STOCK TITAN
  1. Home
  2. SEC Filings
  3. ELV
  4. [8-K] Elevance Health, Inc. Reports Material Event

Elevance Health raises 2026 adjusted EPS floor to $29

The revised 2026 outlook calls for diluted EPS of at least $22.00, adjusted diluted EPS of at least $29.00 and operating cash flow of at least $6.5 billion.

Filing Impact
(High)
Filing Sentiment

Sentiment and the balance of points

Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.

How Sentiment worksHow the balance works

Form Type
8-K

Rhea-AI Filing Summary

Elevance Health, Inc. reported third-quarter 2026 operating revenue of $50.4 billion, up 0.7% year over year, with diluted EPS of $6.27 and adjusted diluted EPS of $6.99. The company raised full-year 2026 guidance to at least $22.00 in diluted EPS, at least $29.00 in adjusted diluted EPS and at least $6.5 billion in operating cash flow.

Third-quarter shareholders’ net income rose 14.8% to $1.365 billion, while nine-month shareholders’ net income fell 10.2% to $4.592 billion. Health Benefits revenue increased 2.6% to $43.357 billion, but its operating gain fell 27.5% to $436 million; Carelon operating gain rose 17% to $0.9 billion. Medical membership was 44.882 million as of September 30, 2026, down 1.1% year over year. The company repurchased 0.8 million shares for $330 million and paid $373 million in quarterly dividends; it declared a fourth-quarter dividend of $1.72 per share, payable December 18, 2026, to shareholders of record December 4, 2026.

2 points · 1 major

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 2 points

Hollow bars mark forward-looking points. How the balance works

Positive

  • Major point. Forward-looking: it has not happened yet and may not happen.FY 2026 adjusted diluted EPS guidance was raised to at least $29.00.
  • Moderate pointThird-quarter diluted EPS rose 17.9% to $6.27.

Negative

  • Moderate pointNine-month shareholders’ net income declined 10.2% to $4.592 billion.
  • Moderate pointHealth Benefits’ third-quarter operating gain fell 27.5% to $436 million.

Filing Explained

At September 30, Elevance Health reported about $5.0 billion of Board-approved share-repurchase authorization remaining; that is capacity to buy shares, not additional purchases already made, and the filing does not establish how much of it will be used.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 6.05 Securities Act Updating Disclosure Securities
Updated disclosure for asset-backed securities under the Securities Act.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Operating revenue $50.4 billion Third quarter 2026; up 0.7% year over year
Diluted EPS $6.27 per share Third quarter 2026; up 17.9% year over year
Adjusted diluted EPS $6.99 per share Third quarter 2026; up 15.9% year over year
FY 2026 adjusted diluted EPS guidance At least $29.00 per share Raised full-year guidance
FY 2026 operating cash flow guidance At least $6.5 billion Raised full-year guidance
Health Benefits operating gain $436 million Third quarter 2026; down 27.5% year over year
Medical membership 44.882 million members As of September 30, 2026; down 1.1% year over year
benefit expense ratio financial
"The benefit expense ratio of 90.6 percent improved 70 basis points"
Benefit expense ratio measures the share of an insurer’s income (typically premiums or program revenue) that is paid out as benefits, claims or direct customer payouts. It matters to investors because a high ratio means more of the company’s revenue is going to cover obligations rather than profit or growth—like watching how much of your paycheck goes to rent versus savings, it signals cost pressure and sustainability.
Days in Claims Payable financial
"Days in Claims Payable stood at 44.9 days"
Days in claims payable measures the average number of days a company takes to settle insurance or patient claims after they are recorded as owed. Think of it like how long a person leaves a bill in their inbox before paying: longer times can free up cash short-term but may signal backlogs, understaffing, or growing unpaid obligations; shorter times suggest smoother operations and more predictable cash flow—both matter to investors assessing liquidity and risk.
Operating gain financial
"Operating gain is calculated as total operating revenue less benefit expense"
Adjusted diluted EPS financial
"adjusted diluted EPS guidance raised to at least $29.00"
Adjusted diluted EPS is a company’s profit per share after adding back or removing one-time items (like restructuring costs or gains) and dividing by the number of shares including potential shares from options and convertible securities. Investors use it as a cleaner view of ongoing earnings—like looking at a car’s regular fuel efficiency rather than a trip boosted by downhill coasting—to judge underlying performance and compare companies without temporary distortions.
Operating revenue $50.4 billion +0.7% year over year
Diluted EPS $6.27 per share +17.9% year over year
Adjusted diluted EPS $6.99 per share +15.9% year over year
Shareholders’ net income $1.365 billion +14.8% year over year
Guidance

FY 2026 diluted EPS of at least $22.00; adjusted diluted EPS of at least $29.00; operating cash flow of at least $6.5 billion.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were ELV's third-quarter 2026 revenue and earnings?
Elevance reported third-quarter operating revenue of $50.4 billion, up 0.7% from a year earlier, diluted EPS of $6.27 and adjusted diluted EPS of $6.99.

