Elevance Raises 2026 Profit Outlook To At Least $29.00 A Share As Medicare Advantage Enrollment Falls 15.5%
The insurer's benefit expense ratio improved to 90.6%, and results included a net non-operating benefit of $1.85 per share.
Elevance Health raised its 2026 guidance to adjusted earnings of at least $29.00 per share, according to its third-quarter earnings release furnished with an 8-K on Wednesday. Third-quarter results included a net non-operating benefit of $1.85 per share, while Medicare Advantage enrollment fell 15.5% from a year earlier.
What the release says
Third-quarter diluted earnings were $6.27 per share, versus $5.32 a year earlier. Adjusted earnings were $6.99, versus $6.03. The company said results reflected improved operating performance and the $1.85 net non-operating benefit.
Operating revenue was $50.4 billion, up 0.7% from the third quarter of 2025. The company cited higher premium yields, more CarelonRx product revenue and growth in service fees, partly offset by lower Medicare Advantage, Medicaid and employer-group risk membership.
The benefit expense ratio, the share of premiums paid out for medical care, improved 70 basis points (0.7 percentage points) to 90.6%. The company credited better Medicare Advantage and Individual ACA performance. Operating cash flow for the quarter was $1.3 billion.
Full-year guidance now calls for standard earnings of at least $22.00 per share and operating cash flow of at least $6.5 billion, alongside the adjusted figure of at least $29.00. The company attributed the raise to "continued operating momentum."
Segments and membership
Health Benefits operating revenue rose to $43.4 billion from $42.2 billion, but operating gain fell to $0.4 billion from $0.6 billion. The company pointed to targeted investments, partly offset by the better expense ratio. Margin was 1.0%, versus 1.4%.
Carelon revenue was $19.3 billion, up from $18.3 billion, and operating gain rose 17% to $0.9 billion.
Total medical membership was about 44.9 million, down 487 thousand from a year earlier. Medicare Advantage fell to 1,898 thousand from 2,245 thousand, and Medicaid fell 4.9% to 8,220 thousand. Employer group risk-based membership fell 6.9%.
What it changes for holders
CEO Gail K. Boudreaux said the company remains "confident in delivering at least 12% growth in adjusted diluted earnings per share in 2027" from a baseline of at least $26.75. A footnote says that baseline excludes non-recurring net investment income, other non-operating items and targeted one-time investments.
The adjusted operating expense ratio was 11.3%, up 90 basis points, which the company tied to one-time investments in capabilities. In the quarter Elevance repurchased 0.8 million shares for $330 million and had about $5.0 billion of repurchase authorization left.
Shares closed at $440.18 on Tuesday, up 2.31% for that session, before the release.
What to watch
Management hosts a call at 8:30 a.m. EDT Wednesday. The $1.72 fourth-quarter dividend is payable December 18 to holders of record on December 4.
The next filing to check is the full quarterly report, which will show how the company describes the non-operating items behind the $1.85.
Sources
- 8-K Filing — Elevance Health, Inc. (ELV) — SEC EDGAR
- Exhibit a3q2026elvearningsrelease.htm — Elevance Health, Inc. 8-K exhibit — SEC EDGAR
- Elevance Health Reports Third Quarter 2026 Results; Raises Full-Year Guidance – Company Announcement - FT.com — Financial Times
