Record growth beats expectations, but adjusted EPS declines and AI investment weighs

The quarter landed above the published bar on growth. Revenue reached $622.7 million versus a published consensus of approximately $610.0 million, while adjusted EPS was $0.29 versus roughly $0.19 expected; GAAP EPS of $0.10 was modestly below the approximately $0.11 consensus. (Income Statement; Adjusted Earnings reconciliation)

The core imaging engine is delivering the upside, not just acquisitions. Same-center advanced imaging volumes rose 9.6%, aggregate advanced imaging grew 21.2%, and the higher-value mix reached 29.9% of procedures; that supported a slight Imaging Center margin improvement to 16.1%. (Segment results — Imaging Center; Procedural volumes)

Digital Health is scaling rapidly but remains an investment story. Revenue increased 56.5% and ARR nearly doubled to $105.5 million, with external customers representing approximately 63% of Digital Health revenue. However, segment Adjusted EBITDA fell to $2.5 million from $3.4 million as sales, implementation, customer-service and infrastructure spending increased. (Segment results — Digital Health)

Management raised the Imaging Center outlook, reinforcing the beat, but did not raise the AI outlook. The midpoint of Imaging Center revenue guidance increased by $2.5 million from the post-Q1 range, while the Adjusted EBITDA midpoint rose by $5 million and free-cash-flow midpoint by $3 million; all Digital Health ranges were reaffirmed. (2026 Guidance tables)

Net read: clearly better than expected, with quality caveats. The revenue, adjusted-EPS and Imaging Center guidance increases outweigh the lower GAAP and adjusted EPS year over year, but the earnings improvement is less clean because adjusted EPS fell from $0.34 to $0.29, shares increased, and Digital Health profitability is being intentionally sacrificed for expansion. (Adjusted Earnings reconciliation; Income Statement; Segment results — Digital Health)