Elevance Health (NYSE:ELV) Beats Q2 Sales Targets

Health insurance provider Elevance Health (NYSE:EVH) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 13.4% year on year to $49.78 billion. Its non-GAAP profit of $8.84 per share was 1.4% below analysts’ consensus estimates.

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Company Overview

Formerly known as Anthem until its 2022 rebranding, Elevance Health (NYSE:ELV) is one of America's largest health insurers, serving approximately 47 million medical members through its network-based managed care plans.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, Elevance Health’s 10.9% annualized revenue growth over the last five years was decent. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Elevance Health’s recent performance shows its demand has slowed as its annualized revenue growth of 6.9% over the last two years was below its five-year trend.

Elevance Health also reports its number of customers, which reached 45.62 million in the latest quarter. Over the last two years, Elevance Health’s customer base averaged 2.1% year-on-year declines. Because this number is lower than its revenue growth, we can see the average customer spent more money each year on the company’s products and services.

This quarter, Elevance Health reported year-on-year revenue growth of 13.4%, and its $49.78 billion of revenue exceeded Wall Street’s estimates by 3%.

Looking ahead, sell-side analysts expect revenue to grow 6.9% over the next 12 months, similar to its two-year rate. This projection is above average for the sector and suggests its newer products and services will help sustain its recent top-line performance.

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Operating Margin

Elevance Health’s operating margin might fluctuated slightly over the last 12 months but has generally stayed the same, averaging 5.7% over the last five years. This profitability was paltry for a healthcare business and caused by its suboptimal cost structure.

Looking at the trend in its profitability, Elevance Health’s operating margin of 4.7% for the trailing 12 months may be around the same as five years ago, but it has decreased by 1.7 percentage points over the last two years. Still, we’re optimistic that Elevance Health can correct course and expand its profitability on a longer-term horizon due to its business quality.

In Q2, Elevance Health generated an operating margin profit margin of 5.3%, down 2.2 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Elevance Health’s EPS grew at a decent 6.2% compounded annual growth rate over the last five years. However, this performance was lower than its 10.9% annualized revenue growth, telling us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes.

In Q2, Elevance Health reported EPS at $8.84, down from $10.12 in the same quarter last year. This print was close to analysts’ estimates. Over the next 12 months, Wall Street expects Elevance Health’s full-year EPS of $33.02 to grow 10.9%.

Key Takeaways from Elevance Health’s Q2 Results

We enjoyed seeing Elevance Health beat analysts’ revenue expectations this quarter. On the other hand, its EPS missed and full-year EPS guidance fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 4.4% to $330 immediately following the results.

The latest quarter from Elevance Health’s wasn’t that good. One earnings report doesn’t define a company’s quality, though, so let’s explore whether the stock is a buy at the current price. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.