VITAS Raises 2026 Earnings Guidance to $24.00 to $24.75 per Share
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 23 2026
0mins
Should l Buy CHE?
Consensus $23.88. The company said, "Historically, we do not give quarterly updates to guidance. Due to the materially improved performance of VITAS, coupled with the level of share repurchases in the first quarter of 2026, we believe updating guidance is appropriate in this instance. Further operational detail will be provided during the investor conference call. VITAS' initiatives to return to a normal growth pattern after managing the 2025 Medicare Cap issue were more quickly successful than originally anticipated. This led to higher revenue, excluding the impact of Medicare Cap, and adjusted EBITDA margins, excluding the impact of Medicare Cap, in the first quarter 2026 than what was included in the original guidance. As a result, anticipated ADC growth for 2026 is updated to a revised range of 4.5% to 5.5% compared to the original guidance range of 3.5% to 4.0%. Anticipated revenue growth, excluding the impact of the Medicare Cap, improves from the original guidance range of 5.5% to 6.5% to a revised range of 6.5% to 7.5%. Finally, revised EBITDA margin, excluding the impact of the Medicare Cap, is anticipated to be 18.0% to 18.5% compared to the original guidance of 17.5% to 18.5%. Roto-Rooter performed generally within our expectations. In total, there were various headwinds and tailwinds that contributed to the overall results in the first quarter of 2026. In the first quarter of 2026, unusual ice and snowstorms led to some level of service disruption for five days of the quarter across 24 Roto-Rooter branches. This resulted in an estimated loss of net revenue of between $3 million and $4 million in the quarter. Additionally, total leads for Roto-Rooter increased 3.3% during the quarter but continuing the previously discussed trends, a larger portion of those leads were the result of paid internet marketing. As a result, total marketing expense during the quarter exceeded our expectations by approximately $2.0 million. When factoring all the gives and takes within the expected Roto-Rooter performance for the remainder of fiscal 2026, anticipated revenue growth remains unchanged at 3.0% to 3.5%. Estimated adjusted EBITDA margin is lowered slightly to 21.5% to 22.5% compared to the original guidance range of 22.5% to 23.0%. This is primarily due to elevated marketing costs now expected to persist above our original guidance for the remainder of the year. Based on the above, full-year 2026 earnings per diluted share, excluding non-cash expenses for stock options, tax benefits from stock option exercises, costs related to litigation and other discrete items, is estimated to be in the range of $24.00 to $24.75. The mid-point of the revised guidance represents a 13% increase from 2025 adjusted earnings per diluted share of $21.55. The revised 2026 guidance assumes an effective corporate tax rate on adjusted earnings of 24.5% and a diluted share count of 13.6 million shares. The original 2026 guidance was for adjusted earnings per diluted share to be between $23.25 and $24.25."
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Analyst Views on CHE
Wall Street analysts forecast CHE stock price to rise
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 424.560
Low
475.00
Averages
547.33
High
595.00
Current: 424.560
Low
475.00
Averages
547.33
High
595.00
About CHE
Chemed Corporation is engaged in purchasing, operating, and divesting subsidiaries in diverse business activities. The Company's segment includes VITAS and the Roto-Rooter. The VITAS segment provides hospice and palliative care services to its patients through a network of physicians, registered nurses, home health aides, social workers, clergy and volunteers. It provides direct medical services to patients, as well as spiritual and emotional counseling to both patients and their families. The Roto-Rooter segment provides plumbing, drain cleaning, excavation, water restoration and other related services to residential and commercial customers. The Roto-Rooter services are provided through a network of Company-owned branches, independent contractors and franchisees. The Company's water restoration services involve the remediation of water and humidity after a flood and are provided to both commercial and residential customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Intel's Strong Performance: Intel's stock surged over 23% after forecasting Q2 revenue between $13.8 billion and $14.8 billion, significantly exceeding the $13.04 billion expectation, indicating strong confidence in the semiconductor industry's potential driven by artificial intelligence, which may spark increased investment in the sector.
