Teladoc Health raised its 2026 outlook after better-than-expected third-quarter results, as BetterHelp’s insurance pivot gained traction and Integrated Care profitability improved.

The virtual care company posted declining revenue but still beat Wall Street on both revenue and profit. Teladoc Health's Q3 beat drove shares up nearly 27% Thursday after the company reported Q3 earnings Wednesday after market close.

Teladoc Health faces near-term pressure as it transitions its virtual mental health business, BetterHelp, from a cash pay model to an in-network, insurance-covered model.

The company's consolidated revenue was $605 million, down 3.4% year-over-year but towards the high end of management's guidance range, as solid performance in the integrated care business and strong BetterHelp insurance growth was partially offset by ongoing headwinds in BetterHelp’s cash pay revenue, Chief Financial Officer Michael Grasher, who joined the company in August, told investors and analysts on the company's Q3 earnings call Wednesday.

The company reported third-quarter adjusted EBITDA of $79.4 million, up roughly 14% year-over-year and compared to the $67.7 million consensus target. Teladoc reported a net loss of $26.9 million, or a loss per share of 15 cents, versus Street expectations for a loss of 22 cents.

"As we consider the market more broadly as a company, we continue to see opportunities for virtual care to play an increasing role in addressing key challenges in healthcare," Teladoc Health CEO Chuck Divita said during the call.

As a scaled virtual care company, Teladoc's technology and services help address rising healthcare costs, expand access, improve chronic disease and mental health care and ease pressure on providers and the broader healthcare system, Divita said.

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