Evolent Bets on AI-Led Operations as It Raises 2026 Revenue Outlook

Evolent Health raised its full-year 2026 revenue guidance after reporting strong second-quarter results, with executives crediting an emerging AI-led operating model for improving operational efficiency while supporting clinical outcomes.

The healthcare services company reported revenue of $652.5 million for the quarter ended June 30, up from $444.3 million a year earlier. Net loss attributable to common shareholders narrowed to $28.4 million from $51.1 million in the prior-year period, while adjusted EBITDA was $28.1 million. The company also increased its 2026 revenue outlook to between $2.6 billion and $2.7 billion and tightened its adjusted EBITDA guidance to $120 million to $135 million, according to its second-quarter earnings release.

"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," Co-Founder and CEO Seth Blackley said in the release.

The results come as healthcare organizations continue to expand AI beyond pilot projects into core operations, a trend reflected in HCA Healthcare's operational AI deployments and other enterprise healthcare initiatives.

Oncology Expansion Supports Growth Outlook

Evolent announced two customer expansions during the quarter, bringing its total partnership announcements this year to four.

The larger agreement is an Oncology Performance Suite partnership with an existing advanced imaging customer. The program is expected to cover approximately 1.5 million Medicaid and Medicare members across 11 states after a planned launch by December, subject to regulatory approvals. Evolent expects the contract to generate about $300 million in annualized revenue.

The company also expanded its relationship with an existing regional Blue Cross plan customer by adding products within its Specialty Technology and Services Suite. Evolent expects those implementations to roll out during the third and fourth quarters and contribute less than $5 million in annualized revenue.

Chief Financial Officer Mario Ramos said contracts already in place, scheduled launches, and continued demand for the company's oncology offerings position Evolent for more than 25% revenue growth in 2027. He added that the company expects adjusted EBITDA to reach at least $150 million next year while improving cash flow and reducing debt.

AI Becomes Part of Healthcare Operations

Although Evolent did not introduce new AI products alongside its earnings, management positioned AI as part of the company's broader operating strategy.

AI investments are increasingly tied to measurable operational outcomes, including clinical workflows, utilization management, and administrative efficiency. Similar trends can be seen in healthcare AI platforms expanding across care delivery and revenue operations.

Despite the strong revenue growth, Evolent's adjusted EBITDA margin declined to 4.3% from 8.5% a year earlier, while its medical expense ratio rose to 95.3% from 80.0%. The company said higher medical costs affecting health plans continue to drive demand for its specialty care solutions.

Executives also highlighted expected improvements in cash flow conversion alongside planned capital deployment of $25 million to $30 million for software development during 2026.