Fresenius Medical Care AG & Co. FMS reported first-quarter 2026 adjusted earnings per share (EPS) of 53 cents, which missed the Zacks Consensus Estimate by 10.2%. The bottom line improved 16% year over year.
FMS’ Revenue Details
Revenues of $5.72 billion (EUR 4,612 million) missed the Zacks Consensus Estimate by 5.6%. The top line was down 5.5% year over year reportedly, but improved 3.1% at constant currency (cc). Revenues were up 4% organically.
Per management, during the first quarter, divestitures realized as part of the portfolio optimization plan hurt revenue development by 50 basis points. The unfavorable currency movement also impeded revenue growth.
Shares of FMS gained nearly 0.2% in yesterday’s after-market trading. The stock has lost 15.3% year to date compared with the industry’s 16.6% decline. The S&P 500 Index has increased 6% in the same period.
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Segmental Details
Care Delivery
The segment’s revenues were down 4.4% on a year-over-year basis but up 5% at cc. Revenues gained 6% on an organic basis.
Revenues in the U.S. markets declined 4.4% reportedly, but gained 6.4% at cc and 6.7% on an organic basis. Per management, unfavorable exchange rates hurt sales in the country. This was partially offset by positive impacts from TDAPA reimbursement regulations and favorable payor mix.
Per management, during the first quarter of 2026, U.S. same-market treatment growth declined 0.4% year over year.
International sales declined 5% reportedly and 2.1% at cc but gained 3.3% on an organic basis. The decline was due to divestments realized as part of the portfolio optimization plan and unfavorable exchange rates, partially offset by organic growth. The organic growth was supported by same-market treatment growth of 1.3%.
Care Enablement
The segment’s revenues declined 5% year over year, reportedly, but gained 1.1% at cc as well as organically. The decline was led by unfavorable currency and lower volume amid volume-based procurement and stricter tender requirements in China. This was partially offset by overall positive pricing and volume momentum outside China, mainly driven by the sales of 5008X CAREsystems.
Value-Based Care
The segment’s revenues declined 7.4% year over year, reportedly, but gained 3% at cc as well as organically. Sales were driven by higher number of member months and positive effects from premium rates, partially offset by unfavorable exchange rate effects.
Margin Analysis
In the quarter under review, Fresenius Medical’s gross profit declined 0.4% year over year. However, the gross margin expanded 130 basis points (bps) to 25.6%.
Selling, general & administrative expenses decreased 0.2% on a reported basis. Research and development expenses declined 11.9% year over year.
Adjusted operating income improved 2.2% from the prior-year quarter’s level. The adjusted operating margin expanded 70 bps to 10.1%.
2026 Guidance
For 2026, Fresenius Medical Care continues to expect flat revenue growth. The company expects operating income to decline or grow by mid-single-digit percentage points.
Fresenius Medical Care AG & Co. KGaA Price, Consensus and EPS Surprise
Fresenius Medical Care AG & Co. KGaA price-consensus-eps-surprise-chart | Fresenius Medical Care AG & Co. KGaA Quote
Our Take
FMS exited the first quarter on a weak note, with its earnings and revenues missing their respective consensus estimate. However, the company’s bottom-line growth continued to be driven by strong efficiency gains from its FME25+ transformation program.
Fresenius Medical Care kicked off 2026 with solid operational momentum, achieving organic revenue and operating income growth, driven by ongoing execution of its FME25+ restructuring program. Margin expansion benefited from roughly EUR 50 million in quarterly savings, while free cash flow nearly doubled year over year.
U.S. treatment volumes remained pressured by elevated mortality, weather-related missed treatments and uncertainty around ACA insurance coverage. China continued to weigh on Care Enablement results due to volume-based procurement and stricter tender requirements.
Management expects several drivers to support the business through 2026, including the accelerating rollout of the 5008X CAREsystem and HighVolumeHDF therapy, AI-driven patient management tools, clinic optimization initiatives and improving revenue cycle management. The company also expects operational benefits from reduced bloodstream infections through broader adoption of catheter lock solutions.
However, challenges persist, including an anticipated second-half headwind from TDAPA reimbursement changes, ongoing inflationary pressures, elevated patient mortality and regulatory uncertainty in China. Despite these factors, management has maintained its full-year outlook, reflecting confidence in execution and continued productivity improvements.
FMS’ Zacks Rank & Stocks to Consider
Fresenius Medical currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are West Pharmaceutical Services, Inc. WST, Intuitive Surgical ISRG and Cardinal Health, Inc. CAH.
West Pharmaceutical reported first-quarter 2026 earnings per share (EPS) of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
West Pharmaceutical has a long-term estimated growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.37%.
Intuitive Surgical reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.19%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%. It currently carries a Zacks Rank of 2 (Buy).
Intuitive Surgical has a long-term estimated growth rate of 14.9%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.82%.
Cardinal Health, carrying a Zacks Rank of 2 at present, reported third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.
Cardinal Health has a long-term estimated growth rate of 15.6%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.27%.
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This article originally published on Zacks Investment Research (zacks.com).