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what it is
Welltower owns senior housing and healthcare buildings, then collects rent and operating income from the people caring for older adults.
how it gets paid
Last year Welltower made $8.5B in revenue.
why it's growing
Revenue grew 40.2% last year. Looking ahead, demand for healthcare real estate should be supported by a larger aging population and increased utilization of medical services.
what just happened
Revenue reached $5.9B, but EPS still missed expectations at -$1.86 versus a -$0.41 estimate.
At a glance
A balance sheet — strong enough to weather a downturn
40/100 earnings predictability — expect surprises
224.1x trailing p/e — you're paying up for this one
1.7% dividend yield — cash in your pocket every quarter
4.0% return on capital — nothing to write home about
xvary composite: 55/100 — below average
What they do
Welltower owns senior housing and healthcare buildings, then collects rent and operating income from the people caring for older adults.
Welltower wins because it owns the buildings an aging population keeps needing, and replacing that footprint is slow and expensive. You do not recreate a $131B healthcare real estate platform overnight. Scale helps with deals, financing, and operator relationships across the U.S., Canada, and the U.K.
How they make money
$8.5B
annual revenue · their business grew +40.2% last year
total revenue
$8.5B
+40.2%
The products that matter
healthcare property ownership
Senior housing and medical offices
$8.5B revenue · +40.2% growth
this is effectively the whole story in the snapshot data: $8.5B in revenue, 40.2% growth, and a business tied directly to healthcare property demand. the segment detail is thin, so the investment case rests more on trajectory than on mix.
entire revenue base
Key numbers
$12.0B
2026 revenue est
Revenue estimate → expected sales next year → so what: the market is already pricing in another $1.5B of growth from the 2025 $10.5B outlook.
224.1x
trailing p/e
P/E → price divided by earnings → so what: you are paying 224 years of trailing profits for one share if earnings never grow.
40.0%
operating margin
Operating margin → profit after running the properties → so what: the buildings throw off real income once they are full.
1.7%
dividend yield
Dividend yield → your cash payout on the stock price → so what: you are not buying WELL for income first at $190.47.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 2 — safer than 80% of stocks
- price stability 85 / 100
- net profit margin 14.4% — keeps 14 cents of every dollar in revenue
- return on equity 4% — $0.04 profit for every $1 investors have put in
A — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in WELL 3 years ago → it's now worth $30,460.
The index would have given you $13,920.
source: institutional data · total return
What just happened
missed estimates
Revenue reached $5.9B, but EPS still missed expectations at -$1.86 versus a -$0.41 estimate.
That is the weird part in plain English. Sales surged 186% vs. prior year, yet the reported bottom line still missed hard, which tells you acquisitions and accounting noise are doing a lot of the talking.
$5.9B
revenue
-$1.86
eps
40.0%
operating margin
the number that mattered
The 186% revenue jump matters most because it shows how aggressively Welltower is scaling, even if earnings still look messy quarter to quarter.
-
welltower should continue to post impressive results.
-
for the full year 2025, we anticipate the healthcare reit will deliver revenues of $10.5 billion, up roughly 30% from the prior year’s showing.the improvement reflects the ongoing recovery of the senior housing portfolio, as well as contributions from acquisitions.
-
meanwhile, welltower’s medical office property portfolio will likely show more modest progress.looking ahead, demand for healthcare real estate should be supported by a larger aging population and increased utilization of medical services.
-
we expect ffo (funds from operations) to move nicely higher from here.during the third quarter, ffo came in better than we had anticipated, and management provided an encouraging outlook.
-
to adjust, we have added $0.15, to our 2025 ffo estimate, which now stands at $5.25 per share.
source: company earnings report, 2026
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What could go wrong
the #1 risk is the senior housing recovery losing momentum. this stock is priced for continued improvement, not for a pause.
med
senior housing occupancy and rent growth slow down
the bullish narrative depends on senior housing staying strong. management commentary and analyst estimates both point there. if that recovery cools, the multiple does not have much protection.
revenue grew 40.2% last year and 36% in the latest quarter. a visible slowdown from those levels would hit the stock harder than it hits the business.
med
revenue is rising faster than EPS
last quarter showed the tension clearly: $2.1B of revenue and a beat on estimates, but EPS of $0.41 was down 44% from last year. that is not the profile of a fully mature recovery.
if earnings keep lagging while the stock trades at 224.1x trailing earnings, investors will stop giving it the benefit of the doubt.
med
medical office does not carry the same growth story
the snapshot data and commentary both say medical office is expected to post more modest progress. that leaves more of the investment case leaning on one operating theme.
100% of the reported $8.5B revenue base sits inside healthcare property markets, and the fastest-growing part of that story does not appear evenly distributed.
the setup is simple: a strong balance sheet helps, but a $131B stock at 224.1x trailing earnings needs the current growth narrative to stay intact.
source: institutional data · regulatory filings · risk analysis
Pay attention to
the key metric
whether 36% quarterly revenue growth holds up
the market already knows Welltower can grow fast. the next question is whether that pace is temporary recovery math or something more durable.
calendar
next earnings release
the next print matters because another quarter of strong revenue with weak EPS would keep the debate alive instead of settling it.
risk
senior housing recovery versus valuation
this is the operating engine behind the stock's premium multiple. if occupancy or rent momentum cools, the valuation will notice quickly.
trend
medical office staying slower than the rest
modest progress is fine until the market is paying for more than fine. you want to see whether the steadier portfolio starts helping, not just avoiding damage.
Analyst rankings
short-term outlook
bottom 5%
momentum score 5 is the lowest rating. in human-speak, analysts think this has already had a big run and could lag in the near term.
risk profile
above average
stability score 2 means safer trading behavior than roughly 80% of stocks. for a real estate name, that matters.
chart momentum
average
technical score 3 means no major trend signal either way. the chart is not rescuing you, but it is not warning you off either.
earnings predictability
40 / 100
the last quarter explained why. revenue climbed, EPS fell, and the market still had to translate the result through FFO.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 725 buyers vs. 428 sellers in 3q2025. total institutional holdings: 0.6B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$163
$281
$190
current price
$222
target midpoint · +17% from current · 3-5yr high: $215 (+15% · 5% ann'l return)
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