Select Medical (NYSE:SEM) Releases FY 2026 Earnings Guidance

Select Medical (NYSE:SEM) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 1.220-1.320 for the period, compared to the consensus EPS estimate of 1.320. The company issued revenue guidance of $5.6 billion-$5.8 billion, compared to the consensus revenue estimate of $5.6 billion.

Select Medical Trading Down 6.6%

Shares of Select Medical stock traded down $1.06 on Friday, hitting $15.02. The stock had a trading volume of 612,509 shares, compared to its average volume of 693,061. The stock has a 50 day moving average of $15.32 and a 200 day moving average of $14.04. The firm has a market capitalization of $1.86 billion, a P/E ratio of 17.44, a PEG ratio of 0.57 and a beta of 1.25. Select Medical has a twelve month low of $11.65 and a twelve month high of $19.40. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.09 and a current ratio of 1.09.

Select Medical (NYSE:SEM) last posted its earnings results on Thursday, February 19th. The health services provider reported $0.16 earnings per share for the quarter, missing analysts’ consensus estimates of $0.23 by ($0.07). The business had revenue of $1.40 billion for the quarter, compared to the consensus estimate of $1.36 billion. Select Medical had a return on equity of 7.41% and a net margin of 2.05%.The company’s revenue was up 6.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.18 earnings per share. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. Sell-side analysts expect that Select Medical will post 1.17 earnings per share for the current fiscal year.

Select Medical Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, March 12th. Shareholders of record on Monday, March 2nd will be issued a dividend of $0.0625 per share. The ex-dividend date of this dividend is Monday, March 2nd. This represents a $0.25 annualized dividend and a yield of 1.7%. Select Medical’s payout ratio is presently 29.07%.

Select Medical announced that its board has approved a share repurchase plan on Thursday, February 19th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the health services provider to buy up to 49.5% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its stock is undervalued.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. Wall Street Zen upgraded Select Medical from a “hold” rating to a “buy” rating in a research report on Saturday, November 8th. Weiss Ratings restated a “sell (d+)” rating on shares of Select Medical in a report on Wednesday, January 21st. Mizuho set a $17.00 price target on shares of Select Medical in a research report on Monday, November 3rd. Finally, Benchmark reiterated a “buy” rating on shares of Select Medical in a research report on Monday, October 27th. Four equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $17.80.

More Select Medical News

Here are the key news stories impacting Select Medical this week:

• Positive Sentiment: Board approved a large $1.0 billion share buyback (authorization to repurchase up to ~49.5% of shares), which signals management believes the stock is undervalued and can support EPS/TA over time. RTT News – Stock Buybacks
• Positive Sentiment: Revenue and operating profit improved: Q4 revenue rose ~6.4% to $1.40B and operating profit expanded materially year-over-year, showing underlying volume/revenue strength. Quiver Quantitative – Q4 Results
• Neutral Sentiment: Company declared a quarterly cash dividend of $0.0625 per share (ex-dividend Mar 2, payable Mar 12), a modest yield (~1.6%) that may attract income-focused holders but is not a major return driver. PR Newswire – Q4 Results & Dividend
• Neutral Sentiment: Analyst coverage is mixed but limited; recent median price target (~$17.50) is near the current range, and a couple of buy/outperform ratings remain on the tape. Quiver Quantitative – Analyst Notes
• Negative Sentiment: Q4 EPS missed expectations: reported $0.16 vs. consensus $0.23, and diluted EPS declined significantly year-over-year — a primary driver of the negative market reaction. Zacks – Q4 Earnings Miss
• Negative Sentiment: FY2026 EPS guidance (1.220–1.320) is slightly below the consensus midpoint (1.320), and management flagged weaker cash flow — operating cash and cash balances declined — which raises near-term financial flexibility concerns. PR Newswire – Guidance & Outlook

Institutional Investors Weigh In On Select Medical

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Quarry LP bought a new position in Select Medical in the 4th quarter valued at about $26,000. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Select Medical in the fourth quarter worth approximately $28,000. Quantbot Technologies LP bought a new position in shares of Select Medical in the third quarter valued at approximately $27,000. Smartleaf Asset Management LLC boosted its position in shares of Select Medical by 37.8% during the fourth quarter. Smartleaf Asset Management LLC now owns 2,870 shares of the health services provider’s stock valued at $43,000 after buying an additional 788 shares during the last quarter. Finally, Wilmington Savings Fund Society FSB grew its holdings in Select Medical by 20.9% during the third quarter. Wilmington Savings Fund Society FSB now owns 5,784 shares of the health services provider’s stock worth $74,000 after buying an additional 999 shares in the last quarter. 89.48% of the stock is owned by institutional investors.

About Select Medical

Select Medical is a leading provider of specialized healthcare services in the United States, operating through two primary business segments: Hospital Division and Outpatient Rehabilitation Division. The Hospital Division offers long-term acute care (LTAC) hospitals and inpatient rehabilitation facilities (IRFs) that serve patients recovering from complex illnesses, trauma or surgery. The Outpatient Rehabilitation Division delivers physical, occupational and speech therapy services through a network of clinic locations and home-based care programs.

Headquartered in Mechanicsburg, Pennsylvania, Select Medical was founded in 1996 and has grown through strategic partnerships, joint ventures and acquisitions.