RadNet raises outlook as Q2 revenue jumps 25%, adjusted EPS beats estimates

RadNet

10/08/2026 24:58

Overview
The U.S. diagnostic imaging provider's second-quarter revenue rose 25% yr/yr to record levels
Adjusted EPS for Q2 was $0.29, beating analyst expectations
Company raised full-year 2026 Imaging Center guidance for revenue, adjusted EBITDA and free cash flow

Outlook
RadNet raises 2026 Imaging Center revenue guidance to $2.37 bln-$2.42 bln
Company lifts 2026 Imaging Center adj EBITDA forecast to $345 mln-$358 mln
RadNet reaffirms 2026 Digital Health revenue guidance at $135 mln-$145 mln

Result Drivers
ADVANCED IMAGING VOLUMES - Co said aggregate advanced imaging (MRI, CT, PET/CT) procedural volumes rose 21.2% yr/yr, with same-center volumes up 9.6%
BUSINESS MIX SHIFT - Higher growth in advanced imaging led to a 238 basis point increase in advanced imaging's share of total procedural volumes, supporting margin improvement
DIGITAL HEALTH GROWTH - Digital Health segment revenue rose 56.5% yr/yr, driven by increased sales and licenses of Enterprise Imaging and AI solutions, though profitability was affected by investments in headcount

Company press release: ID:nGNX9BxTSc

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$30.13 mln
 
Q2 Adjusted EPS
Beat
$0.29
$0.20 (7 Analysts)
Q2 EPS
 
$0.10
 
Q2 Net Income
 
$20.25 mln
 
Q2 Income from operations
 
$39.47 mln
 
Q2 Operating Expenses
 
$583.25 mln
 
Q2 Pretax Profit
 
$26.62 mln
 
Q2 Total Service Revenue
 
$622.72 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the healthcare facilities & services peer group is "buy"
Wall Street's median 12-month price target for RadNet, Inc. is $93.50, about 29.2% above its August 7 closing price of $72.39
The stock recently traded at 95 times the next 12-month earnings vs. a P/E of 75 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)