Looking back on outpatient & specialty care stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Surgery Partners (NASDAQ:SGRY) and its peers.
The outpatient and specialty care industry delivers targeted medical services in non-hospital settings that are often cost-effective compared to inpatient alternatives. This means that they are more desired as rising healthcare costs and ways to combat them become more and more top-of-mind. Outpatient and specialty care providers boast revenue streams that are stable due to the recurring nature of treatment for chronic conditions and long-term patient relationships. However, their reliance on government reimbursement programs like Medicare means stroke-of-the-pen risk. Additionally, scaling a network of facilities can be capital-intensive with uneven return profiles amid competition from integrated healthcare systems. Looking ahead, the industry is positioned to grow as demand for outpatient services expands, driven by aging populations, a rising prevalence of chronic diseases, and a shift toward value-based care models. Tailwinds include advancements in medical technology that support more complex procedures in outpatient settings and the increasing focus on preventive care, which can be aided by data and AI. However, headwinds such as reimbursement rate cuts, labor shortages, and the financial strain of digitization may temper growth.
The 7 outpatient & specialty care stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 5.9% above.
Luckily, outpatient & specialty care stocks have performed well with share prices up 50.3% on average since the latest earnings results.
Surgery Partners (NASDAQ:SGRY)
With more than 180 locations across 33 states serving as alternatives to traditional hospital settings, Surgery Partners (NASDAQ:SGRY) operates a national network of outpatient surgical facilities including ambulatory surgery centers and short-stay surgical hospitals.
Surgery Partners reported revenues of $810.9 million, up 4.5% year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS estimates.
Eric Evans, Chief Executive Officer, stated, “We are encouraged by our solid start to 2026, with same store revenue growth of 4.4% in line with our Q1 and long-term growth expectations. As we continue to navigate near-term market dynamics, our cost management discipline and continued execution on physician recruitment position us well to meet or exceed our 2026 plan. Our portfolio optimization efforts also remain critical to our long-term strategy as we take steps to better align with our core short-stay surgical operating model. Looking ahead, we are confident in our ability to return to our growth algorithm through capitalizing on market opportunities, driving operational excellence, and thoughtful capital deployment.”
Surgery Partners delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 2.5% since reporting and currently trades at $14.56.
Is now the time to buy Surgery Partners? Access our full analysis of the earnings results here, it’s free.
Best Q1: agilon health (NYSE:AGL)
Transforming how doctors care for seniors by shifting financial incentives from volume to outcomes, agilon health (NYSE:AGL) provides a platform that helps primary care physicians transition to value-based care models for Medicare patients through long-term partnerships and global capitation arrangements.
agilon health reported revenues of $1.42 billion, down 7.3% year on year, outperforming analysts’ expectations by 3.2%. The business had a stunning quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
agilon health delivered the highest guidance raise and highest full-year guidance raise among its peers. On a dimmer note, the company lost 85,000 customers and ended up with a total of 426,000. The market seems happy with the results as the stock is up 309% since reporting. It currently trades at $113.87.
Is now the time to buy agilon health? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: U.S. Physical Therapy (NYSE:USPH)
With a nationwide footprint spanning 671 clinics across 42 states, U.S. Physical Therapy (NYSE:USPH) operates a network of outpatient physical therapy clinics and provides industrial injury prevention services to employers across the United States.
U.S. Physical Therapy reported revenues of $198.3 million, up 7.9% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates.
U.S. Physical Therapy delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 14% since the results and currently trades at $63.36.
Read our full analysis of U.S. Physical Therapy’s results here.
Select Medical (NYSE:SEM)
With a nationwide network spanning 46 states and over 2,700 healthcare facilities, Select Medical (NYSE:SEM) operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers across the United States.
Select Medical reported revenues of $1.42 billion, up 5% year on year. This number surpassed analysts’ expectations by 0.9%. However, it was a slower quarter as it logged a significant miss of analysts’ EPS estimates and full-year EPS guidance in line with analysts’ estimates.
The stock is flat since reporting and currently trades at $16.54.
Read our full, actionable report on Select Medical here, it’s free.
LifeStance Health Group (NASDAQ:LFST)
With over 6,600 licensed mental health professionals treating more than 880,000 patients annually, LifeStance Health (NASDAQ:LFST) provides outpatient mental health services through a network of clinicians offering psychiatric evaluations, psychological testing, and therapy across 33 states.
LifeStance Health Group reported revenues of $403.5 million, up 21.2% year on year. This print topped analysts’ expectations by 4.2%. Overall, it was an exceptional quarter as it also logged EBITDA and revenue guidance for next quarter exceeding analysts’ expectations.
LifeStance Health Group pulled off the biggest analyst estimate beat and fastest revenue growth, but had the weakest guidance update among its peers. The stock is up 23.4% since reporting and currently trades at $9.09.
Read our full, actionable report on LifeStance Health Group here, it’s free.
Market Update
Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?
These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.
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