American Well (NYSE:AMWL) Issues Quarterly Earnings Results, Beats Expectations By $0.27 EPS

American Well (NYSE:AMWL) posted its quarterly earnings data on Tuesday. The company reported ($0.59) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.86) by $0.27, FiscalAI reports. American Well had a negative return on equity of 32.11% and a negative net margin of 37.02%.The company had revenue of $52.05 million during the quarter, compared to analyst estimates of $49.87 million.

Here are the key takeaways from American Well’s conference call:

• DHA intends to award Amwell a direct sole-source contract, with negotiations underway and an expected transition by July 2027. The deal could provide longer-term visibility and potentially expand Amwell’s scope of services, although revenue terms are not yet finalized.
• Cost reductions drove adjusted EBITDA loss down to approximately $1.2 million from $4.7 million a year ago, while operating expenses fell 38% year over year. Amwell raised full-year adjusted EBITDA guidance to a loss of $7 million-$9 million and remains confident in reaching adjusted EBITDA and operating cash-flow breakeven in Q4 2026.
• Second-quarter revenue declined 26.6% year over year to $52 million, primarily reflecting previously disclosed customer churn and the absence of a one-time DHA-related subscription benefit from last year. Management expects third-quarter revenue of $46 million-$48 million, with seasonal visit declines and project-related costs weighing on results.
• Subscription revenue increased 3.2% sequentially and now represents more than half of total revenue, while higher-acuity programs lifted revenue per AMG visit and virtual primary care visits grew 30% year over year. Management also cited strong renewals and a growing payer and government pipeline, with a goal of returning to double-digit growth in 2027.
• Amwell is narrowing its strategy around a single platform for payer and government customers, while continuing to divest or de-emphasize non-core assets. Executives said health systems remain important customers, but government and payer opportunities currently offer the greatest growth potential.

American Well Price Performance

NYSE AMWL traded up $2.23 on Wednesday, reaching $12.65. 41,837 shares of the company’s stock traded hands, compared to its average volume of 95,488. American Well has a 12 month low of $3.71 and a 12 month high of $13.45. The stock has a 50-day simple moving average of $9.69 and a 200 day simple moving average of $7.16. The stock has a market cap of $209.36 million, a PE ratio of -2.33 and a beta of 1.68.

Insider Transactions at American Well

In other news, insider Dmitry Zamansky sold 8,460 shares of the business’s stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $9.33, for a total value of $78,931.80. Following the completion of the sale, the insider directly owned 232,620 shares in the company, valued at approximately $2,170,344.60. The trade was a 3.51% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Phyllis Gotlib sold 6,677 shares of the company’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $9.33, for a total transaction of $62,296.41. Following the completion of the sale, the insider directly owned 152,754 shares of the company’s stock, valued at $1,425,194.82. This trade represents a 4.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 29,225 shares of company stock worth $268,623. 12.84% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Vanguard Group Inc. boosted its holdings in American Well by 2.5% during the 3rd quarter. Vanguard Group Inc. now owns 650,102 shares of the company’s stock valued at $3,998,000 after acquiring an additional 15,797 shares during the period. Geode Capital Management LLC lifted its position in American Well by 2.3% in the fourth quarter. Geode Capital Management LLC now owns 152,742 shares of the company’s stock valued at $750,000 after purchasing an additional 3,450 shares during the last quarter. Squarepoint Ops LLC lifted its position in American Well by 74.5% in the fourth quarter. Squarepoint Ops LLC now owns 115,061 shares of the company’s stock valued at $565,000 after purchasing an additional 49,135 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of American Well by 36.0% during the third quarter. Dimensional Fund Advisors LP now owns 97,382 shares of the company’s stock valued at $599,000 after purchasing an additional 25,798 shares during the period. Finally, Marshall Wace LLP boosted its stake in shares of American Well by 76.9% during the fourth quarter. Marshall Wace LLP now owns 87,447 shares of the company’s stock valued at $429,000 after purchasing an additional 38,018 shares during the period. Hedge funds and other institutional investors own 56.05% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts have weighed in on AMWL shares. Wells Fargo & Company raised their price target on American Well from $9.00 to $16.00 and gave the company an “overweight” rating in a report on Friday, July 17th. TD Cowen upped their price objective on shares of American Well from $5.00 to $8.00 and gave the stock a “hold” rating in a research report on Wednesday, May 6th. Needham & Company LLC reaffirmed a “hold” rating on shares of American Well in a research note on Wednesday. Morgan Stanley lifted their target price on shares of American Well from $6.00 to $6.50 and gave the company an “equal weight” rating in a research report on Wednesday, May 6th. Finally, Truist Financial set a $7.50 price target on shares of American Well in a research note on Monday, June 8th. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $8.60.

Key Stories Impacting American Well

Here are the key news stories impacting American Well this week:

• Positive Sentiment: American Well reported a second-quarter loss of $0.59 per share, better than the Zacks consensus estimate of a $0.60 loss and well ahead of the $1.24 loss recorded a year earlier. American Well Q2 loss and revenue report
• Positive Sentiment: Revenue reached $52.05 million, exceeding the roughly $49.9 million analyst estimate. The results suggest progress in reducing losses and improving performance relative to the prior year. Amwell second-quarter 2026 results
• Positive Sentiment: Management said the Defense Health Agency’s intent to make Amwell a prime contractor represents a strong endorsement of its platform and personnel, potentially supporting future government-business opportunities. American Well Q2 2026 earnings call transcript
• Neutral Sentiment: Third-quarter revenue guidance of $46 million to $48 million is broadly in line with the $47.6 million consensus estimate. Full-year guidance of $200 million to $205 million also brackets the $202.2 million consensus, offering little evidence of a significant near-term outlook upgrade.
• Negative Sentiment: Despite the quarterly beat, American Well remains unprofitable, with a negative net margin of approximately 37% and negative return on equity. The lack of stated EPS guidance and continued expected full-year losses likely limited investor enthusiasm.

About American Well

American Well, operating under the trade name Amwell, is a Boston-based digital health company that develops and delivers telehealth solutions to healthcare providers, payers, employers and patients. Through its cloud-based platform, the company enables secure virtual visits, remote patient monitoring and integrated care coordination across a range of medical disciplines, including primary care, behavioral health, chronic disease management and urgent care.

The company’s core offering, the Amwell Telehealth Platform, facilitates live video consultations, asynchronous messaging, e-prescribing and electronic health record integration.