EarningsQ3 2026 Earnings Report
MX:ELV Q3 2026 EPS Results
Actual EPS$130.60
Consensus EPS$88.07
Beat/MissBeat by +$42.52
One Year Ago EPS$112.66
MX:ELV Q3 2026 Revenue Results
Actual Revenue$960.88B
Expected Revenue$920.75B
Beat/MissBeat by +$40.12B
YoY Revenue Growth+1.42%
Earnings Announcement Details
QuarterQ3 2026
Date10/21/2026
TimeBefore Open
Conference CallWednesday, October 21, 2026
MX:ELV Upcoming Earnings
Elevance Health's next earnings date is estimated for January 27, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:ELV Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
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.Company Guidance
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.
Confidence in 2027 EPS Growth
Management remains confident in delivering at least 12% adjusted diluted earnings per share growth in 2027 from the higher 2026 earnings baseline. The expected growth is supported by continued Health Benefits margin improvement, broader adoption of Carelon solutions, and greater operating efficiency.
Third-Quarter EPS Beat Expectations
Third-quarter adjusted diluted earnings per share was $6.99, exceeding the company's outlook. Results included approximately $0.50 per share of operating outperformance and a $1.85 per-share net non-operating benefit, primarily related to valuation adjustments within investment income.
Improved Benefit Expense Ratio
The consolidated benefit expense ratio improved by 70 basis points to 90.6%. Medicaid, Medicare Advantage, and Individual ACA each delivered results favorable to the company's expectations.
Revenue Growth Despite Lower Health Plan Membership
Operating revenue increased just under 1% to $50.4 billion, driven by higher premium yields, CarelonRx product revenue, and service fees, which offset lower health plan membership.
Medical Membership and Commercial Fee-Based Growth
The company ended the quarter with approximately 44.9 million medical members. Growth in Commercial fee-based membership offset anticipated attrition in Medicaid.
Higher Operating Cash Flow Guidance
Operating cash flow totaled $1.3 billion in the quarter, and full-year operating cash flow guidance was raised to at least $6.5 billion.
Medicaid Performance Ahead of Outlook
Third-quarter Medicaid performance was ahead of outlook, primarily reflecting recent rate actions. The company is tracking slightly ahead of its prior full-year margin guidance and expects Medicaid margins to improve in 2027 as rates become better aligned with cost trends and medical cost actions gain traction.
Medicaid Cost Management Initiatives
Elevance is expanding evidence-based clinical oversight in behavioral health, strengthening care management, advancing targeted network actions while preserving access, expanding claims review and coding policies, and using AI-enabled analytics to identify potentially inappropriate billing and utilization patterns earlier.
Medicare Advantage Margin Improvement and Portfolio Repositioning
Product and geographic actions taken for 2026, along with the quality of retained membership and disciplined medical cost management, support a full-year Medicare Advantage operating margin of at least 2%. Management expects the margin to improve in 2027 and continue progressing toward its long-term target range of 3%-5%.
Medicare Advantage Star Ratings
Approximately half of Medicare Advantage members will be enrolled in plans rated four stars or higher for 2027. The company again achieved an enterprise-wide average of four stars and continues investing in member experience, clinical quality, and provider engagement.
Individual ACA Performance Ahead of Expectations
Individual ACA claims continued to develop favorably, leading management to expect a modestly higher full-year operating margin. Enrollment remained ahead of expectations, with approximately 1.3 million members at the end of the third quarter and an expectation to end the year with at least 1.2 million members.
ACA Retention and Effectuation Strength
Exchange effectuation rates and retention were better than expected. Passive-renewal lapses were modestly lower than anticipated, expansion-market sales exceeded expectations, and lapses remained below midyear assumptions.
Strong CarelonRx Quarter
CarelonRx reported a strong quarter, with operating gain up 10.8% and an operating margin of 5.3%. Performance reflected solid underlying PBM execution and improved performance in dispensing assets.
Integrated Medical and Pharmacy Value
Members in integrated medical and pharmacy plans are benefiting from savings of up to $100 per member per month and experiencing about 30% or more fewer emergency room visits, according to management.
Carelon Clinical and Cost-Management Results
Carelon's risk-based oncology solution and cancer care engagement program reduced avoidable inpatient admissions by 15% in the commercial market. Elevate, the medical cost management platform, identified more than $300 million in anticipated savings during the year.
Carelon Services Sales Momentum
Carelon Services secured new wins across behavioral health, clinical care services, specialty, and post-acute businesses. Retention exceeded 90% across the majority of product and clinical risk solutions, and management said the pipeline remains broad.
Commercial Selling Season Progress
The 2027 Commercial selling season is progressing well, with a pipeline of over 1 million members in the RFP queue and meaningful wins for January 1, 2027. Several large jumbo employers returned to Anthem after moving away for 12 months, and the company reported solid progress in the Second Blue Bid market.
Specialty Pharmacy and Oncology Center of Excellence
The company launched an Oncology Center of Excellence within BioPlus. Management reported improvements in turnaround times, medication adherence, and quality and service measures for members and treating physicians.
Disciplined Capital Deployment
Near-term capital deployment is expected to remain intentionally disciplined, with a focus on maintaining balance sheet strength, funding targeted investments that support margin enhancements and Carelon growth, and remaining opportunistic on share repurchases. The long-term framework remains focused on reinvestment, disciplined M&A, dividends, and share repurchases.
MX:ELV Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed