Hapvida 1Q26 Results — Better Than Feared; EPS Beats JPMe And Consensus On MLR

Research evidence excerpt

Hapvida 1Q26 Results — Better Than Feared; EPS Beats JPMe And Consensus On MLR

J P M O R G A N Latin America Equity Research

11 May 2026

Hapvida Neutral

HAPV3.SA, HAPV3 BZ

1Q26 Results — Better Than Feared; EPS Beats JPMe Price (11 May 26):R$11.44

And Consensus On MLR

LatAm Retail & Healthcare

Hapvida (HAPV3; N) reported a beat vs JPM and consensus estimates in 1Q26. Joseph Giordano AC

JPM adj. EPS of R$0.51 was down 37% y/y, albeit beating JPMe R$0.34 and (55-11) 4950-3020

consensus R$0.17. Despite lingering soft top line trends, adj. EBITDA crossed joseph.giordano@jpmorgan.com

12% above JPMe and 16% vs. consensus. The beat was mainly explained by a Banco J.P. Morgan S.A.

better than feared adj. cash MLR of 72.2% - a 40bps y/y deterioration but 2.2p.p. Guilherme A. Vilela, CFA

below JPMe. Additionally, the company generated ~R$150mn in cash on a (55-11) 4950-3059

guilherme.a.vilela@jpmorgan.com

quarterly basis — adjusting net debt change to buyback, technical provisions and Banco J.P. Morgan S.A.

M&A activity. Having said all that, the market should welcome the results even in Giovanni Vescovi

the context of a favorable seasonality and management comments that March faced (55-11) 4950-2901

higher frequency. Moreover, it suggests that consensus expectations have gone too giovanni.vescovi@jpmchase.com

far below, indicating a positive earnings revisions while leading to a positive share Banco J.P. Morgan S.A.

price reaction in tomorrow's trading session. Trading at 14x/6x P/E ‘26E/’27E, we Nicolas Larrain

rate Hapvida Neutral. (55-11) 4950-3472

nicolas.larrain@jpmorgan.com

• Results in a nutshell. Net sales were up 5% y/y at R$7.9bn, in line vs. JPMe Banco J.P. Morgan S.A.

and consensus. Net beneficiary losses were higher than expected at -45k lives Froylan Mendez

vs.