Healthcare staffing company AMN Healthcare Services (NYSE: AMN) reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 1.8% year on year to $748.2 million. On top of that, next quarter’s revenue guidance ($1.23 billion at the midpoint) was surprisingly good and 95% above what analysts were expecting. Its non-GAAP profit of $0.22 per share was 17.9% below analysts’ consensus estimates.

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“Over the past year we gained nurse and allied staffing market share, competing successfully in direct and vendor-neutral while broadening our solution set into our strategic MSP clients,” said Cary Grace, President and Chief Executive Officer of AMN Healthcare.

Company Overview

With a network of thousands of healthcare professionals ranging from nurses to physicians to executives, AMN Healthcare (NYSE: AMN) provides healthcare workforce solutions including temporary staffing, permanent placement, and technology platforms for hospitals and healthcare facilities across the United States.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, AMN Healthcare Services grew its sales at a tepid 2.7% compounded annual growth rate. This fell short of our benchmarks and is a tough starting point for our analysis.

Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. AMN Healthcare Services’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 15.1% annually.

We can dig further into the company’s revenue dynamics by analyzing its number of travelers on assignment, which reached 8,722 in the latest quarter. Over the last two years, AMN Healthcare Services’s travelers on assignment averaged 15% year-on-year declines. Because this number is in line with its revenue growth, we can see the company kept its prices fairly consistent.

This quarter, AMN Healthcare Services reported modest year-on-year revenue growth of 1.8% but beat Wall Street’s estimates by 3.4%. Company management is currently guiding for a 78.7% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to decline by 6.5% over the next 12 months. While this projection is better than its two-year trend, it’s tough to feel optimistic about a company facing demand difficulties.

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Operating Margin

AMN Healthcare Services was profitable over the last five years but held back by its large cost base. Its average operating margin of 7% was weak for a healthcare business.

Analyzing the trend in its profitability, AMN Healthcare Services’s operating margin decreased by 14 percentage points over the last five years. The company’s two-year trajectory also shows it failed to get its profitability back to the peak as its margin fell by 11 percentage points. This performance was poor no matter how you look at it - it shows its expenses were rising and it couldn’t pass those costs onto its customers.

This quarter, AMN Healthcare Services generated an operating margin profit margin of 1.1%, up 28.7 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Sadly for AMN Healthcare Services, its EPS declined by 16.9% annually over the last five years while its revenue grew by 2.7%. This tells us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes.

Diving into the nuances of AMN Healthcare Services’s earnings can give us a better understanding of its performance. As we mentioned earlier, AMN Healthcare Services’s operating margin expanded this quarter but declined by 14 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

In Q4, AMN Healthcare Services reported adjusted EPS of $0.22, down from $0.75 in the same quarter last year. This print missed analysts’ estimates. Over the next 12 months, Wall Street expects AMN Healthcare Services’s full-year EPS of $1.36 to shrink by 50.5%.

Key Takeaways from AMN Healthcare Services’s Q4 Results

We were impressed by AMN Healthcare Services’s optimistic revenue guidance for next quarter, which blew past analysts’ expectations. We were also glad its revenue outperformed Wall Street’s estimates. On the other hand, its EPS missed. Overall, this print had some key positives. The stock traded up 10.8% to $19.13 immediately after reporting.

Big picture, is AMN Healthcare Services a buy here and now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).