Alignment Healthcare (NASDAQ:ALHC) Releases Quarterly Earnings Results, Hits Expectations

31 Oct 2026, 12:57 by Danessa Lincoln · The Markets Daily

Alignment Healthcare (NASDAQ:ALHC – Get Free Report) posted its quarterly earnings data on Thursday. The company reported ($0.04) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.04), FiscalAI reports. The business had revenue of $1.36 billion during the quarter, compared to analyst estimates of $1.31 billion. Alignment Healthcare had a return on equity of 13.32% and a net margin of 0.59%. The company’s revenue for the quarter was up 36.7% on a year-over-year basis. During the same period last year, the company earned $0.02 EPS.

Here are the key takeaways from Alignment Healthcare’s conference call:

Strong third-quarter growth: Membership rose 31% year over year to 301,200, driving revenue growth of 37% to approximately $1.4 billion. Adjusted SG&A leverage improved, and adjusted EBITDA was $22 million.
Higher medical costs pressured results: Provider appeals and disputes, skilled-nursing expenses, and catastrophic cases increased the medical benefit ratio. The company lowered full-year guidance to at least $575 million of adjusted gross profit and $100 million of adjusted EBITDA, while forecasting fourth-quarter adjusted EBITDA of at least negative $28 million.
Claims-system transition is stabilizing: The Facets migration created claims-processing volatility and contributed to higher reported costs, but appeals activity and institutional acute trends reportedly improved from August through October. Management is assuming elevated costs persist through the fourth quarter and is not including potential benefits from payment-integrity or clinical initiatives in its guidance.
California Star Ratings weakened: Six of seven eligible plans retained ratings of four stars or higher, but the California HMO received 3.5 stars, creating future funding pressure. Management is increasing provider and member engagement, improving data workflows, and adding market resources to target recovery.
Management remains confident in 2027 growth: The company continues to target at least 20% membership growth, supported by new provider relationships and planned expansion into San Antonio and Charlotte. Executives said 2027 bids were recalibrated market by market to balance growth and margins, although detailed guidance will come after annual enrollment results.

Alignment Healthcare Trading Down 9.8%

Shares of NASDAQ ALHC opened at $7.27 on Friday. Alignment Healthcare has a fifty-two week low of $6.01 and a fifty-two week high of $25.12. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.70 and a current ratio of 1.70. The company has a market cap of $1.51 billion, a price-to-earnings ratio of 55.93 and a beta of 1.14. The business’s 50 day moving average price is $9.87 and its 200-day moving average price is $16.82.

Analysts Set New Price Targets

Several analysts recently weighed in on the company. Needham & Company LLC started coverage on Alignment Healthcare in a report on Wednesday. They set a “hold” rating on the stock. KeyCorp lowered shares of Alignment Healthcare from an “overweight” rating to a “sector weight” rating in a research note on Friday. Piper Sandler reiterated an “overweight” rating and set a $15.00 price objective on shares of Alignment Healthcare in a research report on Friday. JPMorgan Chase & Co. reduced their target price on shares of Alignment Healthcare from $10.00 to $8.00 and set an “overweight” rating on the stock in a research note on Friday. Finally, William Blair downgraded shares of Alignment Healthcare from an “outperform” rating to a “market perform” rating in a research note on Friday, October 9th. Six equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $14.27.

Get Our Latest Stock Analysis on ALHC

Trending Headlines about Alignment Healthcare

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

Positive Sentiment: Alignment reported third-quarter revenue of $1.36 billion, up 36.7% year over year and above the $1.31 billion analyst estimate. Adjusted EPS of a $0.04 loss matched consensus. Alignment Healthcare Reports Third Quarter 2026 Results
Positive Sentiment: Management is targeting at least 20% top-line growth in 2027, supporting the company’s longer-term expansion narrative. Alignment Targets 2027 Growth
Neutral Sentiment: Barclays reduced its price target from $10 to $9 while maintaining an “equal weight” rating, implying potential upside but limited conviction. Barclays Rating
Negative Sentiment: Alignment lowered its 2026 adjusted EBITDA outlook to at least $100 million, signaling weaker near-term profitability and helping offset the revenue beat. Alignment EBITDA Outlook
Negative Sentiment: CMS reduced the 2027 Star Rating for Alignment’s California HMO contract H3815 from 4.0 to 3.5 stars. The contract serves approximately 75% of membership, raising concerns about bonus eligibility, enrollment and reimbursement economics. Alignment H3815 CMS Rating Concerns
Negative Sentiment: KeyCorp downgraded ALHC from “overweight” to “sector weight,” while multiple law firms announced investigations into possible securities-law violations. These notices are allegations and do not establish wrongdoing, but they add reputational and legal overhang. Alignment Investigation Notice

Insiders Place Their Bets

In other Alignment Healthcare news, CEO John E. Kao sold 385,270 shares of the stock in a transaction on Friday, September 11th. The stock was sold at an average price of $12.68, for a total value of $4,885,223.60. Following the sale, the chief executive officer owned 1,223,473 shares in the company, valued at $15,513,637.64. This trade represents a 23.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Hyong Kim sold 32,479 shares of Alignment Healthcare stock in a transaction on Tuesday, October 6th. The stock was sold at an average price of $8.30, for a total value of $269,575.70. Following the sale, the insider owned 299,271 shares of the company’s stock, valued at approximately $2,483,949.30. This trade represents a 9.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 1,061,967 shares of company stock worth $13,642,490 in the last 90 days. 5.20% of the stock is owned by insiders.

About Alignment Healthcare

(Get Free Report)

Alignment Healthcare, Inc is a technology-enabled health insurance company focused on providing Medicare Advantage plans for seniors. The company combines health plan coverage with care coordination and clinical services designed to help members manage chronic conditions, access providers and navigate the health care system.

Its offerings include Medicare Advantage plans, supplemental benefits and member support services. Alignment also uses its proprietary technology platform, including the Alignment Virtual Application (AVA), to support care teams, analyze health information and help deliver more personalized services to members.