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INDIANAPOLIS--(BUSINESS WIRE)--Elevance Health, Inc. (NYSE: ELV) reported second quarter 2026 results ahead of expectations.
"Our second quarter results exceeded our outlook, supported by disciplined execution and improved operating performance across our diversified portfolio. We are raising our 2026 adjusted EPS guidance to at least $27.00 and accelerating targeted investments in the capabilities that matter most: medical cost management, member experience, provider connectivity, operating efficiency, and Carelon’s value-based solutions. These actions will strengthen how we operate, improve consistency over time, and reinforce our confidence in returning to at least 12% adjusted EPS growth in 2027 off our 2026 earnings baseline.”
Gail K. Boudreaux
President and Chief Executive Officer
1. | Earnings per diluted share ("EPS"). | |
2. | Refer to GAAP reconciliation tables for reconciliation of GAAP to adjusted measures. |
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| Elevance Health | |||||
| Consolidated Enterprise Highlights | |||||
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| (In billions) | Three Months Ended |
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| June 30, 2026 |
| June 30, 2025 |
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| Operating Revenue1 | $49.8 |
| $49.4 |
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| Operating Gain1,2 | $1.8 |
| $2.4 |
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| Adjusted Operating Gain1,3 | $1.8 |
| $2.5 |
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| Operating Margin1 | 3.5 % |
| 4.9 % |
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| Adjusted Operating Margin1,3 | 3.6 % |
| 5.0 % |
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1. | See “Basis of Presentation.” | |
2. | Operating Gain for the three months ended June 30, 2026, and June 30, 2025, include items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation." | |
3. | Adjusted Operating Gain for the three months ended June 30, 2026, and June 30, 2025, exclude items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation." |
Operating revenue was $49.8 billion in the second quarter of 2026, an increase of $0.4 billion compared to the prior year quarter. This was driven by higher premium yields in our Health Benefits segment and growth in CarelonRx product revenue, partially offset by anticipated declines in our Medicare Advantage, Medicaid, and Employer Group risk membership.
The benefit expense ratio of 89.7 percent increased 80 basis points year over year, driven by expected elevated medical cost trend in our Government businesses, partially offset by improved performance in Individual ACA compared to the prior year.
Days in Claims Payable stood at 45.4 days as of June 30, 2026, a decrease of 1.2 days from March 31, 2026 and an increase of 2.9 days year over year.
The operating expense ratio was 11.1 percent. The adjusted operating expense ratio was 11.0 percent, an increase of 100 basis points, driven primarily by targeted investments in our workforce and in capabilities that support our long-term operating model. We continue to manage expenses thoughtfully while investing in the priorities that strengthen enterprise performance over time.
Cash Flow & Balance Sheet
Operating cash flow of $1.9 billion in the quarter reflects timing of a state Medicaid pass-through payment and underlying business strength. As of June 30, 2026, cash and investments at the parent company totaled approximately $2.1 billion.
During the second quarter of 2026, the Company repurchased 0.7 million shares of its common stock for $234 million, at a weighted average price of $344.62, and paid a quarterly dividend of $1.72 per share, representing a distribution of cash totaling $373 million. As of June 30, 2026, the Company had approximately $5.3 billion of Board approved share repurchase authorization remaining.
Health Benefits is comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard®, Medicare, Medicaid, and Federal Employee Program businesses.
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| Health Benefits | |||||
| Reportable Segment Highlights | |||||
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| (In billions) | Three Months Ended |
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| June 30, 2026 |
| June 30, 2025 |
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| Operating Revenue1 | $42.7 |
| $41.6 |
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| Operating Gain1 | $0.9 |
| $1.6 |
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| Operating Margin1 | 2.1 % |
| 3.8 % |
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1. | See “Basis of Presentation.” |
Health Benefits segment operating revenue was $42.7 billion in the second quarter of 2026, an increase of $1.1 billion, or 3 percent compared to the prior year quarter, driven primarily by higher premium yields, partially offset by expected declines in our Medicare Advantage, Medicaid, and Employer Group risk membership.
Operating gain was $0.9 billion, a decrease year over year, reflecting higher benefit expense and targeted investments to support our workforce and strengthen enterprise performance, partially offset by operating revenue growth.
