Community Health Q3 Earnings Beat on Rising Same-Store Admissions

Community Health Systems, Inc. CYH posted a third-quarter 2025 adjusted earnings of $1.27 per share, which beat the Zacks Consensus Estimate of a loss of 32 cents. The bottom line improved from the prior-year loss of 30 cents.

Net operating revenues remained constant year over year at $3.1 billion in the quarter under review. The top line beat the consensus mark by 3.2%.

The quarterly results benefited from declining expenses, favorable changes in payor mix and increased same-store admissions. However, a decrease in patient days, occupancy rate and adjusted admissions partially offset the positives.

Community Health Systems, Inc. Price, Consensus and EPS Surprise

Community Health Systems, Inc. price-consensus-eps-surprise-chart | Community Health Systems, Inc. Quote

CYH’s Q3 Operational Update

At the third-quarter end, the hospital count for Community Health was 70, lower than the year-ago level of 77.

Patient days tumbled 9.3% year over year. The average length of stay decreased 2.3% year over year to 4.2 days, while the occupancy rate of 49.7% decreased from 49.8% in the year-ago quarter.

Adjusted admissions declined 7.7% year over year in the quarter under review. On a same-store basis, admissions rose 1.3% from the corresponding prior-year quarter’s reported figure.

CYH licensed beds totaled 10,478 as of Sept. 30, 2025, which indicates a decrease of 9% from the prior-year quarter. The reported figure was in line with the consensus estimate and our estimate.

Total operating expenses declined 13.7% year over year to $2.8 billion in the third quarter, primarily backed by low non-operating expenses, but came in above our estimate by 2.6%.

Meanwhile, net interest expenses of $216 million remained constant year over year. The metric came in higher than our estimate of $204.5 million.

The company reported a net income of $171 million in the third quarter, which increased significantly from a net loss of $355 million in the year-ago period. Adjusted EBITDA rose 8.4% year over year to $376 million in the quarter under review, benefiting from increased non-patient revenues, higher reimbursement rates, favorable changes in payor mix and increased net benefit from supplemental reimbursement programs.

During 2025, Community Health divested its ownership interests in several hospitals, including a 50% stake in two hospitals, an 80% stake in one hospital and full ownership of three other hospitals.

CYH’s Financial Update (As of Sept. 30, 2025)

Community Health exited the third quarter with cash and cash equivalents of $123 million, which increased significantly from $37 million at 2024-end. Total assets of $13.2 billion decreased from $14.1 billion at 2024-end.

Long-term debt amounted to $10.6 billion, which fell from $11.4 billion at 2024-end. Current maturities of long-term debt were $16 million.

In the first nine months of 2025, CYH generated operating cash flows of $277 million, up from $264 million in the year-ago period.

CYH’s 2025 Guidance

The company now anticipates net operating revenues between $12.4 billion and $12.6 billion for 2025 compared with the 2024 figure of $12.63 billion. Adjusted EBITDA is now estimated to be in the range of $1.5-$1.55 billion compared with the 2024 level of $1.54 billion.

Net income per share is now expected to be between 80 cents and 90 cents in 2025.

Depreciation and amortization expenses are now predicted to be in the range of $420-$430 million for 2025.

Net cash from operating activities was estimated to be between $600 million and $700 million in 2025. Capital expenditures were anticipated in the range of $350-$400 million.

CYH’s Zacks Rank

CYH currently carries a Zacks Rank #3 (Hold).

Stocks to Report Earnings

Here are three companies from the Medical space that are likely to report their respective quarterly earnings soon.

ANI Pharmaceuticals, Inc. ANIP sports a Zacks Rank of 1 (Strong Buy) at present. The Zacks Consensus Estimate for ANIP’s bottom line for the to-be-reported quarter is pegged at $1.74 per share, indicating 29.9% year-over-year growth. ANI Pharmaceuticals’ earnings beat estimates in each of the past four quarters, with an average surprise of 22.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Universal Health Services, Inc. UHS currently has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for UHS’ bottom line for the to-be-reported quarter of $4.56 per share indicates 22.9% year-over-year growth. It remained stable over the past week. Universal Health’s earnings beat estimates in three of the last four quarters and missed once, with an average surprise of 9.4%.

Encompass Health Corporation EHC has a Zacks Rank of 2 at present. The Zacks Consensus Estimate for EHC’s bottom line for the to-be-reported quarter is pegged at $1.19 per share, indicating 15.5% year-over-year growth. Encompass Health’s earnings beat estimates in each of the past four quarters, with an average surprise of 14%.

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