What is ELV's 2026 earnings guidance?
Elevance raised full-year 2026 guidance to diluted EPS of at least $22.00, adjusted diluted EPS of at least $29.00 and operating cash flow of at least $6.5 billion.

When will ELV's fourth-quarter 2026 dividend be paid?
The $1.72 per-share dividend is payable December 18, 2026, to shareholders of record at the close of business on December 4, 2026.

AI-generated analysis. How Rhea-AI works. Not financial advice.

Understanding 8-K Material Events →
See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google
Add on Google
Available on EDGAR Accepted by SEC EDGAR
FALSE000115603900011560392026-10-212026-10-21

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 8-K
___________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

October 21, 2026
Date of Report (Date of earliest event reported)
___________________________________
Elevance Health, Inc.
(Exact name of registrant as specified in its charter)
___________________________________

Indiana
(State or other jurisdiction of
incorporation or organization)
001-16751
(Commission File Number)
35-2145715
(I.R.S. Employer Identification Number)
220 Virginia Ave
Indianapolis, IN 46204
(Address of principal executive offices and zip code)
(833) 401-1577
(Registrant's telephone number, including area code)
________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Common Stock, Par Value $0.01
ELV
NYSE
Indicate by check mark whether the registrant is an emerging growth company as defined Rule 405 of the Securities Act (§230.405 of this chapter) or Rule 12b-2 of the Exchange Act (§240.12b-2 of this chapter).
Emerging growth company    ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Item 2.02 - Results of Operations and Financial Condition.

On October 21, 2026, Elevance Health, Inc. issued a press release reporting its financial results for the quarter ended September 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference.

None of the information furnished in this Item 2.02 or Exhibit 99.1 hereto shall be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. Unless expressly set forth by specific reference in such filings, none of the information furnished in this report shall be incorporated by reference in any filing under the Securities Act of 1933, as amended, whether made before or after the date hereof and regardless of any general incorporation language in such filings.

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.
Exhibit
99.1
Press Release, dated October 21, 2026, reporting Elevance Health, Inc. financial results for the quarter ended September 30, 2026.
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized on this 21st day of October, 2026.



ELEVANCE HEALTH, INC.
By:
/s/ Kathleen S. Kiefer
Name:
Kathleen S. Kiefer
Title:
Chief Governance Officer and Corporate Secretary


E A R N I N G S R E L E A S E

elevancehealth.jpg
ELEVANCE HEALTH REPORTS THIRD QUARTER 2026 RESULTS;
RAISES FULL-YEAR GUIDANCE

•3Q 2026 operating revenue of $50.4 billion, up 0.7% from 3Q 2025
•3Q 2026 diluted EPS1 of $6.27 and adjusted diluted EPS2 of $6.99; results reflect improved operating performance and a net non-operating benefit of $1.85 per share
•FY 2026 diluted EPS1 guidance raised to at least $22.00; adjusted diluted EPS2 guidance raised to at least $29.00 on continued operating momentum
•FY 2026 operating cash flow guidance raised to at least $6.5 billion
•Investing in capabilities that improve the member experience, strengthen our competitive advantage, and support long-term growth

Indianapolis, IN - October 21, 2026 - Elevance Health, Inc. (NYSE: ELV) reported third quarter 2026 results ahead of expectations.

"Elevance Health's third quarter results reflect stronger execution across our diversified portfolio and underscore the earnings power of the business. We are raising our 2026 earnings outlook and remain confident in delivering at least 12% growth in adjusted diluted earnings per share in 2027 from our higher earnings baseline of at least $26.753. By bringing together the capabilities of our Health Benefits business and Carelon, we are improving the healthcare experience, strengthening our competitive advantage, and creating long-term value for our shareholders."

Gail K. Boudreaux
President and Chief Executive Officer



1.Earnings per diluted share ("EPS").
2.Refer to GAAP reconciliation tables on pages 13 and 14 herein for reconciliation of GAAP to adjusted measures.
3.FY 2026 earnings baseline excludes non-recurring net investment income and other non-operating items, as well as targeted one-time investments.


