Key Highlights

  • Chemed reported third-quarter revenue of $690.9 million, up 10.6% from $624.9 million.
  • Adjusted diluted EPS was $6.75, up 28.1% from $5.27; GAAP diluted EPS was $5.45, up 22.2%.
  • VITAS average daily census rose 9.4% to 24,428, and admissions rose 7.2% to 18,995.
  • Roto-Rooter adjusted EBITDA margin fell 213 basis points to 20.6% on revenue growth of 7.5%.
  • The company bought back 125,000 shares for $66.0 million in the quarter, leaving about $73.7 million of authorization.

Chemed Earnings: Why Did Adjusted EPS Jump 28.1% to $6.75?

Chemed (NYSE:CHE) reported third-quarter 2026 results on Tuesday, October 27, with revenue of $690.9 million, up 10.6% from $624.9 million. Adjusted diluted EPS was $6.75 against $5.27 a year earlier, a rise of 28.1%, and GAAP diluted EPS was $5.45, up 22.2% from $4.46. The screen estimate for adjusted EPS was $6.44, which puts the as-screened surprise at 4.89%.

Net income was $71.6 million compared with $64.2 million, and adjusted EBITDA rose to $133.8 million from $109.0 million, a margin of about 19.4% by our calculation.

On guidance, the company did not issue new ranges. It said it expects full-year 2026 adjusted EPS at or slightly above the high end of the $25.00 to $25.75 range set on July 28, which had been raised from $24.00 to $24.75. No fourth-quarter guidance was provided.

VITAS Hospice: How Much Did Census, Acuity and the Medicare Cap Contribute?

VITAS, the hospice unit, produced net patient revenue of $457.4 million, up 12.2%. Average daily census rose 9.4% to 24,428 and admissions rose 7.2% to 18,995, with total days of care at 2,247,413 against 2,054,074.

Adjusted EBITDA excluding the Medicare Cap was $92.5 million, up 31.4%, and the margin was 20.2%, up 318 basis points. SG&A fell to $23.1 million from $25.2 million.

Revenue per patient day was $209.11, up 196 basis points, helped by an average Medicare reimbursement increase of about 2.2%. Acuity mix reduced growth by 25 basis points, while lower Medicare Cap and contra-revenue changes added 85 basis points. The cap accrual was $0.8 million versus $6.1 million, and no cap liability was recorded for the Florida combined program.

Roto-Rooter and Capital Use: Why Did Margin Slip While the Buyback and Debt Rose?

Roto-Rooter revenue grew 7.5% to $233.5 million, with commercial branch revenue up 9.0% and residential branch revenue up 5.2%. Independent contractor revenue was flat at $16.9 million.

Adjusted EBITDA fell 2.5% to $48.2 million, and the margin declined 213 basis points to 20.6%. SG&A rose 17.1% to $71.0 million and gross margin eased to 50.3% from 50.7%. The company also agreed to re-acquire California franchise territories covering more than 12 million people for about $62.5 million, with roughly half of the associated revenue moving to company-owned branches.

The company repurchased 125,000 shares for $66.0 million in the quarter at an average of $528.24, and nine-month treasury purchases were $350.0 million. At September 30, cash was $48.4 million and long-term debt was $236.0 million, compared with $129.8 million and none a year earlier, under a $450 million revolver priced at SOFR plus 100 basis points.

What to Watch Next: What Will Management Add on the Wednesday, October 28 Call?

The conference call is scheduled for Wednesday, October 28 at 10 a.m. ET, where investors will look for detail on VITAS admissions growth, Roto-Rooter marketing and SG&A, and the pace of repurchases with about $73.7 million of authorization left. Because guidance is updated once a year, the fourth-quarter report in 2027 will be the next formal update.