Operating margins have contracted significantly from 19.0% in 2023Q4 to 12.9% in 2026Q1, reflecting structural pressure from rising labor costs and decelerating top-line growth.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 2.54B | 2.53B | 2.43B | 2.26B | 2.13B | 2.14B | 2.08B | 1.94B | 1.78B | 1.67B | 1.58B | 1.54B | 1.46B | 1.41B | 1.43B | 1.36B | 1.28B | 1.19B | 1.15B | 1.1B | 1.02B | 915.97M | 734.88M | 260.78M | 253.69M | 337.91M | 355.31M | 453.6M | 381.3M | 341.7M | 301.2M |
| Revenue Growth % | 2.07% | 4.06% | 7.37% | 6.06% | -0.2% | 2.87% | 7.27% | 8.75% | 6.96% | 5.7% | 2.17% | 5.98% | 3.04% | -1.17% | 5.46% | 5.89% | 7.59% | 3.59% | 4.44% | 8% | 11.2% | 24.64% | 181.8% | 2.79% | -24.92% | -4.9% | -21.67% | 18.96% | 11.59% | 13.45% | -56.92% |
| Cost of Goods Sold | 1.31B | 1.77B | 1.58B | 1.47B | 1.37B | 1.37B | 1.38B | 1.32B | 1.23B | 1.15B | 1.12B | 1.09B | 1.03B | 1.01B | 1.03B | 970.48M | 906.02M | 834.57M | 810.55M | 767.07M | 730.12M | 644.48M | 506.77M | 146.82M | 140.95M | 205.62M | 208.98M | 269.8M | 230.5M | 206M | 178.4M |
| COGS % of Revenue | - | 70.03% | 64.86% | 64.72% | 64.16% | 64.02% | 66.27% | 68.15% | 68.87% | 69.03% | 70.74% | 70.47% | 71.05% | 71.38% | 72.26% | 71.57% | 70.75% | 70.12% | 70.55% | 69.73% | 71.68% | 70.36% | 68.96% | 56.3% | 55.56% | 60.85% | 58.82% | 59.48% | 60.45% | 60.29% | 59.23% |
| Gross Profit | 571.36M | 758.34M | 854.35M | 798.82M | 765.09M | 769.8M | 701.39M | 617.43M | 555M | 516.19M | 461.45M | 455.78M | 421.61M | 404.52M | 396.72M | 385.49M | 374.53M | 355.66M | 338.39M | 332.99M | 288.46M | 271.49M | 228.11M | 113.96M | 112.74M | 132.29M | 146.33M | 183.8M | 150.8M | 135.7M | 122.8M |
| Gross Margin % | 22.49% | 29.97% | 35.14% | 35.28% | 35.84% | 35.98% | 33.73% | 31.85% | 31.13% | 30.97% | 29.26% | 29.53% | 28.95% | 28.62% | 27.74% | 28.43% | 29.25% | 29.88% | 29.45% | 30.27% | 28.32% | 29.64% | 31.04% | 43.7% | 44.44% | 39.15% | 41.18% | 40.52% | 39.55% | 39.71% | 40.77% |
| Gross Profit Growth % | - | -11.24% | 6.95% | 4.41% | -0.61% | 9.75% | 13.6% | 11.25% | 7.52% | 11.86% | 1.24% | 8.1% | 4.22% | 1.97% | 2.91% | 2.93% | 5.3% | 5.1% | 1.62% | 15.44% | 6.25% | 19.02% | 100.17% | 1.08% | -14.78% | -9.59% | -20.39% | 21.88% | 11.13% | 10.5% | -49.21% |
| Operating Expenses | 442.21M | 417.19M | 487.86M | 458.25M | 421.59M | 426.76M | 311.71M | 360.05M | 311.37M | 403.16M | 282.7M | 271.32M | 253.19M | 271.13M | 240.3M | 231.76M | 231.01M | 229.32M | 205.54M | 210.24M | 183.49M | 194.72M | 170.15M | 105.18M | 95.6M | 141.07M | 116.84M | 157M | 130.7M | 116.1M | 105.4M |
| OpEx % of Revenue | - | 16.49% | 20.07% | 20.24% | 19.75% | 19.95% | 14.99% | 18.57% | 17.47% | 24.19% | 17.93% | 17.58% | 17.39% | 19.18% | 16.8% | 17.09% | 18.04% | 19.27% | 17.89% | 19.11% | 18.01% | 21.26% | 23.15% | 40.34% | 37.68% | 41.75% | 32.88% | 34.61% | 34.28% | 33.98% | 34.99% |
