Ardent Health (ARDT) Q1 2026 earnings summary

Executive summary

• Total revenue for Q1 2026 increased 7% year-over-year to $1.6 billion, driven by higher adjusted admissions and net patient service revenue per adjusted admission.

• Adjusted EBITDA grew 26% year-over-year to $124 million; excluding a $10.9 million gain, adjusted EBITDA increased 15%.

• Net income attributable to shareholders was $39.9 million, or $0.28 per diluted share, down from $41.4 million in Q1 2025.

• Adjusted admissions increased 2%, and total surgeries rose 1.2%, with outpatient surgeries up 1.7%.

• IMPACT Program initiatives delivered $55 million in targeted annual savings, with significant reductions in contract labor and supply costs.

Financial highlights

• Adjusted EBITDA margin expanded 110 basis points to 7.7%; pre-NCI Adjusted EBITDAR margin rose 100 basis points to 11.5%.

• Net patient service revenue per adjusted admission increased 5.5% year-over-year, primarily due to higher Medicaid supplemental payments.

• Salaries, wages, and benefits expense per adjusted admission fell 1.4%; supply expense per adjusted admission rose 1.7%.

• Contract labor expense dropped over 40% year-over-year, now at 2.2% of SWB, down from 3.8%.

• Interest expense declined to $12.2 million from $14.2 million year-over-year.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: total revenue of $6.4–$6.7 billion, adjusted EBITDA of $485–$535 million, and net income of $129–$183 million.

• Adjusted admissions growth expected between 1.5% and 2.5% for the year.

• Capital expenditures projected at $225–$265 million for 2026.

• IMPACT Program savings of $55 million expected for 2026, with further ramp anticipated in the second half.

• Professional fees expected to moderate to high single-digit growth in the back half of the year.