AdaptHealth announced the divestiture of its Diabetes Health unit to Cardinal Health for $235 million in cash, enabling a sharpened focus on Sleep Health, Respiratory Health and Wellness at Home. The transaction strengthens capital flexibility and accelerates deleveraging, potentially improving margins in AHCO's core businesses. Diabetes Health will be treated as discontinued operations, with a full guidance update on August 4, 2026.
AHCO's Q3 sales of $805.86M missed estimates of $809.30M. FY24 revenue outlook revised down to $3.220B - $3.260B. CEO optimistic about future growth despite current challenges. Analysts lowered price targets: Baird from $16 to $14; Canaccord from $14 to $13. AHCO shares increased by 8.4% to $9.95 after the earnings announcement.
