Evolent Health (NYSE:EVH) Announces Earnings Results

Key Points

• Evolent Health reported Q1 EPS of -$0.02, beating analyst expectations of -$0.05, but revenue of $496.25 million came in below the $534 million estimate.
• Management reaffirmed full-year guidance of $2.4 billion to $2.6 billion in revenue and $110 million to $140 million in adjusted EBITDA, signaling confidence in the company’s full-year outlook.
• The company highlighted growth in its Performance Suite and oncology businesses, including new contracts and expansions that could add significant revenue, while also pushing AI and automation efforts to improve margins and reduce authorization costs.

Evolent Health (NYSE:EVH - Get Free Report) posted its quarterly earnings results on Thursday. The technology company reported ($0.02) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.05) by $0.03, FiscalAI reports. Evolent Health had a positive return on equity of 0.32% and a negative net margin of 26.29%.The company had revenue of $496.25 million for the quarter, compared to analyst estimates of $534.00 million. During the same quarter last year, the company earned $0.06 EPS. Evolent Health's revenue for the quarter was up 2.6% compared to the same quarter last year.

Here are the key takeaways from Evolent Health's conference call:

• Reported solid Q1 results with $496M revenue (9% sequential ex‑ECP), adjusted EBITDA of $22M, and management reiterated full‑year guidance of $2.4B–$2.6B revenue and $110M–$140M adjusted EBITDA with an estimated MER of ~93%.
• Performance Suite momentum: launches with Aetna and Highmark plus two new deals — an advanced imaging contract covering 4.5M lives and a Performance Suite oncology/cardiology expansion expected to generate over $200M annual revenue — validating cross‑sell and scale potential.
• Oncology remains a strategic growth engine: Evolent manages ~10% of the oncology market today, sees meaningful outsourcings ahead, and is using Enhanced Performance Suite structures to offer guarantees while reducing direct risk exposure.
• AI and automation progress: leadership hires and accelerated model deployment (imaging auto‑approval lifts in the high teens to ~30%) support a target of auto‑approving ~80% of authorization volume to reduce costs and improve provider experience.
• Near‑term headwinds from exchange membership declines (guidance assumes ~40% drop) pressured Specialty T&S revenue and elevated servicing costs during grace periods; company ended Q1 with $142M unrestricted cash and $792M net debt.

Evolent Health Stock Performance

Shares of EVH traded down $0.08 during midday trading on Friday, reaching $4.19. 2,959,838 shares of the stock were exchanged, compared to its average volume of 2,597,587. Evolent Health has a twelve month low of $2.10 and a twelve month high of $12.06. The company has a debt-to-equity ratio of 2.34, a current ratio of 1.31 and a quick ratio of 1.31. The company has a market capitalization of $468.22 million, a price-to-earnings ratio of -0.88 and a beta of 0.83. The business's 50-day moving average price is $2.93 and its 200 day moving average price is $3.80.

More Evolent Health News

Here are the key news stories impacting Evolent Health this week:

• Positive Sentiment: Evolent’s Q1 EPS loss of $0.02 was better than the expected loss of $0.05, suggesting profitability trends were slightly better than analysts feared. Evolent Health Q1 2026 Earnings Call Transcript
• Positive Sentiment: Needham raised its price target on EVH from $4.00 to $5.00 and reiterated a buy rating, pointing to additional upside from current levels. Needham Price Target Raise
• Positive Sentiment: The company also lifted full-year 2026 revenue guidance to a range of $2.4 billion to $2.6 billion, which signals management expects stronger business performance ahead. Evolent Announces First Quarter 2026 Results
• Neutral Sentiment: Revenue of $496.25 million missed Wall Street’s $534.0 million estimate, so investors are weighing the top-line shortfall against better-than-expected earnings and upbeat guidance. Evolent Health Misses Q1 Revenue Estimates

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Durable Capital Partners LP purchased a new stake in Evolent Health in the second quarter valued at approximately $72,326,000. Rubicon Founders LLC purchased a new position in shares of Evolent Health during the third quarter worth approximately $49,204,000. 8 Knots Management LLC purchased a new position in shares of Evolent Health during the second quarter worth approximately $32,802,000. Goldman Sachs Group Inc. increased its holdings in shares of Evolent Health by 162.2% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,836,402 shares of the technology company's stock valued at $26,861,000 after acquiring an additional 1,754,520 shares during the period. Finally, Jacobs Levy Equity Management Inc. raised its position in Evolent Health by 164.1% in the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 1,773,818 shares of the technology company's stock valued at $15,006,000 after purchasing an additional 1,102,264 shares during the last quarter.

Analyst Ratings Changes

EVH has been the subject of a number of recent research reports. Truist Financial decreased their price target on shares of Evolent Health from $10.00 to $6.00 and set a "buy" rating for the company in a research note on Wednesday, February 25th. Citigroup lowered their price objective on Evolent Health from $6.00 to $4.00 and set a "buy" rating for the company in a research report on Thursday, February 26th. BMO Capital Markets reiterated an "outperform" rating and issued a $3.50 price objective on shares of Evolent Health in a report on Wednesday, February 25th. Wall Street Zen raised Evolent Health from a "sell" rating to a "hold" rating in a research report on Saturday, February 28th. Finally, Oppenheimer decreased their target price on Evolent Health from $12.00 to $6.00 and set an "outperform" rating for the company in a research note on Monday, March 2nd. Thirteen investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $6.12.

About Evolent Health

Evolent Health, Inc is a U.S.-based healthcare technology and services company that partners with health systems, physician organizations and health plans to design, build and operate value-based care programs. Headquartered in Arlington, Virginia, the company was founded in 2011 as a joint venture between TPG and the University of Pittsburgh Medical Center (UPMC). Evolent Health aims to help its clients transition from fee-for-service payment models to value-based care arrangements by leveraging its proprietary technology platforms and clinical expertise.

The company's core offerings include care management solutions, population health analytics and clinical advisory services.

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