What happened?
Shares of healthcare staffing company AMN Healthcare Services (NYSE: AMN) fell 22.6% in the afternoon session after the company forecasted a 10% to 12% year-over-year revenue decline for the fourth quarter in its third-quarter 2026 earnings release.
According to a company press release, AMN Healthcare Services projected fourth-quarter consolidated revenue between $655 million and $670 million, representing a 10% to 12% decline from the previous year, alongside an operating margin between (0.1)% and 0.5% and an adjusted EBITDA margin of 5.8% to 6.3%. For the third quarter of 2026, the company reported revenue of $717.3 million, up 13% year over year, with net income of $33.4 million and adjusted diluted earnings per share of $1.16.
Management noted that consolidated gross margin reached 31.9%, supported by a $51 million favorable labor disruption reserve adjustment, while Technology and Workforce Solutions revenue dropped 9% year over year due to language services pricing pressure.
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What is the market telling us
AMN Healthcare Services’s shares are very volatile and have had 23 moves greater than 5% over the last year. But moves this big are rare even for AMN Healthcare Services and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 10 months ago when the stock gained 17.2% on the news that the company presented at the J.P. Morgan Healthcare Conference, where it outlined a positive outlook and strategic growth plans. During the event, AMN showcased its leadership in providing total talent solutions for the healthcare industry. The company discussed its plans for growth, which involved using technology and making acquisitions.
Management also emphasized the long-term factors driving demand in healthcare and laid out a vision for sustainable growth in both revenue and profit margins. The presentation appeared to build investor confidence in the company's future direction.
AMN Healthcare Services is up 147% since the beginning of the year, but at $37.32 per share, it is still trading 23.8% below its 52-week high of $49 from October 2026. Despite the year-to-date gain, investors who bought $1,000 worth of AMN Healthcare Services’s shares 5 years ago would now be looking at only $362.67.
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