Elevance Health Stock Earnings Reports

Elevance Health reported a strong start to 2026 with Q1 adjusted diluted EPS of $12.58, above expectations, driven by favorable claims experience, ACA seasonality and about $1.00 per share of nonrecurring investment income. Management raised full-year adjusted EPS guidance to at least $26.75 and reiterated a return to at least 12% adjusted EPS growth in 2027 (off a 2026 baseline of $25.75). Membership totaled 45.4 million, with growth in commercial fee-based and Individual ACA (notably a shift toward bronze plans), offset by declines in Medicare Advantage, Employer Group Risk and Medicaid. Medicaid performance showed early improvement from targeted interventions but remains pressured by elevated cost trend and ongoing state reverification; management still views 2026 as the trough year for Medicaid. Medicare Advantage performance improved after portfolio repositioning and management expects an operating margin of at least 2% in 2026. Carelon (including Carelon Rx and CareBridge) is being scaled as an integrated, risk-based clinical capability—driving care-at-home, lower readmissions and pharmacy/medical integration—but its margin cadence reflects mix and growth investments. Elevance is prioritizing AI and digital investments (more than $1 billion committed) to improve member engagement, clinical decisioning, site-of-care optimization and administrative efficiency. The company recorded a $935 million accrual related to a historical CMS risk-adjustment matter and is engaging constructively with CMS; management says the issue does not change operations or their outlook. Q1 operating cash flow was $4.3 billion; full-year operating cash flow expected to be at least $5.5 billion (inclusive of potential CMS cash payments). Share repurchases continue: $1.1 billion repurchased in Q1 with at least $2.3 billion planned for 2026.