Investment Dynamics: Elliott Management's $1 billion investment in Pinterest aims to accelerate the company's stock buyback program, resulting in a more than 7% increase in Pinterest's stock, reflecting market optimism about its future growth prospects.
- Ziff Davis Transaction Impact: Ziff Davis shares rose 74%, hitting a 52-week high after agreeing to sell its connectivity division to Accenture for $1.2 billion, with the CEO describing the deal as a significant realization of shareholder value, signaling a successful strategic transformation for the company.
- AutoZone Earnings Disappointment: AutoZone's stock fell over 5% following disappointing fiscal second-quarter results, primarily attributed to winter storms and price pressures from tariffs, highlighting the company's vulnerability in adverse conditions.
See More
Global Stock Markets Plunge as Oil Prices Surge Amid Iran Conflict
- Market Decline: The S&P 500 index fell by 1.82%, the Dow Jones Industrial Average dropped by 2.07%, and the Nasdaq 100 decreased by 1.78%, marking a 2.5-month low for the S&P 500, indicating growing concerns about the global economic outlook.
- Surging Oil Prices: WTI crude oil prices surged over 7% to an 8.5-month high due to escalating conflict in Iran, raising fears of energy supply disruptions and increasing inflation expectations, which negatively impact stock market performance.
- Rising Bond Yields: The 10-year German bund yield reached a 2.5-week high of 2.814%, while the 10-year UK gilt yield climbed to a 3-week high of 4.536%, reflecting market concerns over future inflation, further pressuring stock prices.
- Earnings Outlook: Despite market volatility, 73% of S&P 500 companies exceeded earnings expectations, with Q4 earnings growth projected at 8.4%, indicating strong corporate fundamentals, yet market sentiment remains subdued.
See More
Surgery Partners Under Investigation for Potential Investor Claims
- Disappointing Financial Results: Surgery Partners reported approximately $3.3 billion in revenue and $526.2 million in Adjusted EBITDA for 2025, failing to meet expectations, which led to a sharp decline in stock price and investor confidence.
- Legal Investigation Initiated: Johnson Fistel, PLLP is investigating whether Surgery Partners' executives violated federal securities laws, potentially leading to claims for investor losses, highlighting concerns over corporate governance and transparency.
- Investor Loss Alert: Investors who suffered losses from Surgery Partners stock are encouraged by Johnson Fistel to join the investigation, indicating the law firm's commitment to protecting investor rights and pursuing compensation.
- Law Firm Background: Johnson Fistel, PLLP is a nationally recognized shareholder rights law firm, ranked among the Top 10 Plaintiff Law Firms in 2024, having recovered approximately $90.725 million for clients, showcasing its strength in securities litigation.
See More
Global Stock Markets Retreat as Oil Prices Surge
- Market Decline: The S&P 500 index fell by 0.94%, reaching a 3.25-month low, reflecting investor concerns over escalating tensions in Iran, which may impact future investment decisions and market stability.
- Surge in Oil Prices: WTI crude oil prices rose over 4% to an 8.5-month high due to threats from Iran to close the Strait of Hormuz, intensifying fears of energy supply disruptions and potential inflationary pressures in the economy.
- Natural Gas Price Spike: European natural gas prices surged more than 22% to a three-year high after Qatar's Ras Laffan plant was targeted by an Iranian drone attack, posing significant risks to global liquefied natural gas supply and market stability.
- Economic Data Expectations: This week, the ADP employment change is expected to increase by 50,000, while the ISM services index is projected to slip slightly, with markets closely monitoring these indicators to assess economic health and potential implications for Federal Reserve monetary policy decisions.
See More
Global Stock Markets Plunge as Oil Prices Surge Amid Iran Conflict
- Stock Market Decline: The S&P 500 index fell by 2.18%, reaching a 3.25-month low, indicating market concerns over the Iran conflict that may lead to decreased investor confidence and increased volatility.
- Surge in Oil Prices: WTI crude oil prices rose over 8% to an 8.5-month high due to Iran's threats to close the Strait of Hormuz, potentially causing long-term disruptions in global energy markets and raising inflation expectations.
- Rising Bond Yields: The 10-year German bund yield climbed to a 2.5-week high of 2.814%, reflecting market worries about future inflation, which may prompt investors to shift towards bonds for safety.
- Economic Data Focus: This week, the market will focus on U.S. employment data and economic indicators, with the ADP employment change expected to rise by 40,000 and the ISM services index anticipated to slip slightly, indicating potential economic slowdown.
See More
Surgery Partners Q4 2025 Earnings Call Insights
- Weak Revenue Growth: Surgery Partners reported full-year net revenue of $3.3 billion, a 6.2% year-over-year increase, but at the low end of expectations, with same-facility revenue growth of only 4.9% in Q4, indicating potential market demand weakness that could affect investor confidence.
- Declining Adjusted EBITDA: The adjusted EBITDA for 2025 was $526 million, up 3.5% year-over-year, but Q4 EBITDA was only $156.9 million, with a margin compressed to 15.9%, reflecting challenges in cost control and profitability.
- Slowdown in Surgical Cases: The company performed nearly 670,000 surgical cases in 2025, with same-facility case growth of just 1.3% in Q4; despite strong growth in orthopedic surgeries, the overall slowdown may impact market share and competitiveness.
- Cautious Future Outlook: Management projects 2026 net revenue between $3.35 billion and $3.45 billion, with adjusted EBITDA of at least $530 million, reflecting a cautious stance towards market challenges while emphasizing ongoing portfolio optimization to enhance long-term shareholder value.
See More
Analysis of Stock Movements for Multiple Companies
- AeroVironment Contract Talks: AeroVironment's stock surged 9% as it continues negotiations with the U.S. Space Force for the SCAR program contract, which had previously been paused for term revisions, indicating the company's growth potential in space and directed energy platforms.
- Pinterest Investment Dynamics: Elliott Management's $1 billion investment in Pinterest aims to accelerate the company's stock buyback program, resulting in a more than 7% increase in Pinterest's stock, reflecting market optimism about its future growth prospects.
- Ziff Davis Transaction Impact: Ziff Davis shares rose 74%, hitting a 52-week high after agreeing to sell its connectivity division to Accenture for $1.2 billion, with the CEO describing the deal as a significant realization of shareholder value, signaling a successful strategic transformation for the company.
- AutoZone Earnings Disappointment: AutoZone's stock fell over 5% following disappointing fiscal second-quarter results, primarily attributed to winter storms and price pressures from tariffs, highlighting the company's vulnerability in adverse conditions.
See More
Global Stock Markets Plunge as Oil Prices Surge Amid Iran Conflict
- Market Decline: The S&P 500 index fell by 1.82%, the Dow Jones Industrial Average dropped by 2.07%, and the Nasdaq 100 decreased by 1.78%, marking a 2.5-month low for the S&P 500, indicating growing concerns about the global economic outlook.
- Surging Oil Prices: WTI crude oil prices surged over 7% to an 8.5-month high due to escalating conflict in Iran, raising fears of energy supply disruptions and increasing inflation expectations, which negatively impact stock market performance.
- Rising Bond Yields: The 10-year German bund yield reached a 2.5-week high of 2.814%, while the 10-year UK gilt yield climbed to a 3-week high of 4.536%, reflecting market concerns over future inflation, further pressuring stock prices.
- Earnings Outlook: Despite market volatility, 73% of S&P 500 companies exceeded earnings expectations, with Q4 earnings growth projected at 8.4%, indicating strong corporate fundamentals, yet market sentiment remains subdued.
See More
