Evolent Health (NYSE:EVH) Announces Quarterly Earnings Results

Key Points

• Evolent Health reported adjusted EPS of $0.02, beating the expected $0.01 loss and improving from a $0.10 loss a year earlier. Revenue rose 46.9% year over year to $484.5 million, though it fell short of the $597.7 million consensus estimate.
• Management raised 2026 guidance to $2.6 billion-$2.7 billion in revenue and projected adjusted EBITDA of $120 million-$135 million. A new oncology partnership covering about 1.5 million lives could add roughly $300 million in annualized revenue, pending approvals.
• Financial risks remain significant: Evolent is still unprofitable on a GAAP basis, carries $808.3 million in net debt, and faces near-term costs from new launches, membership declines and technology investments.

Evolent Health (NYSE:EVH - Get Free Report) issued its quarterly earnings results on Thursday. The technology company reported $0.02 EPS for the quarter, topping analysts' consensus estimates of ($0.01) by $0.03, FiscalAI reports. Evolent Health had a negative return on equity of 3.94% and a negative net margin of 24.08%.The business had revenue of $484.50 million during the quarter, compared to analysts' expectations of $597.69 million. During the same quarter in the prior year, the business posted ($0.10) earnings per share. The business's quarterly revenue was up 46.9% on a year-over-year basis.

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

• 2026 guidance was raised, with revenue now expected at $2.6 billion-$2.7 billion and adjusted EBITDA narrowed to $120 million-$135 million; full-year MER remains approximately 93%.
• Evolent announced a new oncology Performance Suite partnership covering approximately 1.5 million lives and expected to generate about $300 million in annualized revenue, pending regulatory approvals. The company also reported strong cross-selling activity with an existing Blue Cross customer.
• Management said Aetna and Highmark launches are showing clinical and provider engagement above expectations, while its AuthIntelligence AI platform has lifted auto-approval rates by up to 20 percentage points and now evaluates more than one-third of previously manual authorization volume.
• Evolent expects 2027 revenue growth above 25% and adjusted EBITDA of at least $150 million at the midpoint, supported by maturing Performance Suite contracts, cost reductions, productivity initiatives, and AI-related efficiencies.
• Near-term profitability remains affected by Highmark launch costs, expected Medicaid and exchange membership declines, and additional Performance Suite and AI investments. The company ended the quarter with $808.3 million of net debt and is evaluating capital-markets and strategic options to address 2029 maturities.

Evolent Health Price Performance

EVH stock traded up $0.37 during midday trading on Friday, hitting $3.96. The company's stock had a trading volume of 5,080,277 shares, compared to its average volume of 3,862,496. Evolent Health has a 12 month low of $2.10 and a 12 month high of $10.08. The company has a quick ratio of 1.32, a current ratio of 1.32 and a debt-to-equity ratio of 2.46. The firm has a market capitalization of $445.20 million, a price-to-earnings ratio of -0.87 and a beta of 0.79. The company has a 50 day moving average of $4.75 and a two-hundred day moving average of $3.72.

Hedge Funds Weigh In On Evolent Health

Several hedge funds have recently modified their holdings of the stock. Durable Capital Partners LP bought a new position in shares of Evolent Health during the 2nd quarter valued at about $72,326,000. Rubicon Founders LLC purchased a new stake in shares of Evolent Health in the third quarter worth about $49,204,000. 8 Knots Management LLC bought a new position in Evolent Health during the second quarter valued at approximately $32,802,000. Goldman Sachs Group Inc. boosted its stake in Evolent Health by 162.2% during the first quarter. Goldman Sachs Group Inc. now owns 2,836,402 shares of the technology company's stock valued at $26,861,000 after buying an additional 1,754,520 shares during the last quarter. Finally, Jacobs Levy Equity Management Inc. grew its holdings in Evolent Health by 164.1% during 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 buying an additional 1,102,264 shares in the last quarter.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on EVH shares. Needham & Company LLC increased their target price on shares of Evolent Health from $4.00 to $5.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Citigroup reissued a "sell" rating and issued a $6.75 price objective (up from $5.50) on shares of Evolent Health in a research note on Thursday, July 23rd. Truist Financial downgraded shares of Evolent Health from a "buy" rating to a "hold" rating and set a $7.00 price objective on the stock. in a research report on Tuesday, June 30th. Weiss Ratings upgraded shares of Evolent Health from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday. Finally, TD Cowen lowered their target price on shares of Evolent Health from $8.00 to $5.00 and set a "buy" rating on the stock in a research note on Tuesday, July 28th. Eleven investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $6.16.

Key Evolent Health News

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

• Positive Sentiment: Evolent reported second-quarter adjusted earnings of $0.02 per share, compared with analysts’ expectation of a $0.01 loss and a $0.10 loss in the year-ago quarter. Evolent Health Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Quarterly revenue rose sharply year over year, with management emphasizing continued growth, improving profitability, and stronger cash flow. The earnings call also highlighted a bullish 2027 outlook, supporting the view that Evolent’s expansion is becoming more durable. Evolent Health Q2 2026 Earnings Call Highlights
• Positive Sentiment: The company raised or reaffirmed full-year 2026 revenue guidance at approximately $2.6 billion to $2.7 billion, above the roughly $2.5 billion consensus estimate. That outlook gives investors greater confidence in Evolent’s growth trajectory. Evolent Announces Second Quarter 2026 Results
• Neutral Sentiment: Despite the improved operating performance, Evolent remains unprofitable on a GAAP basis, with a negative net margin, and analysts still project a full-year loss. Execution against the new guidance will therefore remain important.
• Negative Sentiment: The company continues to carry elevated leverage, including a debt-to-equity ratio above 2, which could limit financial flexibility if growth or cash-flow improvements fall short.

Evolent Health Company Profile

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.

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.

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