| Selling, General & Admin | 425M | 417.19M | 424.36M | 395.12M | 358.73M | 366.73M | 330.22M | 305.71M | 271.21M | 276.65M | 248.06M | 237.82M | 222.59M | 215.56M | 208.66M | 202.26M | 201.96M | 197.43M | 175.33M | 184.06M | 161.18M | 157.26M | 147.06M | 95.36M | 85.02M | 104.72M | 103.46M | 136.9M | 113.4M | 100.9M | 93.6M |
| SG&A % of Revenue | - | 16.49% | 17.45% | 17.45% | 16.8% | 17.14% | 15.88% | 15.77% | 15.21% | 16.6% | 15.73% | 15.41% | 15.28% | 15.25% | 14.59% | 14.92% | 15.77% | 16.59% | 15.26% | 16.73% | 15.82% | 17.17% | 20.01% | 36.57% | 33.52% | 30.99% | 29.12% | 30.18% | 29.74% | 29.53% | 31.08% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 63.49M | 63.13M | 62.86M | 60.04M | -18.51M | 54.34M | 40.16M | 126.5M | 34.64M | 33.5M | 30.6M | 55.56M | 31.65M | 29.5M | 29.04M | 31.89M | 30.2M | 26.18M | 22.3M | 37.46M | 23.09M | 9.82M | 10.58M | 36.34M | 13.37M | 20.1M | 17.3M | 15.2M | 11.8M |
| Operating Income | 328.07M | 338.25M | 366.49M | 340.57M | 343.5M | 343.04M | 389.68M | 257.38M | 243.63M | 113.03M | 178.75M | 184.46M | 168.42M | 133.39M | 156.42M | 153.73M | 143.52M | 126.34M | 132.86M | 122.75M | 104.98M | 79.38M | 58.11M | -7.72M | -1.55M | 18.82M | 33.47M | 26.8M | 20.1M | 19.6M | 31.3M |
| Operating Margin % | 12.91% | 13.37% | 15.07% | 15.04% | 16.09% | 16.04% | 18.74% | 13.28% | 13.67% | 6.78% | 11.34% | 11.95% | 11.56% | 9.44% | 10.94% | 11.34% | 11.21% | 10.62% | 11.56% | 11.16% | 10.31% | 8.67% | 7.91% | -2.96% | -0.61% | 5.57% | 9.42% | 5.91% | 5.27% | 5.74% | 10.39% |
| Operating Income Growth % | - | -7.71% | 7.61% | -0.85% | 0.13% | -11.97% | 51.4% | 5.64% | 115.54% | -36.76% | -3.09% | 9.52% | 26.26% | -14.72% | 1.75% | 7.11% | 13.6% | -4.9% | 8.23% | 16.93% | 32.24% | 36.62% | 852.67% | -398.06% | -108.24% | -43.77% | 24.88% | 33.33% | 2.55% | -37.38% | -5.15% |
| EBITDA | 376.89M | 403.09M | 429.54M | 401.43M | 402.67M | 402.09M | 446.26M | 302.58M | 282.5M | 148.66M | 213.39M | 217.96M | 199.02M | 162.74M | 186.94M | 183.23M | 172.56M | 154.25M | 160.36M | 148.14M | 128.78M | 102.29M | 78.29M | 2.1M | 9.03M | 40.09M | 56.91M | 46.9M | 37.4M | 34.8M | 43.1M |
| EBITDA Margin % | 14.84% | 15.93% | 17.67% | 17.73% | 18.86% | 18.8% | 21.46% | 15.61% | 15.85% | 8.92% | 13.53% | 14.12% | 13.67% | 11.51% | 13.07% | 13.51% | 13.48% | 12.96% | 13.96% | 13.47% | 12.64% | 11.17% | 10.65% | 0.81% | 3.56% | 11.87% | 16.02% | 10.34% | 9.81% | 10.18% | 14.31% |
| EBITDA Growth % | -16.65% | -6.16% | 7% | -0.31% | 0.14% | -9.9% | 47.48% | 7.11% | 90.03% | -30.33% | -2.1% | 9.52% | 22.3% | -12.95% | 2.03% | 6.18% | 11.88% | -3.81% | 8.25% | 15.03% | 25.9% | 30.66% | 3626.23% | -76.72% | -77.49% | -29.55% | 21.35% | 25.4% | 7.47% | -19.26% | -15.82% |
| D&A (Non-Cash Add-back) | 48.82M | 64.84M | 63.05M | 60.87M | 59.17M | 59.05M | 56.58M | 45.2M | 38.86M | 35.63M | 34.64M | 33.5M | 30.6M | 29.34M | 30.52M | 29.5M | 29.04M | 27.9M | 27.5M | 25.39M | 23.8M | 22.91M | 20.18M | 9.82M | 10.58M | 21.27M | 23.45M | 20.1M | 17.3M | 15.2M | 11.8M |
