COMMUNITY HEALTH SYSTEMS, INC. ANNOUNCES THIRD QUARTER ENDED SEPTEMBER 30, 2026 RESULTS
COMMUNITY HEALTH SYSTEMS INC (CYH) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit Number 99.1 Investor Contact: Kevin Hammons Director and Chief Executive Officer (615) 465-7000 COMMUNITY HEALTH SYSTEMS, INC. ANNOUNCES THIRD QUARTER ENDED SEPTEMBER 30, 2026 RESULTS FRANKLIN, Tenn. (October 28, 2026) – Community Health Systems, Inc. (NYSE: CYH) (the “Co
How this was made
The 30-second read
Why it matters
The earnings miss could trigger a sell‑off in CYH and pressure peer hospital operators.
Market read
First‑report earnings release for a mid‑cap health‑care operator; likely to move the stock and influence sector sentiment.
What to watch
Divestitures and cash flow improvement could support a longer‑term turnaround.
Community Health Systems reported third-quarter net operating revenues of $2.757 billion, a net loss attributable to stockholders of $(86) million, and Adjusted EBITDA of $280 million.
Consolidated net operating revenues declined 10.7 percent, income from operations fell to $146 million from $243 million, Adjusted EBITDA declined to $280 million from $376 million, and the company recorded a net loss attributable to stockholders of $(86) million. Same-store revenue and volumes increased, but unfavorable payor mix, lower non-patient revenue and higher specialist and supplemental reimbursement program costs pressured results.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net operating revenues, three months ended September 30, 2026GAAP | $2.76B | – | -10.7 % |
| Same-store net operating revenues, three months ended September 30, 2026other | $2.75B | – | 3.8 % |
| Net (loss) income, three months ended September 30, 2026GAAP | −$50M | – | – |
| Net loss attributable to Community Health Systems, Inc. stockholders, three months ended September 30, 2026GAAP | −$86M | – | -166.2 % |
| Loss per share attributable to Community Health Systems, Inc. stockholders, basic, three months ended September 30, 2026GAAP | $(0.63) | – | – |
| Loss per share attributable to Community Health Systems, Inc. stockholders, diluted, three months ended September 30, 2026GAAP | $(0.63) | – | – |
| Net loss per share attributable to Community Health Systems, Inc. stockholders, diluted, excluding adjustments, three months ended September 30, 2026non-GAAP | $(0.48) | – | – |
| Income from operations, three months ended September 30, 2026GAAP | $146M | – | -39.9 % |
| Income from operations as a % of net operating revenues, three months ended September 30, 2026GAAP | 5.3 % | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $280M | – | -25.5 % |
| Adjusted EBITDA as a % of net operating revenues, three months ended September 30, 2026non-GAAP | 10.2 % | – | – |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | $155M | – | 121.4 % |
| Salaries and benefits, three months ended September 30, 2026GAAP | $1.21B | – | – |
| Supplies, three months ended September 30, 2026GAAP | $407M | – | – |
| Other operating expenses, three months ended September 30, 2026GAAP | $809M | – | – |
| Lease cost and rent, three months ended September 30, 2026GAAP | $62M | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | $106M | – | – |
| Impairment and (gain) loss on sale of businesses, net, three months ended September 30, 2026GAAP | $14M | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $2.61B | – | – |
| Interest expense, net, three months ended September 30, 2026GAAP | $201M | – | – |
| Benefit from income taxes, three months ended September 30, 2026GAAP | −$3M | – | – |
| Admissions, consolidated, three months ended September 30, 2026other | 85,591 | – | -12.3 % |
| Admissions, same-store, three months ended September 30, 2026other | 85,591 | – | 2.2 % |
| Adjusted admissions, consolidated, three months ended September 30, 2026other | 195,677 | – | -11.9 % |
| Adjusted admissions, same-store, three months ended September 30, 2026other | 195,694 | – | 3.6 % |
| Occupancy rate, consolidated, three months ended September 30, 2026other | 51.1 % | – | – |
| Net operating revenues, nine months ended September 30, 2026GAAP | $8.55B | – | -8.9 % |
| Same-store net operating revenues, nine months ended September 30, 2026other | $8.19B | – | 2.9 % |
| Net income, nine months ended September 30, 2026GAAP | $28M | – | – |
| Net loss attributable to Community Health Systems, Inc. stockholders, nine months ended September 30, 2026GAAP | −$74M | – | -118.5 % |
| Loss per share attributable to Community Health Systems, Inc. stockholders, diluted, nine months ended September 30, 2026GAAP | $(0.55) | – | – |
| Net loss per share attributable to Community Health Systems, Inc. stockholders, diluted, excluding adjustments, nine months ended September 30, 2026non-GAAP | $(1.15) | – | – |
| Income from operations, nine months ended September 30, 2026GAAP | $815M | – | -21.5 % |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $918M | – | -18.8 % |
