Overview

• Health insurer's Q4 operating revenue rose 10% yr/yr to $49.3 bln

• Adjusted EPS for Q4 beat analyst expectations

• Company returned $4.1 bln of capital to shareholders in 2025

Outlook

• Elevance Health projects FY 2026 GAAP diluted EPS of at least $22.30

• Company expects FY 2026 adjusted diluted EPS of at least $25.50

• Elevance Health anticipates low single-digit decline in FY 2026 operating revenue

Result Drivers

• REVENUE GROWTH - Operating revenue increased due to higher premium yields, acquisitions, and Medicare Advantage membership growth, partially offset by Medicaid attrition

• BENEFIT EXPENSE RATIO - Increased due to higher medical costs in ACA plans and Medicare Part D seasonality

• CARELON SEGMENT - Revenue growth driven by CarelonRx, expansion of risk-based solutions, and CareBridge acquisition

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Operating Revenue		$49.30 bln
Q4 Adjusted EPS	Beat	$3.33	$3.10 (20 Analysts)
Q4 EPS		$2.47
Q4 Benefit Expense Ratio		93.50%

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the managed healthcare peer group is "buy"

• Wall Street's median 12-month price target for Elevance Health Inc is $400.00, about 23.9% above its January 27 closing price of $322.92

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw4Qm6Rba

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