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

Elevance Health (NYSE:ELV) announced its quarterly earnings data on Wednesday. The company reported $6.99 EPS for the quarter, beating the consensus estimate of $4.71 by $2.28, FiscalAI reports. Elevance Health had a return on equity of 14.97% and a net margin of 2.55%. The firm had revenue of $50.44 billion for the quarter, compared to analyst estimates of $49.28 billion. During the same period in the prior year, the company earned $6.03 EPS. The company’s revenue was up .7% on a year-over-year basis.

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 Performance

Shares of ELV opened at $445.85 on Friday. The company has a quick ratio of 1.52, a current ratio of 1.47 and a debt-to-equity ratio of 0.68. Elevance Health has a 52 week low of $274.84 and a 52 week high of $450.69. The stock has a market cap of $96.69 billion, a price-to-earnings ratio of 19.82, a PEG ratio of 2.12 and a beta of 0.70. The business has a 50-day simple moving average of $407.53 and a two-hundred day simple moving average of $390.54.

Elevance Health Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, December 18th. Investors of record on Friday, December 4th will be given a dividend of $1.72 per share. The ex-dividend date is Friday, December 4th. This represents a $6.88 annualized dividend and a yield of 1.5%. Elevance Health’s payout ratio is 30.58%.

Analyst Ratings Changes

A number of equities analysts recently issued reports on the stock. Raymond James Financial set a $450.00 price target on shares of Elevance Health in a research note on Tuesday, July 7th. Sanford C. Bernstein set a $488.00 price target on Elevance Health in a report on Thursday, July 16th. TD Cowen increased their price objective on shares of Elevance Health from $400.00 to $465.00 and gave the company a “buy” rating in a research report on Tuesday, July 14th. UBS Group increased their price target on shares of Elevance Health from $460.00 to $523.00 and gave the company a “buy” rating in a report on Thursday. Finally, Barclays increased their target price on Elevance Health from $469.00 to $472.00 and gave the company an “overweight” rating in a research note on Thursday. Fifteen equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Elevance Health currently has a consensus rating of “Moderate Buy” and an average target price of $450.29.

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.