1

image.jpg
Elevance Health
Consolidated Enterprise Highlights
(Unaudited)
(In billions)Three Months Ended
September 30, 2026September 30, 2025
Operating Revenue1
$50.4$50.1
Operating Gain1,2
$1.3$1.3
Adjusted Operating Gain1,3
$1.3$1.3
Operating Margin1
2.5 %2.6 %
Adjusted Operating Margin1,3
2.7 %2.7 %
1.See “Basis of Presentation” on page 5 herein.
2.Operating Gain for the three months ended September 30, 2026 and September 30, 2025 includes items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation" on pages 13 and 14 herein.
3.Adjusted Operating Gain for the three months ended September 30, 2026 and September 30, 2025 excludes items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation" on pages 13 and 14 herein.

Operating revenue was $50.4 billion in the third quarter of 2026, an increase of $0.4 billion compared to the prior year quarter. This was driven by higher premium yields, increased CarelonRx product revenue, and growth in service fees, partially offset by lower Medicare Advantage, Medicaid, and Employer Group risk membership.
The benefit expense ratio of 90.6 percent improved 70 basis points, driven by better performance in Medicare Advantage and Individual ACA compared to the prior year.
Days in Claims Payable stood at 44.9 days as of September 30, 2026, an increase of 3.5 days year over year.
The operating expense ratio was 11.4 percent. The adjusted operating expense ratio was 11.3 percent, an increase of 90 basis points from the prior year. The increase principally reflected targeted, one-time investments in capabilities that support our long-term performance, along with spending to advance business growth and quality initiatives.
Cash Flow & Balance Sheet
Operating cash flow of $1.3 billion in the quarter increased $0.1 billion relative to the prior year, primarily reflecting favorable working capital dynamics. As of September 30, 2026, cash and investments at the parent company totaled approximately $2.4 billion.
During the third quarter of 2026, the Company repurchased 0.8 million shares of its common stock for $330 million, at a weighted average price of $398.75 per share, and paid a quarterly dividend of $1.72 per share, representing a distribution of cash totaling $373 million. As of September 30, 2026, the Company had approximately $5.0 billion of Board approved share repurchase authorization remaining.

2

abs_rxhxrgbxcxaligned.jpg wlp_rxhxrgbxcxaligned.jpg
Health Benefits is comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard®, Medicare, Medicaid, and Federal Employee Program businesses.
Health Benefits
Reportable Segment Highlights
(Unaudited)
(In billions)
Three Months Ended
September 30, 2026September 30, 2025
Operating Revenue1
$43.4$42.2
Operating Gain1
$0.4$0.6
Operating Margin1
1.0 %1.4 %
1.See “Basis of Presentation” on page 5 herein.

Health Benefits segment operating revenue was $43.4 billion in the third quarter of 2026, an increase of $1.1 billion, or 3 percent compared to the prior year quarter, driven primarily by higher premium yields and service fee revenue, partially offset by lower Medicare Advantage, Medicaid, and Employer Group risk membership.
Operating gain was $0.4 billion, a decline year over year, reflecting the impact of targeted investments to support our long-term operating model. This was partially offset by the improvement in our benefit expense ratio.
Medical membership of approximately 44.9 million as of September 30, 2026 decreased by 487 thousand compared to the prior year. The decline reflected lower enrollment in our Medicaid, Medicare Advantage, and Employer Group risk-based businesses, partially offset by growth in Commercial fee-based membership.


3


image1.jpg

Carelon is comprised of CarelonRx and Carelon Services.
Carelon
Reportable Segment Highlights
(Unaudited)
(In billions)
Three Months Ended
September 30, 2026September 30, 2025
Operating Revenue1
$19.3$18.3
Operating Gain1
$0.9$0.8
Operating Margin1
4.7 %4.2 %
1.See “Basis of Presentation” on page 5 herein.

Operating revenue for Carelon was $19.3 billion in the third quarter of 2026, an increase of $1.0 billion, or 5 percent compared to the prior year quarter. Growth was driven by CarelonRx product revenue and continued expansion of Carelon Services risk-based solutions.
Operating gain for Carelon totaled $0.9 billion, an increase of 17 percent year over year, reflecting strong performance of Carelon Services risk-based solutions and the improved profitability of our specialty pharmacy.

