Agilon Health (Agilon Health (AGL)) is having a moment. Shares nearly doubled on Thursday after the company reported first-quarter results that beat expectations and raised its full-year 2026 outlook. The company, which manages a network of independent physicians, is showing early signs that its operational overhaul is working.

For the first quarter, Agilon reported earnings of $1.80 per share, crushing the consensus estimate of $1.31. Revenue came in at $1.42 billion, also ahead of the $1.38 billion Wall Street was looking for. But here's the twist: revenue actually fell 7% year over year. That's because membership on the Agilon platform dropped to 536,000 as of March 31, 2026, including 426,000 Medicare Advantage members and 110,000 ACO model beneficiaries. The decline was partly offset by better pricing, improved contract economics, and a more favorable burden of illness—meaning the patients they did cover were less sick than expected.

The real story is in the margins. Medical margin—the money left after paying for patient care—rose to $149 million from $128 million a year ago. That's a 16% increase, even with fewer members. Adjusted EBITDA more than doubled to $54 million, up from $21 million. Those numbers suggest that Agilon's focus on data, technology, and clinical execution is paying off.

"We are seeing early returns from investments in data and technology, clinical execution, and operating discipline," said Ronald Williams, Executive Chairman. "We are also strengthening our Total Care Model—expanding clinical pathways, improving quality, and deepening payor alignment—positioning us for more predictable outcomes and sustained margin expansion. We remain confident in our 2026 outlook and long-term growth trajectory."

Looking ahead, Agilon expects second-quarter sales of $1.44 billion to $1.48 billion, well above the consensus of $1.34 billion. For the full year, the company raised its revenue guidance to $5.68 billion to $5.81 billion, up from $5.41 billion to $5.58 billion. Analysts had been expecting $5.45 billion, so this is a meaningful upgrade.

William Blair called it "a good start to 2026" and noted that ongoing clinical, cost-cutting, and operational initiatives appear to be driving a solid turnaround. The market seems to agree: Agilon shares were up 99.89% at $55.67 at the time of publication.

Of course, the stock still has a lot to prove. The company's momentum score on market data is neutral at 58.56, suggesting that while the stock has shown some recovery, it remains to be seen if this upward trend can be sustained. But for now, Agilon Health is writing a comeback story that investors are eager to read.