Medical membership of approximately 44.9 million as of June 30, 2026 decreased by 469 thousand sequentially, driven by a known commercial fee-based customer transition and anticipated attrition in our Individual ACA and Medicaid membership.
Carelon is comprised of CarelonRx and Carelon Services.
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| Carelon | |||||
| Reportable Segment Highlights | |||||
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| (In billions) | Three Months Ended |
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| June 30, 2026 |
| June 30, 2025 |
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| Operating Revenue1 | $19.2 |
| $18.1 |
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| Operating Gain1 | $0.9 |
| $0.9 |
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| Operating Margin1 | 4.9 % |
| 5.2 % |
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1. | See “Basis of Presentation.” |
Operating revenue for Carelon was $19.2 billion in the second quarter of 2026, an increase of $1.1 billion, or 6 percent compared to the prior year quarter. Growth was driven by the scaling of Carelon Services risk-based solutions and CarelonRx product revenue.
Operating gain for Carelon totaled $0.9 billion, an increase of 1 percent year over year, reflecting improved profitability in our specialty pharmacy.
Quarterly Dividend
On July 14, 2026, the Audit Committee of the Company's Board of Directors declared a third quarter 2026 dividend to shareholders of $1.72 per share. The third quarter dividend is payable on September 25, 2026, to shareholders of record at the close of business on September 10, 2026.
About Elevance Health
Elevance Health is a lifetime, trusted health partner whose purpose is to improve the health of humanity. The company supports consumers, families, and communities across the entire healthcare journey – connecting them to the care, support, and resources they need to lead better lives. Elevance Health’s companies serve approximately 104 million consumers through a diverse portfolio of industry-leading medical, pharmacy, behavioral, clinical, home health, and complex care solutions. For more information, please visit www.elevancehealth.com or follow us @ElevanceHealth on X and Elevance Health on LinkedIn.
Conference Call and Webcast
Management will host a conference call and webcast today at 8:30 a.m. Eastern Daylight Time (“EDT”) to discuss the company’s second quarter results and outlook. The conference call should be accessed at least 15 minutes prior to the start of the call with the following numbers:
888-947-9963 (Domestic) | 800-391-9853 (Domestic Replay) | |
312-470-0178 (International) | 203-369-3269 (International Replay) |
The access code for today's conference call is 3972058. There is no access code for the replay. The replay will be available from 11:30 a.m. EDT today, until the end of the day on August 14, 2026. The call will also be available through a live webcast at www.elevancehealth.com under the “Investors” link. A webcast replay will be available following the call.
Basis of Presentation
Elevance Health
Earnings Release Financial Schedules and Supplementary Information
Quarter & Year-to-Date Ended June 30, 2026
Elevance Health | |||||||||||
Membership and Other Metrics | |||||||||||
(Unaudited) | |||||||||||
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| Change from | ||||
Medical Membership (in thousands) |
June 30,
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June 30,
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March 31,
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June 30,
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March 31,
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Individual | 1,317 |
| 1,348 |
| 1,424 |
| (2.3 | )% |
| (7.5 | )% |
Employer Group Risk-Based | 3,417 |
| 3,615 |
| 3,439 |
| (5.5 | )% |
| (0.6 | )% |
Commercial Risk-Based | 4,734 |
| 4,963 |
| 4,863 |
| (4.6 | )% |
| (2.7 | )% |
BlueCard® | 6,582 |
| 6,570 |
| 6,579 |
| 0.2 | % |
| — | % |
Employer Group Fee-Based | 20,931 |
| 20,584 |
| 21,170 |
| 1.7 | % |
| (1.1 | )% |
Commercial Fee-Based | 27,513 |
| 27,154 |
| 27,749 |
| 1.3 | % |
| (0.9 | )% |
Medicare Advantage | 1,897 |
| 2,255 |
| 1,899 |
| (15.9 | )% |
| (0.1 | )% |
Medicare Supplement | 893 |
| 874 |
| 888 |
| 2.2 | % |
| 0.6 | % |
Total Medicare | 2,790 |
| 3,129 |
| 2,787 |
| (10.8 | )% |
| 0.1 | % |
Medicaid | 8,358 |
| 8,733 |
| 8,456 |
| (4.3 | )% |
| (1.2 | )% |
Federal Employee Program | 1,554 |
| 1,642 |
| 1,563 |
| (5.4 | )% |
| (0.6 | )% |
Total Medical Membership | 44,949 |
| 45,621 |
| 45,418 |
| (1.5 | )% |
| (1.0 | )% |
Other Metrics (in millions) |
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CarelonRx Quarterly Adjusted Scripts | 80.9 |
| 83.3 |
| 80.3 |
| (2.9 | )% |
| 0.7 | % |
Carelon Services Consumers Served | 92.4 |
| 97.3 |
| 92.9 |
| (5.0 | )% |
| (0.5 | )% |
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Elevance Health | |||||||||||||||||||||||
Consolidated Statements of Income | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
(In millions, except per share data) | Three Months Ended |
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June 30 | June 30 | ||||||||||||||||||||||
| 2026 |
| 2025 |
| Change |
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| 2026 |
| 2025 |
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Revenues |
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Premiums | $ | 41,279 |
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| $ | 41,271 |
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| — | % |
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| $ | 82,303 |
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| $ | 82,158 |
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| 0.2 | % | |
Product revenue |
| 6,264 |
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| 6,042 |
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| 3.7 | % |
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| 12,489 |
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| 11,851 |
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| 5.4 | % | |
Service fees |
| 2,283 |
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| 2,108 |
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| 8.3 | % |
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| 4,528 |
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| 4,177 |
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| 8.4 | % | |
Total operating revenue |
| 49,826 |
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| 49,421 |
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| 0.8 | % |
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| 99,320 |
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| 98,186 |
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| 1.2 | % | |
