# 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.
- Title: Chemed Q3 2026 Earnings Report · The Motley Fool | Shortify
- Summary: 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%…
- Keywords: chemed, che, vitas healthcare, roto-rooter, q3 2026, earnings call, revenue growth, adjusted eps, medicare cap, finance, money, 2026
- Source: The Motley Fool — https://fool.com/earnings/call-transcripts/2026/10/28/chemed-che-q3-2026-earnings-call-transcript
- Author: Motley Fool Transcribing
- Published: 2026-10-28T16:44:25+00:00
- Read time: 2 min
- Topics: chemed, che, vitas healthcare, roto-rooter, q3 2026, earnings call, revenue growth, adjusted eps, medicare cap, finance, money
## 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.
## Key takeaway

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.