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AMN Healthcare Services, Inc. AMN delivered adjusted earnings per share (EPS) of 22 cents in the fourth quarter of 2025, which declined 70.7% year over year. The figure was in line with the Zacks Consensus Estimate.
GAAP loss per share for the quarter was 20 cents against a loss per share of $4.90 in the year-ago period.
Adjusted EPS for full-year 2025 was $1.36, down 58.9% from the comparable 2024 period. The metric is in line with the Zacks Consensus Estimate.
AMN Healthcare registered revenues of $748.2 million in the fourth quarter, up 1.8% year over year. The figure surpassed the Zacks Consensus Estimate by 3.3%.
Full-year 2025 revenues were $2.73 billion, reflecting an 8.5% decrease from the comparable 2024 period. The metric, however, beat the Zacks Consensus Estimate by 0.7%.
Shares of this company gained 4.4% in yesterday’s after-hours 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 fourth quarter of 2025, the Nurse and Allied Solutions segment’s revenues totaled $491 million, up 8% year over year. Travel nurse staffing revenues were down 9% year over year, whereas Allied revenues decreased 1% year over year. Labor disruption events contributed $124 million in revenues in the quarter. The Zacks Consensus Estimate was pegged at $465 million.
The Physician and Leadership Solutions segment’s revenues totaled $170 million, down 2% year over year. Locum tenens revenues were $136 million in the quarter (flat year over year). Interim leadership revenues were down 8% year over year. Physician and leadership search businesses saw a revenue decline of 8% year over year. The Zacks Consensus Estimate was pegged at $169 million.
The Technology and Workforce Solutions segment’s revenues totaled $88 million, down 18% year over year. Language interpretation services business revenues came in at $70 million in the quarter, down 9% year over year, while the vendor management systems business saw a 28% year-over-year revenue decline to reach $16 million. The Zacks Consensus Estimate was pegged at $90 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 11% year over year to $195.1 million. The gross margin contracted 370 basis points (bps) to 26.1%.
Selling, general & administrative expenses fell 4.3% year over year to $152.1 million.
Operating profit totaled $8.1 million against an operating loss of $202.6 million in the year-ago period. The operating margin in the fourth quarter was 1.1%.
AMN Healthcare exited 2025 with cash and cash equivalents of $33.9 million compared with $52.6 million at the third-quarter end. Total debt at the end of 2025 was $775 million compared with $850 million at the third-quarter end.
Cumulative net cash provided by operating activities at the end of 2025 was $269.5 million compared with $320.4 million a year ago.
AMN Healthcare has provided its financial outlook for the first quarter of 2026.
For the first quarter, the company expects revenues in the range of $1.225-$1.240 billion, reflecting growth of 78-80% compared with the prior-year figure. The Zacks Consensus Estimate is pegged at $631.3 million. The significant jump in revenues is likely to be driven by Labor disruption revenues, which are assumed to be $600 million, with the final amount subject to completion of the events.
With respect to the Nurse and Allied Solutions segment, the company expects revenues to grow 137-139% in the first quarter from the prior-year figure. The Technology and Workforce Solutions segment’s revenues are expected to decline 16-18% in the first quarter from the prior-year figure.
The company projects first-quarter revenues in the Physician and Leadership Solutions segment to decrease 5-8% from the prior-year figure.
AMN Healthcare’s dismal bottom-line performance in fourth-quarter 2025 was disappointing. The decline in the majority of its segmental revenues during the reported quarter was worrying. The contraction of gross margin does not bode well. AMN Healthcare expects to register growth in its overall top line and the Nurse and Allied Solutions segment in the first quarter of 2026, which is encouraging. However, the company expects a decline in both Physician and leadership solutions and Technology and workforce solutions segment revenues, which is concerning.
AMN Healthcare exited the quarter with better-than-expected results. The uptick in the Nurse and Allied Solutions and labor disruption revenues was encouraging. The trend is likely to continue in 2026 as management noted that the company gained nurse and allied staffing market share, competing successfully in direct and vendor-neutral markets while broadening its solution set.
Management expects locum tenens demand to decline year over year in the near term due to strike-related disruptions and normal seasonality, but expects sequential improvement through the middle quarters. In Language Services, the tiered pricing strategy, currently in pilot, is projected to deliver gross margin benefits in the second half of the year, supported by technology-enabled interpreter delivery and new AI investments to automate nonclinical patient interactions.
The rollout of enhanced capabilities within the ShiftWise Flex platform, including advanced analytics and generative and agentic AI, is expected to strengthen client retention and new business wins. While labor disruption revenues are expected to support operating leverage in the first quarter despite pressuring gross margin, management believes broader healthcare labor conditions are normalizing, with clients adopting blended workforce models and centralized contingent labor management.
Beyond 2026, AMN sees a clear path to sustainable organic revenue growth of 4% to 6% annually while maintaining disciplined expense growth at roughly half the pace of revenues. These look promising for the stock.
AMN currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Intuitive Surgical ISRG, Cardinal Health, Inc. CAH and McKesson Corporation MCK.
Intuitive Surgical, sporting a Zacks Rank #1 (Strong Buy) at present, reported fourth-quarter 2025 adjusted earnings per share (EPS) of $2.53, beating the Zacks Consensus Estimate by 12.4%. Revenues of $2.87 billion surpassed the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
ISRG has an estimated long-term earnings growth rate of 15.7%. The company beat earnings estimates in the trailing four quarters, the average surprise being 13.2%.
Cardinal Health reported a second-quarter fiscal 2026 adjusted EPS of $2.63, which surpassed the Zacks Consensus Estimate by 10%. Revenues of $65.6 billion beat the Zacks Consensus Estimate by 0.9%. It currently carries a Zacks Rank #2 (Buy).
CAH has an estimated long-term earnings growth rate of 15%. The company beat earnings estimates in the trailing four quarters, the average surprise being 9.3%.
McKesson, currently carrying a Zacks Rank #2, reported a third-quarter fiscal 2026 adjusted EPS of $9.34, which beat the Zacks Consensus Estimate by 0.3%. Revenues of $106.2 billion beat the Zacks Consensus Estimate by 0.5%.
MCK has an estimated long-term earnings growth rate of 15.9%. The company beat earnings estimates in the trailing four quarters, the average surprise being 3.6%.
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This article originally published on Zacks Investment Research (zacks.com).
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