CommonSpirit Releases FY26 Second Quarter Financial Results

CHICAGO – Feb. 13, 2026 – CommonSpirit Health released financial results for its fiscal year 2026 second quarter ended Dec. 31, 2025. The results reflect a noticeable improvement from the prior quarter due to strong volumes, salary cost management, length-of-stay improvements, and higher productivity.

CommonSpirit reported operating revenues of $10.5 billion and operating expenses of $10.5 billion, compared to revenues of $10.1 billion and expenses of $10.0 billion for the same period last year, all normalized for the California provider fee program. The health system recorded an operating income of $2 million and EBITDA of $550 million, margins of 0.0% and 5.2%, respectively, again normalized for the California provider fee. This compares with a provider fee adjusted EBITDA of $682 million for the same period in the prior year, which benefited from $352 million in Federal Emergency Management Agency grant revenue.

“We are encouraged by continued year-over-year financial improvement, driven by sustained efforts across our key strategic initiatives,” said Chief Financial Officer Michael Browning. “Our continued commitment to prioritizing volume growth, ensuring we are paid for the care we provide, and a sustained focus on the highest quality care will be instrumental in ensuring long-term sustainability."

Overall, patient volumes on an adjusted admission basis increased by 3.8% compared to the same period last year. The acute average length of stay decreased slightly to 4.63 days for the three-month period ending Dec. 31, 2025, down from 4.70 in the same period in the previous year. 

CommonSpirit continues to make progress on key initiatives implemented to create a stronger, more sustainable, unified system. Highlights include:      

• Quality and Safety: Scaling best practices in quality and safety has led to 86% of eligible CommonSpirit hospitals earning an ‘A’ or ‘B’ grade in Leapfrog Group’s fall 2025 Hospital Safety Report; and improvements in patient experience including an average Provider Star Rating of 4.8 and a 69.5 Net Promoter Score.  

• Workforce Development: Employee engagement scores continue to improve; and CommonSpirit was recognized in Forbes America's Dream Employers for 2025 and 2026.

• Integrated IT Platforms: A multi-year project to standardize to a single EHR is on track with two of eight EPIC waves live.

• Holding Payers Accountable: CommonSpirit remains focused on improving commercial payer contracting to optimize rates and settlements. Additionally, CommonSpirit will continue to participate in value-based models to support population health and prepare for future health care changes.

• Diversified Care Delivery: CommonSpirit continues to expand ambulatory and virtual care points and enhance connections across the continuum of care.

• Patient Experience: CommonSpirit’s enhanced digital platforms optimize patient experience. From July 2025 through December 2025, over 5,800 appointment requests were generated and over 5,500 were booked, representing 54% new patients. All market-based sites will transition to the platform during fiscal year 2026. 

Looking ahead, CommonSpirit has launched Project ImpACT, a multi-year journey designed to fundamentally reshape its operational model. The primary goal is to achieve more meaningful improvement in the organization's operating and financial performance across all functional areas. As an initial step in fiscal year 2026, Project ImpACT prioritizes short-term results in clinical capacity, care access, select discretionary spend, and workforce optimization.

“While our positive financial trajectory demonstrates our collective progress, the work is far from over,” Browning said. “We must remain focused on our Project ImpACT initiatives to further strengthen our financial position and continue delivering high-quality care to our communities."

###

About CommonSpirit Health

Inspired by faith. Driven by innovation. Powered by humankindness. CommonSpirit Health is building a healthier future for all through its integrated health services. As one of the nation’s largest nonprofit Catholic healthcare organizations, CommonSpirit Health delivers more than 20 million patient encounters annually through approximately 2,300 clinics, care sites and 138 hospital-based locations, in addition to its home-based services and virtual care offerings. CommonSpirit has more than 160,000 employees, 45,000 nurses and 25,000 physicians and advanced practice providers across 24 states and contributes more than $5 billion annually in charity care, community benefits, and unreimbursed government programs. Together with our patients, physicians, partners, and communities, we are creating a more just, equitable, and innovative healthcare delivery system. Learn more at commonspirit.org.