Chemed jumps nearly 10% on Q1 beat, raised 2026 outlook, Roto-Rooter divestiture talk
Chemed shares are surging after the company reported Q1 2026 results that beat expectations and lifted its full-year adjusted EPS outlook. Investors also reacted to new strategic commentary that it is evaluating divestiture options for its Roto-Rooter business.
1. What’s moving the stock today
Chemed (CHE) is up about 10% to around $424 after the company’s first-quarter 2026 update landed better than investors expected and management signaled a potentially major portfolio shift. The key catalysts were a Q1 earnings/revenue beat, a higher full-year adjusted EPS outlook, and fresh discussion of potential divestiture options for its Roto-Rooter plumbing business. (investing.com)
2. The numbers investors are keying on
Chemed reported Q1 2026 revenue of $657.5 million (up 1.6% year over year) and adjusted diluted EPS of $5.65. Segment results showed VITAS net revenue of $420.0 million and Roto-Rooter revenue of $237.5 million for the quarter, reinforcing that the hospice business is carrying the growth narrative while plumbing remains more mixed. (globenewswire.com)
3. Strategic angle: Roto-Rooter divestiture options in play
Beyond the quarterly beat, the market is also repricing CHE on the possibility of a portfolio move at Roto-Rooter. Management’s Q1 presentation highlighted that the company is discussing divestiture options for the plumbing unit, a step that could sharpen focus on VITAS and potentially unlock value depending on structure, timing, and proceeds. (investing.com)