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AMN Healthcare Services, Inc. AMN delivered adjusted earnings per share (EPS) of 39 cents in the third quarter of 2025, which declined 36.1% year over year. However, the figure surpassed the Zacks Consensus Estimate by 105.3%.
GAAP EPS for the quarter was 76 cents, up 322.2% compared with EPS of 18 cents in the year-ago period.
AMN Healthcare registered revenues of $634.5 million in the third quarter, down 7.7% year over year. However, the figure surpassed the Zacks Consensus Estimate by 3.2%.
Shares of this company gained nearly 8.5% in today’s pre-market trading.
AMN Healthcare conducts its business via three reportable segments — Nurse and Allied Solutions, Physician and Leadership Solutions and Technology and Workforce Solutions.
In the third quarter of 2025, the Nurse and Allied Solutions segment’s revenues totaled $361.5 million, down 9.5% year over year. Travel nurse staffing revenues were down 20% year over year, whereas Allied revenues increased 1% year over year. Labor disruption events contributed $12 million in revenues in the quarter. This figure compares to our Nurse and Allied Solutions segment’s third-quarter projection of $345.1 million.
The Physician and Leadership Solutions segment’s revenues totaled $178.2 million, down 1.3% year over year. Locum tenens revenues were $146 million in the quarter, up 3% year over year. Interim leadership revenues were down 20% year over year. Physician and leadership search businesses saw a revenue decline of 7% year over year. This figure compares to our Physician and Leadership Solutions segment’s third-quarter projection of $175.2 million.
The Technology and Workforce Solutions segment’s revenues totaled $94.8 million, down 11.8% year over year. Language interpretation services business revenues came in at $75 million in the quarter (flat year over year), while the vendor management systems business saw a 32% year-over-year revenue decline to reach $17 million. This figure compares to our Technology and Workforce Solutions segment’s third-quarter projection of $93.8 million.
AMN Healthcare Services Inc price-consensus-eps-surprise-chart | AMN Healthcare Services Inc Quote
In the quarter under review, AMN Healthcare’s gross profit fell 13.4% year over year to $184.4 million. The gross margin contracted 193 basis points (bps) to 29.1%.
Selling, general & administrative expenses decreased 7.4% year over year to $138.6 million.
Adjusted operating profit totaled $45.8 million, reflecting a 27.7% decline from the prior-year quarter. The adjusted operating margin in the third quarter contracted 200 bps to 7.2%.
AMN Healthcare exited third-quarter 2025 with cash and cash equivalents of $52.6 million compared with $41.5 million at the second-quarter end. Total debt at the end of third-quarter 2025 was $850 million compared with $920 million at the second-quarter end.
Cumulative net cash provided by operating activities at the end of third-quarter 2025 was $193.9 million compared with $247.6 million a year ago.
AMN Healthcare has provided its financial outlook for the fourth quarter of 2025.
For the fourth quarter, the company expects revenues in the range of $715 million-$730 million, reflecting a decline of 1-3% compared with the prior-year figure. The Zacks Consensus Estimate is pegged at $613.4 million.
With respect to the Nurse and Allied Solutions segment, the company expects revenues to be up 1-3% in the fourth quarter from the prior-year figure. The Technology and Workforce Solutions segment’s revenues are expected to decline 14-16% in the fourth quarter from the prior-year figure.
The company projects fourth-quarter revenues in the Physician and Leadership Solutions segment to decrease 2-4% from the prior-year figure.
AMN Healthcare’s dismal top-line performance in third-quarter 2025 was disappointing. The decline in all its segmental revenues during the reported quarter was worrying. The contraction of both margins does not bode well. AMN Healthcare expects to register a decline in its overall top line and the majority of its segments in the fourth quarter of 2025, which is concerning.
However, AMN Healthcare exited the quarter with better-than-expected results. The uptick in the Allied revenues and Locum tenens revenues was encouraging. Management expects AMN to register a strong sequential volume growth for travel nursing in the fourth quarter on the back of a rebound in staffing orders in the third quarter and higher year-over-year winter order volume. This raises our optimism about the stock.
AMN Healthcare currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Boston Scientific Corporation BSX, West Pharmaceutical Services, Inc. WST and Exact Sciences Corporation EXAS.
Boston Scientific, carrying a Zacks Rank of 2 (Buy), reported third-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion outpaced the consensus mark by 1.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific has a long-term estimated growth rate of 16.4%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.4%.
West Pharmaceutical reported third-quarter 2025 adjusted EPS of $1.96, beating the Zacks Consensus Estimate by 17.4%. Revenues of $804.6 million surpassed the Zacks Consensus Estimate by 2.4%. It currently carries a Zacks Rank #2.
West Pharmaceutical has a long-term estimated growth rate of 9.8%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.5%.
Exact Sciences reported third-quarter 2025 adjusted EPS of 24 cents, beating the Zacks Consensus Estimate by 84.6%. Revenues of $850.7 million surpassed the Zacks Consensus Estimate by 4.9%. It currently sports a Zacks Rank #1.
Exact Sciences has a long-term estimated growth rate of 30.3%. EXAS’ earnings surpassed estimates in each of the trailing four quarters, the average surprise being 352.3%.
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This article originally published on Zacks Investment Research (zacks.com).
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