Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTMarketBeatTue, August 11, 2026 at 4:04 PM GMT+2 5 min readKey PointsInterested in AdaptHealth Corp.? Here are five stocks we like better.AdaptHealth is selling its roughly $600 million diabetes business to Cardinal Health and exiting certain e-commerce and drop-ship operations to simplify the company and focus on sleep, respiratory and home medical equipment.The company reported 16% second-quarter revenue growth, but its new West Coast capitated contract is facing higher-than-expected service costs due to utilization and hospital-ordering issues. AdaptHealth is working with its partner to improve the contract's economics.Management sees strong growth potential in sleep care through higher referrals, home testing and digital tools. Capital priorities include organic growth, reducing leverage to 2.5 times and pursuing targeted sleep and respiratory acquisitions.AdaptHealth (NASDAQ:AHCO) executives outlined the company's second-quarter performance, portfolio changes and plans to focus capital on sleep, respiratory and home medical equipment businesses during a Canaccord conference discussion.Chief Executive Officer Suzanne Foster said the company has spent the past two years integrating a business assembled through more than 150 acquisitions, standardizing operations, improving capacity and reducing debt. The company also has been rationalizing its product portfolio, a process Foster said largely concluded in the second quarter.→ SoundHound AI Sends a Loud Signal After Its Q2 Earnings BeatAmong the major actions, AdaptHealth announced the sale of its diabetes business to Cardinal Health, spun out its e-commerce business and exited certain drop-ship supply operations that are subject to future competitive bidding. Foster said the moves are intended to simplify the company and direct resources toward markets it considers more attractive.Foster said the diabetes operation represented about $600 million of business and had initially been stabilized after facing declining growth and operational issues. However, the company ultimately concluded that the segment did not offer the expected cross-selling opportunities with its other operations.→ Quantum Earnings Week: Winners and Losers Are Finally EmergingShe also cited industry changes, including a shift toward pharmacy benefits from medical benefits and the expected return of competitive bidding. Foster said competing effectively would have required AdaptHealth to invest further in pharmacy capabilities and distribution infrastructure.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info