Elevance Health reported first quarter operating revenue of $49.5 billion, a 1.5% increase year-over-year, and adjusted diluted EPS of $12.58. These results surpassed analyst expectations for revenue of $48.37 billion and EPS of $10.61, driven by better-than-expected medical costs and growth in the Carelon segment.
Key Highlights
- Elevance raised its full-year 2026 adjusted diluted EPS guidance to be at least $26.75, citing underlying business strength and increased visibility.
- The Medical Benefit Ratio was 86.8%, an increase of 40 basis points year-over-year but better than the 87.5% consensus estimate, reflecting improved performance in Medicare that offset higher costs in Medicaid.
- Medical membership declined 0.9% year-over-year to 45.4 million, impacted by an anticipated 15.8% reduction in Medicare Advantage members as the company repositions that business.
- The Carelon segment's operating revenue grew 7.9% to $18.0 billion, driven by the scaling of its risk-based solutions and pharmacy revenue.