Highlights

  • Third quarter 2026 revenue was $690.9 million, up 10.6%, and GAAP diluted earnings per share were $5.45, up 22.2%.
  • Adjusted diluted earnings per share, a non-GAAP measure, were $6.75 in the third quarter, an increase of 28.1%.
  • Roto-Rooter re-acquired multiple California franchise territories for approximately $62.5 million, with a population of over 12 million people.
  • Chemed estimates it will be at or slightly above the high end of its full-year 2026 adjusted EPS guidance.

Chemed Corporation (NYSE:CHE) shares were trading at USD 547.66 on October 28, 2026, up 7.58%, with a relative volume at time of 3.02. The company, which operates VITAS Healthcare and Roto-Rooter, re-acquired California franchise territories during the third quarter and reported third quarter 2026 results and a guidance update on October 27.

Chemed is incorporated in Delaware and lists its principal executive offices in Cincinnati, Ohio. It operates in the healthcare field through VITAS Healthcare Corporation, which provides hospice services to patients with severe, life-limiting illnesses. It also operates in the residential and commercial plumbing and drain cleaning industry under the Roto-Rooter brand, through company-owned branches, independent contractors and franchisees in the United States and Canada. Its fiscal year ends December 31.

Third Quarter Results

For the quarter ended September 30, 2026, Chemed reported service revenues and sales of $690,940 thousand, compared with $624,900 thousand a year earlier. Income from operations was $96,422 thousand, compared with $74,750 thousand. Net income was $71,648 thousand, compared with $64,237 thousand, and GAAP diluted earnings per share were $5.45, compared with $4.46. Adjusted diluted earnings per share were $6.75.

For the nine months ended September 30, 2026, revenues were $2,021,704 thousand, net income was $205,653 thousand and diluted earnings per share were $15.43. Other operating expense was $7,670 thousand in the third quarter, compared with $2,998 thousand.

VITAS and Roto-Rooter

VITAS net patient revenue was $457.4 million, an increase of 12.2%. Average daily census was 24,428, up 9.4%, and admissions were 18,995, up 7.2%. VITAS accrued $828,000 in Medicare Cap billing limitation, compared with $6.1 million in the third quarter of 2025. Average revenue per patient per day was $209.11. Adjusted EBITDA excluding Medicare Cap was $92.5 million, with a margin of 20.2%.

Roto-Rooter revenue was $233.5 million, an increase of 7.5%. Branch commercial revenue was $59.9 million, up 9.0%, and branch residential revenue was $158.8 million, up 5.2%. Roto-Rooter net income, excluding certain discrete items, was $33.3 million, a decline of 1.8%. Adjusted EBITDA was $48.2 million, a decline of 2.5%, and the Adjusted EBITDA margin was 20.6%, a decline of 213 basis points. Gross margin was 50.3%, compared with 50.7%, and selling, general and administrative expenses were $71.0 million, an increase of 17.1%.

Franchise Acquisition, Cash and Capital

During the third quarter, Roto-Rooter re-acquired multiple franchise territories in California for approximately $62.5 million. Chemed said slightly over half of the associated revenue will become part of owned and operated branches, with two new branches planned in Sacramento and San Diego. The remaining locations will join the independent contractor operating model.

As of September 30, 2026, Chemed had cash and cash equivalents of $48.4 million and $236.0 million in long-term debt. In April 2026, it entered a new five-year $450 million Amended and Restated Credit Agreement, with approximately $166.7 million of undrawn borrowing capacity after $47.3 million of letters of credit.

During the quarter, Chemed repurchased 125,000 shares for $66.0 million, or $528.24 per share. Over the trailing 12 months it repurchased 1,235,000 shares at an average price of $427.62 per share. About $73.7 million of repurchase authorization remained at September 30, 2026.

Guidance Update

Chemed said that, based on results through September 30, 2026, it estimates it will be at or slightly above the high end of its full-year 2026 adjusted EPS guidance issued on July 28, 2026. The release does not restate the numerical range. On the earnings call, management said it expects Roto-Rooter cost of customer acquisition and fuel cost pressures to persist in the fourth quarter.