| Net cash used in operating activities, nine months ended September 30, 2026GAAP | −$55M | – | -119.9 % |
| Admissions, same-store, nine months ended September 30, 2026other | 254,691 | – | 0.7 % |
| Adjusted admissions, same-store, nine months ended September 30, 2026other | 572,516 | – | 1.9 % |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
year ending December 31, 2026 outlook
- Revenue$ 11,300 to $ 11,500 (in millions)
- NoteAdjusted EBITDA (in millions): $ 1,225 to $ 1,275
- NoteNet loss per share - diluted: $ (1.70 ) to $ (1.60 )
- NoteWeighted-average diluted shares (in millions): 136 to 136
- NoteDepreciation and amortization: approximately 3.8% to 3.9% for 2026
- NoteInterest expense: between $820 million and $830 million
- NoteCash paid for interest: between $800 million and $810 million
- NoteTotal fixed rate debt is expected to average approximately 98% of total debt during 2026
- NoteNet income attributable to noncontrolling interests: approximately 1.2% to 1.3% of net operating revenues for 2026
- NoteProvision for income taxes: approximately 0.8% to 0.9% of net operating revenues for 2026
- NoteCapital expenditures: $ 350 to $ 400 (in millions)
- NoteNet cash provided by operating activities: $ 100 to $ 300 (in millions)
- NoteEstimated cash payments for income taxes, net of refunds: $10 million to $20 million
- NoteDiluted weighted-average shares outstanding are projected to be approximately 136 million for 2026
Capital returns
- Repurchase of restricted stock shares for payroll tax withholding requirements was $(2) million for the nine months ended September 30, 2026, compared to $(2) million for the same period in 2025.
What drove it
- Same-store admissions increased 2.2 percent and same-store adjusted admissions increased 3.6 percent in the third quarter.
- Same-store net operating revenues increased 3.8 percent in the third quarter.
- Increased volumes and reimbursement rates partially offset the factors reducing third-quarter Adjusted EBITDA.
- For the nine-month period, increased reimbursement rates, a higher net benefit from supplemental reimbursement programs and lower contract labor expense partially offset EBITDA pressure.
- During 2026 through the release date, the Company divested its 80 percent ownership interest in one hospital and nine other hospitals.
Concerns
- Third-quarter Adjusted EBITDA decreased to $280 million from $376 million, primarily due to divestitures, an unfavorable change in payor mix, lower non-patient revenue, higher medical specialist fees and supplemental reimbursement program expense.
- Third-quarter non-patient revenue was affected by the prior-year receipt of $28 million for the settlement of a legal matter.
- Management said payor mix and acuity did not develop as expected due to the challenging macro environment.
- Consolidated third-quarter admissions decreased 12.3 percent and consolidated adjusted admissions decreased 11.9 percent, reflecting divestitures.
- The Company reported long-term debt of $9,568 million and a total stockholders' deficit of $(1,273) million at September 30, 2026.
- Nine-month operating cash flow was $(55) million despite $918 million of Adjusted EBITDA.
What to watch
- Whether same-store admissions and adjusted admissions growth continues after the 2.2 percent and 3.6 percent third-quarter increases.
- The development of payor mix and acuity, which management identified as below expectations.
- The conversion of operating earnings into cash flow, following $(55) million of net cash used in operating activities for the nine-month period.
- Delivery against 2026 guidance of $ 11,300 to $ 11,500 million of net operating revenues and $ 1,225 to $ 1,275 million of Adjusted EBITDA.
- Further divestitures and their effect on consolidated revenue, EBITDA and the hospital portfolio.
- Interest expense, projected at between $820 million and $830 million for 2026, and debt reduction progress.
Balance sheet and cash flow
- Cash and cash equivalents were $155 million at September 30, 2026, compared to $260 million at December 31, 2025.
- Long-term debt was $9,568 million at September 30, 2026, compared to $10,380 million at December 31, 2025.
- Total liabilities were $13,045 million at September 30, 2026, compared to $14,041 million at December 31, 2025.
- Total Community Health Systems, Inc. stockholders' deficit was $(1,492) million at September 30, 2026, compared to $(1,394) million at December 31, 2025.
- Net cash used in operating activities was $(55) million for the nine months ended September 30, 2026, compared to $277 million for the same period in 2025.
- Purchases of property and equipment were $(239) million for the nine months ended September 30, 2026, compared to $(241) million for the same period in 2025.
- Proceeds from disposition of hospitals and other ancillary operations were $1,210 million for the nine months ended September 30, 2026, compared to $1,012 million for the same period in 2025.
