Evolent Health (NYSE:EVH) Posts Earnings Results, Beats Expectations By $0.03 EPS

Evolent Health (NYSE:EVH) announced its earnings results on Thursday. The technology company reported ($0.02) earnings per share for the quarter, topping the consensus estimate of ($0.05) by $0.03, FiscalAI reports. Evolent Health had a negative net margin of 26.29% and a positive return on equity of 0.32%. The business had revenue of $496.25 million during the quarter, compared to the consensus estimate of $534.00 million. During the same quarter in the prior year, the firm earned $0.06 earnings per share. The business’s quarterly revenue 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 Trading Down 1.8%

EVH stock traded down $0.08 on Friday, hitting $4.19. 2,959,838 shares of the company were exchanged, compared to its average volume of 2,597,587. 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 stock 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 fifty day moving average is $2.93 and its two-hundred day moving average is $3.80. Evolent Health has a twelve month low of $2.10 and a twelve month high of $12.06.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. CIBC Private Wealth Group LLC lifted its holdings in shares of Evolent Health by 4,000.0% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 4,100 shares of the technology company’s stock valued at $35,000 after acquiring an additional 4,000 shares in the last quarter. Strs Ohio acquired a new stake in Evolent Health during the 1st quarter valued at approximately $47,000. Vise Technologies Inc. acquired a new stake in shares of Evolent Health during the fourth quarter worth approximately $50,000. Headlands Technologies LLC bought a new stake in shares of Evolent Health in the 2nd quarter worth about $58,000. Finally, RPO LLC acquired a new position in shares of Evolent Health in the 4th quarter worth approximately $71,000.

Key Headlines 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

Analysts Set New Price Targets

Several analysts have commented on the company. Truist Financial reduced their price objective on Evolent Health from $10.00 to $6.00 and set a “buy” rating for the company in a research note on Wednesday, February 25th. Wall Street Zen upgraded Evolent Health from a “sell” rating to a “hold” rating in a research report on Saturday, February 28th. Oppenheimer decreased their price target on Evolent Health from $12.00 to $6.00 and set an “outperform” rating on the stock in a research note on Monday, March 2nd. TD Cowen reaffirmed a “buy” rating on shares of Evolent Health in a research note on Monday, March 2nd. Finally, UBS Group reduced their target price on Evolent Health from $10.00 to $5.00 and set a “buy” rating on the stock in a research note on Thursday, February 26th. Thirteen analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Evolent Health has an average rating of “Moderate Buy” and an average target price of $6.12.

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.