| EBIT | 263.07M | 357.53M | 401.25M | 353.48M | 334.26M | 352.18M | 398.35M | 266.14M | 244.59M | 121.19M | 180.77M | 183.77M | 170.97M | 138.86M | 160.54M | 154.44M | 145.79M | 132.22M | 127.53M | 113.08M | 104.98M | 76.77M | 57.95M | 8.77M | 17.14M | 15.96M | 29.49M | 26.8M | 20.1M | 19.6M | 17.4M |
| Net Interest Income | 5.78M | 7M | 12.83M | 3.16M | -4.23M | -1.49M | -1.6M | -4.02M | -4.32M | -3.85M | -3.33M | -3.36M | -8.21M | -14.19M | -13.91M | -13.46M | -11.52M | -11.18M | -11.38M | -7.94M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 9.63M | 8.74M | 14.61M | 6.27M | 355K | 377K | 757K | 513K | 671K | 427K | 383K | 281K | 0 | 847K | 809K | 426K | 444K | 423K | 743K | 3.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 2.45M | 1.75M | 1.78M | 3.11M | 4.58M | 1.87M | 2.35M | 4.54M | 4.99M | 4.27M | 3.71M | 3.65M | 8.21M | 15.04M | 14.72M | 13.89M | 11.96M | 11.6M | 5.99M | 11.24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 20.88M | 17.53M | 32.97M | 9.8M | -13.82M | 7.28M | 6.31M | 4.23M | -4.03M | 3.88M | -1.7M | -4.33M | -5.67M | -9.56M | -12.94M | -13.17M | -9.69M | -5.72M | -10.51M | -20.92M | -14.7M | -24.73M | -21.02M | 7.67M | -18.42M | -29.14M | -2.54M | 4.2M | 12M | 8.3M | 11M |
| Pretax Income | 348.94M | 355.78M | 399.46M | 350.37M | 329.68M | 350.31M | 395.99M | 261.61M | 239.6M | 116.92M | 177.05M | 180.13M | 162.75M | 123.83M | 145.82M | 140.56M | 133.83M | 120.62M | 122.34M | 101.84M | 90.28M | 57.28M | 37.09M | 1.25M | -1.27M | -10.06M | 33.25M | 31M | 32.1M | 27.9M | 53.6M |
| Pretax Margin % | 13.73% | 14.06% | 16.43% | 15.47% | 15.44% | 16.38% | 19.04% | 13.5% | 13.44% | 7.01% | 11.23% | 11.67% | 11.18% | 8.76% | 10.2% | 10.37% | 10.45% | 10.13% | 10.65% | 9.26% | 8.86% | 6.25% | 5.05% | 0.48% | -0.5% | -2.98% | 9.36% | 6.83% | 8.42% | 8.17% | 17.8% |
| Income Tax | 89.16M | 90.54M | 97.47M | 77.86M | 80.06M | 81.76M | 76.52M | 41.69M | 34.06M | 18.74M | 68.31M | 69.85M | 63.44M | 46.6M | 56.52M | 54.58M | 52M | 46.58M | 50.24M | 39.06M | 32.56M | 19.58M | 13.8M | 4.75M | 6.85M | -3.36M | 12.66M | 11.3M | 12.2M | 10.8M | 21.9M |
| Effective Tax Rate % | 25.55% | 25.45% | 24.4% | 22.22% | 24.28% | 23.34% | 19.32% | 15.93% | 14.21% | 16.03% | 38.58% | 38.78% | 38.98% | 37.63% | 38.76% | 38.83% | 38.85% | 38.62% | 41.06% | 38.36% | 36.07% | 34.18% | 37.2% | 379.92% | -537.02% | 33.41% | 38.09% | 36.45% | 38.01% | 38.71% | 40.86% |
| Net Income | 259.78M | 265.24M | 302M | 272.51M | 249.62M | 268.55M | 319.47M | 219.92M | 205.54M | 98.18M | 108.74M | 110.27M | 99.32M | 77.23M | 89.3M | 85.98M | 81.83M | 73.78M | 71.02M | 63.98M | 50.65M | 35.82M | 27.51M | -3.44M | -1.81M | -10.38M | 20.58M | 19.7M | 19.9M | 30.3M | 32.3M |
| Net Margin % | 10.23% | 10.48% | 12.42% | 12.03% | 11.69% | 12.55% | 15.36% | 11.34% | 11.53% | 5.89% | 6.9% | 7.14% | 6.82% | 5.46% | 6.24% | 6.34% | 6.39% | 6.2% | 6.18% | 5.82% | 4.97% | 3.91% | 3.74% | -1.32% | -0.71% | -3.07% | 5.79% | 4.34% | 5.22% | 8.87% | 10.72% |
