CorVel NASDAQ: CRVL said revenue and earnings increased in its March quarter and fiscal 2026, as growth in its Network Solutions business, stronger bookings and operating efficiency helped offset a higher effective tax rate.
President and Chief Executive Officer Michael Combs opened the call by saying the company would review its March quarter and fiscal year results, business performance, market trends and progress on product and service offerings. Chief Financial Officer Brian Nichols said March quarter revenue was $249 million, up 7% from $232 million in the March 2025 quarter. Earnings per share for the quarter ended March 31, 2026, were $0.61, compared with $0.51 a year earlier.
For fiscal 2026, revenue was $959 million, up 7% from $896 million in the prior fiscal year. Earnings per share rose 17% to $2.14 from $1.83 for the fiscal year ended March 31, 2025. Nichols said the company’s effective tax rate increased compared with the prior year, which had included a discrete benefit from stock option exercises that did not recur at similar levels.
Network Solutions Drives Growth
Nichols said Network Solutions delivered “strong results” in the fiscal year, with double-digit revenue and profit growth. He cited continued momentum across the segment’s offerings and execution in both property and casualty and commercial health.
Results in Network Solutions included the impact of certain one-time events, primarily within CERiS, which contributed to elevated revenue and profit during the period and added $0.02 to earnings per share. Nichols said the performance was driven by accelerated post-payment recoveries tied to a large payer engagement, which he characterized as a timing-related benefit.
He added that the engagement, along with additional large payer wins, is expected to contribute to ongoing revenue and profit tailwinds as the programs scale and mature.
Patient Management generated low single-digit revenue and profit growth, which Nichols attributed to stable demand and a continued focus on operational efficiency. He said CorVel is making targeted investments to improve service quality and consistency while advancing systems and technology to support more scalable delivery.
Personnel levels increased during the period to support service delivery and implementation activity. Nichols said those levels are expected to normalize as deployments mature and as automation and AI-enabled workflow improvements are rolled out through the remainder of the year and into 2027.
Bookings and Pipeline Show Momentum
New bookings in the March quarter increased 56% year over year, according to Nichols, reflecting what he described as high demand and accelerating commercial momentum across the business. Request-for-proposal activity rose 20% over the same period.
Nichols said the bookings are primarily multi-year agreements and are expected to contribute meaningfully to revenue and profit growth in the back half of the calendar year as implementations scale.
CERiS Focuses on Payment Accuracy
Combs said healthcare payers are operating in a more complex environment, with rising administrative costs, growing claim complexity and pressure to improve financial and clinical outcomes. He said the market is shifting from reactive correction toward proactive models of payment accuracy and cost management.
Combs said CERiS is aligned with that shift because its platform spans both prepay and postpaid solutions. He said the approach allows customers to improve accuracy earlier in the claims lifecycle while maintaining recovery capabilities where needed.
In 2026, CorVel is launching four large payer programs, including two new multi-year partnerships with top 10 national payers, Combs said. He said those implementations reinforce the company’s value proposition and are expected to contribute meaningfully to revenue and profit growth as they mature.
Combs also said prepayment accuracy is becoming a more important strategic priority for payers. He said CERiS is expanding prepaid solutions and migrating services that historically were performed postpaid into more proactive workflows. The move supports revenue streams with a shorter realization cycle, typically one to two months for prepay compared with six months or longer for postpaid, while maintaining comparable margin profiles, he said.
AI and Platform Investments Continue
Combs said technology remains a key part of CorVel’s strategy, with ongoing investment in artificial intelligence and automation to improve accuracy, increase throughput and reduce reliance on manual processes. He said the company’s approach is focused on augmenting teams by providing actionable insights, improving decision-making and allowing clinical and operational professionals to focus on higher-value work.
In workers’ compensation and risk management, Combs said the industry is seeing rising claims severity, higher medical costs and greater complexity tied to an aging workforce, increased comorbidities and expanded behavioral health considerations. He said partners are also facing provider access constraints, regulatory complexity and pressure to improve outcomes while controlling costs.
CorVel is advancing its CorVel Connected interface within the CareMC platform, which Combs said brings together AI, real-time data integration and embedded clinical and claims expertise into a unified operating model. He said the platform is intended to support earlier risk identification, faster access to care and more informed decision support throughout the claim continuum.
Combs said CorVel is also investing in automation, API-driven connectivity and compliance infrastructure to reduce friction, support regulatory alignment and enable real-time data exchange with partners. He also noted that the company is enhancing its governance framework, strengthening controls and investing in resilience initiatives in response to changing cybersecurity and operational risk dynamics.
Margins, Cash Flow and Buybacks
Nichols said CorVel’s net income for fiscal 2026 was $110 million, nearly a 14% increase from $95 million in fiscal 2025. The fourth quarter contributed $31 million to the fiscal-year total, $5 million higher than the same quarter of fiscal 2025.
General and administrative expenses decreased by $1.3 million in the fourth quarter compared with the prior-year quarter, lowering G&A as a percentage of revenue to 9.4% from 10.6%. CorVel’s operating margin for fiscal 2026 was 15%, an improvement of 1.4 percentage points over 2025, Nichols said.
During fiscal 2026, CorVel repurchased 872,744 shares at a cost of $56 million, including 366,306 shares in the fourth quarter for $20 million. Since the inception of the repurchase program, the company has repurchased 115.3 million shares for an aggregate total of $868 million, representing 69% of total shares outstanding at an average price of $7.70 per share.
CorVel ended the fiscal year with $233 million in cash. Free cash flow was $66 million, up $7 million from fiscal 2025. Nichols said the company’s “robust and debt-free balance sheet” positions it for strategic product expansion, technological advancement and acquisition opportunities.
The call concluded without questions from participants.
About CorVel NASDAQ: CRVL
CorVel Corporation NASDAQ: CRVL is a technology-driven provider of workers' compensation, liability, and specialty risk management solutions. The company develops and deploys software and data analytics tools to streamline claims administration, medical cost containment, prescription drug management, and provider network access. CorVel's integrated platform connects employers, insurers, healthcare providers, and injured workers, aiming to improve outcomes and control costs through process automation and real-time decision support.
The company's product suite includes claims lifecycle management, bill review and negotiation, virtual care and telehealth services, pharmacy benefit management, and independent medical examinations (IMEs).
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider CorVel, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and CorVel wasn't on the list.
While CorVel currently has a Sell rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Click the link to see MarketBeat's guide to investing in 5G and which 5G stocks show the most promise.
Get This Free Report
