Evolent Health (NYSE:EVH) Releases Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Evolent Health (NYSE:EVH) released its quarterly earnings results on Tuesday. The technology company reported $0.08 earnings per share for the quarter, beating the consensus estimate of $0.06 by $0.02, FiscalAI reports. Evolent Health had a negative net margin of 28.49% and a positive return on equity of 1.30%. The company had revenue of $468.72 million during the quarter, compared to analysts’ expectations of $468.48 million. During the same quarter in the prior year, the company earned ($0.02) earnings per share. The business’s quarterly revenue was down 27.5% compared to the same quarter last year.

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

• Evolent is guiding 2026 revenue of about $2.5 billion (roughly 30% growth) with Adjusted EBITDA centered near a $125 million midpoint (company range $110–$140M) and expects EBITDA to be weighted to the back half of the year.
• Management says oncology will be the core growth driver, forecasting oncology to be ~65% of 2026 revenue (up from 36% in 2025) and highlighting a Highmark oncology launch on May 1 expected to add >$550 million in 2026 and >$800 million in 2027.
• About 90% of Performance Suite revenue has been migrated to the new Enhanced Performance Suite contracts, which management says preserves downside via MER corridors while enabling customer retention and new wins, and targets long‑term Performance Suite margins of 7–10%.
• Near‑term profitability is pressured by reserving and exchange membership contraction—management expects 2026 MER of ~93% (vs 89% in 2025) and identified a ~$40 million one‑time headwind from exchange disenrollment tied to the “One Big Beautiful Bill.”
• Company cites efficiency and AI gains (exceeding the prior $20M annualized savings goal in 2025 and targeting roughly $50M of cost reductions in 2026), expects Q4 2026 run‑rate Adjusted EBITDA of >$150M, and outlines a potential $30–$100M upside if Performance Suite margins hit targets over time.

Evolent Health Stock Performance

EVH stock traded up $0.05 during trading hours on Thursday, reaching $3.19. The stock had a trading volume of 961,926 shares, compared to its average volume of 3,036,351. The stock has a 50-day simple moving average of $3.52 and a 200 day simple moving average of $5.85. Evolent Health has a fifty-two week low of $2.50 and a fifty-two week high of $12.06. The stock has a market capitalization of $355.45 million, a PE ratio of -0.62 and a beta of 0.27. The company has a debt-to-equity ratio of 1.25, a current ratio of 1.33 and a quick ratio of 1.33.

Analysts Set New Price Targets

EVH has been the topic of a number of recent research reports. Truist Financial dropped their target price on Evolent Health from $10.00 to $6.00 and set a “buy” rating on the stock in a research report on Wednesday. Royal Bank Of Canada decreased their price target on shares of Evolent Health from $5.00 to $3.00 and set a “sector perform” rating for the company in a research note on Wednesday. Weiss Ratings reiterated a “sell (e+)” rating on shares of Evolent Health in a report on Monday, December 29th. Oppenheimer reduced their target price on shares of Evolent Health from $18.00 to $12.00 and set an “outperform” rating for the company in a report on Wednesday, November 12th. Finally, KeyCorp downgraded shares of Evolent Health from an “overweight” rating to a “sector weight” rating in a research report on Wednesday. Twelve investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Evolent Health has an average rating of “Moderate Buy” and an average target price of $7.42.

Evolent Health News Summary

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

• Positive Sentiment: Q4 results beat on the bottom line: EPS $0.08 vs. consensus $0.06, revenue $468.7M essentially in line; management highlighted strong oncology growth and strategic contract progress which supports forward revenue mix. Earnings Call Transcript
• Positive Sentiment: Company gave FY‑2026 revenue guidance of roughly $2.4B–$2.6B (vs. consensus ~$2.4B), which signals management expects stabilization and potential recovery in top‑line activity. PR Newswire: Q4 & FY Results
• Neutral Sentiment: Needham lowered its price target to $4.00 from $15.00 but kept a “buy” rating — the firm still sees upside vs. the current price despite a large PT reset. Evolent Health Given New $4.00 Price Target at Needham
• Neutral Sentiment: BTIG trimmed its PT to $8.00 from $10.00 but maintained a “buy” rating, indicating continued analyst conviction in longer‑term upside despite near‑term caution. Evolent Health Given New $8.00 Price Target at BTIG
• Negative Sentiment: Royal Bank of Canada cut its price target to $3.00 from $5.00 and set a “sector perform” rating — a nearer‑term negative signal that trims expectations and likely pressures sentiment. Evolent Health Given New $3.00 Price Target at Royal Bank Of Canada
• Negative Sentiment: KeyCorp downgraded EVH from “overweight” to “sector weight,” a direct negative to near‑term analyst sentiment and a signal of more conservative expectations. KeyCorp Downgrade Coverage

Institutional Investors Weigh In On Evolent Health

Several hedge funds have recently bought and sold shares of EVH. Brighton Jones LLC acquired a new position in shares of Evolent Health in the fourth quarter valued at $3,927,000. Osaic Holdings Inc. boosted its holdings in shares of Evolent Health by 99.2% during the 2nd quarter. Osaic Holdings Inc. now owns 11,119 shares of the technology company’s stock worth $125,000 after buying an additional 5,537 shares during the period. nVerses Capital LLC bought a new stake in shares of Evolent Health during the 4th quarter worth about $109,000. Virtu Financial LLC acquired a new position in Evolent Health in the 4th quarter valued at about $106,000. Finally, CIBC Bancorp USA Inc. bought a new position in Evolent Health in the 3rd quarter valued at about $106,000.

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.