Healthcare company Surgery Partners (NASDAQ:SGRY) reported Q4 CY2025 results beating Wall Street’s revenue expectations , with sales up 2.4% year on year to $885 million. On the other hand, the company’s full-year revenue guidance of $3.4 billion at the midpoint came in 4.5% below analysts’ estimates. Its non-GAAP profit of $0.12 per share was 59.7% below analysts’ consensus estimates.

Is now the time to buy Surgery Partners? Find out in our full research report.

Revenue: $885 million vs analyst estimates of $868.1 million (2.4% year-on-year growth, 1.9% beat)

Adjusted EPS: $0.12 vs analyst expectations of $0.30 (59.7% miss)

Adjusted EBITDA: $156.9 million vs analyst estimates of $167.6 million (17.7% margin, 6.4% miss)

EBITDA guidance for the upcoming financial year 2026 is $530 million at the midpoint, below analyst estimates of $591.3 million

Operating Margin: 12.5%, down from 14.7% in the same quarter last year

Free Cash Flow Margin: 10.2%, similar to the same quarter last year

Sales Volumes rose 1.3% year on year (5.1% in the same quarter last year)

Market Capitalization: $1.99 billion

Eric Evans, Chief Executive Officer, stated, “In 2025, Surgery Partners continued to be guided by an unwavering commitment to high-value and high-quality patient care, with strong performance to start the year giving way to significant and unanticipated headwinds that culminated in fourth quarter results that did not meet our expectations. Despite these challenging headwinds, demand for our services remains strong, and we remain optimistic on the structural tailwinds underpinning long-term ASC market growth. As we progress through 2026, we are proactively strengthening our performance by tightening execution and doubling down on our shift into higher-acuity procedures. We believe the company is well-positioned to capture momentum in the market through multiple initiatives including continued organic growth, strategic M&A and effective portfolio optimization.”

With more than 180 locations across 33 states serving as alternatives to traditional hospital settings, Surgery Partners (NASDAQ:SGRY) operates a national network of outpatient surgical facilities including ambulatory surgery centers and short-stay surgical hospitals.

Reviewing a company’s long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, Surgery Partners’s 12.2% annualized revenue growth over the last five years was solid. Its growth beat the average healthcare company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Surgery Partners’s annualized revenue growth of 9.8% over the last two years is below its five-year trend, but we still think the results were respectable.

We can better understand the company’s revenue dynamics by analyzing its number of units sold. Over the last two years, Surgery Partners’s units sold averaged 3.6% year-on-year growth. Because this number is lower than its revenue growth, we can see the company benefited from price increases.

This quarter, Surgery Partners reported modest year-on-year revenue growth of 2.4% but beat Wall Street’s estimates by 1.9%.

Looking ahead, sell-side analysts expect revenue to grow 8.1% over the next 12 months, a slight deceleration versus the last two years. Still, this projection is commendable and indicates the market is baking in success for its products and services.

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Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D.

Surgery Partners has done a decent job managing its cost base over the last five years. The company has produced an average operating margin of 12.3%, higher than the broader healthcare sector.

Analyzing the trend in its profitability, Surgery Partners’s operating margin decreased by 1.8 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.

This quarter, Surgery Partners generated an operating margin profit margin of 12.5%, down 2.3 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Surgery Partners’s full-year EPS flipped from negative to positive over the last five years. This is encouraging and shows it’s at a critical moment in its life.

In Q4, Surgery Partners reported adjusted EPS of $0.12, down from $0.44 in the same quarter last year. This print missed analysts’ estimates, but we care more about long-term adjusted EPS growth than short-term movements. Over the next 12 months, Wall Street expects Surgery Partners’s full-year EPS of $0.46 to grow 57.5%.

It was encouraging to see Surgery Partners beat analysts’ revenue expectations this quarter. On the other hand, its full-year revenue guidance missed and its full-year EBITDA guidance fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 18% to $13.03 immediately following the results.

Surgery Partners didn’t show it’s best hand this quarter, but does that create an opportunity to buy the stock right now? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.