Atlanta-based Piedmont Healthcare reported a 10.7% operating margin for fiscal year 2026, generating more than $1 billion in operating income for the second consecutive year as revenue climbed to nearly $9.5 billion.
The health system recorded $1.02 billion in operating income for the fiscal year ended June 30, up slightly from $1 billion in fiscal 2025, according to its financial documents published Nov. 6. However, its operating margin narrowed from 11.4% to 10.7% as expenses increased faster than revenue.
Piedmont also strengthened its liquidity position, ending the fiscal year with $3.8 billion in cash and cash equivalents, while continuing to invest in hospital expansion projects across Georgia.
Eight things to know:
1. Piedmont reported a 10.7% operating margin, down from 11.4% in fiscal 2025. Operating income totaled $1.02 billion, up slightly from $1 billion the previous year.
2. Total revenue increased 7.9% to $9.5 billion, up from $8.8 billion in fiscal 2025. Net patient service revenue climbed 7.7% to $9 billion, while other revenue increased to $512.8 million from $460.5 million.
3. Operating expenses rose 8.8% to $8.5 billion, compared with $7.8 billion the previous year. Salaries and benefits increased 9.6% to $4.3 billion, while supplies and other expenses grew 8.4% to $3.7 billion. Depreciation and amortization expenses rose to $340.1 million from $311 million, while interest expenses declined to $61.4 million from $69.3 million.
4. Outpatient and emergency services drove much of the system’s patient revenue growth. Revenue from hospital outpatient and emergency services increased 12.5% to $3.6 billion, compared with $3.2 billion in fiscal 2025. Inpatient revenue grew 7.1% to $4.3 billion, while physician services revenue declined 3.5% to $1.1 billion.
5. Nonoperating gains more than doubled to $395 million, up from $181 million in fiscal 2025. Net investment income increased to $348.7 million from $269.4 million. Including nonoperating activity, Piedmont reported a net income of $1.4 billion in fiscal 2026, compared with $1.2 billion in fiscal 2025.
6. Cash and cash equivalents increased by more than $918 million to $3.8 billion, compared with $2.9 billion at the end of fiscal 2025. Net cash provided by operating activities increased to $1.5 billion from $1.3 billion. Piedmont also held $2.7 billion in investments and assets limited as to use, up from $2.3 billion.
7. Piedmont spent $524.9 million on capital expenditures, compared with $565 million in fiscal 2025. Construction in progress totaled $544.7 million as of June 30, up from $415.4 million a year earlier. Major projects include a tower expansion at Piedmont Henry Hospital, improvements to Piedmont Atlanta Hospital, tower and operating room expansion at Piedmont Fayette Hospital and operating room expansion at Piedmont Athens Regional Hospital. The projects are expected to be completed in fiscal 2027.
8. Total assets increased to $13.6 billion, up from $12 billion at the end of fiscal 2025. Total net assets rose to $8.7 billion from $7.3 billion.