Net investment income |
| 704 |
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| 486 |
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| 44.9 | % |
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| 1,469 |
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| 1,076 |
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| 36.5 | % | |
Net losses on financial instruments |
| (56 | ) |
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| (131 | ) |
| NM |
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| (134 | ) |
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| (595 | ) |
| NM |
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Total revenues |
| 50,474 |
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| 49,776 |
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| 1.4 | % |
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| 100,655 |
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| 98,667 |
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| 2.0 | % | |
Expenses |
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Benefit expense |
| 37,024 |
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| 36,706 |
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| 0.9 | % |
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| 72,639 |
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| 72,018 |
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| 0.9 | % | |
Cost of products sold |
| 5,492 |
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| 5,293 |
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| 3.8 | % |
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| 10,955 |
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| 10,276 |
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| 6.6 | % | |
Operating expense |
| 5,547 |
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| 4,997 |
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| 11.0 | % |
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| 11,877 |
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| 10,297 |
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| 15.3 | % | |
Interest expense |
| 364 |
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| 341 |
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| 6.7 | % |
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| 721 |
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| 685 |
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| 5.3 | % | |
Amortization of other intangible assets |
| 110 |
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| 147 |
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| (25.2 | )% |
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| 222 |
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| 302 |
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| (26.5 | )% | |
Total expenses |
| 48,537 |
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| 47,484 |
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| 2.2 | % |
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| 96,414 |
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| 93,578 |
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| 3.0 | % | |
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Income before income tax expense |
| 1,937 |
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| 2,292 |
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| (15.5 | )% |
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| 4,241 |
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| 5,089 |
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| (16.7 | )% | |
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Income tax expense |
| 483 |
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| 548 |
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| (11.9 | )% |
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| 1,027 |
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| 1,161 |
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| (11.5 | )% | |
Net income |
| 1,454 |
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| 1,744 |
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| (16.6 | )% |
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| 3,214 |
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| 3,928 |
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| (18.2 | )% | |
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Net loss (gain) attributable to noncontrolling interests |
| 9 |
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| (1 | ) |
| NM |
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| 13 |
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| (2 | ) |
| NM |
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Shareholders' net income | $ | 1,463 |
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| $ | 1,743 |
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| (16.1 | )% |
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| $ | 3,227 |
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| $ | 3,926 |
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| (17.8 | )% | |
Shareholders' earnings per diluted share | $ | 6.71 |
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| $ | 7.72 |
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| (13.1 | )% |
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| $ | 14.73 |
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| $ | 17.33 |
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| (15.0 | )% | |
Diluted shares |
| 217.9 |
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| 225.8 |
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| (3.5 | )% |
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| 219.1 |
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| 226.5 |
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| (3.3 | )% | |
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Benefit expense as a percentage of premiums |
| 89.7 | % |
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| 88.9 | % |
| 80 bp |
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| 88.3 | % |
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| 87.7 | % |
| 60 bp | |||
Operating expense as a percentage of total operating revenue |
| 11.1 | % |
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| 10.1 | % |
| 100 bp |
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| 12.0 | % |
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| 10.5 | % |
| 150 bp | |||
Income before income tax expense as a percentage of total revenue |
| 3.8 | % |
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| 4.6 | % |
| (80) bp |
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| 4.2 | % |
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| 5.2 | % |
| (100) bp | |||
"NM" = calculation not meaningful | |||||||||||||||||||||||
