How Sword Health's AI Platform Partnership at Alight (ALIT) Has Changed Its Investment Story

• On September 17, 2025, Sword Health announced its integration with Alight Inc.'s Alight Partner Network, bringing its AI-powered musculoskeletal and mental health platform into the Alight Worklife ecosystem.
• This partnership aims to help employers control healthcare costs while offering employees personalized digital tools for chronic pain, prevention, pelvic health, and mental health support.
• We'll explore how the addition of AI-driven chronic pain and mental health support could shape Alight's investment outlook going forward.

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Alight Investment Narrative Recap

Alight’s investment thesis largely depends on the belief that its transition toward high-margin, recurring revenue streams and digital HR solutions will eventually translate into sustained profitability. The integration of Sword Health’s AI platform reinforces Alight’s commitment to expanding value-added services, but this development alone is unlikely to deliver a material near-term boost if flat participant counts and delayed project revenues persist, the most pressing short-term catalyst and risk for shareholders today.

Among recent developments, the July 2025 release of Alight Worklife® with enhanced AI capabilities stands out, as it provides the infrastructure for integrating partners like Sword Health. This combination has the potential to support margin expansion and boost recurring revenues if successfully adopted by clients.

Yet, despite the optimism, persistent sluggishness in new client growth is a risk investors should be alert to, especially if...

Read the full narrative on Alight (it's free!)

Alight's outlook anticipates $2.5 billion in revenue and $142.2 million in earnings by 2028. This assumes annual revenue growth of 3.0% and an earnings increase of $1.24 billion from current earnings of -$1.1 billion.

Uncover how Alight's forecasts yield a $8.21 fair value, a 156% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community members value Alight between US$8.21 and US$13.17 per share, far above recent market prices. Still, many participants worry about slow participant growth and the effect this may have on future revenue momentum, inviting you to compare several perspectives for a fuller view.

Explore 3 other fair value estimates on Alight - why the stock might be worth over 4x more than the current price!

Build Your Own Alight Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Alight research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Alight research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Alight's overall financial health at a glance.

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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.

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