Elevance Health 8-K
PositiveEarningsGuidance raised
Carelon growth contrasts with Health Benefits weakness; FY2026 adjusted EPS outlook raised to ≥$29
Filed 2026-10-21 06:01 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results with raised FY2026 guidance. Revenue rose 0.7% Y/Y, driven by higher premium yields, CarelonRx product revenue and service fees, partly offset by lower membership in Medicare Advantage, Medicaid and employer risk-based plans. Elevance raised its FY2026 EPS and operating cash flow outlook and said it expects at least 12% adjusted diluted EPS growth in FY2027 from a FY2026 baseline of at least $26.753, excluding specified nonrecurring and targeted one-time items.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Operating revenue | $50.4B, +0.7% Y/Y | $150B, +1.0% Y/Y |
| Reportable segments operating gain | $1.27B, -2.0% Y/Y | $5.12B, -25.7% Y/Y |
| Adjusted reportable segments operating gain | $1.34B, -0.5% Y/Y | $6.36B, -10.3% Y/Y |
| Shareholders’ net income | $1.37B, +14.8% Y/Y | $4.59B, -10.2% Y/Y |
| Adjusted shareholders’ net income | $1.52B, +12.7% Y/Y | $5.92B, -2.5% Y/Y |
| Diluted EPS | $6.27, +17.9% Y/Y | $21.01, -7.3% Y/Y |
| Adjusted diluted EPS | $6.99, +15.9% Y/Y | $27.06, +0.7% Y/Y |
| Operating cash flow | $1.3B, +$0.1B Y/Y | $7.51B, +78.6% Y/Y |
- The benefit expense ratio improved 70 bp to 90.6%; the operating expense ratio increased 90 bp to 11.4%, principally reflecting targeted investments and growth and quality initiatives. Health Benefits operating gain fell 27.5% to $436M, while Carelon operating gain rose 17% to $908M.
- Q3 EPS included a $1.85/share net non-operating benefit. 9M results included a $935M current best estimate of potential exposure related to historical Medicare Advantage risk adjustment data.
- Repurchased 0.8M shares for $330M at a weighted-average $398.75/share; diluted shares fell 2.7% Y/Y. Paid a $1.72/share quarterly dividend ($373M total); $5.0B of repurchase authorization remained. The Q4 dividend is $1.72/share, payable 12/18/2026 to shareholders of record 12/4/2026.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Diluted EPS, GAAP | FY2026 | At least $22.00 | — | Raised |
| Adjusted diluted EPS, non-GAAP | FY2026 | At least $29.00 | — | Raised |
| Operating cash flow | FY2026 | At least $6.5B | — | Raised |
| Adjusted diluted EPS growth, non-GAAP | FY2027 | At least 12% Y/Y from a FY2026 baseline of at least $26.753 | — | — |
The FY2027 baseline excludes nonrecurring net investment income and other non-operating items, and targeted one-time investments.
Guidance changes, derived from earlier filings
| Metric | Period | Earlier guidance | Guidance now | Change |
|---|---|---|---|---|
| Diluted EPS, GAAP | FY2026 | At least $20.10 | At least $22.00 | raised |
| Adjusted diluted EPS, non-GAAP | FY2026 | At least $27.00 | At least $29.00 | raised |
| Operating cash flow | FY2026 | At least $6.0B | At least $6.5B | raised |
| Adjusted diluted EPS growth, non-GAAP | FY2027 | At least 12% Y/Y from the 2026 earnings baseline | At least 12% Y/Y from a FY2026 baseline of at least $26.753 | reaffirmed |
Investor Takeaways
- Watch whether the benefit expense ratio and medical membership trends sustain the improved operating performance, particularly as membership declines in Medicare Advantage, Medicaid and employer risk-based plans.
The summary is written by an AI model reading the filing.
Model 005 · prompt v95 · 2026-10-21 14:34:06Z