Teladoc (TDOC) Up 23.9% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Teladoc (TDOC). Shares have added about 23.9% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Teladoc due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Teladoc Health, Inc. before we dive into how investors and analysts have reacted as of late.

TDOC Q1 Earnings Miss, Revenues Down Y/Y on BetterHelp Weakness

Teladoc Health reported a first-quarter 2026 adjusted loss of 36 cents per share, missing the Zacks Consensus Estimate of a 32-cent loss. This marks an improvement from a loss of 53 cents per share in the same quarter last year.

Operating revenues declined 2% year over year to $613.8 million but modestly exceeded the consensus estimate by 0.3%.

The quarterly results were primarily impacted by weakness in the BetterHelp segment and declining subscription revenues, which were partially offset by strength in the Integrated Care segment, international growth and cost efficiencies.

Q1 Operational Update of Teladoc Health

Revenues from access fees totaled $484.7 million, down 8% year over year. The figure missed the Zacks Consensus Estimate of $506.5 million as well as our estimate of $506.9 million. Other revenues increased 25% year over year to $129.2 million. The metric beat the Zacks Consensus Estimate of $106.7 million and our estimate of $106.1 million.

On a geographical basis, Teladoc Health generated $491.5 million in revenues from the United States, down 6% year over year. The metric lagged the Zacks Consensus Estimate of $502 million. International revenues of $122.3 million advanced 17% year over year in the quarter and surpassed the consensus mark of $111 million.

Adjusted EBITDA rose 0.1% year over year to $58.2 million and beat our estimate of around $50.5 million. Total costs and expenses of $675.6 million declined 9.9% year over year and were below our estimate of $679.8 million. The year-over-year decrease was primarily due to goodwill impairment and lower advertising and marketing and general and administrative expenses.

TDOC: Q1 Segmental Update

The Integrated Care segment’s revenues increased 2% year over year to $395.4 million in the reported quarter. The figure beat the Zacks Consensus Estimate of $391.8 million and our estimate of $390.3 million. Adjusted EBITDA rose 12% year over year to $56.3 million and surpassed the consensus mark of $52.3 million. The adjusted EBITDA margin expanded 130 basis points (bps) year over year to 14.2%.

The BetterHelp segment generated revenues of $218.4 million, down 9% year over year. The metric missed our estimate of $222.7 million. Adjusted EBITDA declined 75% year over year to $1.9 million. The figure missed the consensus mark of $2.8 million. The adjusted EBITDA margin of 0.9% contracted 230 bps year over year.

Visits & Memberships of Teladoc Health

Total visits to Teladoc Health were 4.4 million in the first quarter, down 2% year over year. The metric marginally beat the Zacks Consensus Estimate by 0.2%

U.S. Integrated Care members totaled 101.2 million, down 1% year over year. However, the figure beat the consensus mark by 2.1%.

TDOC’s Financial Update (As of March 31, 2026)

Teladoc Health exited the first quarter of 2026 with cash and cash equivalents of $750.7 million, down from $781.1 million as of 2025-end.

Total assets decreased to $2.81 billion from $2.86 billion at the end of 2025.

Debt totaled $995.8 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 first quarter of 2026, TDOC generated net cash from operations of $9.5 million, down 40.2% year over year. Free cash flow of $26.3 million was an outflow in the first quarter of 2026 compared with an outflow of $15.7 million in the prior-year quarter.

Teladoc Health’s Q2 2026 Outlook

Revenues in the Integrated Care segment are forecasted to witness year-over-year growth of (1.75)-1.75%. The unit’s adjusted EBITDA margin is anticipated to be in the band of 14.7-16%. U.S. Integrated Care members are expected to be between 98.5 million and 100 million.

Revenues in the BetterHelp segment are estimated to register a 5.25-11.75% year-over-year decline. The segment’s adjusted EBITDA margin is anticipated to be in the band of (0.5)-1.5%.

Total revenues are expected to be between $597 million and $626 million. Adjusted EBITDA is anticipated to be between $55 million and $67 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 witness 0.8-3.5% growth on a year-over-year basis. U.S. Integrated Care members are projected to be in the band of 97-100 million. The adjusted EBITDA margin in the segment is forecasted to be in the range of 15.1-16.1%.

Revenues in the BetterHelp segment are anticipated to record a year-over-year decline of 1-6.5%. The adjusted EBITDA margin in the segment is estimated to be between 3% and 4.6%.

The company expects 2026 revenues to be in the $2.481-$2.576 billion range. Adjusted EBITDA is guided at $267-$306 million. Net loss per share is estimated to be in the $0.75-$1.05 range.

Free cash flow is currently projected to be in the $130-$170 million band for 2026.

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 -5.75% due to these changes.

VGM Scores

At this time, Teladoc has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.

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

Outlook

Estimates have been 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, Danaher (DHR), has gained 0.9% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Danaher reported revenues of $5.95 billion in the last reported quarter, representing a year-over-year change of +3.7%. EPS of $2.06 for the same period compares with $1.88 a year ago.

For the current quarter, Danaher is expected to post earnings of $1.85 per share, indicating a change of +2.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

Danaher has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.

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