Stock Markets March 12, 2026

Mouwasat Posts Strong Q4 Results, Profit and Revenue Clear Analyst Estimates

Net income rises to SAR238.4 million as patient visits and inpatient occupancy lift top-line and margins

By Sofia Navarro
Mouwasat Posts Strong Q4 Results, Profit and Revenue Clear Analyst Estimates

Mouwasat Medical Services reported fourth-quarter net profit of SAR238.4 million, outperforming Morgan Stanley and consensus forecasts. Revenue rose to SAR884.6 million, driven by higher patient visits and increased inpatient occupancy, while net margin expanded to 26.9% from 22.7% a year earlier. The results exceeded Morgan Stanley estimates and market consensus by sizable margins.

Key Points

  • Mouwasat reported Q4 net profit of SAR238.4 million, beating Morgan Stanley estimates by 59% and consensus by 32.3%. Sectors impacted: healthcare services and hospital operators.
  • Quarterly revenue reached SAR884.6 million, up 17.1% year-over-year and above both Morgan Stanley and consensus estimates; growth was driven by increased patient visits and higher inpatient occupancy.
  • Net margin expanded to 26.9% from 22.7% a year earlier, outperforming Morgan Stanley's estimate of 19.1%; this affects investor perception of profitability and margin resilience in the healthcare sector.

Mouwasat Medical Services Company reported fourth-quarter earnings that outpaced expectations, delivering a net profit of SAR238.4 million for the period, according to a Morgan Stanley report released Thursday.

The reported net income beat Morgan Stanley’s projection by 59% and topped market consensus by 32.3%. On a year-over-year basis the company’s fourth-quarter profit was 38.7% higher than the comparable quarter last year.

Revenue for the quarter reached SAR884.6 million, surpassing Morgan Stanley’s estimate of SAR785.9 million by 12.6% and exceeding the consensus forecast of SAR862.9 million by 2.5%. The quarterly top line also showed a 17.1% increase from SAR755.5 million recorded in the fourth quarter of 2024.

Profitability improved alongside the revenue gains. Mouwasat’s net margin in the quarter came in at 26.9%, up from 22.7% in the same period a year earlier. That margin outperformance represented a 7.9 percentage point uplift versus Morgan Stanley’s 19.1% estimate.

The Morgan Stanley report attributed the revenue beat primarily to stronger patient traffic and higher occupancy rates in inpatient departments. Those operational drivers were cited as the main contributors to the company’s better-than-expected top-line and margin performance for the quarter.


Financial details at a glance

  • Net profit: SAR238.4 million (Q4)
  • Revenue: SAR884.6 million (Q4)
  • Revenue growth year-over-year: 17.1% from SAR755.5 million
  • Net margin: 26.9% versus 22.7% a year earlier
  • Beats: Net profit +59% vs Morgan Stanley, +32.3% vs consensus; Revenue +12.6% vs Morgan Stanley, +2.5% vs consensus

The results highlight the company’s recent operational momentum in patient volumes and bed utilization, both of which supported an above-forecast performance for the quarter.


What remains limited in the report

The material reviewed for this report focuses on the quarter’s headline financial metrics and the drivers named by the Morgan Stanley report. It does not provide further detail on segmental performance, regional breakdowns, or forward guidance beyond the quarterly comparisons and the cited drivers of patient visits and inpatient occupancy.

Risks

  • Revenue reliance on patient visits and inpatient occupancy - any decline in patient volumes or occupancy rates could materially affect top-line performance and is therefore a risk to hospital and healthcare services revenues.
  • Margin sensitivity to operational changes - while net margin improved in the quarter, changes in cost structure or utilization could compress margins, posing a risk to profitability for medical service providers.
  • Dependence on analyst and consensus expectations for market interpretation - the company’s stock reaction may be sensitive to future estimates and forecasts, which introduces market expectation risk for investors.

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