4

Quarterly Dividend
On October 20, 2026, the Audit Committee of the Company's Board of Directors declared a fourth quarter 2026 dividend to shareholders of $1.72 per share. The fourth quarter dividend is payable on December 18, 2026 to shareholders of record at the close of business on December 4, 2026.
About Elevance Health
Elevance Health is a lifetime, trusted health partner whose purpose is to improve the health of humanity. The company supports consumers, families, and communities across the entire healthcare journey – connecting them to the care, support, and resources they need to lead better lives. Elevance Health’s companies serve approximately 103 million consumers through a diverse portfolio of industry-leading medical, pharmacy, behavioral, clinical, home health, and complex care solutions. For more information, please visit www.elevancehealth.com or follow us @ElevanceHealth on X and Elevance Health on LinkedIn.
Conference Call and Webcast
Management will host a conference call and webcast today at 8:30 a.m. Eastern Daylight Time (“EDT”) to discuss the company’s third quarter results and outlook. The conference call should be accessed at least 15 minutes prior to the start of the call with the following numbers:
888-947-9963 (Domestic)
800-391-9853 (Domestic Replay)
312-470-0178 (International)
203-369-3269 (International Replay)
The access code for today's conference call is 3972058. There is no access code for the replay. The replay will be available from 11:30 a.m. EDT today, until the end of the day on November 20, 2026. The call will also be available through a live webcast at www.elevancehealth.com under the “Investors” link. A webcast replay will be available following the call.
Basis of Presentation
1.Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reporting segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and operating expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets, gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Refer to pages 13 and 14 for the GAAP reconciliation tables.
2.Operating margin is defined as operating gain divided by operating revenue.
Elevance Health Contacts:
Investor Relations            
Media
Nathan Rich
Leslie Porras
Investor.Relations@elevancehealth.com
Leslie.Porras@elevancehealth.com

5

Elevance Health
Earnings Release Financial Schedules and Supplementary Information
Quarter & Year-to-Date Ended September 30, 2026

•Membership and Other Metrics
•Quarterly & Year-to-Date Consolidated Statements of Income
•Condensed Consolidated Balance Sheet
•Condensed Consolidated Statement of Cash Flows
•Supplemental Financial Information - Reportable Segments & Health Benefits Revenue Details
•Supplemental Financial Information - Reconciliation of Medical Claims Payable
•Reconciliation of Non-GAAP Financial Measures


6

Elevance Health
Membership and Other Metrics
(Unaudited)
Change from
Medical Membership (in thousands)September 30,
2026		September 30,
2025		June 30,
2026		September 30,
2025		June 30,
2026
Individual1,348 1,354 1,317 (0.4)%2.4 %
Employer Group Risk-Based3,366 3,616 3,417 (6.9)%(1.5)%
Commercial Risk-Based4,714 4,970 4,734 (5.2)%(0.4)%
BlueCard®
6,596 6,394 6,582 3.2 %0.2 %
Employer Group Fee-Based21,009 20,608 20,931 1.9 %0.4 %
Commercial Fee-Based27,605 27,002 27,513 2.2 %0.3 %
Medicare Advantage1,898 2,245 1,897 (15.5)%0.1 %
Medicare Supplement898 877 893 2.4 %0.6 %
Total Medicare2,796 3,122 2,790 (10.4)%0.2 %
Medicaid8,220 8,645 8,358 (4.9)%(1.7)%
Federal Employee Program
1,547 1,630 1,554 (5.1)%(0.5)%
Total Medical Membership44,882 45,369 44,949 (1.1)%(0.1)%
Other Metrics (in millions)
CarelonRx Quarterly Adjusted Scripts82.6 85.0 80.9 (2.8)%2.1 %
Carelon Services Consumers Served91.0 97.6 92.4 (6.8)%(1.5)%


7

Elevance Health
Consolidated Statements of Income
(Unaudited)
(In millions, except per share data)Three Months Ended 
 September 30		Nine Months Ended 
 September 30
20262025Change20262025Change
Revenues
Premiums
$41,704$41,791(0.2)%$124,007$123,949—%
Product revenue6,4546,1594.8%18,94318,0105.2%
Service fees2,2822,1376.8%6,8106,3147.9%
Total operating revenue50,44050,0870.7%149,760148,2731.0%
Net investment income1,03762565.9%2,5061,70147.3%
Net losses on financial instruments(48)(1)NM(182)(596)NM
Total revenues51,42950,7111.4%152,084149,3781.8%
Expenses
Benefit expense37,77938,140(0.9)%110,418110,1580.2%
Cost of products sold5,6405,3804.8%16,59515,6566.0%
Operating expense5,7525,2729.1%17,62915,56913.2%
Interest expense3583512.0%1,0791,0364.2%
Amortization of other intangible assets106162(34.6)%328464(29.3)%
Total expenses49,63549,3050.7%146,049142,8832.2%
Income before income tax expense1,7941,40627.6%6,0356,495(7.1)%
Income tax expense451219105.9%1,4781,3807.1%
Net income1,3431,18713.1%4,5575,115(10.9)%
Net loss (gain) attributable to noncontrolling interests222NM35—NM
Shareholders' net income$1,365$1,18914.8%$4,592$5,115(10.2)%
Shareholders' earnings per diluted share
$6.27$5.3217.9%$21.01$22.67(7.3)%
Diluted shares217.6223.7(2.7)%218.6225.6(3.1)%
Benefit expense as a percentage of premiums90.6 %91.3 %(70)bp89.0 %88.9 %10 bp
Operating expense as a percentage of total operating revenue11.4 %10.5 %90 bp11.8 %10.5 %130 bp
Income before income tax expense as a percentage of total revenue3.5 %2.8 %70 bp4.0 %4.3 %(30)bp

