Pediatric healthcare provider Pediatrix Medical Group (NYSE:MD) reported Q1 CY2026 results topping the market’s revenue expectations, with sales up 3.9% year on year to $476.2 million. Its non-GAAP profit of $0.44 per share was 16.1% above analysts’ consensus estimates.
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Pediatrix Medical Group (MD) Q1 CY2026 Highlights:
- Revenue: $476.2 million vs analyst estimates of $464.1 million (3.9% year-on-year growth, 2.6% beat)
- Adjusted EPS: $0.44 vs analyst estimates of $0.38 (16.1% beat)
- Adjusted EBITDA: $58.15 million vs analyst estimates of $52.23 million (12.2% margin, 11.3% beat)
- EBITDA guidance for the full year is $290 million at the midpoint, above analyst estimates of $286.7 million
- Operating Margin: 8.7%, up from 7% in the same quarter last year
- Same-Store Sales rose 2.8% year on year (6.2% in the same quarter last year)
- Market Capitalization: $1.82 billion
“Our first quarter operating results exceeded our expectations, driven by top-line growth,” said Mark S. Ordan, Chief Executive Officer of Pediatrix Medical Group.
Company Overview
With a network of approximately 2,620 affiliated physicians caring for some of the most vulnerable patients, Pediatrix Medical Group (NYSE:MD) provides specialized physician services focused on neonatal, maternal-fetal, pediatric cardiology and other pediatric subspecialty care across 37 states.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Pediatrix Medical Group grew its sales at a tepid 2.1% compounded annual growth rate. This fell short of our benchmarks and is a poor baseline for our analysis.
We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Pediatrix Medical Group’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 1.7% annually. 
Pediatrix Medical Group also reports same-store sales, which show how much revenue its established locations generate. Over the last two years, Pediatrix Medical Group’s same-store sales averaged 5.5% year-on-year growth. Because this number is better than its revenue growth, we can see its sales from existing locations are performing better than its sales from new locations. 
This quarter, Pediatrix Medical Group reported modest year-on-year revenue growth of 3.9% but beat Wall Street’s estimates by 2.6%.
Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. Although this projection implies its newer products and services will catalyze better top-line performance, it is still below average for the sector.
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Adjusted Operating Margin
Pediatrix Medical Group’s adjusted operating margin has been trending up over the last 12 months and averaged 10.4% over the last five years. Its profitability was higher than the broader healthcare sector, showing it did a decent job managing its expenses.
Looking at the trend in its profitability, Pediatrix Medical Group’s adjusted operating margin of 12.5% for the trailing 12 months may be around the same as five years ago, but it has increased by 4.6 percentage points over the last two years.
This quarter, Pediatrix Medical Group generated an adjusted operating margin profit margin of 9.3%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Pediatrix Medical Group’s EPS grew at 12.6% compounded annual growth rate over the last five years, higher than its 2.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
We can take a deeper look into Pediatrix Medical Group’s earnings quality to better understand the drivers of its performance. A five-year view shows that Pediatrix Medical Group has repurchased its stock, shrinking its share count by 2.8%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. 
In Q1, Pediatrix Medical Group reported adjusted EPS of $0.44, up from $0.33 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Pediatrix Medical Group’s full-year EPS of $2.14 to grow 4.6%.
Key Takeaways from Pediatrix Medical Group’s Q1 Results
It was good to see Pediatrix Medical Group beat analysts’ EPS expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock remained flat at $22.41 immediately following the results.
Should you buy the stock or not? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).