Evolent Health Inc - Class A
Q2 2026 Earnings
Market Reaction
Did EVH Beat Earnings? Q2 2026 Results
Evolent Health, Inc. delivered a strong second-quarter 2026 earnings beat, posting adjusted EPS of $0.02 against a consensus estimate of negative $0.02, a 229.87% positive surprise, while revenue of $652.52 million topped the $599.79 million consensus by 8.79% and climbed 46.9% year over year. The primary engine behind that growth was the Performance Suite, which nearly doubled its revenue to $484.50 million from $267.92 million in Q2 2025, reflecting rapid expansion in the company's risk-bearing specialty care arrangements. That growth came with a cost, however, as the Medical Expense Ratio rose sharply to 95.3%, compressing Adjusted EBITDA to $28.05 million from $37.55 million a year ago. Looking ahead, management raised full-year 2026 revenue guidance to $2.60 billion to $2.70 billion and tightened Adjusted EBITDA guidance to $120 million to $135 million, while projecting 2027 revenue growth exceeding 25% alongside a newly announced oncology partnership expected to generate approximately $300 million in annualized revenue.
- Performance Suite revenue nearly doubled year-over-year driven by increased lives on platform and higher average PMPM fees ($24.05 vs $13.76)
- Rising medical costs impacting health plans driving robust demand for Evolent's complex specialty care solutions
- Medical Expense Ratio increased to 95.3% from 80.0% (84.9% ex-ECP), pressuring margins
- Adjusted SG&A expenses declined to $53.5 million from $63.9 million year-over-year
“We believe our results for the second quarter of 2026, our updated 2026 guidance and our 2027 outlook all demonstrate that Evolent is delivering strong growth, profitability and cash flow. We are confident in our emerging AI-led operational model that we believe allows us to deliver excellent client and clinical outcomes, while being highly disciplined with our cost structure.”
Evolent Health CEO, on the earnings call
Forward Guidance & Outlook
The company raised its full-year 2026 revenue guidance to $2.6–$2.7 billion and tightened Adjusted EBITDA guidance to $120–$135 million. For 2027, management expects revenue growth of over 25% versus 2026 and Adjusted EBITDA at or above $150 million at midpoint, driven by improved Performance Suite care margins and expense reductions, despite continued Medicaid and client-specific membership attrition headwinds. The company also expects $25–$30 million in capitalized software development during 2026 and is evaluating targeted debt reduction initiatives to enhance financial flexibility.
EVH YoY Financials
EVH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.