Select Medical (SEM) Issues 2026 Outlook After Margin Pressure: Is Its Earnings Power Repositioning?

Select Medical Holdings Corporation reported mixed Q4 and full-year 2025 results, with increased revenue but continued pressure on profitability. The company issued 2026 guidance, projecting revenues between US$5.6 billion to US$5.8 billion and EPS of US$1.22 to US$1.32, which frames its repositioned earnings power after a year of compressed margins. This outlook helps reset investor expectations regarding the company’s ability to convert patient demand into healthier margins despite ongoing regulatory and cost pressures, particularly in critical illness recovery hospitals.