AMN Healthcare Reports Strong Q1 2026 Results with Revenue Doubling Year Over Year
AMN Healthcare announced financial results for the first quarter of 2026, delivering significant year-over-year growth in revenue and profitability as demand for healthcare workforce solutions remained strong across multiple business segments. The company reported quarterly revenue of $1.378 billion and adjusted EBITDA of $166 million, with results exceeding internal guidance due to stronger-than-expected performance in labor disruption services, travel nursing, allied staffing, and international nurse recruitment.
The healthcare staffing and workforce solutions provider also returned to profitability on a GAAP basis, posting net income of $62.2 million, or $1.59 per diluted share, compared with a net loss in the same quarter last year. Adjusted diluted earnings per share rose sharply to $2.10 from $0.45 a year earlier.
According to AMN Healthcare President and Chief Executive Officer Cary Grace, the company’s first-quarter performance reflected strong operational execution in a rapidly evolving healthcare labor market.
“Our first quarter performance demonstrated strong execution across AMN, with results exceeding our expectations and guidance while navigating a dynamic market environment,” Grace said. “We delivered solid underlying growth in Nurse and Allied Solutions, saw momentum return in international staffing and search, and continued to advance our technology-enabled workforce solutions.”
Grace added that the company’s teams effectively supported healthcare clients and clinicians during periods of elevated staffing demand, leveraging AMN’s technology platform and workforce management capabilities to deliver one of its strongest operational performances since the pandemic era.
Revenue Doubles Year Over Year
AMN Healthcare generated consolidated revenue of $1.378 billion during the first quarter, representing a 100% increase compared with the first quarter of 2025 and an 84% increase sequentially from the previous quarter. The growth was driven largely by labor disruption staffing assignments and expanding demand across core nurse and allied staffing operations.
Gross profit totaled $368.8 million, while consolidated gross margin was 26.8%. Although gross margin declined by 190 basis points year over year, it improved 70 basis points sequentially due to stronger profitability in the Nurse and Allied Solutions and Technology and Workforce Solutions divisions.
Operating income climbed to $117 million, compared with $13 million in the same quarter last year. Operating margin improved substantially to 8.5% from 1.8% a year ago.
Adjusted EBITDA reached $166.1 million, rising 159% year over year, while adjusted EBITDA margin expanded to 12.1%, up 280 basis points from the prior-year period.
Nurse and Allied Solutions Leads Growth
The Nurse and Allied Solutions segment delivered the strongest performance among AMN Healthcare’s business units. Revenue in the segment totaled $1.127 billion, increasing 173% year over year and 130% sequentially.
Travel nurse staffing revenue rose 12% from the same quarter last year and increased 16% compared with the prior quarter, marking the first year-over-year growth in travel nursing revenue since 2022. The allied staffing business also posted positive growth, with revenue increasing 3% both year over year and sequentially.
A major contributor to the segment’s performance was labor disruption staffing activity, which generated approximately $722 million in revenue during the quarter. These assignments supported healthcare facilities facing workforce shortages and labor-related operational disruptions.
The company also highlighted continued momentum in international nurse staffing, which exceeded expectations during the quarter as healthcare systems continued seeking long-term workforce stabilization strategies.
Physician and Leadership Solutions Declines
AMN Healthcare’s Physician and Leadership Solutions segment reported revenue of $164 million during the quarter, reflecting a 6% decline year over year and a 3% decrease sequentially.
Locum tenens revenue totaled $131 million, down 7% from the prior-year period and 4% lower than the fourth quarter of 2025. Interim leadership revenue also declined, falling 4% year over year and 5% sequentially.
Despite weakness in certain physician staffing categories, the company’s executive and physician search businesses showed signs of recovery. Revenue from search services increased 4% both year over year and sequentially, supported by ongoing healthcare leadership recruitment activity.
Technology and Workforce Solutions Faces Pressure
Revenue in the Technology and Workforce Solutions segment was $87 million, decreasing 15% year over year and 1% sequentially.
Language services revenue reached $69 million, representing an 8% decline from the prior year and a 1% sequential decrease. Vendor management systems revenue totaled $16 million, down 18% year over year and 2% from the previous quarter.
AMN noted that the business continues to evolve as healthcare organizations reassess spending priorities and workforce technology investments. The company also referenced the divestiture of Smart Square in 2025 as a factor affecting year-over-year comparisons.
Strong Cash Flow and Balance Sheet
AMN Healthcare reported exceptionally strong operating cash flow during the quarter. Cash flow from operations totaled $562 million, while cash and cash equivalents at March 31, 2026 stood at $561 million.
The increase in cash flow and cash balances was largely attributed to favorable timing associated with working capital tied to labor disruption staffing events. At quarter-end, the company held approximately $367 million in client deposits related to these assignments that are expected to settle in coming months.
Capital expenditures during the quarter were modest at $7 million.
The company ended the quarter with total debt outstanding of $750 million and no borrowings under its revolving credit facility. AMN Healthcare reported a leverage ratio of 1.6x under the terms of its credit agreement, indicating continued balance sheet flexibility.
