Welltower (WELL) Has Fallen 1.2% Following Its Most Recent Earnings Release: Is a Recovery Possible?

Welltower (WELL) Stock Update: Recent Performance and Earnings Overview

Since the previous earnings announcement roughly a month ago, Welltower's share price has slipped by 1.2%. Despite this decline, the stock has still outperformed the S&P 500 during the same period.

Investors may be questioning whether this downward movement will persist ahead of the next earnings report, or if Welltower is poised for a rebound. To better understand the company's current position, let's review the highlights from its latest quarterly results and examine recent analyst sentiment.

Fourth Quarter Results: Earnings and Revenue Exceed Expectations

For the fourth quarter of 2025, Welltower reported normalized funds from operations (FFO) per share of $1.45, edging past the Zacks Consensus Estimate of $1.44 and marking a 28.3% increase compared to the prior year.

The company saw significant revenue growth year over year, with total portfolio same-store net operating income (SSNOI) rising, largely due to gains in the Seniors Housing Operating (SHO) portfolio. Welltower also provided guidance for normalized FFO per share for 2026.

Quarterly revenues reached $3.18 billion, surpassing the consensus estimate of $2.71 billion and representing a 41.3% increase from the same period last year.

Key Operational Highlights

• The SHO portfolio's same-store revenue climbed 9.6% year over year, supported by a 400 basis-point improvement in average occupancy and a 4.7% rise in revenue per occupied room (RevPOR).
• Overall, the company's total portfolio SSNOI grew by 15%, with the SHO segment contributing a 20.4% increase.
• During the quarter, Welltower made pro-rata gross investments totaling $13.9 billion, including $1.2 billion in loan funding and $112 million allocated to development. The company also completed $6.1 billion in property sales and received $1.4 billion in loan repayments. Five development projects were completed and placed into service, representing $173 million in investment.
• Property operating expenses rose 37.2% year over year, reaching $1.93 billion for the quarter.

Financial Position

As of December 31, 2025, Welltower reported $10.2 billion in available liquidity. This included $5.2 billion in cash and restricted cash, along with full access to a $5 billion credit facility.

2026 Outlook

Welltower projects normalized FFO per share for 2026 to fall within the range of $6.09 to $6.25.

The company anticipates average blended SSNOI growth between 11.25% and 15.75%, with the following segment expectations:

• Seniors Housing Operating: 15–21% growth
• Seniors Housing Triple-net: 3.0–4.0% growth
• Outpatient Medical: 2.0–3.0% growth
• Long-Term/Post-Acute Care: 2.0–3.0% growth

Additionally, Welltower plans to invest another $370 million in development projects during 2026 for initiatives already underway as of year-end 2025.

Recent Estimate Revisions

Over the past month, analyst estimates for Welltower have generally trended upward, reflecting growing optimism about the company's prospects.

VGM Score Analysis

Welltower currently holds a Growth Score of C and a Momentum Score of C. However, its Value Score stands at F, placing it in the lowest quintile for value-focused investors. The overall VGM (Value, Growth, Momentum) Score is D, which may be most relevant for those not committed to a single investment strategy.

Future Prospects

Analyst estimates for Welltower have been revised higher, suggesting a positive outlook. The stock carries a Zacks Rank #3 (Hold), indicating expectations for performance in line with the broader market over the coming months.

Industry Comparison: Healthpeak (DOC)

Welltower operates within the Zacks REIT and Equity Trust - Other industry. Another peer, Healthpeak (DOC), has seen its shares rise 0.7% in the past month. Healthpeak's most recent quarterly report, covering the period ending December 2025, showed revenues of $719.4 million—a 3.1% increase year over year. Earnings per share (EPS) for the quarter were $0.16, down from $0.46 a year earlier.

For the current quarter, Healthpeak is expected to report EPS of $0.44, which would be a 4.4% decrease from the same period last year. The consensus estimate for this figure has remained steady over the past month. Healthpeak also holds a Zacks Rank #3 (Hold) and a VGM Score of D.