St. Louis-based Ascension reported an operating loss of $88 million (-1.4% margin) for the first quarter of fiscal year 2026, which ended Sept. 30, a $133 million improvement on the $221 million operating loss (-3.1% margin) posted in the same period last year.
After accounting for nonoperating items, such as investment returns, Ascension reported a net income of $338 million (5.5% margin) for the quarter, down slightly from $387 million (5.5% margin) in the prior-year period, according to financial documents published Oct. 31.
Recurring operating EBIDA totaled $207 million for the quarter, representing a 3.4% margin. Days cash on hand rose to 235, up from 228 at the end of fiscal year 2025, reflecting stronger financial stability.
Same-facility daily volumes increased between 1.5% and 2.5% year over year, driven by ongoing investments in ambulatory care, service line development and community-based programs. A 2.1% reduction in same-facility length of stay indicated more efficient care delivery without compromising quality.
“Our first quarter results show the strength that comes from focusing on our strategy and staying true to our Mission,” Eduardo Conrado, president of Ascension, said in the release. “We are managing resources with discipline, investing where it matters most, and supporting the teams who care for our patients and communities.”
In June, Ascension announced that Joseph Impicciche, JD, will retire as CEO at the end of the year. Mr. Conrado, who has served as president since 2022 and joined Ascension in 2018, will assume the CEO role Jan. 1.
“We are continuing to see the results of a steady and disciplined approach to improving operating performance,” Ascension Executive Vice President and CFO Saurabh Tripathi said. “By managing our resources wisely and investing them in the areas that matter the most, we are strengthening our ability to serve patients and communities.”
Looking ahead, Ascension said it remains focused on reinvesting in staff, growing ambulatory and specialty services — including its planned acquisition of AmSurg — and modernizing digital infrastructure to support long-term stability and growth.