SG&A Expenses Increase with Business Activity
Selling, general, and administrative expenses rose significantly during the quarter due to the increased scale of labor disruption assignments and related operational support activities.
SG&A expenses totaled $218 million, representing 15.8% of revenue, compared with $148 million, or 21.4% of revenue, in the first quarter of 2025. Sequentially, SG&A improved from $152 million, or 20.3% of revenue, in the fourth quarter of 2025.
Despite the increase in total expenses, SG&A as a percentage of revenue improved due to the company’s significantly higher revenue base.
Second Quarter 2026 Outlook
Looking ahead, AMN Healthcare expects second-quarter revenue to moderate as labor disruption activity declines from elevated first-quarter levels.
The company projected consolidated second-quarter revenue between $620 million and $635 million. AMN expects gross margin to range from 28.0% to 28.5%, while SG&A expenses are anticipated to represent approximately 23.0% to 23.5% of revenue.
Operating margin is forecast between negative 0.6% and positive 0.1%, while adjusted EBITDA margin is expected to range between 6.7% and 7.2%.
Management indicated that second-quarter revenue is expected to decline 4% to 6% year over year. Excluding labor disruption revenue, projected to total approximately $10 million in the second quarter compared with $16 million a year earlier, revenue is expected to decline 3% to 5%.
Within individual segments, Nurse and Allied Solutions revenue is expected to range from flat to down 2% year over year. Physician and Leadership Solutions revenue is projected to decline 6% to 8%, while Technology and Workforce Solutions revenue is expected to decrease 14% to 16%, partly due to the impact of the Smart Square divestiture.
The company also provided additional guidance assumptions for the second quarter, including depreciation expense of approximately $15 million, non-cash amortization expense of $18 million, interest expense of $8 million, and a marginal adjusted tax rate of 28%.
Continued Focus on Healthcare Workforce Solutions
AMN Healthcare remains one of the largest healthcare workforce solutions providers in the United States, offering staffing, workforce management, recruitment, leadership search, language services, and technology-enabled talent solutions to hospitals, clinics, physician groups, schools, and other healthcare organizations.
The company emphasized its continued investment in technology platforms, workforce analytics, predictive modeling, and recruitment solutions designed to help healthcare organizations manage labor shortages, improve efficiency, and support patient care outcomes.
AMN Healthcare’s common stock trades on the New York Stock Exchange under the ticker symbol AMN
AMN Healthcare reported strong financial and operational results for the first quarter of 2026, with revenue and earnings significantly exceeding company guidance. The healthcare workforce solutions provider generated quarterly revenue of $1.378 billion and adjusted EBITDA of $166 million, reflecting substantial year-over-year growth driven by labor disruption events, improving travel nurse demand, and continued momentum across several staffing and workforce solutions businesses.
The company posted GAAP net income of $62.2 million, or $1.59 per diluted share, compared with a net loss of $1 million, or $(0.03) per diluted share, during the first quarter of 2025. Adjusted diluted earnings per share rose sharply to $2.10 from $0.45 a year earlier, representing a 366% increase. Adjusted EBITDA climbed 159% year over year to $166.1 million, while adjusted EBITDA margin improved to 12.1%.
AMN Healthcare stated that first quarter performance was supported by strong execution across its operations, particularly in labor disruption staffing assignments, travel nursing, allied healthcare staffing, international nurse placements, and physician search services. The company also highlighted solid cash generation and a healthy balance sheet position at the end of the quarter.
President and Chief Executive Officer Cary Grace said the company delivered stronger-than-expected results while operating in a rapidly changing healthcare staffing environment. According to Grace, AMN’s workforce solutions platform and technology-enabled services helped clients navigate staffing shortages and operational challenges effectively.
The company’s Nurse and Allied Solutions segment delivered the strongest performance during the quarter. Segment revenue reached $1.127 billion, increasing 173% year over year and 130% sequentially from the fourth quarter of 2025. Travel nurse staffing revenue increased 12% compared with the same period last year, marking the first year-over-year growth in travel nursing revenue since 2022. Sequentially, travel nursing revenue rose 16%.
AMN Healthcare noted that labor disruption events contributed approximately $722 million in revenue during the quarter, significantly boosting overall performance. Allied healthcare staffing revenue also showed positive momentum, increasing 3% year over year and sequentially.
The company emphasized that demand trends improved across multiple staffing categories, including schools, international nurse staffing, and healthcare search businesses. International nurse staffing continued to gain traction as healthcare organizations increasingly seek long-term workforce stability solutions.
Meanwhile, the Physician and Leadership Solutions segment generated revenue of $164 million during the quarter, representing a 6% decline year over year and a 3% decrease sequentially. Locum tenens staffing revenue totaled $131 million, down 7% from the prior-year quarter and 4% lower than the previous quarter.
Interim leadership services revenue declined 4% year over year and 5% sequentially, reflecting softer demand in leadership staffing assignments. However, AMN’s healthcare search businesses delivered modest growth, with revenue increasing 4% both year over year and sequentially.
