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Clover Health Q1 Earnings Meet Estimates, Sales Beat, Membership Rises
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Key Takeaways
CLOV reported Q1 revenue growth of 62% as Medicare Advantage membership climbed 51.6%.
Clover Health raised 2026 revenue guidance to $2.81B-$2.92B, implying 49% growth at midpoint.
CLOV's adjusted EBITDA rose 56% to $40M on AI-driven efficiencies and operating leverage.
Clover Health Investments, Corp. (CLOV - Free Report) delivered adjusted earnings per share (EPS) of 7 cents in first-quarter 2026, higher than the year-ago period’s level of 5 cents. The bottom line met with the Zacks Consensus Estimate.
The company reported a GAAP EPS of 5 cents per share from continuing operations, compared with breakeven earnings in the year-ago period.
CLOV’s Q1 Revenues in Detail
Clover Health registered total revenues of $749.2 million, up 62.1% year over year. The figure beat the Zacks Consensus Estimate by 5.9%.
The top line gained from robust Insurance revenues.
Clover Health Investments, Corp. Price, Consensus and EPS Surprise
The company derives its revenues from two primary business segments: Insurance and Other income.
Insurance revenues in the first quarter totaled $744.2 million, up 62.9% year over year. According to management, this growth was primarily driven by a 51.6% increase in Medicare Advantage membership, strong member retention, clinical initiatives and the impact of Clover Assistant-powered care platform.
Within CLOV’s Insurance segment, the Insurance Benefit Expense Ratio (BER) was 86.5%, reflecting a year-over-year increase from 86.1% in the year-ago quarter. Insurance BER rose due to new member dilution and incremental quality investments.
Other income was $5 million, down 7.8% from the prior-year level.
CLOV’s Q1 Operational Update
In the quarter under review, Clover Health’s net medical claims increased 66.8% year over year to $589.6 million. Salaries and benefits expenses decreased 3.3% to $57.1 million, while general and administrative expenses rose 47.3% to $74.6 million. Total operating expenses of $721.9 million increased 55.7% on a year-over-year basis.
Total operating income was $27.3 million against the prior-year quarter’s operating loss of $1.3 million.
Clover Health’s Financial Position
The company exited first-quarter 2026 with cash and cash equivalents of $173.3 million compared with $78.3 million at the end of 2025.
Net cash provided by operating activities from continuing operations at the end of first-quarter 2026 was $107.9 million against $16.3 million of net cash used in operating activities from continuing operations in the year-ago period.
CLOV’s 2026 Guidance
Clover Health provided its revenue outlook for 2026.
For 2026, total revenues are estimated to be in the range of $2.81-$2.92 billion, suggesting 49% year-over-year growth at the midpoint. The Zacks Consensus Estimate is pegged at $2.88 billion.
The company now expects GAAP Net Income to be in the range of $0-$20 million. Average Medicare Advantage membership is now likely to be in the band of 154,000-158,000, implying 46% year-over-year growth at the midpoint.
Our Take on Clover Health
Clover Health exited the first quarter of 2026 with better-than-expected sales while earnings were in line. The robust uptick in consolidated revenues and key Insurance segment revenues was encouraging. The company emphasized its rapid membership growth, highlighting the scalability of its technology-driven Medicare Advantage model.
Shares of CLOV lost nearly 1.5% during yesterday’s after-hours trading, following the first-quarter results. The company’s shares have gained 14.1% in the year-to-date period against the industry’s decline of 19.4%. However, the S&P 500 Index has increased 6.9% in the same time frame.
Image Source: Zacks Investment Research
Clover Health’s Medicare Advantage membership increased to nearly 156,000 members, supported by strong retention and a successful Annual Enrollment Period. Management emphasized that growth was intentionally concentrated in core markets where Clover Assistant integration and clinical engagement are strongest, particularly in New Jersey, where Clover has become the largest PPO outside of special needs and employer retiree plans.
The company expanded its AI-powered care infrastructure during the quarter. More than one-third of members received Clover Assistant-enabled care, while enrollment in Clover Care Services for higher-acuity patients rose approximately 90% year over year. Management noted that increased clinical engagement and home-based care programs contributed to favorable inpatient utilization trends and improved cost management.
Profitability strengthened significantly. Adjusted EBITDA increased 56% year over year to $40 million, reflecting operating leverage, automation initiatives and AI-driven workflow efficiencies.
Looking ahead, management expects to meet or exceed its full-year 2026 guidance and remains confident in the long-term earnings potential of its model. Meanwhile, the company continues to monitor elevated outpatient utilization trends, Part D cost dynamics and the performance of newer member cohorts, which carry higher initial medical costs before becoming fully integrated into CLOV’s care model. The company is also maintaining disciplined investments in AI infrastructure, Clover Assistant expansion and Counterpart Health, which may weigh modestly on near-term margins even as management expects these initiatives to strengthen long-term cohort economics and operating efficiency.
CLOV’s Zacks Rank & Key Picks
Clover Health currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are West Pharmaceutical Services, Inc. (WST - Free Report) , Intuitive Surgical (ISRG - Free Report) and Cardinal Health, Inc. (CAH - Free Report) .
West Pharmaceutical reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
West Pharmaceutical has a long-term estimated growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.37%.
Intuitive Surgical reported first-quarter 2026 adjusted EPS of $2.50, beating the Zacks Consensus Estimate by 20.19%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%. It currently carries a Zacks Rank of 2 (Buy).
Intuitive Surgical has a long-term estimated growth rate of 14.6%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.82%.
Cardinal Health, carrying a Zacks Rank of 2 at present, reported third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.
