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Chemed Q3 2026 Earnings Report
Chemed's Q3 2026 earnings show 10.6% revenue growth and 28.1% EPS rise with VITAS outperforming despite Roto-Rooter margin pressures.
In brief
Chemed's Q3 2026 earnings show 10.6% revenue growth and 28.1% EPS rise with VITAS outperforming despite Roto-Rooter margin pressures. Chemed reported 10.6% revenue growth and 28.1% adjusted EPS increase for Q3 2026, driven by VITAS segment gains offsetting Roto-Rooter margin compression. Originally reported by The…
Q3 2026 Results
Chemed reported consolidated revenue growth of 10.6% and adjusted diluted EPS growth of 28.1% for Q3 2026.
VITAS Performance
VITAS revenue increased 12.2% with 24,428 average daily census and 18,995 admissions, growing 7.2% year over year.
VITAS Medicare Cushion
VITAS maintained $34 million Medicare cap cushion for Florida combined program through 2027 Medicare cap year.
Roto-Rooter Revenue
Roto-Rooter revenue grew 7.5% to $233.5 million with 5.5% same-store revenue increase exceeding expectations.
Roto-Rooter Margins
Roto-Rooter adjusted EBITDA margin declined 213 basis points to 20.6% due to higher marketing costs and fuel expenses.
Franchise Acquisitions
Chemed spent $62.5 million to acquire Roto-Rooter franchises covering 12 million people in California.
Share Repurchases
Chemed repurchased 125,000 shares for $66 million at $528.24 per share during Q3 2026.
Water Restoration
Water restoration write-offs improved $2.9 million through centralized billing and collections.
Lead Generation Shift
Paid leads now make up 60% of total leads, up from 56% as free internet leads declined 11.8%.
Roto-Rooter Acquisitions
Acquired franchises operate at sub-10% EBITDA margins requiring 12-18 months to integrate into full model.
Q4 Guidance
Chemed expects to finish fiscal year at or slightly above high end of adjusted EPS guidance.
VITAS Margin
VITAS adjusted EBITDA margin increased 318 basis points to 20.2% excluding Medicare cap effects.
Roto-Rooter Fuel Costs
Roto-Rooter fuel costs increased $1.4 million compared to Q3 2025, expected to persist through Q4.
Customer Acquisition
Roto-Rooter customers show 50% repeat rate with 1,000-1,500 leads per week from mobile app.
Medicare Cap Impact
VITAS Medicare cap billing limitation decreased by $3 million from original projection.
Q4 Outlook
Chemed expects Roto-Rooter to return to historic margin growth patterns through 2027 and beyond.
The short version
Chemed reported 10.6% revenue growth and 28.1% adjusted EPS increase for Q3 2026, driven by VITAS segment gains offsetting Roto-Rooter margin compression.
