Teladoc Health (NYSE:TDOC) Shares Gap Down on Disappointing Earnings

Key Points

• Shares gapped down after Teladoc reported a Q1 GAAP loss of $0.36 per share (vs. a $0.34 loss consensus), opening at $5.30 after a $5.95 close and trading with heavy volume.
• Revenue was essentially in line at $613.8M (down ~2.5% y/y), but the company issued weak Q2 (-$0.30 to -$0.20) and FY2026 (-$1.05 to -$0.75) EPS guidance, raising near-term profitability and cash-flow concerns despite strategic AI and insurer initiatives.
• Analysts are mixed (consensus rating: Hold, average target ~$7.62), and insider activity included CEO Charles Divita III selling 27,731 shares, modestly reducing his stake.

Teladoc Health, Inc. (NYSE:TDOC - Get Free Report)'s stock price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $5.95, but opened at $5.30. Teladoc Health shares last traded at $5.3370, with a volume of 2,114,667 shares trading hands.

The health services provider reported ($0.36) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.34) by ($0.02). Teladoc Health had a negative net margin of 7.92% and a negative return on equity of 9.13%. The firm had revenue of $613.85 million during the quarter, compared to analyst estimates of $613.82 million. During the same period last year, the business earned ($0.53) EPS. The firm's revenue was down 2.5% compared to the same quarter last year. Teladoc Health has set its FY 2026 guidance at -1.050--0.750 EPS and its Q2 2026 guidance at -0.300--0.200 EPS.

Teladoc Health News Summary

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

• Positive Sentiment: Q1 revenue slightly beat expectations — Teladoc reported $613.8M in revenue (down ~2–2.5% y/y) but marginally above consensus, and management highlighted strategic progress in AI and insurance initiatives that could drive longer-term growth. Earnings Call Highlights
• Neutral Sentiment: Full disclosure and materials posted — The company released its press release, slide deck and the full earnings-call transcript, which provide detail on metrics and the roadmap for BetterHelp, AI integration and insurer partnerships for investors doing deeper analysis. Press Release Call Transcript
• Negative Sentiment: EPS miss and larger GAAP loss — GAAP loss was $0.36/sh, missing consensus and wider than a year ago; bottom-line weakness is the immediate driver of selling pressure. Q1 Sales Surprise But Stock Drops
• Negative Sentiment: Guidance disappointment — Q2 EPS guide of -$0.30 to -$0.20 and FY26 EPS of -$1.05 to -$0.75 sit below analyst expectations (Q2 revenue range also had a low end below consensus), raising near-term uncertainty on profitability and cash flow. Company Guidance / Slide Deck
• Negative Sentiment: Operational and cash-flow concerns — Commentary flagged cash-flow pressure and ongoing business-model shifts (including BetterHelp monetization and insurer deals) that may require investment before margin improvement is realized. This adds near-term risk despite strategic positives. Earnings Call Highlights

Analysts Set New Price Targets

Several analysts have issued reports on TDOC shares. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Teladoc Health in a research report on Friday, March 27th. Bank of America raised shares of Teladoc Health from a "neutral" rating to a "buy" rating and set a $7.00 price objective for the company in a research report on Thursday, February 26th. Wells Fargo & Company lowered their price objective on shares of Teladoc Health from $8.00 to $6.00 and set an "equal weight" rating for the company in a research report on Thursday, February 26th. Deutsche Bank Aktiengesellschaft upgraded Teladoc Health from a "hold" rating to a "buy" rating and set a $11.00 target price for the company in a research note on Tuesday, March 10th. Finally, Barclays reduced their target price on Teladoc Health from $8.50 to $7.00 and set an "equal weight" rating for the company in a research note on Thursday, March 26th. Six investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $7.62.

Insider Activity at Teladoc Health

In other news, CEO Charles Divita III sold 27,731 shares of the firm's stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $5.49, for a total transaction of $152,243.19. Following the transaction, the chief executive officer directly owned 364,784 shares of the company's stock, valued at approximately $2,002,664.16. This trade represents a 7.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.70% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of TDOC. PNC Financial Services Group Inc. increased its holdings in shares of Teladoc Health by 177.7% during the fourth quarter. PNC Financial Services Group Inc. now owns 4,391 shares of the health services provider's stock valued at $31,000 after purchasing an additional 2,810 shares during the period. IFP Advisors Inc increased its holdings in shares of Teladoc Health by 412.1% during the third quarter. IFP Advisors Inc now owns 3,989 shares of the health services provider's stock valued at $31,000 after purchasing an additional 3,210 shares during the period. Aster Capital Management DIFC Ltd increased its holdings in shares of Teladoc Health by 101.1% during the third quarter. Aster Capital Management DIFC Ltd now owns 4,823 shares of the health services provider's stock valued at $37,000 after purchasing an additional 2,425 shares during the period. International Assets Investment Management LLC acquired a new position in shares of Teladoc Health during the fourth quarter valued at $45,000. Finally, Bayforest Capital Ltd acquired a new position in shares of Teladoc Health during the third quarter valued at $58,000. 76.82% of the stock is owned by institutional investors and hedge funds.

Teladoc Health Price Performance

The company has a market capitalization of $980.82 million, a price-to-earnings ratio of -4.75 and a beta of 2.07. The company has a debt-to-equity ratio of 0.72, a current ratio of 2.77 and a quick ratio of 2.67. The business has a fifty day moving average price of $5.37 and a 200 day moving average price of $6.47.

Teladoc Health Company Profile

Teladoc Health, Inc is a leading global provider of virtual healthcare services, offering on-demand medical consultations via phone, video, and mobile app platforms. The company connects patients with licensed physicians and specialists for non-emergency medical issues, mental health support, dermatology, and chronic condition management. By leveraging digital technologies and data analytics, Teladoc aims to enhance accessibility, reduce healthcare costs, and improve patient outcomes through personalized care plans and remote monitoring.

Teladoc's service portfolio includes general medical visits, behavioral health sessions, expert medical services for complex cases, and wellness programs designed to support chronic disease management such as diabetes, hypertension, and heart disease.

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