AMN Healthcare's Profit Nearly Tripled — But Two of Its Three Divisions Are Still Shrinking

AMN Healthcare reported second-quarter 2026 revenue of $673.2 million, up 2% year over year and above the $628.35 million analysts expected. The headline number was adjusted diluted EPS of $0.77 — more than quadruple the $0.19 analysts had modeled, and up from $0.30 in the same quarter last year. GAAP diluted EPS was $0.53 on net income of $21.2 million, a sharp reversal from a $116 million net loss a year earlier. Adjusted EBITDA rose 26% year over year to $73.4 million.

The beat was not broad-based. AMN Healthcare operates through three segments, and only one of them grew: Nurse and Allied Solutions, the largest, rose 11% to $422 million, with travel nurse staffing up 10% and allied staffing up 8%. Notably, a labor disruption alone contributed $25 million of that segment's revenue — a one-time tailwind rather than pure organic demand recovery, meaning the underlying growth rate in the core nursing business is likely softer than the headline 11% suggests.

The other two segments kept shrinking. Physician and Leadership Solutions revenue fell 6% to $165 million as locum tenens staffing — temporary physician placements — dropped 8%, partly offset by a 27% surge in executive search. Technology and Workforce Solutions fell 15% to $87 million as language services declined 8%. Both trends continued from prior quarters rather than reversing.

AMN guided third-quarter 2026 consolidated revenue to $640 million to $655 million, 1% to 3% growth, with Nurse and Allied still expected up 9% to 11% while Physician and Leadership is guided down 5% to 7% — the same divergent pattern as the quarter just reported. AMN shares jumped as much as 12.8% on the report. A beat this large against a segment mix this mixed — one large division recovering, including a one-time boost, against two smaller ones still declining — signals the market is pricing in relief that the company's biggest, most cyclical business has turned a corner, more than it is pricing in a broad recovery across all of healthcare staffing.