Outpatient & Specialty Care Stocks Q4 Summary: Surgery Partners (NASDAQ:SGRY)

Analyzing Q4 Results for Outpatient & Specialty Care Providers

Let’s take a closer look at how Surgery Partners (NASDAQ:SGRY) and its industry peers performed now that the fourth quarter earnings season for outpatient and specialty care has wrapped up.

The outpatient and specialty care sector focuses on delivering specialized medical treatments outside of hospitals, often at a lower cost than inpatient care. As healthcare expenses continue to rise, these services are increasingly sought after. Providers in this space benefit from steady revenue streams, thanks to ongoing care for chronic conditions and long-term patient relationships. However, their dependence on government reimbursement programs such as Medicare introduces regulatory risks. Expanding facility networks can also require significant investment and may yield inconsistent returns, especially with competition from larger integrated health systems. Looking forward, the sector is expected to expand due to an aging population, a growing number of chronic illnesses, and a shift toward value-based care. Positive trends include technological advancements that enable more complex procedures in outpatient settings and a greater emphasis on preventive care, supported by data and artificial intelligence. On the other hand, challenges like potential reimbursement cuts, workforce shortages, and the costs of digital transformation could slow growth.

Q4 Performance Overview

Among the seven outpatient and specialty care companies we monitor, fourth-quarter results were mixed. Collectively, these companies surpassed revenue expectations by 2.5%, while their forecasts for the next quarter’s revenue matched analyst projections.

Despite the varied results, share prices for these companies have shown resilience, with an average increase of 5.8% since the latest earnings reports.

Surgery Partners (NASDAQ:SGRY): Q4 Lags Behind Peers

Surgery Partners operates a national network of more than 180 outpatient surgical facilities, including ambulatory surgery centers and short-stay hospitals, across 33 states, offering alternatives to traditional hospital care.

For the fourth quarter, Surgery Partners reported $885 million in revenue, a 2.4% increase year-over-year and 1.9% above analyst expectations. However, the company’s full-year revenue and EBITDA guidance fell well short of forecasts, making this a weaker quarter overall.

CEO Eric Evans commented, “In 2025, Surgery Partners remained focused on delivering high-value, quality care. While we started the year strong, unexpected challenges led to fourth quarter results that did not meet our goals. Despite these obstacles, demand for our services is robust, and we are optimistic about the long-term growth drivers in the ASC market. As we move into 2026, we are sharpening our execution and increasing our focus on higher-acuity procedures. We believe our company is well-positioned to capitalize on market opportunities through organic growth, strategic acquisitions, and portfolio optimization.”

Surgery Partners Total Revenue

Surgery Partners recorded the slowest revenue growth among its peers. Since the earnings release, its stock has dropped 15.9% and is currently priced at $13.35.

DaVita (NYSE:DVA): Q4 Standout

DaVita operates over 2,600 dialysis centers in the U.S. and is present in 13 countries, providing care for patients with chronic and end-stage kidney disease.

In the fourth quarter, DaVita posted $3.62 billion in revenue, a 9.9% increase from the previous year and 3.2% above analyst estimates. The company also delivered a strong beat on full-year EPS and revenue guidance.

DaVita Total Revenue

Investors responded positively, with DaVita’s stock rising 35.5% since the earnings announcement, now trading at $150.65.

Select Medical (NYSE:SEM)

Select Medical runs a network of over 2,700 healthcare facilities in 46 states, including recovery hospitals, rehabilitation centers, outpatient clinics, and occupational health locations.

For Q4, Select Medical reported $1.40 billion in revenue, up 6.4% year-over-year and 2.3% above expectations. However, the company missed analyst estimates for both full-year and quarterly EPS.

Despite the earnings miss, Select Medical’s stock has edged up 1.1% since the report and is currently valued at $16.25.

Encompass Health (NYSE:EHC)

Encompass Health manages 161 specialized rehabilitation hospitals across 37 states and Puerto Rico, helping patients recover from strokes, hip fractures, and other serious conditions.

In Q4, the company reported $1.54 billion in revenue, a 9.9% year-over-year increase, matching analyst expectations. The quarter was solid overall, with a strong beat on full-year EPS guidance, though revenue guidance was in line with forecasts.

Among its peers, Encompass Health had the weakest performance relative to analyst expectations. Its stock has risen 7.3% since the earnings release and is now at $106.82.

U.S. Physical Therapy (NYSE:USPH)

U.S. Physical Therapy operates 671 outpatient clinics in 42 states and provides injury prevention services to employers nationwide.

For the fourth quarter, the company reported $202.7 million in revenue, a 12.3% increase year-over-year and 1.7% above analyst expectations. The quarter was solid, with revenue beating estimates and EPS matching forecasts.

The stock price has remained steady since the earnings report and is currently at $81.08.

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The StockStory analyst team, comprised of experienced professional investors, leverages quantitative analysis and automation to deliver timely, high-quality market insights.