"NM" = calculation not meaningful

8

Elevance Health
Condensed Consolidated Balance Sheet
(In millions)September 30,
2026		December 31,
2025
Assets(Unaudited)
Current assets:
Cash and cash equivalents$10,348$9,491
Fixed maturity and equity securities27,498 26,624 
Premium and other receivables24,573 21,542 
Other current assets6,105 5,344 
Total current assets68,524 63,001 
Long-term investments12,719 11,960 
Property and equipment, net4,613 4,679 
Goodwill and other intangible assets39,220 39,544 
Other noncurrent assets2,725 2,310 
Total assets$127,801$121,494
Liabilities and equity
Liabilities
Current liabilities:
Medical claims payable$18,438$17,084
Short-term borrowings— 150 
Current portion of long-term debt375 1,099 
Other current liabilities27,849 22,702 
Total current liabilities46,662 41,035 
Long-term debt, less current portion30,382 30,797 
Other noncurrent liabilities5,963 5,636 
Total liabilities83,007 77,468 
Total shareholders’ equity44,681 43,882 
Noncontrolling interests113 144 
Total equity44,794 44,026 
Total liabilities and equity$127,801$121,494


9

Elevance Health
Condensed Consolidated Statement of Cash Flows
(Unaudited)
(In millions)Nine Months Ended September 30
20262025
Operating activities
Net income$4,557$5,115
Depreciation and amortization1,083 1,140 
Share-based compensation210 246 
Changes in operating assets and liabilities2,784 (2,753)
Other non-cash items(1,122)458 
Net cash provided by operating activities7,512 4,206 
Investing activities
Sales and maturities of investments, net of purchases (purchases of investments, net of sales and maturities)(2,303)(412)
Purchases of subsidiaries, net of cash acquired2 55 
Purchases of property and equipment(789)(823)
Other, net(380)(628)
Net cash used in investing activities(3,470)(1,808)
Financing activities
Net change in short-term and long-term borrowings(900)659 
Repurchase and retirement of common stock(1,688)(2,134)
Cash dividends(1,122)(1,152)
Other, net539 653 
Net cash used in financing activities(3,171)(1,974)
Effect of foreign exchange rates on cash and cash equivalents(14)1 
Change in cash and cash equivalents857 425 
Cash and cash equivalents at beginning of period9,491 8,288 
Cash and cash equivalents at end of period$10,348$8,713


