Pediatrix Medical Group (NYSE:MD) Releases Earnings Results, Misses Expectations By $0.03 EPS

Pediatrix Medical Group (NYSE:MD) issued its earnings results on Thursday. The company reported $0.50 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.53 by ($0.03), FiscalAI reports. Pediatrix Medical Group had a net margin of 8.44% and a return on equity of 20.45%. The firm had revenue of $493.77 million during the quarter, compared to analyst estimates of $486.23 million. During the same quarter last year, the business posted $0.51 earnings per share. The company’s revenue for the quarter was down 1.7% on a year-over-year basis.

Here are the key takeaways from Pediatrix Medical Group’s conference call:

• Strong operating performance: Q4 adjusted EBITDA was $66 million and full-year 2025 adjusted EBITDA was $276 million, with 2026 guidance of $280–$300 million (midpoint about 5% above 2025) assuming steady metrics.
• Healthy balance sheet and cash generation: the company ended Q4 with $375 million cash, net debt just over $220 million (~<1.0x net leverage), generated $115 million operating cash flow in Q4 and repurchased 2.9 million shares for ~$64 million.
• Top-line outlook is conservative: Pediatrix expects full-year 2026 revenue of about $1.9 billion, essentially flat to 2025, and has not included any contribution from M&A in that outlook.
• Policy risk: management warned that a lapse or change in ACA subsidies could negatively affect payer mix and revenue, but said the impact is currently difficult to quantify.
• Strategic investments in clinicians and growth: new multi-year physician alignment bonuses and the inaugural “Pediatrix Partners” stock-tracking grants, plus focus on telemedicine and expanding OB hospitalist and NICU/MFM footprint, aim to boost quality, retention, and future growth.

Pediatrix Medical Group Price Performance

Pediatrix Medical Group stock traded down $0.29 during mid-day trading on Friday, reaching $19.01. 667,223 shares of the company were exchanged, compared to its average volume of 654,201. The firm has a market cap of $1.63 billion, a PE ratio of 10.03 and a beta of 0.76. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.83 and a quick ratio of 1.83. The company has a fifty day simple moving average of $21.64 and a 200-day simple moving average of $19.51. Pediatrix Medical Group has a 12 month low of $11.84 and a 12 month high of $24.99.

Insider Activity

In related news, CEO Mark S. Ordan sold 23,000 shares of the firm’s stock in a transaction on Monday, December 15th. The stock was sold at an average price of $22.41, for a total value of $515,430.00. Following the transaction, the chief executive officer owned 302,805 shares in the company, valued at approximately $6,785,860.05. This trade represents a 7.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.90% of the company’s stock.

Institutional Trading of Pediatrix Medical Group

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Invesco Ltd. lifted its stake in shares of Pediatrix Medical Group by 24.4% in the 4th quarter. Invesco Ltd. now owns 1,090,655 shares of the company’s stock valued at $23,329,000 after acquiring an additional 213,636 shares during the last quarter. State of Tennessee Department of Treasury boosted its stake in shares of Pediatrix Medical Group by 2.8% during the fourth quarter. State of Tennessee Department of Treasury now owns 46,016 shares of the company’s stock valued at $984,000 after purchasing an additional 1,246 shares in the last quarter. EP Wealth Advisors LLC acquired a new stake in Pediatrix Medical Group during the 4th quarter worth approximately $472,000. Mackenzie Financial Corp grew its holdings in Pediatrix Medical Group by 35.7% during the 4th quarter. Mackenzie Financial Corp now owns 55,150 shares of the company’s stock worth $1,201,000 after acquiring an additional 14,502 shares during the last quarter. Finally, Empowered Funds LLC increased its position in Pediatrix Medical Group by 17.8% in the 4th quarter. Empowered Funds LLC now owns 622,380 shares of the company’s stock valued at $13,313,000 after acquiring an additional 93,833 shares during the period. Institutional investors own 97.71% of the company’s stock.

Analysts Set New Price Targets

Several research analysts have recently commented on the company. Weiss Ratings reiterated a “hold (c+)” rating on shares of Pediatrix Medical Group in a research note on Monday, December 29th. UBS Group raised their price target on Pediatrix Medical Group from $16.50 to $23.00 and gave the company a “neutral” rating in a report on Wednesday, November 5th. Deutsche Bank Aktiengesellschaft set a $19.00 price objective on shares of Pediatrix Medical Group in a research report on Friday. Zacks Research downgraded shares of Pediatrix Medical Group from a “strong-buy” rating to a “hold” rating in a report on Friday, January 23rd. Finally, Truist Financial lowered their price target on shares of Pediatrix Medical Group from $24.00 to $21.00 and set a “hold” rating on the stock in a report on Thursday. One investment analyst has rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $20.00.

Key Stories Impacting Pediatrix Medical Group

Here are the key news stories impacting Pediatrix Medical Group this week:

• Positive Sentiment: Management raised its 2026 EBITDA outlook and highlighted declining costs and steady margin focus, which supports profitability improvement going forward. Pediatrix Medical Q4 Earnings Miss Estimates Despite Declining Costs
• Positive Sentiment: Top‑line beat: Q4 revenue of $493.8M topped consensus (~$486.2M), helped by pricing and a favorable payer mix that offset weaker patient volumes. Pediatrix (MD) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Same‑unit growth was reported (a sign of underlying business resilience), but consolidated revenue was down ~1.7% year‑over‑year—mixed operational signals to monitor. MD Q4 deep dive
• Neutral Sentiment: Earnings call/transcript and analyst write‑ups provide color on how much of the margin improvement is sustainable vs. one‑time or timing effects—important context for modeling future quarters. Earnings Call Transcript
• Negative Sentiment: Q4 EPS missed consensus ($0.50 reported vs. $0.53 expected), which pressured near‑term sentiment despite the revenue beat. Q4 Earnings Lag Estimates
• Negative Sentiment: Volume weakness and the year‑over‑year revenue decline create execution risk; combined with the stock trading below its 50‑day average, technical selling may amplify downside. Fourth Quarter Results

About Pediatrix Medical Group

Pediatrix Medical Group, Inc (NYSE:MD) is a national physician-led medical group specializing in high-acuity newborn, maternal-fetal and pediatric subspecialty care. Headquartered in Sunrise, Florida, the company delivers clinical services through hospital-based physician staffing, advanced practitioner support and telemedicine programs. Its core specialties include neonatology, maternal-fetal medicine, pediatric cardiology, pediatric critical care, pediatric emergency medicine and anesthesiology.

Founded in 1979 and formerly known as MEDNAX, the company rebranded as Pediatrix Medical Group in 2022 to align its corporate identity with its primary clinical offerings.