The Technology and Workforce Solutions segment reported quarterly revenue of $87 million, down 15% from the first quarter of 2025 and 1% lower sequentially. Language services revenue totaled $69 million, declining 8% year over year and 1% sequentially. Vendor management systems revenue fell 18% compared with the prior-year period and declined 2% from the fourth quarter of 2025.
Despite softer revenue in the technology segment, the company reported improved margins in both the Nurse and Allied Solutions business and Technology and Workforce Solutions operations, contributing to overall margin expansion on a sequential basis.
Consolidated gross profit for the quarter reached $368.8 million. Gross margin was 26.8%, down 190 basis points from the same quarter last year but improving 70 basis points sequentially. AMN Healthcare attributed the sequential margin improvement primarily to stronger performance in higher-margin staffing and workforce solution categories.
Selling, general, and administrative expenses increased to $218 million, representing 15.8% of revenue, compared with $148 million, or 21.4% of revenue, during the first quarter of 2025. Sequentially, SG&A expenses improved from 20.3% of revenue in the previous quarter. The increase in total SG&A spending was mainly related to operational costs associated with managing large labor disruption events.
Income from operations rose significantly to $117 million, resulting in an operating margin of 8.5%. This compares with operating income of $13 million and an operating margin of 1.8% in the same quarter last year.
AMN Healthcare also reported strong cash flow generation during the quarter. Cash flow from operations totaled $562 million, while cash and cash equivalents at March 31, 2026 stood at $561 million. The company noted that operating cash flow benefited from favorable working capital timing tied to labor disruption events, including approximately $367 million in client deposits expected to be settled in future months.
Capital expenditures during the quarter were relatively modest at $7 million. The company ended the quarter with total debt outstanding of $750 million and no borrowings under its revolving credit facility. AMN Healthcare reported a leverage ratio of 1.6x under the terms of its credit agreement, reflecting continued balance sheet strength and financial flexibility.
Looking ahead, AMN Healthcare issued second quarter 2026 guidance projecting consolidated revenue between $620 million and $635 million. Gross margin is expected to range from 28.0% to 28.5%, while SG&A expenses are anticipated to represent between 23.0% and 23.5% of revenue.
The company forecast second quarter operating margin between negative 0.6% and positive 0.1%, with adjusted EBITDA margin projected between 6.7% and 7.2%.
Management expects second quarter revenue to decline between 4% and 6% year over year. Excluding labor disruption revenue, which is projected at approximately $10 million in the second quarter compared with $16 million during the prior-year period, revenue is expected to decline between 3% and 5%.
Within individual business segments, Nurse and Allied Solutions revenue is projected to decline between 0% and 2% year over year. Physician and Leadership Solutions revenue is expected to decrease between 6% and 8%, while Technology and Workforce Solutions revenue is anticipated to fall between 14% and 16%.
The company indicated that the Technology and Workforce Solutions decline includes an approximate 4% impact from the divestiture of the Smart Square business completed at the beginning of the third quarter of 2025.
AMN Healthcare also provided additional financial assumptions for the second quarter, including expected depreciation expense of $15 million, amortization expense of $18 million, share-based compensation expense of $7 million, and interest expense of approximately $8 million. The company anticipates a marginal adjusted tax rate of 28% and diluted weighted average shares outstanding of approximately 39.3 million.
AMN Healthcare continues to position itself as a leading provider of total talent solutions for healthcare organizations across the United States. Its services span temporary staffing, travel nursing, physician staffing, workforce management technology, language services, interim leadership, search and recruitment solutions, vendor management systems, and predictive workforce analytics.
The company serves a broad range of healthcare clients, including hospitals, physician groups, clinics, schools, urgent care centers, home health agencies, and community healthcare providers. Management stated that ongoing investments in technology, recruitment strategies, and workforce optimization solutions remain central to its long-term growth strategy.
AMN Healthcare’s common stock trades on the New York Stock Exchange under the ticker symbol AMN.
About AMN Healthcare
AMN Healthcare is the leader and innovator in total talent solutions for healthcare organizations across the United States. The Company provides access to the most comprehensive network of quality healthcare professionals through its innovative recruitment strategies and breadth of career opportunities. With insights and expertise, AMN Healthcare helps providers optimize their workforce to successfully reduce complexity, increase efficiency and improve patient outcomes. AMN total talent solutions include managed services programs, clinical and interim healthcare leaders, temporary staffing, direct hire and retained search solutions, vendor management systems, recruitment process outsourcing, predictive modeling, language interpretation services, revenue cycle solutions, credentialing, and other services. Clients include acute-care hospitals, community health centers and clinics, physician practice groups, retail and urgent care centers, home health facilities, schools, and many other healthcare settings. AMN Healthcare is committed to fostering and maintaining a diverse team that reflects the communities we serve. Our commitment to the inclusion of many different backgrounds, experiences and perspectives enables our innovation and leadership in the healthcare services industry.
The Company’s common stock is listed on the New York Stock Exchange under the symbol “AMN.” For more information about AMN Healthcare, visit www.amnhealthcare.com, where the Company posts news releases, investor presentations, webcasts, SEC filings and other material information. The Company also utilizes email alerts and Really Simple Syndication (“RSS”) as routine channels to supplement distribution of this information.
