Evolent Health (NYSE:EVH) Issues Earnings Results, Beats Estimates By $0.03 EPS

Evolent Health (NYSE:EVH) announced its 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. The company had revenue of $496.25 million for the quarter, compared to analyst estimates of $534.00 million. Evolent Health had a positive return on equity of 0.32% and a negative net margin of 26.29%.The firm’s quarterly revenue was up 2.6% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.06 earnings per share.

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 Down 1.8%

Shares of Evolent Health stock traded down $0.08 during trading hours on Friday, reaching $4.19. 2,959,838 shares of the company were exchanged, compared to its average volume of 2,597,587. Evolent Health has a 1 year low of $2.10 and a 1 year high of $12.06. The stock’s fifty day moving average is $2.93 and its 200 day moving average is $3.80. The company has a debt-to-equity ratio of 2.34, a quick ratio of 1.31 and a current ratio of 1.31. The firm has a market cap of $468.22 million, a PE ratio of -0.88 and a beta of 0.83.

Key Stories Impacting Evolent Health

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 Trading of Evolent Health

Large investors have recently modified their holdings of the stock. CIBC Private Wealth Group LLC increased its position in shares of Evolent Health by 4,000.0% during the third quarter. CIBC Private Wealth Group LLC now owns 4,100 shares of the technology company’s stock worth $35,000 after acquiring an additional 4,000 shares during the period. Strs Ohio purchased a new stake in shares of Evolent Health during the first quarter worth $47,000. Headlands Technologies LLC purchased a new stake in shares of Evolent Health during the second quarter worth $58,000. Quantbot Technologies LP purchased a new position in Evolent Health in the third quarter valued at $88,000. Finally, Caxton Associates LLP purchased a new position in Evolent Health in the third quarter valued at $93,000.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the company. Weiss Ratings reissued a “sell (e+)” rating on shares of Evolent Health in a research report on Friday, March 27th. Royal Bank Of Canada cut their target price on Evolent Health from $5.00 to $3.00 and set a “sector perform” rating on the stock in a research report on Wednesday, February 25th. TD Cowen reissued a “buy” rating on shares of Evolent Health in a research report on Monday, March 2nd. BMO Capital Markets reissued an “outperform” rating and issued a $3.50 target price on shares of Evolent Health in a research report on Wednesday, February 25th. Finally, BTIG Research cut their target price on Evolent Health from $10.00 to $8.00 and set a “buy” rating on the stock in a research report on Wednesday, February 25th. Thirteen analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Evolent Health currently has an average rating of “Moderate Buy” and an average price target 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.