10

REPORTABLE SEGMENTS
Elevance Health has four reportable segments: Health Benefits (comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard®, Medicare, Medicaid, and Federal Employee Program businesses); CarelonRx; Carelon Services; and Corporate & Other (comprised of businesses that do not individually meet the quantitative thresholds for an operating division as well as corporate expenses not allocated to our other reportable segments).
Elevance Health
Reportable Segment Details
(Unaudited)
(In millions)Three Months Ended September 30Nine Months Ended September 30
20262025Change20262025Change
Operating Revenue
Health Benefits$43,357$42,2462.6 %$128,567$125,2592.6 %
CarelonRx11,59910,9975.5 %33,44931,7565.3 %
Carelon Services7,7087,3245.2 %23,04821,3018.2 %
Corporate & Other6149(96.0)%16546(97.1)%
Eliminations(12,230)(10,629)
NM6
(35,320)(30,589)
NM6
Total Operating Revenue1
$50,440$50,0870.7 %$149,760$148,2731.0 %
Operating Gain (Loss)
Health Benefits$436$601(27.5)%$3,489$4,378(20.3)%
CarelonRx61655610.8 %1,7801,6945.1 %
Carelon Services29221933.3 %1,1281,1101.6 %
Corporate & Other2,3
(75)(81)
NM6
(1,279)(292)
NM6
Total Operating Gain1,4
$1,269$1,295(2.0)%$5,118$6,890(25.7)%
Operating Margin
Health Benefits1.0 %1.4 %(40) bp2.7 %3.5 %(80) bp
CarelonRx5.3 %5.1 %20 bp5.3 %5.3 %— bp
Carelon Services3.8 %3.0 %80 bp4.9 %5.2 %(30) bp
Total Operating Margin1
2.5 %2.6 %(10) bp3.4 %4.6 %(120) bp
Health Benefits Revenue Details
(In millions)Three Months Ended September 30Nine Months Ended September 30
20262025Change20262025Change
Health Benefits Operating Revenue
Commercial$13,343$12,8493.8 %$40,142$37,6546.6 %
Individual5
2,5142,3586.6 %7,7747,04710.3 %
Medicare11,22911,1380.8 %33,18233,990(2.4)%
Medicaid14,97914,1665.7 %43,70342,1203.8 %
Federal Employee Program3,8064,093(7.0)%11,54011,4950.4 %
Total Health Benefits Operating Revenue1
$43,357$42,2462.6 %$128,567$125,2592.6 %
1.See “Basis of Presentation” on page 5 herein.
2.Operating Gain for the three and nine months ended September 30, 2026 included $42 and $133 million, respectively, of transaction and integration related costs, $18 and $147 million, respectively, of business optimization charges, and $8 and $26 million, respectively, of litigation and settlement expenses. Operating Gain for the nine months ended September 30, 2026 also included $935 million for the Company's current best estimate of the identified potential exposure for certain historical Medicare Advantage risk adjustment data related to the CMS notice to the Company dated February 27, 2026. All adjustments for the three and nine month periods reside in the Corporate & Other reportable segment.
3.Operating Gain for the three and nine months ended September 30, 2025, included $49 and $182 million, respectively, of transaction and integration related costs, ($4) and ($4) million, respectively, of business optimization charges, and $4 and $19 million, respectively, of litigation and settlement expenses. All adjustments for the three and nine month periods reside in the Corporate & Other reportable segment.
4.Operating Gain for the three and nine months ended September 30, 2026, and September 30, 2025, include items excluded from adjusted shareholders' net income. See "GAAP Reconciliation" on pages 13 and 14 herein.
5.The Individual business, including ACA products, is reported as part of Commercial Operating Revenue.
6."NM" = calculation not meaningful.

11

Elevance Health
Reconciliation of Medical Claims Payable
Nine Months Ended September 30Years Ended December 31
20262025202520242023
(In millions)(Unaudited)(Unaudited)
Gross medical claims payable, beginning of period$16,829 $15,580 $15,580 $15,865 $15,348 
Ceded medical claims payable, beginning of period(48)(13)(13)(7)(6)
Net medical claims payable, beginning of period16,781 15,567 15,567 15,858 15,342 
Business combinations and purchase adjustments— 344 344 143 — 
Net incurred medical claims:
Current year108,608 108,423 145,566 125,370 121,798 
Prior years redundancies1
(1,295)(1,266)(1,290)(1,731)(1,571)
Total net incurred medical claims107,313 107,157 144,276 123,639 120,227 
Net payments attributable to:
Current year medical claims92,416 93,545 130,265 110,930 107,146 
Prior years medical claims13,629 12,699 13,141 13,143 12,565 
Total net payments106,045 106,244 143,406 124,073 119,711 
Net medical claims payable, end of period18,049 16,824 16,781 15,567 15,858 
Ceded medical claims payable, end of period45 44 48 13 7 
Gross medical claims payable, end of period2
$18,094 $16,868 $16,829 $15,580 $15,865 
Current year medical claims paid as a percentage of current year net incurred medical claims85.1 %86.3 %89.5 %88.5 %88.0 %
Prior year redundancies in the current year as a percentage of prior year net medical claims payable less prior year redundancies in the current year8.4 %8.9 %9.0 %12.3 %11.4 %
Prior year redundancies in the current year as a percentage of prior year net incurred medical claims0.9 %1.0 %1.0 %1.4 %1.4 %

1.Negative amounts reported for net incurred medical claims related to prior years result from claims being settled for amounts less than originally estimated.
2.Excludes insurance lines other than short duration.

