RadNet reports 22% revenue growth, misses profit estimates as AI investments expand

RadNet (NASDAQ: RDNT) reported first-quarter 2026 revenue of $575.6 million, up 22.1% from a year earlier and above Wall Street expectations, driven by demand for advanced imaging, acquisitions and digital health initiatives. The diagnostic imaging company posted a non-GAAP loss of $0.28 per share, 46.1% worse than analysts’ consensus estimates. RadNet said severe winter weather reduced quarterly revenue by an estimated $13 million and adjusted EBITDA by about $9 million. Management said revenue and adjusted EBITDA still reached first-quarter records. RadNet said growth was supported by higher-margin advanced imaging procedures, updated equipment and AI-enabled workflow tools. The company is targeting more than $140 million in annual recurring revenue from digital health by Dec. 31, 2026, helped by internal deployments and external commercial contracts. Shares traded at $55.93 after the report, down from $58.19 before earnings.