Alignment Healthcare (NASDAQ:ALHC – Get Free Report) released its quarterly earnings data on Thursday. The company reported $0.17 earnings per share for the quarter, beating analysts’ consensus estimates of $0.13 by $0.04, FiscalAI reports. The firm had revenue of $1.34 billion for the quarter, compared to analyst estimates of $1.31 billion. Alignment Healthcare had a net margin of 0.47% and a return on equity of 11.50%. The business’s quarterly revenue was up 31.6% compared to the same quarter last year. During the same period last year, the firm earned $0.07 earnings per share.
Here are the key takeaways from Alignment Healthcare’s conference call:
- Strong second-quarter results: Membership rose 31% year over year to 294,100, revenue increased 32% to $1.3 billion, and adjusted EBITDA grew 48% to $68 million, with a 60-basis-point margin expansion.
- Alignment raised its 2026 membership and revenue outlook, increased the low end of its adjusted gross profit guidance by $10 million and adjusted EBITDA guidance by $7 million, and remains on track for its full-year targets.
- Management estimates approximately $880 million of embedded adjusted gross profit potential in its current membership base, as roughly half of members remain in their first or second year and are expected to become more profitable as clinical programs mature.
- The latest AVA AI stratification model can identify the 10% of members expected to account for nearly 70% of hospital admissions over the following 30 days, supporting more targeted intervention by Care Anywhere teams.
- Third-quarter profitability is expected to be seasonally weaker, with only about 30% of full-year adjusted EBITDA projected in the second half; higher-acuity new members, Part D trends, and additional clinical, AI, automation, hiring, and market-preparation investments are expected to pressure MBR and SG&A.
Alignment Healthcare Price Performance
Shares of NASDAQ ALHC opened at $18.61 on Friday. The company has a market capitalization of $3.85 billion, a PE ratio of 206.78, a PEG ratio of 2.47 and a beta of 1.05. The company has a quick ratio of 1.58, a current ratio of 1.58 and a debt-to-equity ratio of 1.56. The stock’s 50 day moving average price is $19.73 and its 200-day moving average price is $19.80. Alignment Healthcare has a twelve month low of $12.91 and a twelve month high of $25.12.
Alignment Healthcare News Summary
- Positive Sentiment: Alignment Healthcare reported adjusted earnings of $0.17 per share, exceeding the $0.13 analyst consensus and more than doubling the $0.07 earned in the year-ago quarter. Revenue rose 31.6% year over year to $1.34 billion, also above the $1.31 billion consensus. Alignment Healthcare Beats Q2 Earnings and Revenue Estimates
- Positive Sentiment: Net income more than doubled to $36.6 million as medical-care costs in the company’s Medicare Advantage plans eased. Management said results surpassed the high end of guidance across key metrics, supporting the view that Alignment is gaining better control over profitability. Alignment Healthcare Turns Profit as Insurer Gets Handle on Costs
- Neutral Sentiment: The company’s updated revenue outlook calls for approximately $1.3 billion in the third quarter and $5.2 billion for full-year 2026, broadly matching analyst expectations. The lack of a clear guidance increase may limit the upside from the quarterly beat. Alignment Healthcare Reports Second Quarter 2026 Results
- Negative Sentiment: Several law firms, including Kaplan Fox, Lowey Dannenberg and Pomerantz, announced investigations into possible securities-law violations involving Alignment Healthcare. These announcements do not establish wrongdoing, but they create headline risk, potential litigation costs and uncertainty for investors. Pomerantz Investor Alert
Insider Transactions at Alignment Healthcare
In other Alignment Healthcare news, insider Hyong Kim sold 35,951 shares of the company’s stock in a transaction on Friday, June 12th. The stock was sold at an average price of $19.86, for a total value of $713,986.86. Following the completion of the transaction, the insider owned 331,750 shares in the company, valued at $6,588,555. This represents a 9.78% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Mark D. Kent bought 14,848 shares of the stock in a transaction dated Tuesday, June 2nd. The shares were acquired at an average price of $13.31 per share, for a total transaction of $197,626.88. Following the completion of the purchase, the insider directly owned 14,848 shares in the company, valued at approximately $197,626.88. This trade represents a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have sold 1,039,951 shares of company stock worth $19,976,967. Company insiders own 5.20% of the company’s stock.
Institutional Inflows and Outflows
Institutional investors and hedge funds have recently modified their holdings of the stock. Summit Securities Group LLC bought a new stake in shares of Alignment Healthcare in the 4th quarter worth approximately $26,000. Parallel Advisors LLC grew its holdings in Alignment Healthcare by 87.7% during the fourth quarter. Parallel Advisors LLC now owns 1,654 shares of the company’s stock valued at $33,000 after purchasing an additional 773 shares during the period. Larson Financial Group LLC bought a new position in Alignment Healthcare during the third quarter valued at $33,000. Wilmington Savings Fund Society FSB bought a new position in Alignment Healthcare during the third quarter valued at $53,000. Finally, Wexford Capital LP purchased a new stake in Alignment Healthcare in the third quarter worth $164,000. 86.19% of the stock is owned by institutional investors.
Wall Street Analysts Forecast Growth
A number of equities research analysts recently weighed in on the stock. Zacks Research lowered shares of Alignment Healthcare from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Raymond James Financial set a $22.00 price objective on Alignment Healthcare in a report on Thursday, May 7th. Weiss Ratings upgraded Alignment Healthcare from a “sell (d-)” rating to a “hold (c-)” rating in a report on Thursday, May 7th. UBS Group reissued a “neutral” rating on shares of Alignment Healthcare in a research report on Wednesday, July 8th. Finally, Barclays cut their price objective on shares of Alignment Healthcare from $19.00 to $16.00 and set an “equal weight” rating on the stock in a report on Tuesday, May 26th. Six research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $24.30.
Check Out Our Latest Research Report on ALHC
Alignment Healthcare Company Profile
Alignment Healthcare, Inc (NASDAQ: ALHC) is a health care company specializing in value-based care for Medicare Advantage beneficiaries. The company leverages an integrated care model that combines in-home clinical services, telehealth capabilities and digital health tools to manage chronic conditions, improve outcomes and enhance patient experience.
At the core of Alignment Healthcare’s approach is a proprietary technology platform that aggregates real-time clinical and claims data to support preventive care, risk stratification and personalized care plans.
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