Elevance Health | ||||||
Condensed Consolidated Balance Sheet | ||||||
(In millions) |
June 30, |
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December 31, | |||
Assets | (Unaudited) |
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Current assets: |
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Cash and cash equivalents | $ | 10,232 |
| $ | 9,491 | |
Fixed maturity and equity securities |
| 27,282 |
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| 26,624 | |
Premium and other receivables |
| 23,392 |
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| 21,542 | |
Other current assets |
| 6,278 |
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| 5,344 | |
Total current assets |
| 67,184 |
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| 63,001 | |
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Long-term investments |
| 12,389 |
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| 11,960 | |
Property and equipment, net |
| 4,645 |
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| 4,679 | |
Goodwill and other intangible assets |
| 39,322 |
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| 39,544 | |
Other noncurrent assets |
| 2,898 |
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| 2,310 | |
Total assets | $ | 126,438 |
| $ | 121,494 | |
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Liabilities and equity |
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Liabilities |
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Current liabilities: |
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Medical claims payable | $ | 18,463 |
| $ | 17,084 | |
Short-term borrowings |
| — |
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| 150 | |
Current portion of long-term debt |
| 375 |
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| 1,099 | |
Other current liabilities |
| 25,416 |
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| 22,702 | |
Total current liabilities |
| 44,254 |
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| 41,035 | |
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Long-term debt, less current portion |
| 30,669 |
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| 30,797 | |
Other noncurrent liabilities |
| 6,493 |
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| 5,636 | |
Total liabilities |
| 81,416 |
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| 77,468 | |
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Total shareholders’ equity |
| 44,883 |
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| 43,882 | |
Noncontrolling interests |
| 139 |
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| 144 | |
Total equity |
| 45,022 |
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| 44,026 | |
Total liabilities and equity | $ | 126,438 |
| $ | 121,494 | |
Elevance Health | ||||||||
Condensed Consolidated Statement of Cash Flows | ||||||||
(Unaudited) | ||||||||
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(In millions) | Six Months Ended June 30 | |||||||
| 2026 |
| 2025 | |||||
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Operating activities |
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Net income | $ | 3,214 |
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| $ | 3,928 |
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Depreciation and amortization |
| 720 |
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| 753 |
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Share-based compensation |
| 130 |
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| 162 |
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Changes in operating assets and liabilities |
| 2,700 |
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| (2,003 | ) | |
Other non-cash items |
| (519 | ) |
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| 231 |
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Net cash provided by operating activities |
| 6,245 |
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| 3,071 |
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Investing activities |
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Sales and maturities of investments, net of purchases (purchases of investments, net of sales and maturities) |
| (813 | ) |
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| 329 |
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Purchases of subsidiaries, net of cash acquired |
| 5 |
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| 54 |
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Purchases of property and equipment |
| (522 | ) |
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| (463 | ) | |
Other, net |
| (153 | ) |
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| (504 | ) | |
Net cash used in investing activities |
| (1,483 | ) |
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| (584 | ) | |
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Financing activities |
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Net change in short-term and long-term borrowings |
| (900 | ) |
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| (1,255 | ) | |
Repurchase and retirement of common stock |
| (1,358 | ) |
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| (1,258 | ) | |
Cash dividends |
| (749 | ) |
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| (771 | ) | |
Other, net |
| (1,002 | ) |
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| 1,067 |
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Net cash used in financing activities |
| (4,009 | ) |
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| (2,217 | ) | |
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Effect of foreign exchange rates on cash and cash equivalents |
| (12 | ) |
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| 2 |
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Change in cash and cash equivalents |
| 741 |
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| 272 |
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Cash and cash equivalents at beginning of period |
| 9,491 |
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| 8,288 |
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Cash and cash equivalents at end of period | $ | 10,232 |
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| $ | 8,560 |
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REPORTABLE SEGMENTS
Elevance Health has four reportable segments: Health Benefits (comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard®, Medicare, Medicaid, and Federal Employee Program businesses); CarelonRx; Carelon Services; and Corporate & Other (comprised of businesses that do not individually meet the quantitative thresholds for an operating division as well as corporate expenses not allocated to our other reportable segments).
