CorVel (CRVL) just posted its FY 2026 third quarter numbers, reporting revenue of US$235.6 million and basic EPS of US$0.47, alongside trailing 12 month revenue of US$941.5 million and EPS of US$2.06. These figures sit against 19.9% net earnings growth and an 11.2% net margin over the past year. Over recent quarters, the company has reported revenue moving from US$224.4 million in Q2 FY 2025 to US$239.6 million in Q2 FY 2026, while quarterly EPS has ranged between US$0.46 and US$0.54 across that period. Together, these numbers provide a clear sense of how the top line and per share earnings lead into the latest results. The higher trailing margin, solid net income base and consistent EPS cadence highlight a business where profitability is a key focus in this earnings update.

See our full analysis for CorVel.

With the latest figures on the table, the next step is to compare these margins and growth rates with the most widely held narratives about CorVel to see which stories hold up and which ones the numbers start to challenge.

TTM earnings growth outpaces 5 year trend

• Over the last 12 months, net earnings growth of 19.9% sits ahead of the 14.9% per year average over five years, with trailing 12 month net income at US$105.7 million on US$941.5 million of revenue.
• Bulls often focus on earnings momentum, and this set of numbers heavily supports that angle:
  • Trailing net income moved from US$88.2 million to US$105.7 million over the comparable 12 month periods, which lines up with the higher 19.9% growth figure that bullish investors highlight.
  • Trailing EPS increased from US$1.59 to US$2.06 across the same span, so the per share trend backs the bullish view that profit growth is filtering through to shareholders rather than being absorbed by a larger share count.

Investors who want to see how this recent acceleration fits into the wider story around CorVel's strengths and risks can tap into a broader community view via the Curious how numbers become stories that shape markets? Explore Community Narratives

Margins hold above 11% on trailing basis

• The trailing 12 month net margin sits at 11.2%, compared with 10.1% a year earlier, on revenue that moved from US$845.6 million to US$941.5 million over those trailing periods.
• What stands out for bullish investors is how this margin line backs the idea of higher quality earnings:
  • Across the last six reported quarters, quarterly net income has stayed between US$23.4 million and US$27.9 million while revenue has ranged from US$224.4 million to US$239.6 million, which is consistent with the trailing margin level rather than pointing to a one off swing.
  • The combination of an 11.2% trailing margin and TTM EPS of US$2.06 gives supporters a concrete link between operating performance and per share outcomes, instead of relying purely on top line expansion.

P/E premium set against DCF fair value

• The stock trades on a P/E of 31.1x, above the US Healthcare industry average of 24.3x but below the peer average of 88.1x, while the DCF fair value in the data is US$64.46 compared with a current share price of US$64.26.
• Critics often question whether a premium P/E is justified, and the current figures give them and optimists numbers to work with:
  • On one side, the 31.1x P/E is higher than the broader industry, which bears may point to as a sign that the trailing 19.9% earnings growth and 11.2% margin are already reflected in the price.
  • On the other side, the DCF fair value of US$64.46 is close to the current share price of US$64.26, which suggests investors can compare that model based estimate directly with the recent TTM earnings profile rather than relying on distant projections.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on CorVel's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Given this mix of solid earnings data and a fair value that sits close to the current price, the story is not one sided. Act quickly by checking both the concerns and the potential upsides around the stock through our breakdown of 2 key rewards and 1 important warning sign

See What Else Is Out There

CorVel's 31.1x P/E, sitting above the broader US Healthcare average with earnings largely in line with DCF fair value, raises questions about how much upside is already priced in.

If you are questioning whether that kind of valuation leaves enough room for future returns, compare it with stocks filtered through the 51 high quality undervalued stocks to quickly spot alternatives that may offer more room for error.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.