AMN Q2 Earnings Beat Estimates on Staffing and Search Growth, Stock Up

AMN’s Q2 Revenues in Detail

AMN Healthcare registered revenues of $673.2 million in the second quarter, up 2.3% year over year. The figure surpassed the Zacks Consensus Estimate by 7.6%. Results benefited from growth in travel nurse, allied and search businesses, along with labor disruption activity.

Shares of AMN gained 9.3% during yesterday’s after-hours trading. Year to date, the company’s shares have rallied 95.4% against the industry’s decline of 11.2%. The S&P 500 Index has increased 12.5% in the same time frame.

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AMN Healthcare's Q2 Segment Details

AMN Healthcare conducts its business via three reportable segments: Nurse and Allied Solutions, Physician and Leadership Solutions, and Technology and Workforce Solutions.

Nurse and Allied Solutions revenues totaled $422 million, up 11% year over year. Travel nurse staffing revenues increased 10% year over year, while Allied revenues rose 8%. Labor disruption contributed $25 million in revenues compared with $16 million in the year-ago quarter. Average travelers on assignment increased to 9,194 from 8,700 a year earlier. The Zacks Consensus Estimate was pegged at $377 million.

Physician and Leadership Solutions revenues totaled $164.6 million, down 6% year over year. Locum tenens revenues were $131 million, declining 8%, while interim leadership revenues fell 3%. Physician and leadership search business revenues increased 27% year over year, driven by strength in executive search and physician permanent placement. Days filled declined to 46,974 from 51,325, while revenue per day filled increased to $2,784 from $2,777. The Zacks Consensus Estimate was pegged at $162 million.

Technology and Workforce Solutions revenues totaled $86.7 million, down 15% year over year. Language Services revenues were $70 million, down 8% year over year, while vendor management systems revenues declined 20% year over year to $15 million. The Zacks Consensus Estimate was pegged at $87 million.

AMN's Q2 Profitability Improves

In the quarter under review, AMN Healthcare’s gross profit increased 5% year over year to $205.9 million. Gross margin expanded 80 basis points to 30.6%, aided by reserve releases and billing true-ups related to large labor disruption events supported in prior periods.

Selling, general & administrative expenses declined 4.7% year over year to $147.4 million.

Operating income was $26.9 million compared with an operating loss of $123.7 million a year ago.

AMN Healthcare’s Financial Position

AMN Healthcare exited the second quarter of 2026 with cash and cash equivalents of $361.8 million compared with $560.7 million at the end of the first quarter of 2026. Total debt at the end of the second quarter of 2026 was $750 million, flat sequentially.

Net cash used in operating activities at the end of the second quarter 2026 was $189.9 million against net cash provided by operating activities of $78.5 million a year ago.

AMN's Q3 Guidance

AMN Healthcare has provided its financial outlook for the third quarter of 2026.

For the third quarter of 2026, AMN expects consolidated revenues between $640 million and $655 million, representing year-over-year growth of 1-3%. The Zacks Consensus Estimate is pegged at $619.1 million.

Nurse and Allied Solutions revenues are projected to increase 9-11% year over year. Physician and Leadership Solutions revenues are expected to decline 5-7% year over year, while Technology and Workforce Solutions revenues are projected to fall 11-13% year over year. Management forecasts a gross margin of 27-27.5% and an adjusted EBITDA margin of 6.5-7%.

Wrapping Up

AMN Healthcare delivered a solid second-quarter 2026 performance, supported by improving demand in travel nurse, allied, international nurse and search solutions. Travel nurse and allied volumes marked their strongest growth rates in four years. Management noted that travel nurse orders turned positive in May and accelerated through June, while Allied demand strengthened across settings and specialties.

Technology and innovation remained key elements of AMN’s growth strategy. The company continued to enhance its WorkWise workforce management platform with expanded analytics and rate intelligence, while adoption of the AMN Passport app surpassed 400,000 users, up 33% year over year. Monthly active users increased more than 50%, reflecting deeper clinician engagement across AMN’s digital ecosystem.

AMN expanded its capabilities through two targeted acquisitions. Jaide Health strengthens the company’s AI-enabled language access offerings across the patient journey, while the ESSENTIAL Leadership Assessment broadens its leadership advisory, evaluation and succession-planning capabilities. Management indicated that these additions should deepen client relationships and support growth in higher-value, technology-enabled workforce solutions.

Commercial momentum also improved. Search revenues were supported by executive search and physician permanent placement, while new physician searches rose 40% year over year. AMN is also benefiting from higher fill rates across managed service programs, vendor-neutral platforms and third-party channels as automation, 24/7 operations and AI-enabled recruiting improve execution.

However, competitive conditions continue to pressure Language Services pricing, while Locum Tenens is still undergoing a process and technology transformation aimed at improving fulfillment in third-party channels. Management is addressing these headwinds through process and technology upgrades in locums, a tiered Language Services model and greater globalization of service delivery. Looking ahead, AMN remains focused on sustainable growth through stronger execution, technology investments and selective acquisitions.

AMN Healthcare’s Zacks Rank & Stocks to Consider

AMN currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are West Pharmaceutical WST, The Cooper Companies COO and Cardinal Health CAH, each carrying a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

West Pharmaceutical reported second-quarter 2026 adjusted earnings per share (EPS) of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.

West Pharmaceutical has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.40%.

The Cooper Companies reported a second-quarter fiscal 2026 adjusted EPS of $1.21, which beat the Zacks Consensus Estimate by 10.00%. Revenues of $1.08 billion beat the Zacks Consensus Estimate by 2.6%.

The Cooper Companies has an estimated long-term earnings growth rate of 8.3%. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.80%.

Cardinal Health reported a 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 an estimated long-term earnings growth rate of 17%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.27%.

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