Alignment Healthcare (NASDAQ:ALHC) Announces Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Alignment Healthcare (NASDAQ:ALHC) 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. Alignment Healthcare had a return on equity of 11.50% and a net margin of 0.47%.The firm had revenue of $1.34 billion during the quarter, compared to analyst estimates of $1.31 billion.

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 Trading Up 1.7%

Alignment Healthcare stock traded up $0.32 during mid-day trading on Thursday, reaching $18.61. 4,016,545 shares of the company traded hands, compared to its average volume of 4,371,387. The company has a debt-to-equity ratio of 1.56, a current ratio of 1.58 and a quick ratio of 1.58. Alignment Healthcare has a 52-week low of $12.91 and a 52-week high of $25.12. The firm has a market capitalization of $3.85 billion, a price-to-earnings ratio of 206.78, a P/E/G ratio of 2.49 and a beta of 1.05. The firm’s 50 day moving average price is $19.69 and its 200 day moving average price is $19.81.

Insider Transactions at Alignment Healthcare

In other news, President Dawn Christine Maroney sold 30,000 shares of Alignment Healthcare stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $19.55, for a total transaction of $586,500.00. Following the sale, the president owned 947,313 shares of the company’s stock, valued at approximately $18,519,969.15. The trade was a 3.07% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Hyong Kim sold 35,951 shares of Alignment Healthcare stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $19.86, for a total value of $713,986.86. Following the sale, the insider directly owned 331,750 shares in the company, valued at approximately $6,588,555. The trade was a 9.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 1,039,951 shares of company stock worth $19,976,967. 5.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Alignment Healthcare

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Wellington Management Group LLP raised its holdings in Alignment Healthcare by 167.3% in the third quarter. Wellington Management Group LLP now owns 11,089,727 shares of the company’s stock worth $193,516,000 after purchasing an additional 6,940,277 shares in the last quarter. Invesco Ltd. grew its position in shares of Alignment Healthcare by 122.3% in the 2nd quarter. Invesco Ltd. now owns 4,170,529 shares of the company’s stock worth $58,387,000 after buying an additional 2,294,739 shares during the period. Loomis Sayles & Co. L P bought a new position in shares of Alignment Healthcare in the 4th quarter worth about $44,162,000. Qube Research & Technologies Ltd increased its stake in shares of Alignment Healthcare by 269.6% in the 2nd quarter. Qube Research & Technologies Ltd now owns 1,523,986 shares of the company’s stock worth $21,336,000 after acquiring an additional 1,111,685 shares in the last quarter. Finally, Bank of America Corp DE lifted its position in Alignment Healthcare by 273.5% during the 3rd quarter. Bank of America Corp DE now owns 1,412,498 shares of the company’s stock valued at $24,648,000 after acquiring an additional 1,034,273 shares during the period. 86.19% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

ALHC has been the subject of several analyst reports. Zacks Research cut shares of Alignment Healthcare from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 6th. UBS Group reaffirmed a “neutral” rating on shares of Alignment Healthcare in a research note on Wednesday, July 8th. KeyCorp reiterated an “overweight” rating on shares of Alignment Healthcare in a report on Wednesday, June 10th. Weiss Ratings raised Alignment Healthcare from a “sell (d-)” rating to a “hold (c-)” rating in a research note on Thursday, May 7th. Finally, Wolfe Research began coverage on Alignment Healthcare in a report on Friday, April 17th. They set an “outperform” rating and a $24.00 price target on the stock. Six research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $24.30.

Key Stories Impacting Alignment Healthcare

Here are the key news stories impacting Alignment Healthcare this week:

• Positive Sentiment: Alignment Healthcare reported second-quarter EPS of $0.17, exceeding the $0.13 analyst consensus, while revenue of $1.34 billion surpassed expectations of $1.31 billion. Management said results exceeded the high end of guidance across key metrics. Alignment Healthcare Reports Second Quarter 2026 Results
• Positive Sentiment: The earnings beat provides a favorable near-term catalyst, supported by a reported 11.50% return on equity and a 0.47% net margin, although profitability remains modest.
• Neutral Sentiment: Alignment Healthcare maintained third-quarter revenue guidance of approximately $1.3 billion, in line with consensus estimates. Full-year 2026 revenue guidance of approximately $5.2 billion also matched expectations. No EPS figures were provided in the supplied guidance updates.
• Neutral Sentiment: A Zacks comparison characterized ALHC as a potential value-stock candidate relative to PACS Group, but this represents an investment-screening view rather than a change in company fundamentals. PACS or ALHC: Which Is the Better Value Stock Right Now?
• Negative Sentiment: Kaplan Fox, Lowey Dannenberg and Pomerantz announced investigations into potential federal securities-law violations. These announcements appear related to allegations concerning Alignment Healthcare and may increase legal, reputational and investor uncertainty; the investigations do not establish wrongdoing. Lowey Dannenberg Investigation

About Alignment Healthcare

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.