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

Pediatrix Medical Group (NYSE:MD) posted its quarterly earnings data 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 analysts’ expectations of $486.23 million. During the same quarter in the prior year, the firm posted $0.51 EPS. Pediatrix Medical Group’s quarterly revenue was down 1.7% compared to the same quarter last year.

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 Stock Down 1.3%

Shares of Pediatrix Medical Group stock traded down $0.25 during trading on Friday, hitting $19.05. 721,799 shares of the stock were exchanged, compared to its average volume of 659,487. 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 firm’s 50-day moving average price is $21.64 and its 200 day moving average price is $19.51. The stock has a market cap of $1.64 billion, a price-to-earnings ratio of 10.03 and a beta of 0.76. Pediatrix Medical Group has a 12-month low of $11.84 and a 12-month high of $24.99.

Key Pediatrix Medical Group News

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

Insiders Place Their Bets

In other Pediatrix Medical Group 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 sale, the chief executive officer directly owned 302,805 shares in the company, valued at $6,785,860.05. This trade represents a 7.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Pediatrix Medical Group

Several large investors have recently bought and sold shares of MD. Gotham Asset Management LLC increased its holdings in shares of Pediatrix Medical Group by 0.6% in the third quarter. Gotham Asset Management LLC now owns 116,093 shares of the company’s stock valued at $1,945,000 after purchasing an additional 724 shares during the period. Verition Fund Management LLC lifted its holdings in shares of Pediatrix Medical Group by 4.4% during the third quarter. Verition Fund Management LLC now owns 25,408 shares of the company’s stock worth $426,000 after purchasing an additional 1,066 shares during the period. EP Wealth Advisors LLC grew its position in Pediatrix Medical Group by 5.5% in the 2nd quarter. EP Wealth Advisors LLC now owns 22,579 shares of the company’s stock valued at $324,000 after buying an additional 1,180 shares during the last quarter. State of Tennessee Department of Treasury increased its stake in Pediatrix Medical Group by 2.8% in the 4th quarter. State of Tennessee Department of Treasury now owns 46,016 shares of the company’s stock valued at $984,000 after buying an additional 1,246 shares during the period. Finally, Global Retirement Partners LLC increased its stake in Pediatrix Medical Group by 68,250.0% in the 4th quarter. Global Retirement Partners LLC now owns 1,367 shares of the company’s stock valued at $29,000 after buying an additional 1,365 shares during the period. Institutional investors and hedge funds own 97.71% of the company’s stock.

Analysts Set New Price Targets

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

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.