Elevance Health | ||||||||||||||||||||||
Reportable Segment Details | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
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(In millions) | Three Months Ended June 30 |
| Six Months Ended June 30 | |||||||||||||||||||
| 2026 |
| 2025 |
| Change |
| 2026 |
| 2025 |
| Change | |||||||||||
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Operating Revenue |
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Health Benefits | $ | 42,720 |
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| $ | 41,582 |
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| 2.7 | % |
| $ | 85,210 |
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| $ | 83,013 |
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| 2.6 | % | |
CarelonRx |
| 11,250 |
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| 10,643 |
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| 5.7 | % |
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| 21,850 |
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| 20,759 |
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| 5.3 | % | |
Carelon Services |
| 7,975 |
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| 7,441 |
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| 7.2 | % |
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| 15,340 |
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| 13,977 |
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| 9.8 | % | |
Corporate & Other |
| 6 |
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| 232 |
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| (97.4 | )% |
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| 10 |
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| 397 |
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| (97.5 | )% | |
Eliminations |
| (12,125 | ) |
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| (10,477 | ) |
| NM6 |
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| (23,090 | ) |
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| (19,960 | ) |
| NM6 | |||
Total Operating Revenue1 | $ | 49,826 |
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| $ | 49,421 |
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| 0.8 | % |
| $ | 99,320 |
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| $ | 98,186 |
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| 1.2 | % | |
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Operating Gain (Loss) |
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Health Benefits | $ | 896 |
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| $ | 1,560 |
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| (42.6 | )% |
| $ | 3,053 |
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| $ | 3,777 |
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| (19.2 | )% | |
CarelonRx |
| 582 |
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| 536 |
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| 8.6 | % |
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| 1,164 |
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| 1,138 |
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| 2.3 | % | |
Carelon Services |
| 366 |
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| 400 |
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| (8.5 | )% |
|
| 836 |
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| 891 |
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| (6.2 | )% | |
Corporate & Other2,3 |
| (81 | ) |
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| (71 | ) |
| NM6 |
|
| (1,204 | ) |
|
| (211 | ) |
| NM6 | |||
