Evolent Health reported third quarter 2026 revenue of $725.4 million, representing 51.3% year-over-year growth, driven by expansion in its oncology and surgical management segments. While the company achieved its adjusted earnings targets, profitability remains under pressure from a rising Medical Expense Ratio (MER), which expanded significantly compared to the prior year.
Key Highlights
- Adjusted EPS of $0.06 was in-line with consensus estimates, while total revenue of $725.4 million slightly missed the $727.1 million expectation.
- The Medical Expense Ratio (MER) surged to 93.0% from 85.0% in the prior year, reflecting persistent inflationary pressures in specialty oncology and cardiology care.
- Management raised full-year 2026 Adjusted EBITDA guidance to a range of $130 million to $135 million, up from previous expectations, while reiterating its $2.6 billion to $2.7 billion revenue outlook.
- Significant contract activity included a four-year renewal of the largest Surgical Management customer and an expansion into oncology services for 1 million commercial lives starting January 2027.