Pennant Group, Inc. (PNTG) · Nov 4, 2026 · Earnings

Pennant Group earnings beat revenue estimates but adjusted EPS misses

Miss — Adjusted EPS $0.35 vs ~$0.357 consensus

Pennant Group’s Q3 earnings show accelerating home-health and hospice growth and a revenue beat, but adjusted EPS narrowly missed consensus as integration costs lingered.

Pennant is in the scale-up phase of a post-acute healthcare roll-up, integrating the large UnitedHealth/Amedisys asset purchase while expanding home health, hospice, and senior living operations. Its prior setup already called for strong 2026 growth, with management guiding to $1.34–$1.41 of adjusted EPS and $1.171–$1.190 billion of revenue for the full year.

The core operating engine is still outperforming: Q3 revenue reached $302.3 million, above the roughly $299.3 million published consensus, while home health and hospice revenue grew 38.2% year over year. The strongest evidence is operational rather than accounting-driven: total home health admissions rose 39.4%, hospice average daily census rose 34.6%, and the home health and hospice segment’s adjusted EBITDAR increased 42.3%. 〔0〕

Q3 2026Q3 2025Consensus
Revenue (Income Statement)$302.3M (+32.0%)$229.0M~$299.3M
GAAP diluted EPS (Income Statement)$0.26 (+52.9%)$0.17
Adjusted diluted EPS (Non-GAAP reconciliation)$0.35 (+16.7%)$0.30~$0.357
Adjusted EBITDA (EBITDA reconciliation)$24.7M (+42.4%)$17.3M
Operating cash flow, nine months (Cash Flow statement)$43.5M (+59.3%)$27.3M

The miss is narrow and sits in earnings per share, not demand: adjusted diluted EPS of $0.35 was slightly below the approximately $0.357 consensus, even as revenue exceeded expectations. The gap reflects a heavier cost structure during expansion, including $1.55 million of transition-services costs tied to the UnitedHealth transaction and higher interest expense.

Same-store results show the acquired growth is not the whole story: same-store home health admissions rose 8.0%, Medicare home health admissions rose 12.0%, and same-store hospice census increased 13.0%. That supports management’s claim that its operating model is improving existing locations while absorbing acquisitions. 〔1〕

Senior living remains the softer piece: revenue increased 12.6%, but total occupancy fell 250 basis points to 78.4%; same-store occupancy declined 60 basis points to 81.2%. Higher revenue per occupied unit partly offset the occupancy pressure, but this segment is contributing less operating momentum than home health and hospice.

The outlook was maintained, not upgraded: management said the quarter was consistent with full-year guidance. That makes the result broadly on track operationally, but it does not create a new upside signal versus the standing expectation. The company is executing well against its acquisition-led growth plan, yet the slight EPS miss and continuing transition costs keep this from being a clean earnings beat. 〔2〕

Bottom line: Pennant’s underlying healthcare demand and same-store execution remain strong, and revenue beat expectations. But because adjusted EPS came in just below consensus and guidance was merely reaffirmed, this is a mixed quarter rather than a clean beat—modestly advancing the business story, not rewriting it.

What to watch next

Q3 results webcast, November 5, 2026

Original filing on SEC EDGAR

Pennant Group earnings beat revenue estimates but adjusted EPS misses | PNTG Stock News
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