Total Operating Gain1,4 | $ | 1,763 |
|
| $ | 2,425 |
|
| (27.3 | )% |
| $ | 3,849 |
|
| $ | 5,595 |
|
| (31.2 | )% | |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Operating Margin |
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Health Benefits |
| 2.1 | % |
|
| 3.8 | % |
| (170) bp |
|
| 3.6 | % |
|
| 4.5 | % |
| (90) bp | |||
CarelonRx |
| 5.2 | % |
|
| 5.0 | % |
| 20 bp |
|
| 5.3 | % |
|
| 5.5 | % |
| (20) bp | |||
Carelon Services |
| 4.6 | % |
|
| 5.4 | % |
| (80) bp |
|
| 5.4 | % |
|
| 6.4 | % |
| (100) bp | |||
Total Operating Margin1 |
| 3.5 | % |
|
| 4.9 | % |
| (140) bp |
|
| 3.9 | % |
|
| 5.7 | % |
| (180) bp | |||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Health Benefits Revenue Details | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(In millions) | Three Months Ended June 30 |
| Six Months Ended June 30 | |||||||||||||||||||
| 2026 |
| 2025 |
| Change |
| 2026 |
| 2025 |
| Change | |||||||||||
Health Benefits Operating Revenue |
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Commercial | $ | 13,561 |
|
| $ | 12,453 |
|
| 8.9 | % |
| $ | 26,799 |
|
| $ | 24,805 |
|
| 8.0 | % | |
Individual5 |
| 2,720 |
|
|
| 2,328 |
|
| 16.8 | % |
|
| 5,260 |
|
|
| 4,689 |
|
| 12.2 | % | |
Medicare |
| 10,962 |
|
|
| 11,446 |
|
| (4.2 | )% |
|
| 21,953 |
|
|
| 22,852 |
|
| (3.9 | )% | |
Medicaid |
| 14,444 |
|
|
| 13,911 |
|
| 3.8 | % |
|
| 28,724 |
|
|
| 27,954 |
|
| 2.8 | % | |
Federal Employee Program |
| 3,753 |
|
|
| 3,772 |
|
| (0.5 | )% |
|
| 7,734 |
|
|
| 7,402 |
|
| 4.5 | % | |
Total Health Benefits Operating Revenue1 | $ | 42,720 |
|
| $ | 41,582 |
|
| 2.7 | % |
| $ | 85,210 |
|
| $ | 83,013 |
|
| 2.6 | % | |
1. | See “Basis of Presentation.” | |
2. | Operating Gain for the three and six months ended June 30, 2026 included $44 and $91 million, respectively, of transaction and integration related costs, and $11 and $18 million, respectively, of litigation and settlement expenses. Operating Gain for the six months ended June 30, 2026 also included $935 million for the Company's current best estimate of the identified potential exposure for certain historical Medicare Advantage risk adjustment data related to the CMS notice to the Company dated February 27, 2026, and $129 million of business optimization program charges. All adjustments for the three and six month periods reside in the Corporate & Other reportable segment. | |
3. | Operating Gain for the three and six months ended June 30, 2025, included $53 and $133 million, respectively, of transaction and integration related costs and $10 and $15 million, respectively, of litigation and settlement expenses, which reside in the Corporate & Other reportable segment. | |
4. | Operating Gain for the three and six months ended June 30, 2026, and June 30, 2025, include items excluded from adjusted shareholders' net income. See "GAAP Reconciliation." | |
5. | The Individual business, including ACA products, is reported as part of Commercial Operating Revenue. | |
6. | "NM" = calculation not meaningful. |
Elevance Health | |||||||||||||||
Reconciliation of Medical Claims Payable | |||||||||||||||
| |||||||||||||||
| Six Months Ended June 30 |
| Years Ended December 31 | ||||||||||||
| 2026 |
| 2025 |
| 2025 |
| 2024 |
| 2023 | ||||||
(In millions) | (Unaudited) |
| (Unaudited) |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
| ||||||
Gross medical claims payable, beginning of period | $ | 16,829 |
| $ | 15,580 |
| $ | 15,580 |
| $ | 15,865 |
| $ | 15,348 | |
Ceded medical claims payable, beginning of period |
| (48) |
|
| (13) |
|
| (13) |
|
| (7) |
|
| (6) | |
Net medical claims payable, beginning of period |
