Want to see SGRY full AI Analyst Report?
Top Page
Surgery Partners
(NASDAQ:SGRY)
Select Model
Select Model
Rating:53Neutral
Price Target:
$14.50
▲(3.20% Upside)
Action:Reiterated
Date:08/10/26
The score is primarily held back by financial quality (ongoing net losses and high leverage despite positive cash flow) and an earnings-based valuation handicap (negative P/E). Offsetting factors include a constructive earnings call with reaffirmed guidance and a potentially material deleveraging portfolio move (Idaho Falls divestiture), while technical signals remain largely neutral.
Positive Factors
Organic Facility Growth
Positive same-facility growth indicates durable demand and pricing power across the existing network. Rising revenue per case and procedure volumes can support sustained growth without relying entirely on acquisitions or new site openings.
Negative Factors
Elevated Leverage
High leverage limits financial flexibility and leaves results more exposed to operating volatility and refinancing conditions. It can also constrain investment in facilities, technology and acquisitions until debt reduction becomes more substantial.
Read all positive and negative factors
Positive Factors
Negative Factors
Organic Facility Growth
Positive same-facility growth indicates durable demand and pricing power across the existing network. Rising revenue per case and procedure volumes can support sustained growth without relying entirely on acquisitions or new site openings.
Read all positive factors
Surgery Partners (SGRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.84B
Dividend YieldN/A
Average Volume (3M)1.37M
Price to Earnings (P/E)―
Beta (1Y)1.22
Revenue Growth3.99%
EPS Growth51.58%
CountryUS
Employees16,000
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)-0.69
Shares Outstanding130,918,260
10 Day Avg. Volume1,496,441
30 Day Avg. Volume1,374,058
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)1.15
Price to Sales (P/S)0.59
P/FCF Ratio10.05
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$19.80Price Target Upside40.93% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.45
Revenue Forecast (FY)$3.41B
Surgery Partners Business Overview & Revenue Model
Company Description
Surgery Partners, Inc. operates a nationwide network of surgical facilities and associated medical services across the United States. Its business is categorized into two segments: Surgical Facility Services and Ancillary Services. These surgical ...
How the Company Makes Money
Surgery Partners makes money primarily by earning patient service revenue from surgical procedures and related care delivered at its facilities. Revenue is generated when its ASCs and surgical hospitals perform outpatient surgeries (and certain sh...
Surgery Partners Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call emphasized healthy organic performance (revenue growth, strong same-facility metrics, physician recruiting, case acuity expansion, sequential expense improvements) and a strategic portfolio optimization (Idaho Falls sale) expected to simplify the business, improve cash conversion and reduce leverage. Headwinds include a modest decline in adjusted EBITDA and margins year-to-date, higher interest expense, a ~350 bps decline in commercial mix, elevated leverage metrics, and muted M&A activity in 2026. On balance, the positives (organic growth, operational improvements, substantial deleveraging transaction and reaffirmed guidance) outweigh the negatives.Positive Updates
Quarterly Revenue Growth
Net revenue of approximately $849M in Q2 2026, up 2.7% year-over-year; year-to-date net revenue of ~$1.66B, up 3.6% year-over-year.
Negative Updates
Adjusted EBITDA Decline and Margin Pressure
Q2 adjusted EBITDA was approximately $125M versus ~$129M in prior-year quarter (decline). Year-to-date adjusted EBITDA ~$228M, down 2.3% year-over-year; YTD adjusted EBITDA margin 13.7% vs 14.5% prior year.
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly Revenue Growth
Net revenue of approximately $849M in Q2 2026, up 2.7% year-over-year; year-to-date net revenue of ~$1.66B, up 3.6% year-over-year.