Cardinal Health has a long-term estimated growth rate of 15.7%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.27%.
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Clover Health Q1 Earnings Meet Estimates, Sales Beat, Membership Rises
Key Takeaways
Clover Health Investments, Corp. (CLOV - Free Report) delivered adjusted earnings per share (EPS) of 7 cents in first-quarter 2026, higher than the year-ago period’s level of 5 cents. The bottom line met with the Zacks Consensus Estimate.
The company reported a GAAP EPS of 5 cents per share from continuing operations, compared with breakeven earnings in the year-ago period.
CLOV’s Q1 Revenues in Detail
Clover Health registered total revenues of $749.2 million, up 62.1% year over year. The figure beat the Zacks Consensus Estimate by 5.9%.
The top line gained from robust Insurance revenues.
Clover Health Investments, Corp. Price, Consensus and EPS Surprise
Clover Health Investments, Corp. price-consensus-eps-surprise-chart | Clover Health Investments, Corp. Quote
Clover Health’s Segmental Details
The company derives its revenues from two primary business segments: Insurance and Other income.
Insurance revenues in the first quarter totaled $744.2 million, up 62.9% year over year. According to management, this growth was primarily driven by a 51.6% increase in Medicare Advantage membership, strong member retention, clinical initiatives and the impact of Clover Assistant-powered care platform.
Within CLOV’s Insurance segment, the Insurance Benefit Expense Ratio (BER) was 86.5%, reflecting a year-over-year increase from 86.1% in the year-ago quarter. Insurance BER rose due to new member dilution and incremental quality investments.
Other income was $5 million, down 7.8% from the prior-year level.
CLOV’s Q1 Operational Update
In the quarter under review, Clover Health’s net medical claims increased 66.8% year over year to $589.6 million. Salaries and benefits expenses decreased 3.3% to $57.1 million, while general and administrative expenses rose 47.3% to $74.6 million. Total operating expenses of $721.9 million increased 55.7% on a year-over-year basis.
Total operating income was $27.3 million against the prior-year quarter’s operating loss of $1.3 million.
Clover Health’s Financial Position
The company exited first-quarter 2026 with cash and cash equivalents of $173.3 million compared with $78.3 million at the end of 2025.
Net cash provided by operating activities from continuing operations at the end of first-quarter 2026 was $107.9 million against $16.3 million of net cash used in operating activities from continuing operations in the year-ago period.
CLOV’s 2026 Guidance
Clover Health provided its revenue outlook for 2026.
For 2026, total revenues are estimated to be in the range of $2.81-$2.92 billion, suggesting 49% year-over-year growth at the midpoint. The Zacks Consensus Estimate is pegged at $2.88 billion.
The company now expects GAAP Net Income to be in the range of $0-$20 million. Average Medicare Advantage membership is now likely to be in the band of 154,000-158,000, implying 46% year-over-year growth at the midpoint.
Our Take on Clover Health
Clover Health exited the first quarter of 2026 with better-than-expected sales while earnings were in line. The robust uptick in consolidated revenues and key Insurance segment revenues was encouraging. The company emphasized its rapid membership growth, highlighting the scalability of its technology-driven Medicare Advantage model.
Shares of CLOV lost nearly 1.5% during yesterday’s after-hours trading, following the first-quarter results. The company’s shares have gained 14.1% in the year-to-date period against the industry’s decline of 19.4%. However, the S&P 500 Index has increased 6.9% in the same time frame.
Image Source: Zacks Investment Research
Clover Health’s Medicare Advantage membership increased to nearly 156,000 members, supported by strong retention and a successful Annual Enrollment Period. Management emphasized that growth was intentionally concentrated in core markets where Clover Assistant integration and clinical engagement are strongest, particularly in New Jersey, where Clover has become the largest PPO outside of special needs and employer retiree plans.
The company expanded its AI-powered care infrastructure during the quarter. More than one-third of members received Clover Assistant-enabled care, while enrollment in Clover Care Services for higher-acuity patients rose approximately 90% year over year. Management noted that increased clinical engagement and home-based care programs contributed to favorable inpatient utilization trends and improved cost management.
Profitability strengthened significantly. Adjusted EBITDA increased 56% year over year to $40 million, reflecting operating leverage, automation initiatives and AI-driven workflow efficiencies.
Looking ahead, management expects to meet or exceed its full-year 2026 guidance and remains confident in the long-term earnings potential of its model. Meanwhile, the company continues to monitor elevated outpatient utilization trends, Part D cost dynamics and the performance of newer member cohorts, which carry higher initial medical costs before becoming fully integrated into CLOV’s care model. The company is also maintaining disciplined investments in AI infrastructure, Clover Assistant expansion and Counterpart Health, which may weigh modestly on near-term margins even as management expects these initiatives to strengthen long-term cohort economics and operating efficiency.
CLOV’s Zacks Rank & Key Picks
Clover Health currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are West Pharmaceutical Services, Inc. (WST - Free Report) , Intuitive Surgical (ISRG - Free Report) and Cardinal Health, Inc. (CAH - Free Report) .
West Pharmaceutical reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
West Pharmaceutical has a long-term estimated growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.37%.
Intuitive Surgical reported first-quarter 2026 adjusted EPS of $2.50, beating the Zacks Consensus Estimate by 20.19%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%. It currently carries a Zacks Rank of 2 (Buy).
Intuitive Surgical has a long-term estimated growth rate of 14.6%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.82%.
Cardinal Health, carrying a Zacks Rank of 2 at present, reported third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.
Cardinal Health has a long-term estimated growth rate of 15.7%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.27%.