| 16,781 |
|
| 15,567 |
|
| 15,567 |
|
| 15,858 |
|
| 15,342 | |
|
|
|
|
|
|
|
|
|
| ||||||
Business combinations and purchase adjustments |
| — |
|
| 182 |
|
| 344 |
|
| 143 |
|
| — | |
|
|
|
|
|
|
|
|
|
| ||||||
Net incurred medical claims: |
|
|
|
|
|
|
|
|
| ||||||
Current year |
| 71,743 |
|
| 71,090 |
|
| 145,566 |
|
| 125,370 |
|
| 121,798 | |
Prior years redundancies1 |
| (1,195) |
|
| (1,065) |
|
| (1,290) |
|
| (1,731) |
|
| (1,571) | |
Total net incurred medical claims |
| 70,548 |
|
| 70,025 |
|
| 144,276 |
|
| 123,639 |
|
| 120,227 | |
|
|
|
|
|
|
|
|
|
| ||||||
Net payments attributable to: |
|
|
|
|
|
|
|
|
| ||||||
Current year medical claims |
| 56,610 |
|
| 57,117 |
|
| 130,265 |
|
| 110,930 |
|
| 107,146 | |
Prior years medical claims |
| 12,619 |
|
| 11,802 |
|
| 13,141 |
|
| 13,143 |
|
| 12,565 | |
Total net payments |
| 69,229 |
|
| 68,919 |
|
| 143,406 |
|
| 124,073 |
|
| 119,711 | |
|
|
|
|
|
|
|
|
|
| ||||||
Net medical claims payable, end of period |
| 18,100 |
|
| 16,855 |
|
| 16,781 |
|
| 15,567 |
|
| 15,858 | |
Ceded medical claims payable, end of period |
| 44 |
|
| 16 |
|
| 48 |
|
| 13 |
|
| 7 | |
Gross medical claims payable, end of period2 | $ | 18,144 |
| $ | 16,871 |
| $ | 16,829 |
| $ | 15,580 |
| $ | 15,865 | |
|
|
|
|
|
|
|
|
|
| ||||||
Current year medical claims paid as a percentage of current year net incurred medical claims |
| 78.9 % |
|
| 80.3 % |
|
| 89.5 % |
|
| 88.5 % |
|
| 88.0 % | |
|
|
|
|
|
|
|
|
|
| ||||||
Prior year redundancies in the current year as a percentage of prior year net medical claims payable less prior year redundancies in the current year |
| 7.7 % |
|
| 7.3 % |
|
| 9.0 % |
|
| 12.3 % |
|
| 11.4 % | |
|
|
|
|
|
|
|
|
|
| ||||||
Prior year redundancies in the current year as a percentage of prior year net incurred medical claims |
| 0.8 % |
|
| 0.9 % |
|
| 1.0 % |
|
| 1.4 % |
|
| 1.4 % | |
1. | Negative amounts reported for net incurred medical claims related to prior years result from claims being settled for amounts less than originally estimated. | |
2. | Excludes insurance lines other than short duration. |
Elevance Health
GAAP Reconciliation
(Unaudited)
This document references non-GAAP measures, including “Adjusted Diluted EPS,” “Adjusted Operating Expense Ratio,” “Adjusted Operating Gain,” “Adjusted Operating Margin,” “Adjusted Shareholders’ Net Income,” and “Adjusted Operating Expense”. These non-GAAP measures are intended to aid investors when comparing Elevance Health’s financial results among periods and are not intended to be alternatives to any measure calculated in accordance with GAAP. Reconciliations of these non-GAAP measures to the most directly comparable measures calculated in accordance with GAAP are available below. In addition to these non-GAAP measures, references are made to the measures “Operating Revenue,” “Operating Gain/Loss,” and “Operating Margin”. Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reportable segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and operating expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets and gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Each of these measures is provided to further aid investors in understanding and analyzing Elevance Health’s operating and financial results. A reconciliation of Operating Revenue to Total Revenue is set forth in the Consolidated Statements of Income herein. A reconciliation of reportable segments operating gain to income before income tax expense is provided below. Prior amounts may be grouped differently to conform to the current presentation. Net adjustment items per share may not sum due to rounding.
