Healthcare services company Astrana Health reported Q1 CY2026 results topping the market’s revenue expectations, with sales up 55.6% year on year to $965.1 million. The company expects next quarter’s revenue to be around $982.5 million, coming in 1% above analysts’ estimates. Its non-GAAP profit of $0.74 per share was 13.8% above analysts’ consensus estimates.

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"We had a strong start to 2026, delivering disciplined growth, strong medical cost performance, continued operating leverage, and early performance from new full-risk contracts in line with our expectations," said Brandon Sim, President and Chief Executive Officer of Astrana Health.

Company Overview

Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ: ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, Astrana Health’s 38.3% annualized revenue growth over the last five years was incredible. Its growth beat the average healthcare company and shows its offerings resonate with customers, a helpful starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Astrana Health’s annualized revenue growth of 55.7% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.

This quarter, Astrana Health reported magnificent year-on-year revenue growth of 55.6%, and its $965.1 million of revenue beat Wall Street’s estimates by 1.9%. Company management is currently guiding for a 50% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 15.9% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is healthy and suggests the market is forecasting success for its products and services.

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Adjusted Operating Margin

Adjusted operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. It also removes various one-time costs to paint a better picture of normalized profits.

Astrana Health was profitable over the last five years but held back by its large cost base. Its average adjusted operating margin of 7.4% was weak for a healthcare business.

Analyzing the trend in its profitability, Astrana Health’s adjusted operating margin decreased by 9.6 percentage points over the last five years. The company’s two-year trajectory also shows it failed to get its profitability back to the peak as its margin fell by 4.9 percentage points. This performance was poor no matter how you look at it - it shows its expenses were rising and it couldn’t pass those costs onto its customers.

This quarter, Astrana Health generated an adjusted operating margin profit margin of 4%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.

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.

Astrana Health’s EPS grew at a spectacular 13.2% compounded annual growth rate over the last five years. However, this performance was lower than its 38.3% annualized revenue growth, telling us the company became less profitable on a per-share basis as it expanded.

We can take a deeper look into Astrana Health’s earnings to better understand the drivers of its performance. As we mentioned earlier, Astrana Health’s adjusted operating margin was flat this quarter but declined by 9.6 percentage points over the last five years. Its share count also grew by 12.6%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders.

In Q1, Astrana Health reported adjusted EPS of $0.74, up from $0.44 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. We also like to analyze expected EPS growth based on Wall Street analysts’ consensus projections, but there is insufficient data.

Key Takeaways from Astrana Health’s Q1 Results

It was good to see Astrana Health beat analysts’ EPS expectations this quarter. We were also happy its revenue outperformed Wall Street’s estimates. On the other hand, its full-year revenue guidance slightly missed. Overall, this print had some key positives. The market seemed to be hoping for more, and the stock traded down 4.8% to $34.34 immediately after reporting.

Is Astrana Health an attractive investment opportunity at the current price? 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).