CommonSpirit Health Reports Q2 2026 Earnings

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Chicago-based CommonSpirit Health reported operating income of $2 million in the second quarter of fiscal 2026, representing a 0% operating margin, a significant decline from the $135 million operating income (1.3% margin) recorded during the same period last year. While total revenue and net patient revenue increased, operating expenses also rose across multiple categories including salaries, benefits, and supply costs.

Why it matters

CommonSpirit Health is one of the largest nonprofit health systems in the U.S., so its financial performance is closely watched as an indicator of broader industry trends. The decline in operating income, despite rising revenues, highlights the ongoing cost pressures facing healthcare providers as they navigate rising expenses and labor shortages.

The details

CommonSpirit's total revenue for the three months ending December 31 reached $10.5 billion, an increase from $10.1 billion in the prior-year quarter. Net patient revenue also rose, climbing to $9.9 billion from $9.3 billion. However, operating expenses totaled $10.5 billion compared to $10 billion the previous year, with increases across salaries, benefits, supplies, and purchased services.

• The financial report was released on February 13, 2026.
• The reporting period was the second quarter of fiscal 2026, ending on December 31, 2025.

What’s next

CommonSpirit is in the process of exiting its joint venture with Tenet Healthcare, Conifer Health Solutions and plans to bring revenue cycle operations in-house. This move, intended to improve operational integration, efficiency, and patient experience, involves a $1.9 billion payment from CommonSpirit to Tenet over three years, as well as a $540 million redemption of CommonSpirit's 23.8% stake in Conifer.