Nearly doubling expectations. AMN Healthcare Services reported Q4 2025 EPS of $0.39, crushing the Street’s $0.20 estimate by 95.2% — the largest beat in the company’s recent history. Revenue landed at $2.72B for the full year, though the quarterly picture remained under pressure as the healthcare staffing sector works through a protracted demand slump. Shares climbed 1.6% to $16.72 in regular trading, then added another 1.4% after hours to $16.68, bringing the stock back near its 50-day average of $17.65 but still 13% below its 200-day line.
The earnings math surprises. AMN’s ability to beat bottom-line expectations by such a wide margin stands in stark contrast to its top-line struggles. Full-year revenue of $2.72B marked a 7.7% decline from 2024, consistent with the broader normalization in healthcare staffing demand following the pandemic surge. The company’s trailing 12-month EPS sits at -$7.20, reflecting significant restructuring charges and goodwill impairments earlier in 2025, making the Q4 result all the more notable. Operating margin of just 1.3% underscores how lean the business has become during this downturn.
Management sees stabilization ahead. CEO Cary Grace told analysts on the Q3 call (the most recent earnings discussion) that “AMN has continued to adapt to changes in the marketplace and position the company to win as our industry transitions from recovery to growth.” CFO Brian Scott noted Q3 revenue of $634M came “above the high end of our guidance range, driven by outperformance in our Nurse and Allied and Physician and Leadership segments.” That sequential momentum matters — Q3 revenue declined just 4% from Q2, a marked improvement from earlier quarter-over-quarter drops exceeding 10%.
Wall Street remains cautious. Analysts maintain a hold rating with an average price target of $20.86, implying 25% upside from current levels but reflecting uncertainty about the pace of recovery. The forward P/E of 24.7x looks rich given near-term EPS estimates, though that multiple compresses quickly if management can deliver on its recovery thesis. Forward EPS consensus sits at $0.68 for 2026, suggesting analysts expect sequential improvement from the $0.39 Q4 print. Eight firms participated in the Q3 earnings call, including William Blair, Bank of America, and UBS, with multiple questions focused on margin guidance as higher-margin segments face revenue pressure.
The sector remains volatile. AMN’s market cap of $642M and deeply negative trailing earnings reflect the healthcare staffing industry’s sharp reversal from 2021-2022 highs. Nurse and allied staffing, which historically drove 60-70% of revenue, continues to normalize as hospitals bring contract rates down and rebuild permanent staff. The company’s pivot toward physician placement and technology solutions offers higher margins but hasn’t yet offset the volume declines in its core business. Profitability returned in Q3 and Q4 after two quarters of losses, but at dramatically lower absolute dollar levels than the company generated during peak demand.
This article was generated using AlphaStreet’s proprietary financial analysis technology and reviewed by our editorial team.