The stock may react positively to the strong 2026 guidance despite weak current results, particularly the significant reduction in Medicare Cap headwinds. Monitor VITAS admissions growth and Roto-Rooter margin recovery as key indicators of execution. The company's share repurchase activity ($174.6M in the quarter) provides additional support.
Price Chart
Executive Summary
Chemed Corp reported flat Q4 2025 revenue of $639.3 million but a 9% decline in GAAP EPS to $5.48. The VITAS segment showed modest growth in net patient revenue (1.9%) and admissions (6%), while Roto-Rooter revenue declined 3.7%. The company provided strong 2026 guidance with EPS expected to grow to $23.25-$24.25, driven by a significant reduction in Medicare Cap billing limitations and projected revenue growth across both segments.
Key Financial Metrics
Key Facts
- Q4 2025 revenue was $639.3 million, essentially flat YoY
- GAAP EPS was $5.48, down 9% YoY; Adjusted EPS was $6.42, down 6% YoY
- VITAS net patient revenue increased 1.9% to $418.8 million with 6% growth in admissions
- Roto-Rooter revenue decreased 3.7% to $220.6 million with significant margin compression
- 2026 guidance projects EPS of $23.25-$24.25 (up from $21.55 in 2025) with VITAS revenue growth of 5.5%-6.5% and Roto-Rooter growth of 3.0%-3.5%
- Medicare Cap billing limitations expected to decrease to $9.5 million in 2026 from $27.2 million in 2025
Financial Impact
Revenue flat at $639.3M, EPS down 9% to $5.48, but 2026 guidance shows significant improvement with EPS expected to grow to $23.25-$24.25
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| VITAS | $418.8M | +1.9% |
| Roto-Rooter | $220.6M | -3.7% |
Risk Factors
- Roto-Rooter segment showing declining revenue and significant margin pressure
- Execution risk on the optimistic 2026 guidance, particularly the margin improvement targets
- Concentration risk in VITAS segment's Medicare reimbursement policies
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000019584-26-000002 |
| Document: che-20260225x8k.htm | 0000019584-26-000002 |
| Document: 0000019584-26-000002-index-headers.html | 0000019584-26-000002 |
| Document: 0000019584-26-000002-index.html | 0000019584-26-000002 |
| Document: 0000019584-26-000002.txt | 0000019584-26-000002 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 24, 2026 5w ago | Insider Cluster | $541.34 $496.62 | ▼ −8.26% | ▼ −9.57% | $502.56 (−7.16%) |
Aug 4, 2026 8w ago | Insider Cluster | $539.72 $515.17 | ▼ −4.55% | ▼ −3.31% | $502.56 (−6.89%) |
Aug 4, 2026 8w ago | Insider Cluster | $539.72 $515.17 | ▼ −4.55% | ▼ −3.31% | $502.56 (−6.89%) |
Jul 28, 2026 9w ago | Press Release | $539.36 $548.56 | ▲ +1.71% | ▼ −3.31% | $502.56 (−6.82%) |
May 18, 2026 19w ago | Press Release | $441.62 $433.87 | ▼ −1.75% | ▼ −3.34% | $502.56 (+13.80%) |
May 1, 2026 22w ago | Insider Cluster | $422.16 $422.84 | ▲ +0.16% | ▼ −5.12% | $502.56 (+19.04%) |
Apr 23, 2026 23w ago | 8-K | $421.11 $441.55 | ▲ +4.85% | ▲ +0.83% | $502.56 (+19.34%) |
Apr 23, 2026 23w ago | Press Release | $421.11 $441.55 | ▲ +4.85% | ▲ +0.83% | $502.56 (+19.34%) |
Apr 13, 2026 24w ago | 8-K | $387.62 $421.43 | ▲ +8.72% | ▲ +0.99% | $502.56 (+29.65%) |
Feb 25, 2026 31w ago | 8-K | $396.63 $371.95 | ▼ −6.22% | ▲ +0.18% | $502.56 (+26.71%) |
US Market Status
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