Read all positive updates
Company Guidance
Surgery Partners reaffirmed full-year 2026 guidance of revenue of $3.35 billion to $3.45 billion and adjusted EBITDA of at least $530 million (excluding any impact from the pending Idaho Falls transaction) and said it will update guidance promptly after that sale closes; the Idaho Falls transaction is expected to yield approximately $795 million of gross proceeds and reduce consolidated leverage by roughly 0.3 turns. For context, reported Q2 net revenue was about $849 million (up 2.7% YoY) with adjusted EBITDA of about $125 million and a 14.7% adjusted EBITDA margin, while year-to-date net revenue was about $1.66 billion (up 3.6%) with adjusted EBITDA of about $228 million; excluding Idaho Falls, Q2 revenue would have been roughly $660 million with adjusted EBITDA of roughly $98 million (H1 ex-Idaho Falls: ~$1.29 billion revenue and ~$173 million adjusted EBITDA). At quarter end liquidity and leverage metrics included cash of ~$217 million, revolver borrowings of ~$75 million with ~$618 million available capacity, credit-agreement net debt leverage of ~4.4x (balance-sheet net debt/EBITDA ~5.1x), Q2 operating cash flow of ~$59 million (YTD ~$71 million), and Q2 interest of ~ $90 million.Surgery Partners Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
40
Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.37B | 3.31B | 3.11B | 2.74B | 2.54B | 2.23B |
| Gross Profit | 719.40M | 765.00M | 745.60M | 647.50M | 574.90M | 491.40M |
| EBITDA | 947.60M | 565.50M | 501.40M | 446.10M | 460.00M | 401.00M |
| Net Income | -88.60M | -77.90M | -168.10M | -11.90M | -54.60M | -70.90M |
Balance Sheet | ||||||
| Total Assets | 8.05B | 8.24B | 7.89B | 6.88B | 6.68B | 6.12B |
| Cash, Cash Equivalents and Short-Term Investments | 216.70M | 239.90M | 269.50M | 195.90M | 282.90M | 389.90M |
| Total Debt | 4.02B | 4.02B | 3.70B | 3.06B | 2.93B | 3.29B |
| Total Liabilities | 4.95B | 4.72B | 4.25B | 3.51B | 3.40B | 3.82B |
| Stockholders Equity | 1.67B | 1.71B | 1.79B | 1.99B | 2.00B | 1.09B |
Cash Flow | ||||||
| Free Cash Flow | 187.60M | 195.60M | 209.70M | 205.00M | 78.20M | 29.50M |
| Operating Cash Flow | 258.00M | 274.30M | 300.10M | 293.80M | 158.80M | 87.10M |
| Investing Cash Flow | -205.50M | -246.60M | -488.50M | -225.60M | -307.90M | -331.70M |
| Financing Cash Flow | -85.90M | -57.30M | 262.00M | -155.20M | 42.10M | 316.30M |
Surgery Partners Technical Analysis
Negative
14.05
Price Trends
15.47
Negative
14.67
Negative
14.83
Negative
Market Momentum
-0.44
Positive
42.09
Neutral
23.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGRY, the sentiment is Negative. The current price of 14.05 is below the 20-day moving average (MA) of 14.90, below the 50-day MA of 15.47, and below the 200-day MA of 14.83, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 42.09 is Neutral, neither overbought nor oversold. The STOCH value of 23.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SGRY.
Surgery Partners Risk Analysis
Surgery Partners disclosed 41 risk factors in its most recent earnings report. Surgery Partners reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Surgery Partners Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $3.52B | 24.93 | 12.94% | 1.15% | 7.19% | 32.91% | |
83 Outperform | $11.85B | 19.42 | 25.01% | 0.67% | 9.47% | 19.85% | |
73 Outperform | $21.89B | 10.50 | 50.63% | ― | 5.43% | 65.86% | |
71 Outperform | $10.36B | 7.25 | 20.66% | 0.51% | 10.05% | 28.53% | |
60 Neutral | $92.83B | 14.26 | -112.87% | 0.78% | 7.31% | 25.54% | |
53 Neutral | $1.84B | -20.35 | -5.21% | ― | 3.99% | 51.58% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
SGRY
Surgery Partners
14.04
-8.78
-38.48%
HCA
HCA Healthcare
427.16
24.84
6.17%
EHC
Encompass Health
120.78
-1.92
-1.57%
NHC
National Healthcare
225.09
115.02
104.49%
THC
Tenet Healthcare
274.19
92.24
50.70%
UHS
Universal Health
178.69
-2.94
-1.62%
Surgery Partners Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Surgery Partners Reports Modest Q2 Revenue Growth, Net Loss
Neutral
Aug 10, 2026
On August 10, 2026, Surgery Partners reported that second-quarter 2026 revenue rose 2.7% year over year to $848.9 million, driven by a 5.0% increase in same-facility revenue and modest growth in case volumes, while adjusted EBITDA dipped to $125.2...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Surgery Partners Announces Idaho Falls Hospital Divestiture Agreement
Positive
Jul 24, 2026
On July 21, 2026, Surgery Partners and Intermountain Health placed into escrow signed agreements under which Intermountain would acquire Surgery Partners’ ownership interests in Mountain View Hospital and Idaho Falls Community Hospital, valu...
Executive/Board ChangesShareholder Meetings
Surgery Partners Shareholders Reaffirm Board, Pay and Auditor
Positive
Jun 5, 2026
On June 5, 2026, Surgery Partners held its Annual Meeting of stockholders, with 130,798,102 shares of common stock entitled to vote as of the April 8 record date. Shareholders re-elected Class II directors Devin O’Reilly, Brent Turner and La...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.