Rochester, Minn.-based Mayo Clinic reported an operating income of $398 million (7.2% operating margin) during the first quarter of 2026, up from $359 million (7.1% margin) during the same period last year.
Six things to know:
1. Mayo Clinic recorded total operating revenue of $5.5 billion during the three months ended March 31, an 8.2% increase year over year. Net medical service revenue increased 8.3% to $4.7 billion. The system said the growth was driven by strong outpatient, surgical and hospital volumes as well as favorable reimbursement yields.
2. Total operating expenses were $5.1 billion during the first quarter of 2026, an 8% increase year over year. Salaries and benefits increased 5.8% to $2.8 billion. Supplies and services expenses were $1.9 billion, an 11.4% increase driven by higher volumes.
3. Mayo Clinic reported $433 million in capital expenditures during the first quarter of 2026. The total included $214 million for major projects, including $174 million in Rochester; $16 million in Florida; $15 million in Arizona and $9 million in enterprise-wide projects. An additional $144 million was spent on equipment and $75 million on smaller projects.
4. As of March 31, Mayo Clinic had 388 days cash on hand, down from 397 on Dec. 31.
5. Mayo Clinic President and CEO Gianrico Farrugia, MD, announced May 12 that he plans to step down at the end of 2026. He has served as president and CEO since January 2019. Under his leadership, the system created Mayo Clinic Platform, its first AI-enabled care transformation platform, and accelerated the discovery, translation and delivery of more cures for chronic and acute diseases.
6. Mayo Clinic reported net income of $311 million during the first quarter of 2026, down from $385 during the same period last year.
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