| Net Income Growth % | -15.86% | -12.17% | 10.82% | 9.17% | -7.05% | -15.94% | 45.26% | 7% | 109.36% | -9.72% | -1.39% | 11.03% | 28.6% | -13.52% | 3.87% | 5.07% | 10.91% | 3.9% | 11.01% | 26.31% | 41.42% | 30.19% | 900.93% | -89.46% | 82.53% | -150.4% | 4.49% | -1% | -34.32% | -6.19% | 39.83% |
| Net Income (Continuing) | 259.78M | 265.24M | 302M | 272.51M | 249.62M | 268.55M | 319.47M | 219.92M | 205.54M | 98.18M | 108.74M | 110.27M | 99.32M | 77.23M | 89.3M | 85.98M | 81.83M | 74.04M | 72.11M | 62.77M | 57.72M | 36.23M | 19.09M | 11.19M | 11.11M | -10.74M | 18.64M | 19.7M | 19.9M | 17.1M | 25.1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8.33M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10.8M |
| EPS (Diluted) | 19.00 | 18.42 | 19.89 | 17.93 | 16.53 | 16.85 | 19.48 | 13.31 | 12.23 | 5.86 | 6.48 | 6.33 | 5.57 | 4.16 | 4.62 | 4.10 | 3.55 | 3.24 | 3.04 | 2.55 | 1.90 | 1.36 | 1.12 | -0.17 | -0.09 | -0.53 | 1.00 | 0.93 | 0.99 | 1.51 | 1.63 |
| EPS Growth % | -10.66% | -7.39% | 10.93% | 8.47% | -1.9% | -13.5% | 46.36% | 8.83% | 108.7% | -9.57% | 2.37% | 13.64% | 33.89% | -9.96% | 12.68% | 15.49% | 9.57% | 6.58% | 19.22% | 34.21% | 39.71% | 21.43% | 758.82% | -85.39% | 82.7% | -153% | 7.53% | -6.06% | -34.44% | -7.36% | 38.14% |
| EPS (Basic) | - | 18.42 | 20.10 | 18.11 | 16.72 | 17.14 | 20.02 | 13.77 | 12.80 | 6.11 | 6.64 | 6.54 | 5.79 | 4.24 | 4.72 | 4.19 | 3.62 | 3.29 | 3.08 | 2.61 | 1.94 | 1.40 | 1.14 | -0.17 | -0.09 | -0.53 | 1.01 | 0.93 | 0.99 | 1.52 | 1.65 |
| Diluted Shares Outstanding | 13.68M | 14.4M | 15.19M | 15.2M | 15.1M | 15.94M | 16.4M | 16.53M | 16.8M | 16.74M | 16.79M | 17.42M | 17.84M | 18.59M | 19.34M | 20.95M | 23.03M | 22.74M | 23.37M | 25.08M | 26.67M | 26.3M | 24.64M | 19.91M | 19.77M | 19.43M | 19.85M | 21.03M | 20.2M | 20.03M | 19.82M |
| Basic Shares Outstanding | 13.68M | 14.4M | 15.02M | 15.05M | 14.93M | 15.67M | 15.96M | 15.97M | 16.06M | 16.06M | 16.38M | 16.87M | 17.16M | 18.2M | 18.92M | 20.52M | 22.59M | 22.45M | 23.06M | 24.52M | 26.12M | 25.55M | 24.12M | 19.85M | 19.72M | 19.43M | 19.67M | 20.94M | 20.12M | 19.88M | 19.58M |
| Dividend Payout Ratio | - | 11.95% | 8.97% | 8.62% | 8.82% | 8.2% | 6.6% | 9% | 9.08% | 17.69% | 15.12% | 14.15% | 14.35% | 18.32% | 14.59% | 14.58% | 14.52% | 11.06% | 7.81% | 9.2% | 12.48% | 17.23% | 20.78% | - | - | - | 19.54% | 114.21% | 109.05% | 69.31% | 63.16% |
Medicare reimbursement policy shifts
As reported in recent financial filings, Chemed's year-over-year revenue growth has decelerated to 1.6% in 2026Q1, marking a significant departure from the mid-single-digit expansion observed throughout 2024, suggesting that the post-pandemic referral tailwinds for the VITAS hospice segment may be reaching a point of saturation.
