Elevance Health Q2 adjusted EPS beats estimates on CarelonRx growth; raises outlook

Elevance Health

Elevance Health

ELV

0.00


Overview

  • U.S. health insurer's Q2 operating revenue rose 0.8% yr/yr to $49.8 bln

  • Adjusted EPS for Q2 was $7.45, beating analyst expectations

  • Company raised full-year 2026 adjusted EPS guidance to at least $27.00


Outlook

  • Elevance Health raises FY 2026 diluted EPS guidance to at least $20.10

  • Company lifts FY 2026 adjusted diluted EPS guidance to at least $27.00

  • Elevance Health increases FY 2026 operating cash flow guidance to at least $6.0 bln


Result Drivers

  • PREMIUM YIELDS & CARELON GROWTH - Revenue growth was driven by higher premium yields in Health Benefits and increased CarelonRx product revenue, partially offset by declines in Medicare Advantage, Medicaid, and Employer Group risk membership

  • HIGHER MEDICAL COSTS - Benefit expense ratio rose due to elevated medical cost trend in Government businesses, partially offset by improved Individual ACA performance

  • TARGETED INVESTMENTS - Operating expense ratio increased due to investments in workforce and capabilities to support long-term operating model


Company press release: ID:nBw85pSsca


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Operating Revenue

$49.80 bln

Q2 Adjusted EPS

Beat

$7.45

$6.21 (21 Analysts)

Q2 EPS

$6.71

Q2 Benefit Expense Ratio

89.70%


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