12

Elevance Health
GAAP Reconciliation
(Unaudited)
This document references non-GAAP measures, including “Adjusted Diluted EPS,” “Adjusted Operating Expense Ratio,” “Adjusted Operating Gain,” “Adjusted Operating Margin,” “Adjusted Shareholders’ Net Income,” and “Adjusted Operating Expense”. These non-GAAP measures are intended to aid investors when comparing Elevance Health’s financial results among periods and are not intended to be alternatives to any measure calculated in accordance with GAAP. Reconciliations of these non-GAAP measures to the most directly comparable measures calculated in accordance with GAAP are available below. In addition to these non-GAAP measures, references are made to the measures “Operating Revenue,” “Operating Gain/Loss,” and “Operating Margin”. Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reportable segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and operating expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets and gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Each of these measures is provided to further aid investors in understanding and analyzing Elevance Health’s operating and financial results. A reconciliation of Operating Revenue to Total Revenue is set forth in the Consolidated Statements of Income herein. A reconciliation of reportable segments operating gain to income before income tax expense is provided below. Prior amounts may be grouped differently to conform to the current presentation. Net adjustment items per share may not sum due to rounding.
Three Months Ended September 30Nine Months Ended September 30
(In millions, except per share data)20262025Change20262025Change
Shareholders' net income$1,365 $1,189 14.8 %$4,592 $5,115 (10.2)%
Add / (Subtract):
Amortization of other intangible assets106 162 328 464 
Net losses on financial instruments48 1 182 596 
Transaction and integration related costs1
42 49 133 182 
Business optimization program charges1
18 (4)147 (4)
Litigation and settlement expenses1
8 4 26 19 
Accrual related to CMS notice1,2
— — 935 — 
Tax impact of non-GAAP adjustments(67)(52)(427)(307)
Net adjustment items155 160 1,324 950 
Adjusted shareholders' net income$1,520 $1,349 12.7 %$5,916 $6,065 (2.5)%
Shareholders' earnings per diluted share$6.27 $5.32 17.9 %$21.01 $22.67 (7.3)%
Add / (Subtract):
Amortization of other intangible assets0.49 0.72 1.50 2.06 
Net losses on financial instruments0.22 — 0.83 2.64 
Transaction and integration related costs1
0.19 0.22 0.61 0.81 
Business optimization program charges1
0.08 (0.02)0.67 (0.02)
Litigation and settlement expenses1
0.04 0.02 0.12 0.08 
Accrual related to CMS notice1,2
— — 4.28 — 
Tax impact of non-GAAP adjustments(0.31)(0.23)(1.95)(1.36)
Net adjustment items0.72 0.71 6.05 4.21 
Adjusted shareholders' earnings per diluted share
$6.99 $6.03 15.9 %$27.06 $26.88 0.7 %
Three Months Ended September 30Nine Months Ended September 30
(In millions)20262025Change20262025Change
Income before income tax expense$1,794 $1,406 27.6 %$6,035 $6,495 (7.1)%
Net investment income(1,037)(625)(2,506)(1,701)
Net losses on financial instruments48 1 182 596 
Interest expense358 351 1,079 1,036 
Amortization of other intangible assets106 162 328 464 
Reportable segments operating gain$1,269 $1,295 (2.0)%$5,118 $6,890 (25.7)%
1.Adjustment item resides in the Corporate & Other reportable segment.
2.Adjustment item represents the Company's current best estimate of the identified potential exposure for certain historical Medicare Advantage risk adjustment data related to the CMS notice to the Company dated February 27, 2026.

13

Elevance Health
GAAP Reconciliation
(Unaudited)
Three Months Ended September 30Nine Months Ended September 30
(In millions)20262025Change20262025Change
Reportable segments operating gain$1,269 $1,295 (2.0)%$5,118 $6,890 (25.7)%
Add / (Subtract):
Transaction and integration related costs1
42 49 133 182 
Business optimization program charges1
18 (4)147 (4)
Litigation and settlement expenses1
8 4 26 19 
Accrual related to CMS notice1,2
— — 935 — 
Net adjustment items
68 49 1,241 197 
Reportable segments adjusted operating gain$1,337 $1,344 (0.5)%$6,359 $7,087 (10.3)%
Operating revenue$50,440$50,0870.7 %$149,760$148,2731.0 %
Operating margin2.5 %2.6 %(10) bp3.4 %4.6 %(120) bp
Adjusted operating margin2.7 %2.7 %— bp4.2 %4.8 %(60) bp
Three Months Ended September 30Nine Months Ended September 30
(In millions)20262025Change20262025Change
Operating expense$5,752 $5,272 9.1 %$17,629 $15,569 13.2 %
Add / (Subtract):
Transaction and integration related costs1
(42)(49)(133)(182)
Business optimization program charges1
(18)4 (147)4 
Litigation and settlement expenses1
(8)(4)(26)(19)
Accrual related to CMS notice1,2
— — (935)— 
Net adjustment items(68)(49)(1,241)(197)
Adjusted operating expense$5,684 $5,223 8.8 %$16,388 $15,372 6.6 %
Operating revenue$50,440$50,0870.7 %$149,760$148,2731.0 %
Operating expense ratio11.4 %10.5 %90 bp11.8 %10.5 %130 bp
Adjusted operating expense ratio11.3 %10.4 %90 bp10.9 %10.4 %50 bp
Full Year 2026 Outlook
Shareholders' earnings per diluted shareAt least $22.00
Add / (Subtract):
Accrual related to CMS notice1,2
$4.28 
Amortization of other intangible assets3
$2.02 
Net losses on financial instruments3
$1.16 
Transaction and integration related costs1,3
$0.91 
Business optimization program charges1
$0.67 
Litigation and settlement expenses1,3
$0.16 
Tax impact of non-GAAP adjustments3
Approximately ($2.20)
Net adjustment items$7.00 
Adjusted shareholders' earnings per diluted shareAt least $29.00
1.Adjustment item resides in the Corporate & Other reportable segment.
2.Adjustment item represents the Company's current best estimate of the identified potential exposure for certain historical Medicare Advantage risk adjustment data related to the CMS notice to the Company dated February 27, 2026.
3.Adjustment item represents the midpoint of a projected range and serves as the estimated full year adjustment amount.