The transition from 9.8% growth in 2025Q1 to current low-single-digit levels indicates that the company is struggling to maintain volume momentum in its core hospice business. Investors should monitor whether this deceleration reflects a broader market shift toward shorter lengths of stay or if it indicates a loss of competitive positioning against regional healthcare providers.
Based on the provided income statement data, Chemed's gross margin has experienced notable volatility, falling from a peak of 38.8% in 2023Q4 to recent levels that suggest structural pressure from rising labor costs within the VITAS hospice and Roto-Rooter service operations across the US.
The inability to consistently maintain gross margins above 35% suggests that the company is facing difficulty in passing through wage inflation to government payors and residential customers. This trend warrants further investigation into whether the current cost structure is fundamentally misaligned with the reimbursement environment for hospice care.
According to historical income statements, Chemed's operating margin has contracted from 19.0% in 2023Q4 to 12.9% in 2026Q1, indicating that the company is currently failing to achieve meaningful operating leverage as SG&A expenses remain sticky despite the slowing pace of top-line revenue expansion.
The lack of scalability in operating income suggests that the company's fixed-cost base is becoming a drag on profitability during periods of slower growth. Analysts should consider whether management's current expense discipline is sufficient to protect bottom-line margins if revenue growth continues to stagnate.
As evidenced by the quarterly data, Chemed's net income has shown significant inconsistency, with stock-based compensation fluctuations—including a notable negative adjustment in 2025Q3—complicating the underlying earnings quality and making it difficult for investors to gauge the true recurring profitability of the firm's operations.
The erratic nature of EPS, which dropped from $6.02 in 2024Q4 to $4.85 in 2026Q1, suggests that non-operating items and accounting adjustments are playing a larger role in bottom-line performance than core operational improvements. This volatility may indicate that the company's earnings are more sensitive to accounting estimates than previously assumed.
Quick answers to the most common questions about buying CHE stock.
For fiscal year 2025, Chemed Corporation (CHE) reported total revenue of $2.53B. This represents a 740.0% increase compared to $301.2M in 1996.
Chemed Corporation (CHE) is profitable, generating $265.2M in net income for the fiscal year ending 2025 with a net profit margin of 10.5%.
Chemed Corporation (CHE) reported an operating income of $338.2M, resulting in an operating profit margin of 13.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Chemed Corporation (CHE) generated $758.3M in gross profit for the year, representing a gross profit margin of 30.0%. This demonstrates the company's core pricing power and production efficiency.