FMS Stock Rises as Q3 Earnings Beat Estimates, Revenues Gain Y/Y

Fresenius Medical Care AG & Co. FMS reported third-quarter 2025 adjusted earnings per share (EPS) of 64 cents, which surpassed the Zacks Consensus Estimate by 8.47%. The bottom line improved 35.8% year over year.

FMS’ Revenue Details

Revenues of $5.71 billion (EUR 4,885 million) beat the Zacks Consensus Estimate by 4.3%. The top line increased 2.6% year over year and 8.3% at constant currency (cc). Also, revenues were up 10% organically.

Per management, during the third quarter, divestitures realized as part of the portfolio optimization plan hurt revenue development by EUR 50 million. The full-year top-line numbers are anticipated to reflect 100 basis points of negative impact due to the portfolio optimization plan in 2024.

Shares of FMS gained nearly 0.5% in yesterday’s after-market trading. The stock has risen 7.3% year to date compared to a flat industry. The S&P 500 Index has increased 18.2% in the same period.

Segmental Details

Fresenius Medical implemented a new operating model in 2024 and started reporting under two new segments, Care Delivery and Care Enablement.

Care Delivery

The segment’s revenues were down 2% on a year-over-year basis but up 3.6% at cc. However, revenues gained 6% on an organic basis.

Revenues in the U.S. markets declined 1% reportedly, but gained 6% on an organic basis. The top line also improved 5% year over year at cc. Per management, unfavorable exchange rates hurt sales in the country. However, this was partially offset by reimbursement rate increases, a favorable payor mix development, the positive impact from phosphate binders and reduced implicit price concessions.

Per management, during the third quarter of 2025, U.S. same-market treatment growth gained 0.1% year over year.

International sales declined 5% reportedly and 4% at cc but gained 4% on an organic basis. The decline was due to divestments realized as part of the portfolio optimization plan and unfavorable exchange rates, partially offset by organic growth. The organic growth was supported by same-market treatment growth of 1.2%.

Care Enablement

The segment’s revenues remained flat year over year, reportedly, but gained 5% at cc as well as organically. Volume growth and continued positive pricing momentum were offset by unfavorable exchange rate effects.

Value-Based Care

The segment’s revenues surged 34% year over year, reportedly, and gained 42% at cc as well as organically. Sales were driven by significantly higher number of member months, mainly due to contract expansion, partially offset by unfavorable exchange rate effects.

Margin Analysis

In the quarter under review, Fresenius Medical’s gross profit improved 8.4% year over year. The gross margin expanded 130 basis points (bps) to 25.4%.

Selling, general & administrative expenses decreased 6.7% on a reported basis. Research and development expenses decreased 5% year over year.

Adjusted operating income improved 22.4% from the prior-year quarter’s level. The adjusted operating margin in the third quarter expanded 180 bps to 11.7%.

2025 Guidance

For 2025, Fresenius Medical continues to expect revenue growth to be positive, with a low-single-digit percent rate compared to the prior year. The company also expects operating income to grow by a high-teens to high-twenties percent rate compared to the prior year.

Fresenius Medical Care AG & Co. KGaA Price, Consensus and EPS Surprise

Fresenius Medical Care AG & Co. KGaA price-consensus-eps-surprise-chart | Fresenius Medical Care AG & Co. KGaA Quote

Our Take

FMS exited the third quarter on a strong note, with its earnings and revenues surpassing their respective consensus estimate. Overall pricing momentum also supported growth in the Care Enablement segment. However, the effects of unfavorable currency movements will likely continue to have a negative impact on sales.

Per management, during the third quarter, the FME25 transformation program continued its positive momentum, delivering EUR 47 million additional sustainable savings while related one-time costs, treated as special items, amounted to EUR 41 million. The company confirmed its full-year target of around EUR 180 million in additional annual savings, totaling EUR 1050 million by 2027-end.

FMS’ continued divestment of its non-core and dilutive assets appears promising, as it will help focus on its core and growing categories, while also boosting its cash resources. As part of its portfolio optimization plan, the company completed divestments, including clinic operations in Brazil and Malaysia.

FMS’ Zacks Rank & Other Stocks to Consider

Fresenius Medical currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the broader medical space are Solventum Corporation SOLV, Boston Scientific Corporation BSX and Alcon ALC.

Solventum, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 4.1%. SOLV’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 13.91%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Solventum’s shares have gained 3.8% compared with the industry’s 2.6% growth so far this year.

Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 16.4%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.36%.

Boston Scientific’s shares have gained 10.9% compared with the industry’s 0.6% growth so far this year.

Alcon, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 10.3%. ALC’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 4.61%.

Alcon’s shares have declined 12.6% compared with a flat industry so far this year.

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This article originally published on Zacks Investment Research (zacks.com).

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