Evolent Health (NYSE:EVH) Issues Earnings Results, Hits Estimates

Evolent Health (NYSE:EVH) released its quarterly earnings results on Thursday. The technology company reported $0.06 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.06, FiscalAI reports. The firm had revenue of $725.37 million for the quarter, compared to the consensus estimate of $727.06 million. Evolent Health had a negative return on equity of 5.98% and a negative net margin of 21.67%. The firm’s quarterly revenue was up 51.3% compared to the same quarter last year. During the same quarter last year, the business posted $0.05 EPS.

Here are the key takeaways from Evolent Health’s conference call:

• Q3 growth and higher earnings outlook: Revenue rose 11% sequentially to $725 million and adjusted EBITDA increased 22% to $34.3 million. Evolent raised its 2026 adjusted EBITDA guidance to $130 million–$135 million while reaffirming revenue guidance of $2.6 billion–$2.7 billion.
• Customer renewals and expansions: Evolent renewed its largest Surgical Management contract for four years and announced oncology and specialty-services expansions, including an additional 11 states for a national payer. The company said these agreements reflect opportunities to deepen relationships and broaden its product offerings.
• Medical expense performance improved: The medical expense ratio fell to 93% from 95% in Q2, helped by favorable claims development and contractual adjustments. Management expects a smaller sequential improvement in Q4 because some favorable claims development came through earlier than expected, while reiterating full-year MER guidance of approximately 93%.
• AI may support efficiency and growth, but returns are still ahead: AuthIntelligence now evaluates about half of prior authorizations that previously needed manual review, and Evolent expects to expand its use through 2027. Management sees potential for lower costs and market-share gains, but expects higher AI-related capital expenditures in 2027, with returns beginning late in that year.
• Cash generation and leverage remain challenges: Evolent ended Q3 with $148 million of unrestricted cash and $776 million of net debt, and expects full-year operating cash flow of just $10 million–$20 million after cash interest. It is targeting up to $50 million of debt reduction by year-end, while citing membership attrition and contract scope adjustments as 2027 headwinds.

Evolent Health Stock Performance

Shares of NYSE:EVH traded up $0.07 during midday trading on Friday, hitting $4.61. The stock had a trading volume of 1,743,939 shares, compared to its average volume of 1,821,422. The company has a market capitalization of $520.64 million, a PE ratio of -1.01 and a beta of 1.03. The stock has a 50 day moving average price of $4.17 and a two-hundred day moving average price of $3.88. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 2.52. Evolent Health has a 1 year low of $2.10 and a 1 year high of $6.28.

Insider Transactions at Evolent Health

In related news, President Daniel Mccarthy sold 65,892 shares of the firm’s stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $5.00, for a total value of $329,460.00. Following the completion of the sale, the president owned 655,133 shares in the company, valued at $3,275,665. This trade represents a 9.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.48% of the stock is owned by corporate insiders.

Key Stories Impacting Evolent Health

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

• Positive Sentiment: Oppenheimer raised its price target to $7 from $6 and maintained an “outperform” rating, implying substantial upside from the cited $4.61 share price. Oppenheimer recommendations
• Positive Sentiment: Needham & Company lifted its target to $6 from $5 and kept a “buy” rating, adding to the favorable analyst outlook. Needham recommendations
• Positive Sentiment: EVH forecast fiscal 2026 revenue of $2.6 billion to $2.7 billion, with the top of the range above analysts’ $2.6 billion consensus. Third-quarter results and outlook
• Neutral Sentiment: Third-quarter adjusted earnings were $0.06 per share, matching estimates and improving from $0.05 a year earlier. Revenue rose 51.3% year over year to $725.37 million, but was slightly below the $727.06 million consensus. Third-quarter results
• Negative Sentiment: The reported quarter included a negative net margin of 24.08% and negative return on equity, highlighting that profitability remains a concern despite revenue growth and per-share earnings. Third-quarter results

Analyst Ratings Changes

Several research firms have recently weighed in on EVH. JPMorgan Chase & Co. increased their price objective on Evolent Health from $5.00 to $6.00 and gave the company an “overweight” rating in a report on Tuesday, August 18th. TD Cowen lifted their target price on shares of Evolent Health from $5.00 to $6.00 and gave the company a “buy” rating in a report on Monday, August 17th. Canaccord Genuity Group cut their target price on shares of Evolent Health from $7.00 to $6.00 and set a “buy” rating on the stock in a report on Monday, August 10th. Weiss Ratings downgraded shares of Evolent Health from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Friday, October 16th. Finally, Oppenheimer increased their price target on shares of Evolent Health from $6.00 to $7.00 and gave the stock an “outperform” rating in a research note on Friday. Eleven analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $6.11.

Evolent Health Company Profile

Evolent Health, Inc (NYSE: EVH) is a healthcare services and technology company that helps health plans and healthcare providers transition to value-based care. Its platform is designed to support the management of clinical programs, improve patient outcomes and coordinate care while helping customers manage healthcare costs.

The company provides specialty and total-cost-of-care solutions across areas such as cardiology, oncology, musculoskeletal care, radiology and other complex conditions.