Evolent Health (NYSE:EVH) Posts Quarterly Earnings Results, Meets Estimates

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

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 Up 1.4%

EVH traded up $0.07 during trading on Friday, reaching $4.61. 1,743,939 shares of the stock were exchanged, compared to its average volume of 1,821,422. The company has a debt-to-equity ratio of 2.52, a quick ratio of 1.24 and a current ratio of 1.24. The stock’s 50 day moving average price is $4.17 and its two-hundred day moving average price is $3.88. Evolent Health has a twelve month low of $2.10 and a twelve month high of $6.28. The stock has a market cap of $520.64 million, a P/E ratio of -1.01 and a beta of 1.03.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the stock. TD Cowen raised their target price on shares of Evolent Health from $5.00 to $6.00 and gave the company a “buy” rating in a research report on Monday, August 17th. Needham & Company LLC lifted their price target on shares of Evolent Health from $5.00 to $6.00 and gave the company a “buy” rating in a research note on Thursday. Weiss Ratings cut shares of Evolent Health from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Friday, October 16th. Citigroup upgraded shares of Evolent Health from a “neutral” rating to a “buy” rating and reduced their price objective for the stock from $6.75 to $6.00 in a research note on Monday, August 10th. Finally, Truist Financial decreased their price objective on Evolent Health from $7.00 to $6.00 and set a “hold” rating for the company in a report on Wednesday, August 12th. Eleven investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $6.11.

Key Headlines 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

Insider Buying and Selling

In other news, President Daniel Mccarthy sold 65,892 shares of Evolent Health 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 transaction, the president owned 655,133 shares of the company’s stock, valued at $3,275,665. This trade represents a 9.14% decrease in their position. The sale was disclosed in a legal filing with the SEC, 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 currently owned by corporate insiders.

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.