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Fresenius Medical Care AG & Co. FMS reported fourth-quarter 2025 adjusted earnings per share (EPS) of 83 cents, which surpassed the Zacks Consensus Estimate by 23.9%. The bottom line surged 59% year over year.
For the full year, the company recorded EPS of $2.47, up 39.3% year over year.
Revenues of $5.88 billion (EUR 5,070 million) beat the Zacks Consensus Estimate by 0.4%. The top line was down 0.3% year over year reportedly, but improved 7.1% at constant currency (cc). Also, revenues were up 8% organically.
Per management, during the fourth quarter, divestitures realized as part of the portfolio optimization plan hurt revenue development by 70 basis points.
For the full year, the company reported revenues of $22.76 billion (EUR 19,628 million), reflecting growth of 1.5% reportedly and 5.4% at cc. Organically, revenues were up 8%. The full-year top-line numbers reflect EUR 244 million or 130 basis points of negative impact due to the portfolio optimization plan.
Shares of FMS gained nearly 0.9% in yesterday’s after-market trading. The stock has declined 10.4% year to date compared with the industry’s 3.7% fall. The S&P 500 Index has increased 8.2% in the same period.
Care Delivery
The segment’s revenues were down 1.8% on a year-over-year basis but up 5.7% at cc. Revenues gained 7% on an organic basis.
Revenues in the U.S. markets declined 0.9% reportedly, but gained 7.7% at cc and 8% on an organic basis. Per management, unfavorable exchange rates hurt sales in the country. This was partially offset by positive impacts from TDAPA reimbursement regulations, favorable rate and payor mix effects, and reduced implicit price concessions.
Per management, during the fourth quarter of 2025, U.S. same-market treatment growth declined 0.2% year over year.
International sales declined 6.1% reportedly and 4.4% at cc but gained 3% 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 1.7%.
Care Enablement
The segment’s revenues declined 8.8% year over year, reportedly, and fell 3.2% at cc as well as organically. The decline was led by unfavorable currency and lower volume amid volume-based procurement and other regulatory policies in China. This was partially offset by overall positive pricing momentum.
Value-Based Care
The segment’s revenues surged 31.6% year over year, reportedly, and gained 42.4% 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.
In the quarter under review, Fresenius Medical’s gross profit improved 9.3% year over year. The gross margin expanded 240 basis points (bps) to 27.4%.
Selling, general & administrative expenses decreased 6.6% on a reported basis. Research and development expenses decreased 22.8% year over year.
Adjusted operating income improved 44.2% from the prior-year quarter’s level. The adjusted operating margin expanded 430 bps to 13.9%.
For 2026, Fresenius Medical Care continues to expect flat revenue growth. The company expects operating income to decline or grow by mid-single-digit percentage points.
Fresenius Medical Care AG & Co. KGaA price-consensus-eps-surprise-chart | Fresenius Medical Care AG & Co. KGaA Quote
FMS exited the fourth quarter on a strong note, with its earnings and revenues surpassing their respective consensus estimate. The company’s bottom-line growth continued to be driven by strong efficiency gains from its FME25+ transformation program.
The program delivered EUR 238 million in additional sustainable savings for full-year 2025, taking the cumulative savings under program to EUR 804 million over the last three years. The company plans to further expand the FME25+ program, projecting a total savings of EUR 1.2 billion by the end of 2027.
Although the FME25+ program is boosting the company’s earnings significantly, divestments realized as part of the company’s portfolio optimization hurt sales, which is likely to continue in 2026 as well. Overall pricing momentum, favorable payer mix and reimbursement coverage should support top-line growth going forward. However, the effects of unfavorable currency movements may continue to have a negative impact on sales.
Fresenius Medical started a soft launch of its high-volume hemodiafiltration (HVHDF) capable 5008X CARE system in select U.S. clinics. The company plans to start a large-scale rollout this year, which should support top-line growth. FMS expects to replace approximately 20% of its dialysis machines every year with the 5008X CARE system.
FMS also outlined its long-term growth plans, targeting operating income growth at a CAGR of 3-7% between 2028 and 2030, with the goal of achieving a mid-teens operating income margin. The company expects sales to witness a CAGR of low- to mid-single digit percent rate for Care Delivery and mid-single digit percent rate for Care Enablement.
Fresenius Medical currently sports a Zacks Rank #4 (Sell).
Some other top-ranked stocks from the broader medical space are Intuitive Surgical ISRG, Veracyte VCYT and Cardinal Health CAH.
Intuitive Surgical, sporting a Zacks Rank #1 at present, reported fourth-quarter 2025 adjusted earnings per share (EPS) of $2.53, which beat 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% compared with the industry’s 13% rise. The company beat on earnings in each of the trailing four quarters, the average surprise being 13.2%.
Veracyte, carrying a Zacks Rank #2 (Buy) at present, reported third-quarter 2025 adjusted EPS of 51 cents, which surpassed the Zacks Consensus Estimate by 59.4%. Revenues of $131.8 million beat the Zacks Consensus Estimate by 5.5%.
VCYT’s estimated earnings for 2026 implies a decline of 3.3% against the industry’s 16% rise. The company beat on earnings in each of the trailing four quarters, the average surprise being 45.1%.
Cardinal Health, currently carrying a Zacks Rank of 2, reported 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%.
CAH has an estimated long-term earnings growth rate of 15% compared with the industry’s 9.4% rise. The company beat on earnings in each of the trailing four quarters, the average surprise being 9.3%.
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This article originally published on Zacks Investment Research (zacks.com).
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