AMN Healthcare Services, Inc. AMN delivered adjusted earnings per share (EPS) of $2.10 in the first-quarter 2026, up 367% year over year. The figure surpassed the Zacks Consensus Estimate by 31.3%.
GAAP EPS for the quarter was $1.59 against a loss per share of 3 cents in the year-ago period.
AMN’s Q1 Revenues in Detail
AMN Healthcare registered revenues of $1.38 billion in the first quarter, up 100% year over year. The figure surpassed the Zacks Consensus Estimate by 11.9%.
Shares of this company gained nearly 3.1% in yesterday’s after-hours trading. The company’s shares have rallied 44.8% in the year-to-date period against the industry’s decline of 13.1%. However, the S&P 500 Index has increased 8.5% in the same time frame.
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AMN Healthcare’s Q1 Segment Details
AMN Healthcare conducts its business via three reportable segments: Nurse and Allied Solutions, Physician and Leadership Solutions, and Technology and Workforce Solutions.
In the first quarter of 2026, the Nurse and Allied Solutions segment’s revenues totaled $1.13 billion, up 173% year over year. Travel nurse staffing revenues were up 12% year over year, whereas Allied revenues increased 3% year over year. Labor disruption events contributed $722 million in revenues in the quarter. The Zacks Consensus Estimate was pegged at $984 million.
The Physician and Leadership Solutions segment’s revenues totaled $163.9 million, down 6% year over year. Locum tenens revenues were $131 million in the quarter, down 7% year over year. Interim leadership revenues were down 4% year over year. Physician and leadership search businesses saw a revenue increase of 4% year over year. The Zacks Consensus Estimate was pegged at $163 million.
The Technology and Workforce Solutions segment’s revenues totaled $87.1 million, down 15% year over year. Language interpretation services business revenues came in at $69 million in the quarter, down 8% year over year, while the vendor management systems business saw an 18% year-over-year revenue decline to reach $16 million. The Zacks Consensus Estimate was pegged at $85 million.
AMN’s Q1 Margin Trend
In the quarter under review, AMN Healthcare’s gross profit increased 86.2% year over year to $368.8 million. The gross margin contracted 190 basis points (bps) to 26.8%.
Selling, general & administrative expenses fell 47.8% year over year to $218.4 million.
Operating profit totaled $117.2 million, reflecting an increase of 836.8% from the prior-year quarter. The operating margin expanded 670 basis points (bps) to 8.5%.
AMN Healthcare’s Financial Position
AMN Healthcare exited first-quarter 2026 with cash and cash equivalents of $560.7 million compared with $33.9 million at 2025-end. Total debt at the end of first-quarter 2026 was $750 million compared with $775 million at 2025-end.
Net cash provided by operating activities at the end of first-quarter 2026 was $562.5 million compared with $92.7 million a year ago.
AMN’s Q2 Guidance
AMN Healthcare has provided its financial outlook for the second quarter of 2026.
For the second quarter, AMN expects revenues in the range of $620-$635 million, reflecting a decline of 4-6% compared with the prior-year figure, as labor disruption revenues normalize. The Zacks Consensus Estimate is pegged at $627.7 million.
With respect to the Nurse and Allied Solutions segment, the company expects revenues to be down 0-2% year over year. The Physician and Leadership Solutions segment’s revenues are expected to decline 6-8% year over year. The company projects second-quarter revenues in the Technology and Workforce Solutions segment to decrease 14-16% year over year.
AMN Healthcare Services Inc Price, Consensus and EPS Surprise
AMN Healthcare Services Inc price-consensus-eps-surprise-chart | AMN Healthcare Services Inc Quote
Our Take on AMN’s Q1 Results
AMN Healthcare delivered a standout first-quarter 2026 performance, driven by extraordinary labor disruption activity, strong, rapid response volume, momentum return in international staffing and search and advancement in technology-enabled workforce solutions. Management emphasized that the quarter was defined by AMN’s ability to rapidly scale operations and support multiple large labor disruption events without compromising day-to-day client service.
AMN continued to strengthen its market position in nurse staffing, allied staffing and international recruitment. Excluding the temporary boost from labor disruption activities, Nurse and Allied Solutions revenues marked the first return to traveler volume growth since 2022. Growth in Travel nurse and allied staffing was supported by stronger fill rates, rapid-response placements and improving demand trends. AMN also saw encouraging progress in its international staffing business, following improvements in visa processing trends.
Technology investments remained a bright spot. The enhanced capabilities within the WorkWise workforce platform and the growing adoption of the AMN Passport app are likely to strengthen client engagement, improve hiring efficiency and support long-term retention. Management highlighted that more than 10,000 clinicians were deployed through its AI recruiter during the quarter, underscoring the increasing role of automation and analytics in its operations.
However, softness in Physician and Leadership Solutions remained concerning. Locum tenens revenues and volumes continued to decline amid weaker demand and heightened competition in third-party channels. Technology and Workforce Solutions revenues also fell year over year due to pricing pressure in Language Services and an unfavorable business mix, despite sequential gross margin improvement.
Looking ahead, management remains optimistic about the company’s long-term trajectory, targeting sustainable revenue growth and adjusted EBITDA growth at roughly twice the pace of revenue growth as operational efficiencies and AI adoption continue to expand.
AMN Healthcare’s Zacks Rank & Other Stocks to Consider
AMN currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space that have announced quarterly results are West Pharmaceutical Services, Inc. WST, Intuitive Surgical ISRG and Cardinal Health, Inc. CAH.
West Pharmaceutical reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
West Pharmaceutical has a long-term estimated growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.37%.
Intuitive Surgical reported first-quarter 2026 adjusted EPS of $2.50, beating the Zacks Consensus Estimate by 20.19%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%. It currently carries a Zacks Rank of 2.
Intuitive Surgical has a long-term estimated growth rate of 14.6%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.82%.
Cardinal Health, carrying a Zacks Rank of 2 at present, reported third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.
Cardinal Health has a long-term estimated growth rate of 15.7%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.27%.
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This article originally published on Zacks Investment Research (zacks.com).
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