10-Q · May 7, 2026
CoreCivic's Q1 2026 results demonstrated significant growth, outperforming revenue and EPS expectations with revenues of $614.7 million and diluted EPS of $0.38. The company benefitted from increased demand from federal…
Earnings analysis · 10-Q
CXW earnings analysis
Filed November 5, 2026 · Our reading of the company's report
The latest report
CoreCivic delivered strong underlying revenue growth in Q3, with revenue up 28.2% year over year to $744.1 million, occupancy rising to 84.0%, and Services benefiting materially from the Clinical Solutions Pharmacy…
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CoreCivic delivered strong underlying revenue growth in Q3, with revenue up 28.2% year over year to $744.1 million, occupancy rising to 84.0%, and Services benefiting materially from the Clinical Solutions Pharmacy acquisition. Reported diluted EPS of $14.49 was heavily influenced by the $1,770.7 million real-estate gain and is not representative of recurring earnings. Liquidity and leverage improved substantially after $2,113.4 million of asset-sale proceeds, although operating cash flow was negative $266.6 million year to date due largely to sale-related taxes and activation spending continues to pressure margins.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $14.49
- Operating margin
- 9.0%
What stood out
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Revenue growth accelerated
Q3 revenue was $744.1 million, up $163.7 million or 28.2% from $580.4 million in Q3 2025 and approximately 8.6% from $685 million in Q2 2026. Reported diluted EPS was $14.49 versus $0.24 a year earlier, primarily due to a $1,770.7 million real-estate gain.
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Occupancy and federal demand improved
Residential revenue increased 15.2% year over year to $651.9 million, supported by federal revenue growth of 22.2% to $392.6 million. Average compensated occupancy improved to 84.0% from 76.7%, while average compensated population rose 9.3% to 60,352.
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Pharmacy acquisition scaled Services
Services revenue rose to $87.5 million from $10.0 million, while Services NOI increased to $9.6 million from $1.1 million. The increase primarily reflects the April 1, 2026 acquisition of Clinical Solutions Pharmacy, which serves over 600 facilities across 32 states.
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Liquidity and debt improved
The company generated $2,113.4 million of net asset-sale proceeds and ended the quarter with $547.2 million of cash and $551.5 million of revolver availability. It repaid $270.0 million of revolver borrowings, a $100.0 million incremental term loan, and $107.8 million of initial term-loan principal during Q3.
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Further activation upside
Management expects Q4 2026 average daily compensated populations and revenue to increase. Appleton activation is expected to begin in Q4 2026 and finish in Q2 2027, with estimated annual revenue of approximately $75.0 million once fully activated.
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Capital return capacity expanded
The board increased the share-repurchase authorization to $1.7 billion on November 3, 2026. The company had remaining authorization of $755.8 million after a $500.0 million accelerated share repurchase and receipt of 12.4 million shares.
What to watch
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Activation costs pressure margins
Operating margin was approximately 9.0% in Q3 2026, down from 10.1% in Q2 2026 but up from 8.7% in Q3 2025. Residential operating margin declined to 22.3% from 22.5% year over year as activation costs, wages, and other operating expenses increased.
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Operating cash flow turned negative
Cash used in operating activities was $266.6 million for the first nine months of 2026 versus $195.0 million of cash provided in the prior-year period, primarily because of approximately $0.5 billion of taxes paid on facility-sale gains. Capital expenditures totaled $89.2 million during the period, including $27.3 million for activations and transportation vehicles.
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ICE contract continuity risk
The company cautions that it may not continue managing the four sold facilities or retain existing contract terms; the California City and Midwest contracts expire in August 2027, while the Appleton and Otay Mesa contracts expire in August 2031 and December 2029, respectively. ICE contracts can also be terminated for non-appropriation or convenience.
Management's outlook
The 10-Q does not provide a new consolidated numeric EPS or revenue guidance range. Management expects average daily compensated populations and revenue to continue increasing in Q4 2026, estimates Appleton annual revenue of approximately $75.0 million once fully activated, and estimates 2026 capital expenditures of $35.0 million to $40.0 million.
Earlier filings 4
10-K · February 20, 2026
CoreCivic presents evidence of near-term demand tailwinds from federal policy and appropriations (notably the Laken Riley Act and the OBBBA appropriation) that drove activations of idle facilities and higher occupancy…
10-Q · May 8, 2025
CoreCivic reported quarterly revenue of $488,627,000 (three months ended March 31, 2025) versus $500,686,000 a year ago, a decline of $12,059,000. Net income improved to $25,113,000 (diluted EPS $0.23) from $9,543,000…
10-Q · August 8, 2024
CoreCivic reported Q2 revenue of $490,109,000 (up from $463,682,000 in Q2 2023) and diluted EPS of $0.17 (up from $0.13). Operating income improved to $48,319,000 (operating margin ~9.9%) and cash flow from operations…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.