Health insurance company Clover Health (NASDAQ: CLOV) reported revenue ahead of Wall Street’s expectations in Q2 CY2026, with sales up 55.6% year on year to $743.2 million. The company’s full-year revenue guidance of $2.96 billion at the midpoint came in 1.7% above analysts’ estimates. Its GAAP profit of $0.05 per share was $0.02 above analysts’ consensus estimates.

Is now the time to buy Clover Health? Find out by accessing our full research report, it’s free.

“Our results demonstrate that a wide-network, full-risk Medicare Advantage model can deliver better health outcomes, meaningful growth, and increasing profitability at the same time,” said Clover Health CEO Andrew Toy.

Company Overview

Founded in 2014 to improve healthcare for America's seniors through technology, Clover Health (NASDAQ: CLOV) provides Medicare Advantage plans for seniors with a focus on affordable care and uses its proprietary Clover Assistant software to help physicians manage patient care.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, Clover Health’s sales grew at an excellent 21.2% compounded annual growth rate over the last five years. Its growth surpassed the average healthcare company and shows its offerings resonate with customers, a great starting point for our analysis.

Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Clover Health’s annualized revenue growth of 36.9% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.

This quarter, Clover Health reported magnificent year-on-year revenue growth of 55.6%, and its $743.2 million of revenue beat Wall Street’s estimates by 2%.

Looking ahead, sell-side analysts expect revenue to grow 27.9% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is commendable and suggests the market is baking in success for its products and services.

ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.

AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.

Adjusted Operating Margin

Adjusted operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses — everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies because it excludes non-recurring expenses, interest on debt, and taxes.

Although Clover Health was profitable this quarter from an operational perspective, it’s generally struggled over a longer time period. Its expensive cost structure has contributed to an average adjusted operating margin of negative 9.4% over the last five years. Unprofitable healthcare companies require extra attention because they could get caught swimming naked when the tide goes out.

On the plus side, Clover Health’s adjusted operating margin rose by 20 percentage points over the last five years, as its sales growth gave it operating leverage. Zooming in on its more recent performance, we can see the company’s trajectory is intact as its margin has also increased by 8.1 percentage points on a two-year basis. These data points are very encouraging and show momentum is on its side.

This quarter, Clover Health generated an adjusted operating margin profit margin of 5%, up 7.2 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Although Clover Health’s full-year earnings are still negative, it reduced its losses and improved its EPS by 50.6% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability. We hope to see an inflection point soon.

In Q2, Clover Health reported EPS of $0.05, up from negative $0.02 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street is optimistic. Analysts forecast Clover Health’s full-year EPS will flip from negative $0.04 to positive $0.01.

Key Takeaways from Clover Health’s Q2 Results

It was good to see Clover Health beat analysts’ EPS expectations this quarter. We were also glad its full-year EBITDA guidance trumped Wall Street’s estimates. Zooming out, we think this was a solid print. The stock traded up 10.3% to $4.58 immediately following the results.

Indeed, Clover Health had a rock-solid quarterly earnings result, but is this stock a good investment here? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).