InnovAge Holding shares surge 10.92% premarket after reporting Q2 profit, revenue beat, and two consecutive quarters of net income.

InnovAge Holding surged 10.92% in premarket trading following the release of Q2 2026 earnings results showing a $0.08 basic EPS beat of estimates and $239.7 million in revenue, exceeding forecasts by $11.3 million. The report highlighted a transition from consecutive quarterly losses to two quarters of profitability, with trailing 12-month net income rising to $6.5 million despite a $15.8 million one-off loss. Analysts noted the stock’s $7.78 price remains significantly below its $26.41 DCF fair value, reinforcing undervaluation arguments. The earnings beat and improved margins, alongside a 7.8% revenue growth year-to-date, aligned with bullish narratives around the company’s capitated revenue model and operational turnaround, driving the sharp premarket rally.