A month has gone by since the last earnings report for Teladoc (TDOC Quick QuoteTDOC - Free Report) . Shares have lost about 3.3% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Teladoc due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Teladoc Health Q2 Earnings Beat Estimates on Integrated Care Strength

Teladoc Health reported a second-quarter 2026 adjusted loss of 21 cents per share, which beat the Zacks Consensus Estimate of a loss of 24 cents. However, the bottom line deteriorated from a loss of 19 cents per share in the year-ago quarter.

Operating revenues declined 4% year over year to $606.9 million and missed the Zacks Consensus Estimate by 1.3%.

The quarterly results were supported by strength in the Integrated Care segment, higher international revenues and lower operating expenses, which were partially offset by weakness in the BetterHelp segment, particularly pressure on cash pay revenues, and declining access fees revenues.

Q2 Operational Update of Teladoc Health

Revenues from access fees totaled $474.2 million, down 9% year over year. The figure missed the Zacks Consensus Estimate and our estimate of $499.5 million. Other revenues increased 23% year over year to $132.7 million. The metric beat the Zacks Consensus Estimate and our estimate of $113 million.

On a geographical basis, Teladoc Health generated $487.4 million in revenues from the United States, down 6% year over year. The metric lagged the Zacks Consensus Estimate of $498.3 million. International revenues of $119.6 million advanced 7% year over year and surpassed the consensus mark of $114.2 million.

Adjusted EBITDA declined 5% year over year to $65.7 million and beat our estimate of $56.2 million. Total costs and expenses decreased 6.2% year over year to $644 million and came below our estimate of $661 million. The year-over-year decline was primarily due to lower technology and development, advertising and marketing, and general and administrative expenses.

TDOC Q2 Segmental Update

The Integrated Care segment’s revenues increased 1% year over year to $394.3 million in the reported quarter. The figure beat the Zacks Consensus Estimate of $392.2 million and our estimate of $392 million. Adjusted EBITDA increased 14% year over year to $65.2 million and surpassed the Zacks Consensus Estimate of $59.3 million. The adjusted EBITDA margin expanded 180 basis points (bps) year over year to 16.5%.

The BetterHelp segment generated revenues of $212.6 million, down 12% year over year. The metric missed the Zacks Consensus Estimate of $221.8 million. Adjusted EBITDA declined 96% year over year to $0.47 million. The figure missed the consensus mark of $1.8 million. The adjusted EBITDA margin of 0.2% contracted 470 bps year over year.

Visits & Memberships of Teladoc Health

Total visits to Teladoc Health were 4.1 million in the second quarter, down 2% year over year. The metric beat the Zacks Consensus Estimate by 1.2%
U.S. Integrated Care members totaled 100.3 million, down 2% year over year. However, the figure beat the consensus mark by 0.7%.

TDOC’s Q2 Financial Update

Teladoc Health exited the second quarter of 2026 with cash and cash equivalents of $774.3 million, down from $781.1 million as of 2025-end.

Total assets decreased to $2.76 billion from $2.86 billion at the end of 2025.

Debt totaled $996.7 million, up from $994.9 million as of 2025-end.

Total stockholders’ equity declined to $1.3 billion from $1.4 billion as of Dec. 31, 2025.

In the second quarter of 2026, TDOC generated net cash from operations of $64.7 million, down 29.3% year over year. Free cash flow was $35.7 million, down 41.6% year over year.

Teladoc Health’s Q3 2026 Outlook

Revenues in the Integrated Care segment are forecasted to witness year-over-year growth of 0.0-3.0%. The unit’s adjusted EBITDA margin is anticipated to be in the band of 15.7-17.2%. U.S. Integrated Care members are expected to be between 99.0-100.5 million

Revenues in the BetterHelp segment are estimated to register a 12.3-24.2% year-over-year decline. The segment’s adjusted EBITDA margin is anticipated to be in the band of 0.5-2.5%.

Total revenues are expected to be between $569 million and $609 million. Adjusted EBITDA is anticipated to be between $62 million and $74 million. Net loss per share is estimated to be between 20 cents and 30 cents.

Teladoc Health’s 2026 outlook

Revenues in the Integrated Care segment are expected to grow 0.8-2.4% year over year compared with the prior guidance of 0.8-3.5%. U.S. Integrated Care members are projected to be between 98.5 million and 100.5 million, up from the earlier projection of 97-100 million. The segment's adjusted EBITDA margin is expected to be between 15.6% and 16.4% compared with the previous guidance of 15.1-16.1%.

Revenues in the BetterHelp segment are expected to decline 12.7-19.0% year over year compared with the earlier guidance of 1.0-6.5%. The segment's adjusted EBITDA margin is expected to be between 3.0% and 4.6%, unchanged from the prior guidance.

The company expects 2026 revenues to be in the range of $2.362-$2.447 billion, down from the previous guidance of $2.481-$2.576 billion. Adjusted EBITDA is projected to be between $271 million and $303 million compared with the earlier outlook of $267-$306 million. Net loss per share is expected to be between 75 cents and $1.00 versus the previous guidance of 75 cents-$1.05.

Free cash flow guidance remains unchanged at $130-$170 million.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -27.35% due to these changes.

VGM Scores

Currently, Teladoc has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock has a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Teladoc has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Teladoc belongs to the Zacks Medical Services industry. Another stock from the same industry, Medpace (MEDP Quick QuoteMEDP - Free Report) , has gained 5.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Medpace reported revenues of $707.33 million in the last reported quarter, representing a year-over-year change of +17.2%. EPS of $4.25 for the same period compares with $3.10 a year ago.

Medpace is expected to post earnings of $4.39 per share for the current quarter, representing a year-over-year change of +13.7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Medpace. Also, the stock has a VGM Score of C.