Pediatrix Medical Group (NYSE:MD) Announces Earnings Results, Beats Estimates By $0.07 EPS

Pediatrix Medical Group (NYSE:MD) announced its earnings results on Thursday. The company reported $0.72 EPS for the quarter, topping analysts’ consensus estimates of $0.65 by $0.07, FiscalAI reports. Pediatrix Medical Group had a return on equity of 20.05% and a net margin of 8.96%. The company had revenue of $501.37 million for the quarter, compared to analysts’ expectations of $498.18 million. During the same period last year, the firm earned $0.67 EPS. Pediatrix Medical Group’s revenue for the quarter was up 1.7% compared to the same quarter last year.

Here are the key takeaways from Pediatrix Medical Group’s conference call:

• Strong Q3 performance: Adjusted EBITDA reached $85 million, ahead of expectations, while same-unit revenue grew as volume and pricing each contributed positively. Management narrowed full-year 2026 adjusted EBITDA guidance to $290 million–$300 million.
• Shareholder returns and balance sheet: Pediatrix repurchased just over 3 million shares during the quarter, bringing cumulative buybacks since August 2025 to 10 million shares at an average price of $23. Net leverage remained below one times adjusted EBITDA, with $312 million of cash.
• Revenue tailwinds are moderating: The company is beginning to lap prior benefits from unusually strong collection activity, which reduced quarterly pricing growth by slightly more than 100 basis points. Operating costs continued to rise, although clinical salary growth remained relatively contained at roughly 3%–3.5%.
• Growth opportunities remain selective: Pediatrix is expanding telehealth and evaluating potential acquisitions in women’s and children’s healthcare, while monitoring 2027 OB hospitalist coding changes. Management said the No Surprises Act IDR process is unlikely to be a headwind because less than 5% of business is out-of-network.

Pediatrix Medical Group Price Performance

Shares of NYSE:MD traded up $0.16 during trading on Thursday, hitting $29.07. 832,556 shares of the company’s stock were exchanged, compared to its average volume of 703,422. The business’s 50-day simple moving average is $26.86 and its 200 day simple moving average is $23.82. The company has a market cap of $2.36 billion, a price-to-earnings ratio of 13.91 and a beta of 0.61. Pediatrix Medical Group has a 52-week low of $16.90 and a 52-week high of $30.55. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.32 and a quick ratio of 1.32.

Wall Street Analyst Weigh In

MD has been the subject of several analyst reports. Jefferies Financial Group lowered shares of Pediatrix Medical Group from a “buy” rating to a “hold” rating and increased their target price for the stock from $27.00 to $28.00 in a report on Wednesday, August 19th. Wall Street Zen upgraded shares of Pediatrix Medical Group from a “buy” rating to a “strong-buy” rating in a research report on Sunday, September 13th. UBS Group increased their price objective on shares of Pediatrix Medical Group from $25.00 to $28.00 and gave the stock a “neutral” rating in a research note on Thursday, August 6th. Truist Financial increased their price objective on shares of Pediatrix Medical Group from $23.00 to $28.00 and gave the stock a “hold” rating in a research note on Tuesday, July 14th. Finally, Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $25.00 price objective on shares of Pediatrix Medical Group in a research report on Wednesday, August 5th. One research analyst has rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $26.60.

Pediatrix Medical Group Company Profile

Pediatrix Medical Group, Inc provides specialized physician-led healthcare services for women, infants and children. The company’s clinical offerings include neonatal and perinatal care, maternal-fetal medicine, pediatric medical subspecialties, pediatric hospitalist services and related services delivered in partnership with hospitals and healthcare systems.

Pediatrix-affiliated physicians and advanced practice providers generally work in hospital-based settings, including neonatal intensive care units, delivery rooms, pediatric units and outpatient practices.