Astrana Health Inc

Astrana Health reported second quarter results that beat adjusted EPS and EBITDA estimates but missed on revenue, while management addressed analyst questions on cost trends, Medicare Advantage, Medi-Cal transitions, EBITDA guidance, and AI automation. Revenue came in at $972.5 million versus analyst estimates of $985.4 million, a 48.5% year-on-year increase but a 1.3% miss, while adjusted EPS of $0.80 beat estimates of $0.73 and adjusted EBITDA of $68.89 million beat estimates of $67.93 million. The company reconfirmed full-year revenue guidance of $3.95 billion at the midpoint and EBITDA guidance of $267.5 million at the midpoint, in line with analyst expectations. CEO Brandon Sim attributed operating leverage improvements to the company's proprietary AI-native healthcare operating system and noted that the Prospect Health acquisition contributed to overall performance with gross provider retention above 99%. Analysts from William Blair, Jefferies, Baird, Truist, and KeyBanc Capital Markets asked about commercial cost pressures, Medicare Advantage bid alignment, transitioning Medi-Cal members to full risk, fourth quarter EBITDA seasonality, and the benefits of automated member encounters.

Astrana Health Inc reported second-quarter 2026 revenue of $973 million, up 49% year-over-year, and raised its full-year adjusted EBITDA guidance to a range of $255 million to $280 million. Adjusted diluted earnings per share reached a record $0.80, a 45% increase, while adjusted EBITDA rose 43% to $69 million. The company also reaffirmed its full-year revenue guidance of $3.8 billion to $4.1 billion and free cash flow guidance of $105 million to $132.5 million. Net leverage declined to 2.26 times on a trailing 12-month basis, and the company retired $92 million of debt during the quarter. Astrana Health cited broad-based outperformance and continued maturation of full-risk cohorts as drivers for the raised outlook.

StockStory identifies Astrana Health as a profitable stock to target this week, while questioning AT&T and Payoneer. Astrana Health, formerly Apollo Medical Holdings, reported a 55.7% annual revenue growth over the last two years and a 13.2% annual increase in earnings per share over five years, with a forward P/E of 15.3. AT&T faces annual revenue declines of 1.3% over five years and a 7.5% annual drop in earnings per share, trading at 9 times forward P/E. Payoneer's earnings per share growth of 4.8% underperformed its revenue, and its return on equity stands at 7.3%, with shares at 25 times forward P/E.

StockStory recommends Cigna and Astrana Health for long-term investors while advising against Phibro Animal Health. Cigna is highlighted for its 16.1% annual revenue growth over two years, $277.7 billion in revenue, and 10.9% annual EPS growth over five years. Astrana Health is noted for 55.7% annual revenue growth over two years and 13.2% annual EPS growth over five years. Phibro Animal Health is flagged for its modest $1.5 billion revenue base, projected 2.2% sales growth, and a weak 0.8% free cash flow margin over five years.

Barclays upgraded Astrana Health to Overweight from Equal Weight and raised its price target to $50 from $37. The firm cited materially improved outlook for value-based care, driven by stabilizing cost trends and a more favorable 2027 Medicare Advantage rate outcome. Astrana Health also has room for multiple expansion as it integrates Prospect and accelerates full-risk membership growth. In its fiscal first quarter 2026 results, the company reported total revenue of $965.1 million, up 56% year over year, adjusted EBITDA of $66.3 million, up 82%, and free cash flow of $64.1 million, up 372%.

GoodRx reported first-quarter revenues of $194 million, down 4.4% year on year, exceeding analysts' expectations by 4.9%. The company also provided full-year revenue guidance that slightly topped estimates. Among the seven healthcare technology stocks tracked, GoodRx posted the slowest revenue growth, while the group overall beat consensus revenue estimates by 1.6% and issued in-line next-quarter guidance. Omnicell delivered the best performance with revenues of $309.9 million, up 14.9% year on year, and Hims & Hers Health was the weakest, with revenues of $608.1 million missing estimates by 1.4%. Astrana Health achieved the fastest revenue growth at 55.6% year on year, and Tandem Diabetes raised its full-year guidance the most among peers.