Elevance Health raises 2026 outlook to at least $29 adjusted EPS after third-quarter beat

Elevance Health raised its 2026 earnings forecast on Wednesday after a third quarter in which medical costs ate up a smaller share of premiums than a year earlier.

The health insurer now expects full-year adjusted earnings of at least $29.00 a share and GAAP earnings of at least $22.00, according to its earnings release filed with an 8-K. It also raised its operating cash flow outlook to at least $6.5 billion.

Third-quarter adjusted earnings, a non-GAAP measure, rose 15.9% to $6.99 a share from $6.03. GAAP diluted earnings were $6.27 a share versus $5.32, and shareholders' net income rose 14.8% to $1.37 billion. The company said results included a net non-operating benefit of $1.85 a share; net investment income rose to $1.04 billion from $625 million.

Medical costs ease

The benefit expense ratio, the share of premiums spent on members' care, improved 70 basis points to 90.6%. Elevance credited better performance in Medicare Advantage and Individual ACA plans.

Operating revenue edged up 0.7% to $50.4 billion. Higher premium yields, CarelonRx product revenue and service fees offset fewer members in Medicare Advantage, Medicaid and employer risk-based plans.

Medical membership fell by 487,000 from a year earlier to about 44.9 million. Medicare Advantage enrollment dropped 15.5% to about 1.9 million.

Carelon grows, spending rises

Carelon operating revenue rose 5% to $19.3 billion and its operating gain climbed 17% to $0.9 billion. The Health Benefits segment's operating gain slipped to $0.4 billion from $0.6 billion, reflecting targeted investments.

The adjusted operating expense ratio rose 90 basis points to 11.3%, mainly because of one-time investments, the company said. Chief Executive Gail Boudreaux said Elevance remains confident in at least 12% adjusted EPS growth in 2027 from a 2026 baseline of at least $26.75.

Elevance bought back 0.8 million shares for $330 million in the quarter and declared a fourth-quarter dividend of $1.72 a share, payable Dec. 18 to holders of record on Dec. 4.

By the numbers

• Adjusted EPS: $6.99, vs. $6.03
• GAAP diluted EPS: $6.27, vs. $5.32
• Operating revenue: $50.4 billion, up 0.7%
• Benefit expense ratio: 90.6%, improved 70 basis points
• 2026 adjusted EPS guidance: at least $29.00
• Medical membership: about 44.9 million, down 487,000

Sources

1. Elevance Health, Inc., Form 8-K (Item 2.02) with Exhibit 99.1 earnings release, filed Oct. 21, 2026, accession 0001156039-26-000068

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.