DALLAS – – November 05, 2026 -- AMN Healthcare Services (NYSE: AMN) reported third-quarter 2026 revenue of $717 million, up 13% from a year earlier and 7% from the prior quarter, with adjusted EBITDA of $94 million, up 63% year over year. Labor disruption revenue, which is not expected to repeat at that scale, contributed $59 million of the quarterly total.
Earnings beat guidance on nurse staffing and a reserve release
GAAP net income was $33 million, or $0.83 per diluted share, against $29 million, or $0.76 per share, a year earlier. Adjusted diluted EPS reached $1.16 versus $0.39 in the third quarter of 2025. Adjusted EBITDA margin was 13.0%, 390 basis points above the year-ago period.
Gross margin rose to 31.9%, up 280 basis points year over year and 130 basis points sequentially. The company attributed the sequential gain to higher margin in Nurse and Allied Solutions, driven by the labor disruption reserve release. Revenue and earnings exceeded company guidance.
Nurse and Allied segment revenue climbs 27% to $460 million
Travel nurse staffing revenue rose 19% year over year and 2% sequentially. Allied division revenue increased 11% year over year and was flat sequentially. Labor disruption revenue reached $59 million, compared with $25 million in the prior quarter and $12 million a year earlier. Travel nurse and allied volume grew by double digits year over year, and revenue has grown for a third straight quarter.
CEO Cary Grace said demand strengthened during the quarter and through October, and that the company is delivering through faster recruiting, automation and around-the-clock execution.
Physician and Technology segments decline year over year
Physician and Leadership Solutions revenue was $171 million, down 4% year over year and up 4% sequentially. Locum tenens revenue of $138 million fell 5% year over year but rose 6% sequentially. Interim leadership revenue fell 5% year over year. Search revenue grew 15% year over year but dropped 9% sequentially.
Technology and Workforce Solutions revenue was $86 million, down 9% year over year and 1% sequentially. Language services brought in $69 million, down 8% year over year. Vendor management systems revenue was $15 million, down 11%.
Operating cash flow turns negative after client deposit refunds
Cash flow from operations was negative $88 million for the quarter and $285 million positive year to date. The company refunded the majority of client deposits tied to previous labor disruption events. Cash and equivalents stood at $256 million at September 30.
SG&A expenses were $149 million, or 20.8% of revenue, versus $139 million, or 21.8%, a year earlier. The company cited liability insurance expense and the allowance for credit losses as the main drivers of the increase. Operating income was $51 million, a 7.0% margin, compared with $48 million and 7.5% a year earlier.
Total debt outstanding was $750 million with nothing drawn on the revolving credit facility. The leverage ratio under the credit agreement was 1.3x. AMN spent $8.4 million to repurchase 250,685 shares at an average price of $33.50, and capital expenditures were $10 million.
Fourth-quarter guidance reflects $119 million drop in labor disruption revenue
AMN expects fourth-quarter revenue to be 10-12% lower than the prior year. The outlook assumes $5 million of labor disruption revenue, versus $124 million in the fourth quarter of 2025.
Nurse and Allied Solutions revenue is projected to fall 13-15% year over year, or to rise 13-15% excluding labor disruption. Physician and Leadership Solutions is guided down 5-7%, and Technology and Workforce Solutions down 8-10%. The company assumes 40.1 million diluted average shares, a 28% marginal adjusted tax rate and $8.5 million of interest expense.