American Well Corp. (Amwell) reported its third-quarter 2026 financial results on Tuesday, Nov. 3, revealing shifting adoption patterns in digital medicine and virtual healthcare tools. During the company's earnings call, Chairman and CEO Dr. Ido Schoenberg stated that three in 10 adults now use artificial intelligence tools monthly for health information, compared to one out of every six two years ago. The telehealth provider posted third-quarter revenue of $49 million, down 12.9% year-over-year but $1 million above its internal guidance, while narrowing its overall operating losses.
What happened in Amwell's Q3 results
Amwell's financial performance during the third quarter showed reduced losses alongside growth in its clinical operations segment. While subscription revenues remained pressured by previously disclosed customer churn, Amwell Medical Group revenue rose 11.7% to $23.7 million, driven by favorable pricing and higher visit volume in urgent care and primary care programs. Virtual primary care visits jumped approximately 41% year-over-year.
Key operational and financial metrics reported by the company include:
Revenue: Reached $49 million, beating the high end of internal guidance by $1 million despite dropping 12.9% year-over-year.
Operating Losses: Operating loss decreased by 60% to $11.7 million, while adjusted EBITDA loss narrowed to $3.6 million.
Platform Redesign: Reduced the returning-member experience from 12 screens to three, yielding a patient visit satisfaction rating of 4.9 out of 5.
Member Engagement: Always-on member engagement tools drove platform utilization at more than three times the rate observed when those tools are disabled.
Full-Year Guidance: Raised full-year 2026 revenue guidance to between $204 million and $206 million, up from the prior range of $200 million to $205 million. Full-year adjusted EBITDA loss guidance was improved to between $6.9 million and $7.9 million.
Why health plans are rethinking digital care
The operational shifts at Amwell reflect broader pressures on healthcare buyers. According to Schoenberg, health plans are confronting projected cost increases of 8% to 11% in 2027. This financial pressure comes at a time when health insurance costs curb wage growth across corporate America, forcing employers and insurers to eliminate redundant digital vendor contracts.
In response, health plans are moving away from paying simply for user access. Schoenberg noted that buyers are prioritizing engagement and tangible health outcomes. To combat vendor sprawl and user confusion, Amwell is positioning its enterprise platform as a central integrator serving customers representing more than 90 million covered lives.
Addressing the integration of technology, Schoenberg emphasized that Amwell is not simply selling automated software. Instead, the company aims to operate as a clinical platform where AI-powered care operates with medical professionals kept directly in the loop.
What it means for patients and healthcare users
For patients, digital medicine is evolving from sporadic emergency consultations into continuous primary care management. The 41% increase in virtual primary care visits highlights growing consumer comfort with maintaining ongoing relationships with digital clinicians rather than relying solely on one-off urgent care calls.
However, technology adoption varies significantly across demographics. Research by PYMNTS Intelligence indicates that around one-third of surveyed Gen Z consumers completed their most recent healthcare visit virtually, compared to 5% of baby boomers. Despite being frequent users of digital options, young adults face operational friction: more than two-thirds of Gen Z respondents reported encountering at least one payment barrier during care, compared to 18% of baby boomers.
What to watch next
Looking toward the fourth quarter of 2026, Amwell projected revenues between $48 million and $50 million. The company expects to achieve adjusted EBITDA between breakeven and positive $1 million, alongside positive operating cash flow and a year-end cash balance of approximately $180 million.
Investors and industry observers are also monitoring Amwell's expansion into government healthcare programs. The platform currently powers virtual care for 9.6 million Military Health System beneficiaries while negotiating a direct, longer-term agreement with the Defense Health Agency. Additionally, Amwell recently secured a nonbinding letter of intent from the Department of Veterans Affairs, which serves more than 9 million veterans. Because Amwell has not historically generated revenue from the Department of Veterans Affairs, any finalized deal would represent incremental growth.
Amwell did not issue 2027 financial guidance, stating that future growth and profitability will depend on the timing and finalized terms of these public sector contracts. Readers interested in evaluating financial announcements can review our guide on how to read an earnings report.
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