Elevance Health (A58) AI Stock Analysis

Elevance Health

(XETRA:A58)

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Positive Factors

Strong cash generationThe sharp free-cash-flow rebound and strong conversion from earnings provide internal funding for investments, dividends, and other capital priorities. This cash capacity improves resilience across underwriting cycles and supports Carelon expansion without relying excessively on external financing.

Negative Factors

Persistent margin compressionMulti-year margin erosion means revenue growth is not translating proportionally into earnings, leaving less buffer against medical-cost volatility. If profitability remains compressed, Elevance may have less flexibility to invest, absorb adverse claims development, or improve returns while maintaining competitive pricing.

Elevance Health (A58) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 91.10B
Dividend Yield: 1.56%
Average Volume (3M): 19
Price to Earnings (P/E): 17.9
Beta (1Y): 0.29
Revenue Growth: -1.49%
EPS Growth: -9.00%
Country: Germany
Employees: 96,615
Sector: Healthcare
Sector Strength: 51
Industry: Medical - Healthcare Plans

Elevance Health Business Overview & Revenue Model

Company Description

Operating as a major health benefits organization, Elevance Health Inc. commits to guiding consumers, families, and communities across their entire health and wellness path. It facilitates access to vital care, assistance, and tools designed to enabl...

Elevance Health Earnings Call Summary

Earnings Call Date:Oct 20, 2026(Q3-2026)|% Change Since:-4.05%|Next Earnings Date:Jan 26, 2027

Earnings Call SentimentPositive

The call was strongly positive. Elevance Health reported better-than-expected third-quarter results, raised 2026 adjusted EPS guidance to at least $29, increased its earnings baseline to at least $26.75, raised operating cash flow guidance to at least $6.5 billion, and maintained confidence in at least 12% adjusted EPS growth in 2027. Medicaid cost trends, commercial cost pressures, IDR-related issues, ACA risk-pool normalization, and a non-recurring fourth-quarter tax item remain challenges, but management characterized operating performance and visibility as improving across the enterprise.

Positive Updates

Raised 2026 Earnings Guidance and Higher Earnings Baseline

Elevance Health raised 2026 adjusted diluted earnings per share guidance to at least $29. The 2026 earnings baseline increased by $0.75 to at least $26.75, reflecting third-quarter operating outperformance and an improved full-year outlook for Individual ACA.

Negative Updates

Elevated Medicaid Cost Trend

Medicaid cost trend remained elevated, although management described it as relatively stable compared with the second quarter. Rates have improved but have not fully caught up with the underlying cost of care.

Company Guidance

Elevance Health raised 2026 adjusted diluted earnings per share guidance to at least $29 and its 2026 earnings baseline to at least $26.75, and remains confident in delivering at least 12% adjusted diluted earnings per share growth in 2027; Medicaid margins are expected to improve in 2027, with a long-term margin target of 2%-4%, Medicare Advantage is expected to deliver a full-year operating margin of at least 2% in 2026 and move toward a long-term target margin range of 3%-5%, Individual ACA is expected to have a modestly higher full-year operating margin and end 2026 with at least 1.2 million members, full-year operating cash flow guidance was raised to at least $6.5 billion, Commercial Group cost trend for 2026 and 2027 was priced for a low double-digit cost trend environment, and the risk pool is expected to take more than one renewal cycle to normalize following the expiration of those enhanced subsidies.

Elevance Health Risk Analysis

Elevance Health disclosed 28 risk factors in its most recent earnings report. Elevance Health reported the most risks in the "Ability to Sell" category.

Ability to Sell - Risks related to the company’s ability to sell goods and services

Latest Risks Added

0 New Risks

Elevance Health Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

DE:A58 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CI	72Outperform	$78.80B	12.30	15.24%	2.08%	8.15%	31.47%
CNC	64Neutral	$33.89B	23.13	6.78%	―	9.71%	―
UNH	62Neutral	$365.29B	23.23	16.10%	2.23%	3.33%	―
HUM	60Neutral	$49.77B	38.92	6.91%	0.85%	18.33%	-18.53%
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CVS	48Neutral	$115.43B	23.56	6.43%	2.95%	7.41%	6.51%

* Healthcare Sector Average

Performance Comparison

DE:A58 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:A58	Elevance Health, Inc.	374.00	107.99	40.59%
CNC	Centene	68.45	33.95	98.41%
CI	Cigna	298.23	45.34	17.93%
CVS	CVS Health Corp	90.25	14.15	18.59%
HUM	Humana	414.50	138.19	50.01%
UNH	Unitedhealth Group Inc.	406.97	81.84	25.17%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Elevance Health AI Stock Analysis