14

Forward-Looking Statements
This document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our views about future events and financial performance and are generally not historical facts. Words such as “expect,” “feel,” “believe,” “will,” “may,” “should,” “anticipate,” “intend,” “estimate,” “project,” “forecast,” “plan,” "potential," "predict" and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to: financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. You are also urged to carefully review and consider the various risks and other disclosures discussed in our reports filed with the U.S. Securities and Exchange Commission from time to time, which attempt to advise interested parties of the factors that affect our business. Except to the extent required by law, we do not update or revise any forward-looking statements to reflect events or circumstances occurring after the date hereof. These risks and uncertainties include, but are not limited to: trends in healthcare costs and utilization rates; reduced enrollment; our ability to secure and implement sufficient premium rates; the impact of large scale medical emergencies, such as public health epidemics and pandemics, and other catastrophes; the impact of new or changes in existing federal, state and international laws or regulations, including laws and regulations impacting healthcare, insurance, pharmacy services and other diversified products and services, or their enforcement or application; the impact of cyber-attacks or other privacy or data security incidents or our failure to comply with any privacy, data or security laws or regulations, including any investigations, claims or litigation related thereto; failure to effectively maintain and modernize our information systems, or failure of our information systems or technology, including artificial intelligence, to operate as intended; failure to effectively maintain the availability and integrity of our data; changes in economic and market conditions, as well as regulations that may negatively affect our liquidity and investment portfolios; competitive pressures and our ability to adapt to changes in the industry and develop and implement strategic growth opportunities; risks and uncertainties regarding Medicare and Medicaid programs, including those related to non-compliance with the complex regulations imposed thereon; our ability to maintain and achieve improvement in Centers for Medicare and Medicaid Services Star Ratings and other quality scores and funding risks with respect to revenue received from participation therein; a negative change in our healthcare product mix; costs and other liabilities associated with litigation, government investigations, audits or reviews; our ability to contract with providers on cost-effective and competitive terms; risks associated with providing healthcare, pharmacy and other diversified products and services, including medical malpractice or professional liability claims and non-compliance by any party with the pharmacy services agreement between us and CaremarkPCS Health, L.L.C.; the effects of any negative publicity or sentiment related to the health benefits industry in general or us in particular; risks associated with mergers, acquisitions, joint ventures and strategic alliances; possible impairment of the value of our intangible assets if future results do not adequately support goodwill and other intangible assets; possible restrictions in the payment of dividends from our subsidiaries and increases in required minimum levels of capital; our ability to repurchase shares of our common stock and pay dividends on our common stock due to the adequacy of our cash flow and earnings and other considerations; the potential negative effect from our substantial amount of outstanding indebtedness and the risk that increased interest rates or market volatility could impact our access to or further increase the cost of financing; a downgrade in our financial strength ratings; events that may negatively affect our licenses with the Blue Cross and Blue Shield Association; intense competition to attract and retain employees; risks associated with our international operations; and various laws and provisions in our governing documents that may prevent or discourage takeovers and business combinations.

15

Source: View Original Filing on SEC EDGAR

Filing Exhibits & Attachments

5 documents

Press Releases

Other Documents

Keep reading

More on ELV

All ELV news

Trending in the feed

SHMD
SCHMID Group Reaches Agreement on Significant Equipment Order to Support HDI Capacity Expansion in Malaysia Open the live feed

From our desk

Elevance Health Q3 2026 Earnings: Forecast Raised to $29, but 2027 Growth Starts Lower