Evolent Health (NYSE:EVH) Announces Quarterly Earnings Results

Evolent Health (NYSE:EVH) released its quarterly earnings data on Thursday. The technology company reported $0.02 EPS for the quarter, beating the consensus estimate of ($0.01) by $0.03, FiscalAI reports. Evolent Health had a negative net margin of 24.08% and a negative return on equity of 3.94%. The business had revenue of $484.50 million during the quarter, compared to analyst estimates of $597.69 million. During the same quarter last year, the business earned ($0.10) earnings per share. Evolent Health’s quarterly revenue was up 46.9% compared to the same quarter last year.

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 Trading Up 10.3%

Shares of NYSE:EVH traded up $0.37 during trading hours on Friday, hitting $3.96. 5,080,277 shares of the company’s stock traded hands, compared to its average volume of 3,862,496. Evolent Health has a 1 year low of $2.10 and a 1 year high of $10.08. The business has a fifty day moving average price of $4.75 and a 200-day moving average price of $3.72. The firm has a market capitalization of $445.20 million, a P/E ratio of -0.87 and a beta of 0.79. The company has a debt-to-equity ratio of 2.46, a current ratio of 1.32 and a quick ratio of 1.32.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the stock. TD Cowen decreased 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 report on Tuesday, July 28th. Canaccord Genuity Group boosted their price objective on Evolent Health from $6.00 to $7.00 and gave the stock a “buy” rating in a research note on Tuesday, July 21st. Weiss Ratings upgraded Evolent Health from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday. Needham & Company LLC raised their price objective on Evolent Health from $4.00 to $5.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Finally, Truist Financial cut Evolent Health from a “buy” rating to a “hold” rating and set a $7.00 target price for the company. in a report on Tuesday, June 30th. Eleven research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $6.16.

Institutional Trading of Evolent Health

Hedge funds and other institutional investors have recently bought and sold shares of the business. Durable Capital Partners LP purchased a new stake in Evolent Health in 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 valued at approximately $49,204,000. 8 Knots Management LLC bought a new position in Evolent Health in the second quarter worth approximately $32,802,000. Goldman Sachs Group Inc. increased its holdings in Evolent Health by 162.2% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,836,402 shares of the technology company’s stock worth $26,861,000 after purchasing an additional 1,754,520 shares during the period. Finally, Maverick Capital Ltd. raised its position in Evolent Health by 6.0% during the 4th quarter. Maverick Capital Ltd. now owns 2,539,930 shares of the technology company’s stock valued at $10,160,000 after purchasing an additional 144,646 shares in the last quarter.

Key Stories Impacting Evolent Health

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.