Ardent Health (ARDT) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $1.62 billion, down 1.4% year-over-year, with adjusted EBITDA of $115 million, reflecting lower patient service revenue and volumes but strong operating cash flow of $197 million, up 67% year-over-year.

• Net income attributable to shareholders was $17 million for Q2 2026, down from $73 million in Q2 2025.

• Surgeries and admissions declined in April and May but rebounded in June; full quarter saw surgeries down 2.9% and admissions down 1% year-over-year, with adjusted admissions up 2.5%.

• Operational rigor, the IMPACT program, and cost controls drove efficiency, with SW&B up only 0.7% and contract labor spend down 42% year-over-year.

• Leadership transition to a new CEO, with a focus on operational execution and cost-saving initiatives.

Financial highlights

• Q2 2026 revenue: $1.62 billion; adjusted EBITDA: $115 million; adjusted EBITDA margin: 7.1%, down 320 basis points year-over-year.

• Operating cash flow in Q2: $197 million, up from $117 million a year ago; first half 2026 operating cash flow up 47% year-over-year.

• Net patient service revenue per adjusted admission decreased 3.9% year-over-year.

• Capital expenditures in Q2: $39 million; first half 2026: $66.8 million; $13 million in stock repurchased, with $34 million remaining authorization.

• Medicaid supplemental payment program revenue decreased by $57.8 million in Q2 2026 due to timing of New Mexico program renewal.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $6.4–$6.7 billion, with a bias toward the lower end.

• Adjusted EBITDA guidance maintained at $485–$535 million, with incremental $15–20 million in IMPACT savings and $5–10 million from payor re-contracting expected to offset lower volumes.

• Net income guidance for 2026: $110–$163 million; diluted EPS: $0.78–$1.15.

• Adjusted admissions growth expected at 1.5–2.5% for the year.

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