Evolent Health (NYSE:EVH) Announces Quarterly Earnings Results

Evolent Health (NYSE:EVH) 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.