Brightspring Q3 Earnings Beat On Specialty Growth, '26 View Raised

BrightSpring Health Services, Inc. BTSG reported third-quarter 2026 adjusted earnings per share (EPS) of 54 cents, which beat the Zacks Consensus Estimate of 49 cents by 10.2%. The bottom line improved 80% year over year.

GAAP EPS from continuing operations was 46 cents, up from 17 cents in the year-ago quarter.

BTSG’s Q3 Revenue Details

Revenues increased 26.4% year over year to $4.21 billion, surpassing the Zacks Consensus Estimate of $3.86 billion by 9.2%. Growth was driven by strong Specialty and Infusion performance, including 29% prescription growth, alongside expanding Home Health Care volumes.

Year to date, BTSG’s shares have rallied 78.6%, outperforming the industry’s 10% gain and the broader S&P 500 Index’s 9.3% increase.

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BTSG's Pharmacy Solutions Revenues Grow

Pharmacy Solutions revenues totaled $3.73 billion, up 25.8% year over year. Growth was driven by Specialty and Infusion Pharmacy, supported by branded limited distribution drugs (LDDs), generic utilization, pharmaceutical services and higher prescription volumes.

Specialty and Infusion revenues increased 33.8% to $3.18 billion. BrightSpring launched seven LDDs during the quarter, bringing year-to-date launches to 19 and its total portfolio to 162. Management noted that the annualized revenue contribution from 2026 launches is tracking ahead of the prior year's launches at the same stage.

However, Home and Community Pharmacy revenues declined 6.3% to $553 million. The decrease reflected an approximately $50 million impact from the Inflation Reduction Act (IRA) and the company's decision to exit uneconomic customer relationships. Despite revenue pressure, operational improvements supported double-digit EBITDA growth in this business.

BrightSpring's Provider Services Maintain Momentum

Provider Services revenues totaled $481 million, up 31% year over year. Growth was primarily driven by Home Health Care, supported by higher patient volumes, new locations and contributions from acquired Amedisys and LHC branches.

Home Health Care revenues increased 52.4% to $288 million. The acquired branches contributed approximately $76 million in quarterly revenues. Excluding these acquisitions, Home Health Care revenue growth was 12%. Average daily census increased 57.6% to 47,256 patients.

Rehab Care revenues increased 8.3% to $82 million, supported by higher patient volumes and hours billed. Persons served increased 9.3% to 7,574. Personal Care revenues improved 8.1% to $111 million, while persons served increased 1.2% to 16,320.

BrightSpring's Pharmacy Operating Metrics Improve

Total prescriptions dispensed increased 1.5% year over year to approximately 10.95 million. Revenue per prescription climbed 24% to $340.86, while gross profit per prescription increased 26.8% to $28.86.

Management attributed the improvement in gross profit per prescription primarily to favorable business mix, particularly stronger Specialty and Infusion volumes. The company continues to prioritize absolute gross profit and EBITDA growth rather than individual prescription economics.

BrightSpring also reported mid-teens prescription growth across acute and chronic infusion therapies. Investments in infusion capabilities, technology and pharmaceutical service programs continue to support expansion across its pharmacy operations.

BrightSpring Expands Margins

Gross profit was $518.5 million, up 32.3% year over year. As a percentage of revenues, the gross margin was 12.3%, up 50 basis points (bps) from the prior-year quarter’s figure.

Selling, general and administrative expenses totaled $358.1 million, up 17.7% year over year.

Operating income totaled $160.5 million, up 82.7% year over year. As a percentage of revenues, the operating margin was 3.8%, up 120 bps from the prior-year quarter’s figure.

BTSG’s Financial Position

BrightSpring exited the third quarter with cash and cash equivalents of $717.8 million compared with $550.4 million in the previous quarter.

Total assets increased to $6.27 billion from $5.99 billion in the previous quarter.

Cumulative net cash provided by operating activities at the end of third-quarter 2026 was $371.2 million compared with $258.6 million in the year-ago period.

BrightSpring Health Services, Inc. Price, Consensus and EPS Surprise

BrightSpring Health Services, Inc. price-consensus-eps-surprise-chart | BrightSpring Health Services, Inc. Quote

BrightSpring Raises 2026 Guidance

BrightSpring raised its full-year 2026 revenue guidance to $15.90-$16.13 billion from the previous range of $15.10-$15.43 billion. The updated outlook implies revenue growth of 23.2%-24.9%.

Pharmacy Solutions revenues are now projected at $14.00-$14.20 billion, compared with the previous guidance of $13.20-$13.50 billion. Provider Services revenues are expected to be between $1.90 billion and $1.93 billion.

Adjusted EBITDA guidance increased to $850-$860 million from $820-$845 million, implying year-over-year growth of 37.6%-39.3%. The outlook includes approximately $35 million in contributions from the Amedisys and LHC acquisitions.

Management expects operating cash flow of at least $700 million for 2026, excluding Community Living transaction-related impacts. BrightSpring reiterated its expectation of at least 15%-20% organic adjusted EBITDA growth in 2027, supported by continued operational execution and expansion opportunities.

BTSG’s Zacks Rank & Key Picks

BrightSpring currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are OPKO Health OPK, Intuitive Surgical ISRG and Globus Medical GMED.

OPKO Health, currently flaunting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted loss of 1 cent per share, which surpassed the Zacks Consensus Estimate by 87.5%. Revenues of $163.6 million beat the Zacks Consensus Estimate by 24.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

OPK has an estimated earnings growth rate of 23.3% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 95.1%.

Intuitive Surgical, currently carrying a Zacks Rank #2 (Buy), reported third-quarter 2026 adjusted EPS of $3.00, which beat the Zacks Consensus Estimate by 13.6%. Revenues of $3.05 billion surpassed the Zacks Consensus Estimate by 4.9%.

Intuitive Surgical has a long-term estimated growth rate of 14.9%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.1%.

Globus Medical, currently carrying a Zacks Rank #2, reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.

GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.

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

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