| Three Months Ended June 30 |
|
|
| Six Months Ended June 30 |
|
| |||||||||||||||
(In millions, except per share data) | 2026 |
| 2025 |
| Change |
| 2026 |
| 2025 |
| Change | |||||||||||
Shareholders' net income | $ | 1,463 |
|
| $ | 1,743 |
|
| (16.1 | )% |
| $ | 3,227 |
|
| $ | 3,926 |
|
| (17.8 | )% | |
Add / (Subtract): |
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Amortization of other intangible assets |
| 110 |
|
|
| 147 |
|
|
|
|
| 222 |
|
|
| 302 |
|
|
| |||
Net losses on financial instruments |
| 56 |
|
|
| 131 |
|
|
|
|
| 134 |
|
|
| 595 |
|
|
| |||
Transaction and integration related costs1 |
| 44 |
|
|
| 53 |
|
|
|
|
| 91 |
|
|
| 133 |
|
|
| |||
Litigation and settlement expenses1 |
| 11 |
|
|
| 10 |
|
|
|
|
| 18 |
|
|
| 15 |
|
|
| |||
Accrual related to CMS notice1,2 |
| — |
|
|
| — |
|
|
|
|
| 935 |
|
|
| — |
|
|
| |||
Business optimization program charges1 |
| — |
|
|
| — |
|
|
|
|
| 129 |
|
|
| — |
|
|
| |||
Tax impact of non-GAAP adjustments |
| (60 | ) |
|
| (87 | ) |
|
|
|
| (360 | ) |
|
| (255 | ) |
|
| |||
Net adjustment items |
| 161 |
|
|
| 254 |
|
|
|
|
| 1,169 |
|
|
| 790 |
|
|
| |||
Adjusted shareholders' net income | $ | 1,624 |
|
| $ | 1,997 |
|
| (18.7 | )% |
| $ | 4,396 |
|
| $ | 4,716 |
|
| (6.8 | )% | |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Shareholders' earnings per diluted share | $ | 6.71 |
|
| $ | 7.72 |
|
| (13.1 | )% |
| $ | 14.73 |
|
| $ | 17.33 |
|
| (15.0 | )% | |
Add / (Subtract): |
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Amortization of other intangible assets |
| 0.50 |
|
|
| 0.65 |
|
|
|
|
| 1.01 |
|
|
| 1.33 |
|
|
| |||
Net losses on financial instruments |
| 0.26 |
|
|
| 0.58 |
|
|
|
|
| 0.61 |
|
|
| 2.63 |
|
|
| |||
Transaction and integration related costs1 |
| 0.20 |
|
|
| 0.23 |
|
|
|
|
| 0.42 |
|
|
| 0.59 |
|
|
| |||
Litigation and settlement expenses1 |
| 0.05 |
|
|
| 0.04 |
|
|
|
|
| 0.08 |
|
|
| 0.07 |
|
|
| |||
Accrual related to CMS notice1,2 |
| — |
|
|
| — |
|
|
|
|
| 4.27 |
|
|
| — |
|
|
| |||
Business optimization program charges1 |
| — |
|
|
| — |
|
|
|
|
| 0.59 |
|
|
| — |
|
|
| |||
Tax impact of non-GAAP adjustments |
| (0.28 | ) |
|
| (0.39 | ) |
|
|
|
| (1.64 | ) |
|
| (1.13 | ) |
|
| |||
Net adjustment items |
| 0.74 |
|
|
| 1.12 |
|
|
|
|
| 5.33 |
|
|
| 3.49 |
|
|
| |||
Adjusted shareholders' earnings per diluted share | $ | 7.45 |
|
| $ | 8.84 |
|
| (15.7 | )% |
| $ | 20.06 |
|
| $ | 20.82 |
|
| (3.7 | )% | |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
| Three Months Ended June 30 |
|
|
| Six Months Ended June 30 |
|
| |||||||||||||||
(In millions) | 2026 |
| 2025 |
| Change |
| 2026 |
| 2025 |
| Change | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Income before income tax expense | $ | 1,937 |
|
| $ | 2,292 |
|
| (15.5 | )% |
| $ | 4,241 |
|
| $ | 5,089 |
|
| (16.7 | )% | |
Net investment income |
| (704 | ) |
|
| (486 | ) |
|
|
|
| (1,469 | ) |
|
| (1,076 | ) |
|
| |||
Interest expense |
| 364 |
|
|
| 341 |
|
|
|
|
| 721 |
|
|
| 685 |
|
|
| |||
Amortization of other intangible assets |
| 110 |
|
|
| 147 |
|
|
|
|
| 222 |
|
|
| 302 |
|
|
| |||
Net losses on financial instruments |
| 56 |
|
|
| 131 |
|
|
|
|
| 134 |
|
|
| 595 |
|
|
| |||
Reportable segments operating gain | $ | 1,763 |
|
| $ | 2,425 |
|
| (27.3 | )% |
| $ | 3,849 |
|
| $ | 5,595 |
|
| (31.2 | )% | |
Elevance Health Contacts:
Investor Relations
Nathan Rich
Investor.Relations@elevancehealth.com
Media
Leslie Porras
Leslie.Porras@elevancehealth.com
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