Elevance Health (NYSE:ELV) Posts Quarterly Earnings Results, Beats Estimates By $2.28 EPS

Elevance Health (NYSE:ELV) issued its earnings results on Wednesday. The company reported $6.99 earnings per share for the quarter, topping analysts’ consensus estimates of $4.71 by $2.28, FiscalAI reports. The business had revenue of $50.44 billion for the quarter, compared to the consensus estimate of $49.28 billion. Elevance Health had a net margin of 2.47% and a return on equity of 14.64%. The firm’s revenue for the quarter was up .7% on a year-over-year basis. During the same period in the previous year, the company earned $6.03 earnings per share.

Here are the key takeaways from Elevance Health’s conference call:

• Elevance raised its 2026 adjusted EPS guidance to at least $29 and lifted its earnings baseline to at least $26.75, citing operating outperformance and improved visibility. Management reiterated expectations for at least 12% adjusted EPS growth in 2027.
• Third-quarter results benefited from favorable performance across Medicaid, Medicare Advantage, and individual ACA, with adjusted EPS of $6.99 and a 70-basis-point improvement in the consolidated benefit expense ratio to 90.6%.
• Medicaid margins are viewed as having reached a 2026 trough, with improvement expected in 2027 from better rate alignment, care management, behavioral-health oversight, payment integrity, and network actions. However, underlying cost trends remain elevated and states’ implementation of work requirements creates uncertainty around membership and acuity.
• Carelon delivered strong performance, including a 5.3% operating margin at CarelonRx, and management expects its integrated medical, pharmacy, behavioral-health, and home-care offerings to become a larger contributor to earnings through internal adoption and external client wins.
• Medicare Advantage is expected to improve from at least a 2% operating margin in 2026 toward the company’s 3%-5% long-term target, while commercial margins are being priced for stability amid low-double-digit medical cost trends and ongoing pressure from the independent dispute resolution process.

Elevance Health Stock Down 1.1%

Shares of NYSE ELV opened at $435.26 on Thursday. The company’s 50 day moving average price is $406.59 and its 200-day moving average price is $389.52. The company has a debt-to-equity ratio of 0.68, a quick ratio of 1.52 and a current ratio of 1.52. Elevance Health has a 52-week low of $274.84 and a 52-week high of $450.69. The company has a market capitalization of $94.39 billion, a P/E ratio of 19.34, a price-to-earnings-growth ratio of 2.29 and a beta of 0.70.

Elevance Health Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 18th. Stockholders of record on Friday, December 4th will be given a dividend of $1.72 per share. This represents a $6.88 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date is Friday, December 4th. Elevance Health’s dividend payout ratio (DPR) is 30.58%.

Analyst Ratings Changes

A number of research firms recently weighed in on ELV. Leerink Partners boosted their target price on Elevance Health from $364.00 to $395.00 and gave the stock a “market perform” rating in a report on Friday, July 17th. Wall Street Zen cut shares of Elevance Health from a “buy” rating to a “hold” rating in a research note on Sunday, July 12th. Wells Fargo & Company decreased their price target on shares of Elevance Health from $492.00 to $473.00 and set an “overweight” rating on the stock in a research note on Thursday, July 16th. Raymond James Financial set a $450.00 price target on shares of Elevance Health in a report on Tuesday, July 7th. Finally, Sanford C. Bernstein set a $488.00 price objective on shares of Elevance Health in a research report on Thursday, July 16th. Fifteen research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $442.48.

Elevance Health News Summary

Here are the key news stories impacting Elevance Health this week:

• Positive Sentiment: Elevance raised its 2026 adjusted EPS outlook, with company commentary indicating a new baseline of at least $26.75 and other coverage citing guidance of at least $29. The company also expects at least 12% adjusted EPS growth in 2027 from the higher earnings base. Elevance Health Reports Third Quarter 2026 Results; Raises Full-Year Guidance
• Positive Sentiment: Improved medical-cost management and disciplined spending helped drive the earnings beat. Carelon was a key growth contributor, while its cancer program reduced avoidable inpatient admissions by 15%, supporting the company’s diversification and longer-term margin potential. Elevance lifts 2026 profit forecast on better medical cost management
• Positive Sentiment: The quarterly dividend remains $1.72 per share, or $6.88 annualized, providing a roughly 1.6% yield and signaling continued shareholder returns. Elevance Health dividend information
• Neutral Sentiment: Jeff Park will become president of Carelon on December 1, bringing new leadership to a strategically important business expected to support future growth. Elevance Health Names Jeff Park President of Carelon
• Negative Sentiment: Investors remain concerned about the durability of the recovery. Nine-month operating gain declined 25.7%, and Health Benefits margins—particularly in Medicaid—remain pressured. Medical membership also fell, meaning the improved quarter may not fully resolve underlying profitability concerns. Elevance Health: Better Results, But Not Enough To Buy

About Elevance Health

Elevance Health, Inc (NYSE: ELV) is a diversified health benefits company that provides health insurance and related services in the United States. Its offerings serve employers, individuals and families, as well as members of government-sponsored programs, including Medicare and Medicaid. The company provides medical, pharmacy, behavioral health and other benefits through a range of health plans and specialty products.

Elevance Health operates its health benefits businesses through a portfolio that includes Blue Cross and Blue Shield-affiliated plans and other insurance offerings.