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- International Dynamics Affecting Markets: Progress in US-Iran negotiations has boosted market sentiment; despite tensions in the Strait of Hormuz, optimism about future talks may alleviate energy price pressures and promote stock market gains.
See More
Chemed Corporation Q1 2026 Earnings Call Highlights
- VITAS Outperformance: VITAS achieved 19,394 admissions in Q1 2026, with hospital admissions at 43.8%, exceeding expectations and adding $32.5 million to the Medicare Cap cushion in Florida, indicating strong growth potential in the region.
- Roto-Rooter Revenue Recovery: Roto-Rooter saw its residential plumbing and drain revenue increase for the first time since Q4 2022, driven by a 3.3% rise in total leads and an 18.7% increase in paid leads, although this required nearly $3 million in additional marketing spend to sustain growth.
- Upgraded Financial Outlook: Chemed raised its full-year 2026 earnings per share guidance to a range of $24 to $24.75, up from the previous $23.25 to $24.25, reflecting increased confidence in the future performance of both VITAS and Roto-Rooter.
- Marketing Cost Pressures: While Roto-Rooter's revenue growth remains unchanged at 3% to 3.5%, the adjusted EBITDA margin has been slightly lowered to 21.5% to 22.5% due to ongoing marketing costs, highlighting challenges faced in a competitive market environment.
See More
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- Consumer Confidence Rebound: The University of Michigan's consumer sentiment index was revised upward to 49.8, surpassing expectations of 48.5, indicating an increase in consumer confidence which could stimulate spending and drive economic growth.
- Oil Price Volatility Impacting Markets: WTI crude oil prices fell over 1% amid expectations of renewed US-Iran talks, potentially exacerbating the global energy crisis and affecting operational costs and profit forecasts for energy-intensive sectors.
- Strong Earnings Season Performance: So far, 81% of the 123 S&P 500 companies that reported earnings have beaten estimates, with Q1 earnings projected to climb 12% year-over-year, demonstrating resilience in corporate profitability that may further boost market sentiment.
See More
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- Market Optimism: The stock market is mostly higher as talks between the US and Iran appear to be resuming, with the Nasdaq 100 reaching an all-time high, reflecting investor expectations for reduced geopolitical risks, which may enhance market stability and investor confidence.
- WTI Oil Price Fluctuations: WTI crude oil prices fell over 1% after initially gaining 1% due to the US naval blockade on Iran, which could exacerbate the global energy crisis, impacting oil prices and the profitability of related companies, particularly in the Middle East.
- Earnings Season Performance: So far, 81% of the 123 S&P 500 companies that reported earnings have beaten estimates, with Q1 earnings projected to rise 12% year-over-year, indicating improved corporate profitability that may further drive stock market gains and bolster investor confidence.
See More
Chemed (CHE) Q1 2026 Earnings Call Transcript
See More
Chemed Q1 Earnings Beat Expectations with Strong VITAS Growth
- Earnings Highlights: Chemed's Q1 non-GAAP EPS of $5.65 exceeded expectations by $0.35, with revenue of $657.5 million reflecting a 1.6% year-over-year increase, surpassing forecasts by $7.68 million, indicating robust performance in the healthcare services sector.
- VITAS Segment Growth: The VITAS segment reported net patient revenue of $420 million, a 3.1% increase, with an average daily census of 22,723, up 2.2%, and admissions of 19,394, rising 6.9%, demonstrating strong demand and expansion capabilities in this market.
- Roto-Rooter Segment Challenges: The Roto-Rooter segment generated revenue of $237.5 million, down 0.9%, with net income of $37.7 million, a 9.7% decline, and adjusted EBITDA down 9.6%, highlighting market pressures and declining profitability in this division.
- Future Outlook: Chemed forecasts VITAS revenue growth of 5.5% to 6.5% for 2026, signaling that 55% of 2026 earnings will be back-half weighted, reflecting strategic planning and adaptability in response to transition initiatives.
See More
