Surgery Partners, Inc. (NASDAQ:SGRY) shares are down in Tuesday’s premarket session after the company reported disappointing fourth-quarter results and issued cautious guidance for 2026.
Smaller Than Expected Quarterly Earnings
In its fourth-quarter report, Surgery Partners reported adjusted earnings of 12 cents per share, falling short of the consensus estimate of 30 cents.
Sales increased 2.4% year over year to $885 million, beating the consensus of $866.47 million.
Same-facility revenues for the fourth quarter of 2025 increased 3.5%, with a 2.1% increase in revenue per case and a 1.3% increase in same-facility cases.
For the fourth quarter of 2025, the company’s adjusted EBITDA was $156.9 million, compared to $163.8 million a year ago.
The financial results indicated a challenging environment, with cash flows from operating activities declining to $103.4 million in the fourth quarter of 2025, down from $111.4 million in the fourth quarter of 2024.
Eric Evans, CEO, stated, “…significant and unanticipated headwinds that culminated in fourth quarter results that did not meet our expectations. Despite these challenging headwinds, demand for our services remains strong, and we remain optimistic on the structural tailwinds underpinning long-term ASC market growth.”
Share Buyback
On February 26, the company announced a new share repurchase program authorizing the repurchase of up to $200 million.
2026 Outlook Disappoints
“As we progress through 2026, we are proactively strengthening our performance by tightening execution and doubling down on our shift into higher-acuity procedures. We believe the company is well-positioned to capture momentum in the market through multiple initiatives, including continued organic growth, strategic M&A, and effective portfolio optimization,” Evans commented on Monday.
Surgery Partners expects fiscal 2026 sales of $3.35 billion-$3.45 billion compared to the consensus of $3.56 billion.
Technical Indicators Signal Bearish Bias
The stock is currently trading 8.5% below its 20-day simple moving average (SMA) and 12.3% below its 100-day SMA, indicating a bearish trend. Over the past 12 months, shares have decreased significantly and are currently positioned closer to their 52-week lows than highs.
The RSI is at 44.45, which is considered neutral territory. Meanwhile, MACD is at 0.15, below its signal line at 0.22, indicating bearish pressure on the stock.
The combination of neutral RSI and bearish MACD suggests mixed momentum.
- Key Resistance: $13.50
- Key Support: $11.00
SGRY Price Action: Surgery Partners shares were down 23.93% at $12.08 during premarket trading on Tuesday. The stock is trading at a new 52-week low, according to Benzinga Pro data.
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