- Net cash provided by investing activities was $894 million for the nine months ended September 30, 2026, compared to $705 million for the same period in 2025.
- Repayments of long-term indebtedness were $(2,151) million for the nine months ended September 30, 2026, compared to $(6,272) million for the same period in 2025.
- Net cash used in financing activities was $(944) million for the nine months ended September 30, 2026, compared to $(896) million for the same period in 2025.
- At September 30, 2026, the Company had no outstanding borrowings and approximately $745 million of additional borrowing capacity, after taking into consideration $32 million of outstanding letters of credit, under the ABL Facility.
Analysis
Community Health Systems reported weaker third-quarter consolidated financial results. Net operating revenues were $2.757 billion, down 10.7 percent from $3.087 billion, while income from operations fell to $146 million from $243 million. Adjusted EBITDA declined to $280 million from $376 million and its margin declined to 10.2 % from 12.2 %. The company recorded a net loss attributable to stockholders of $(86) million, or $(0.63) per diluted share, compared with net income of $130 million, or $0.96 per diluted share.
Divestitures were a major factor in the consolidated comparison. Consolidated admissions decreased 12.3 percent and adjusted admissions decreased 11.9 percent, but same-store admissions increased 2.2 percent and same-store adjusted admissions increased 3.6 percent. Same-store net operating revenues rose 3.8 percent to $2,750 million. The underlying volume trend was therefore positive in the remaining comparable operations, although management said payor mix and acuity did not develop as expected.
The principal EBITDA headwinds were divestitures, unfavorable payor mix, lower non-patient revenue and higher medical specialist fees and supplemental reimbursement program expense. The non-patient revenue comparison included $28 million received for settlement of a legal matter in the 2025 third quarter. Increased volumes and reimbursement rates provided partial offsets. For the nine-month period, Adjusted EBITDA was $918 million versus $1.131 billion, while net cash used in operating activities was $(55) million compared with $277 million of cash provided in the prior-year period.
Capital allocation remained centered on divestitures, debt activity and required investment. The company received $1,210 million of proceeds from dispositions of hospitals and other ancillary operations in the nine-month period and repaid $(2,151) million of long-term indebtedness. Cash and cash equivalents were $155 million and long-term debt was $9,568 million at September 30, 2026. The company had no outstanding borrowings and approximately $745 million of additional borrowing capacity under its ABL Facility.
The company updated 2026 guidance to net operating revenues of $ 11,300 to $ 11,500 million, Adjusted EBITDA of $ 1,225 to $ 1,275 million and diluted net loss per share of $ (1.70 ) to $ (1.60 ). The outlook also calls for $ 100 to $ 300 million of net cash provided by operating activities and $ 350 to $ 400 million of capital expenditures. The release states that this guidance updates guidance provided on July 22, 2026, but the previous guidance ranges were not included in the supplied documents, so reported results cannot be compared with prior guidance.
Management, verbatim
We are pleased to make continued progress on our strategic initiatives around quality outcomes, patient satisfaction, physician experience, and employee satisfaction and remain confident these investments will lead to improved financial performance.
Kevin J. Hammons, chief executive officer of Community Health Systems, Inc.
While volume trends and cash flow improved sequentially in the third quarter, payor mix and acuity did not develop as expected due to the challenging macro environment, negatively impacting financial results for the third quarter and our expectations for the remainder of the year.
Kevin J. Hammons, chief executive officer of Community Health Systems, Inc.
Not in the filing
stated, not guessed- Gross margin was not reported.
- Free cash flow was not reported.
- No reportable operating segments or segment revenue were provided.
- Prior-quarter comparative figures were not provided for the reported third-quarter metrics.
- The previous July 22, 2026 guidance ranges were not supplied, so comparison with prior guidance cannot be completed.
- Guidance for gross margin, operating expenses and a tax rate was not provided.
- Common-share repurchases and dividends were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Community Health Systems filed a Form 8‑K announcing its Q3 2026 financial results, including a net loss and reduced EBITDA.
Ticker impact
Community Health Systems reported a Q3 2026 net loss of $86 million, a swing from $130 million profit a year earlier.
likely downward pressure as investors price in the unexpected loss.
Earnings miss of this magnitude for a mid‑cap hospital operator typically triggers a sell‑off, especially without offsetting guidance.
Market effects
Highlights pressure on the U.S. hospital services sector amid a challenging macro environment.
May weigh on other regional health‑care stocks in the U.S. market.
Limited; primarily a U.S. health‑care earnings story.
Counterpoint
If the company can sustain volume growth, the loss may be a short‑term overreaction.
Key entities
- personKevin J. Hammons
Chief Executive Officer of Community Health Systems, quoted on the results.
